I recently received a note from my friend and industry consulting legend, John Burns, pointing out something we’d rather not admit: the cruise industry is eating our lunch. While hotel occupancy has been flat or declining, cruise lines have surged ahead with aggressive marketing, sharp messaging, and a clear value prop. They’re filling ships through 2026 and already selling 2027. Meanwhile, we’re still blaming vacation rentals and other externalities.
Hotels and destinations would do well to take notes. This isn’t luck, it’s strategy. Cruise lines have stayed focused: consistent branding, big ad buys, and simple messaging that converts.
Meanwhile, Hawaii, as a destination, is still playing catch-up. As we noted last issue, many are practically begging the state and HTA for more marketing dollars, and that plea got louder last week. In a letter to the Governor, major wholesalers (Pleasant Holidays, Delta Vacations, ALG, Classic) warned that Hawaiʻi’s brand has “grown quiet” while other destinations outspend and outmaneuver us.
And in a somewhat related note, just as the cruise sector gains momentum, we’re also finding ways to dampen it. The state’s new “green fee” (which extends TAT to cruise passengers) is now facing a federal lawsuit, backed by the DOJ, arguing it violates maritime law. Cruise lines are also raising concerns over new emissions rules, saying the state lacks the infrastructure to comply.
It’s not that regulations don’t matter; they do. But while cruise lines move forward with a unified strategy and full ships, we’re sending mixed signals: underfunded marketing, muddled messaging (see: “the right tourists”), and policies that suggest we’re not sure we even want the business.
Without serious investment and alignment, we’re not just losing share, we’re handing it over.
