Hawaii is fantastic. If you like tropical climates, mountains, beaches, biking, etc, etc, and have the money to do so, you should totally go. That said...it isn't cheap. Just getting there requires about $1000 in airfare (before taxes and fees of course) and now staying in a hotel will cost you, on average, 13% more.
A new study from Smith Travel Research and Hospitality Advisors reports that a hotel in Hawaii now costs more per night than a room in New York or even Miami. A typical hotel room on Maui now averages $296 per night and the Big Island isn't much better at $223.
You might ask why rates are so much higher, and pretty much it is simple supply and demand. People around the globe weren't traveling as much during the recession which has created a bubble that the hotel industry is all too happy to accommodate.
Hotels can change rates almost instantly to reflect changes in demand since they have such standardized features. Vacation Rentals are generally not run this way. Vacation Rentals are owned by a private individual (or company) and they set their rates at the beginning of the year or season. Savvy vacationers can often take advantage of this when hotel rates seem to be rising daily. Vacation Rentals also have more options which families especially can take advantage of. My husband and I went to Maui for our honeymoon and it was great. We did think about renting a hotel, but ended up rented a little studio apartment right on the water for $120 a night and it was perfect. So perfect in fact we have considered going back. This time the trip would be slightly more involved and require more space as we have two kids and we would also be bringing a babysitter (grandma). Now we need at least two hotel rooms which would be about $600 per night and more than likely won't even have an ocean view. Or for the same $600 I can get this property: http://www.perfectplaces.com/vacation-rentals/191305.htm
If you are heading to Hawaii, or even staying a little closer to home, make sure you check out some vacation rentals in the area prior to heading to holidayinn.com, you might be pleasantly surprised at the house you can get for a similar rate and have a great new experience.