Charter flights rise in appeal
By Kelly Yamanouchi
Advertiser Staff Writer
The race to the bottom is heating up on Mainland trip prices, with charter-tour operators leading the way as a new tour company opens this month.
Rising fares on major airline flights have led many consumers to look to charter-tour operators for cheaper prices, especially on flights to Las Vegas. The trend led one tour company, Jackie's, to get back into the business, selling trips to Sin City starting this month.
To draw in new customers, Jackie's is advertising an October special, with Vegas packages starting at $299 per person, double occupancy. Other conditions apply.
"I think there is a tremendous market," said president Mike Tanaka. "Maybe not having enough seats to Vegas brought the prices up. We hope to make it affordable to those people who used to go a lot more."
After the October special, prices will range from $359 to $509, Tanaka said.
The increased competition could benefit travelers. But it's not clear whether there are enough Hawai'i residents with Vegas on their minds to sustain all of the charter-tour and vacation-package sellers.
"Could it be that there's too many? There always could be," said Danny Casey, president of the Hawai'i chapter of the American Society of Travel Agents.
Agents note that major airlines offer important differences in convenience and reliability from charter tours.
The super-low fares can be tempting. SunTrips, for example, is promoting a one-way airfare of $199 from Honolulu or Maui to Oakland. Charter-tour operators can offer lower prices through agreements to fill blocks of hotel rooms and aircraft.
With some charter tours, "you can get the whole thing — air, hotel and meals," for less than the price of airfare on a major airline," said Rachel Shimamoto, vice president at Travel Ways in Honolulu.
But travel agents may need to do a lot of explaining before selling a charter-tour package because of the conditions they carry. Many fly to a limited number of locations and don't offer the same flexibility as major airlines such as United, Hawaiian or Aloha.
Charter operators often run a handful of flights a week, or just one, so "if something happens to that airplane, then you don't go. If that plane is delayed for 12 hours, then you're delayed for 12 hours," Casey said. "That's one of the risk elements."
Commercial airlines can transfer a passenger to another flight, even on another carrier, if the flight was missed, delayed or canceled. That's usually not the case with charter-tour flights.
And while the airline industry is far from financially strong, some Hawai'i residents may be leery of charter-tour operators shutting down, after the demise of Jimmy's Travel in 1998.
The closure led the state to launch an investigation and pass legislation to establish more safeguards for charter-tour customers. Owner James K.S. Lee declared corporate bankruptcy, pleaded guilty to first-degree theft and left the state.
As fares rise on major airlines, charter-tour operators may find a growing market. If they can compete and make a profit, "there will be a market for it locally," Casey said.
Reach Kelly Yamanouchi at 535-2470, or at kyamanouchi@honoluluadvertiser.com.
