AAA's Annual Vacation Costs Survey Shows Honolulu as the USA's Most Expensive Vacation City - Relax, It's Not Nearly as Bad as It Seems

AAA has released their Annual Vacation Costs Survey. Guess which city in the United States has the highest average published prices for meals and lodging for two adults per day?

It's Honolulu, Hawaii at a staggering $673.13 per day. That's $66 per day more than New York City's $606.38 and over $300 more than third place Miami-Miami Beach which comes in at what seems like a bargain price of $370.29.

I was shocked to see that all other U.S. cities came in even less than Miami. In fact, if you're willing to vacation in Tulsa, Oklahoma, you can get away with spending just $178.78 per day for meals and lodging for two adults. I'm thinking that they must have several Motel 6's in Tulsa.

You can download the complete results of AAA's 2008 Vacation Costs Survey in excel format using this link.

Before you go into full panic mode, however, there are some things you should look at before rejecting Hawaii as your vacation destination for 2008.

First, let's look at how AAA's $673.13 figure was calculated:

• Lodging - This represents the average cost for lodging per night, double occupancy, based on the most recent published rates for AAA Approved® accommodations listed in the AAA TourBook® guides. (This does not include all hotels and most condominium rental properties.)
  
  
• Meals - These costs are based on dining at full-service restaurants. When is the last time you ate all three meals in a given day while on vacation at full-service restaurants?

You need to remember that in Honolulu (which includes Waikiki) there are many expensive hotels where room rates can easily cost $350-$400 per night or more. There are, however, many other fine hotels and condominium rentals where you will pay $200 or less per night for a very nice room, many of which include amenities ranging from a small refrigerator to a kitchenette to a full kitchen.

Full-service restaurants, especially those within the finer hotels and resorts are expensive. Breakfast for two can easily cost $50 - $75 and dinner well over $100. There are, however, many other less expensive options for dining - especially if you elect to stay in a condominium rental or room with a kitchenette.

AAA suggests, and is right on target in doing so, that you consider eating your main meal at midday to take advantage of lower lunch prices at restaurants. They also correctly point out that many restaurants also offer children's menus and "early bird" dinner specials at reduced prices.

Over the next couple of months I'll be focusing on ways that you can save money on your Hawaii vacation so that you can still take your dream vacation to paradise in 2008 and beyond. I'll show you how you can easily cut that $673 figure in half and still stay at a great property and enjoy some of Hawaii's excellent island food.

Meanwhile, post your suggestions for how to save money in Hawaii while on vacation in our comments section.