Hawaiʻi Entrepreneurs: Tapping into the Lucrative Market of Airlines and Hotels

The tourism industry in Hawaiʻi offers a promising market for local entrepreneurs, but breaking into it and expanding production can be challenging.

Jason Brand, the founder of Kō Hana Agricole Rum, experienced this first hand. Starting out, he purchased bottles for his ready-to-drink daiquiris by the pallet. However, as his business grew, he had to buy them by the container load. This shift was made possible through partnerships with two major tourism companies, Hawaiian Airlines and Japan Airlines, who now offer Kō Hana’s locally made, pre-mixed libations to passengers flying to and from Hawaiʻi.

For Brand, these partnerships not only provide a steady stream of revenue and exposure to new customers, but also enhance the credibility of his brand by being associated with major airlines. Alisa Onishi, managing director of Hawaiʻi marketing for Hawaiian and Alaska Airlines, agrees that working with local businesses helps to showcase the unique offerings of Hawaiʻi to visitors.

The success of Kō Hana’s partnership with Hawaiian Airlines serves as a roadmap for other local companies looking to tap into the tourism market. With an average of 250,000 tourists visiting Hawaiʻi every day, there is a captive audience for products sold through business-to-business channels. This includes the 9 million annual airplane passengers and guests in Hawaiʻi’s 44,000 hotel rooms, where amenities like soap and chocolate are given away daily.

Despite the potential for success, many residents have negative feelings towards the tourism industry. The recent “Resident Sentiment Survey” conducted by the Hawaiʻi Department of Business, Economic Development and Tourism revealed that a majority of respondents believe that tourism contributes to the state’s high cost of living and damages the environment. This sentiment has prompted efforts from government officials and tourism executives to promote a regenerative model of tourism that benefits the local economy and environment.

However, tourism executives also recognize the growing demand for local products. According to Jerry Gibson, president of the Hawaiʻi Hotel Alliance and general manager of the Waikīkī Marriott Resort and Spa, hotels are always looking for better and more locally-sourced products to offer their guests.

For small businesses, the challenge lies in meeting the volume and investment demands of working with large companies. Max Mukai, director of business development for the Hawaiian Council, has seen this firsthand through the council’s efforts to connect Native Hawaiian entrepreneurs with hotel supplier Avendra. While Avendra was willing to source from local businesses, the volume and investment requirements were often too much for small startups to handle.

To navigate the business-to-business channel successfully, small businesses can turn to business accelerators like KūHana or Hawaiʻi FoundHer. These programs help businesses determine if they are ready to scale up and meet the demands of large buyers.