Don’t mandate flat cab fee from airport to Waikiki

Complaints from guests have inspired Waikiki hoteliers to ask the Honolulu City Council to establish a flat rate for a taxi ride from Honolulu International Airport, in the form of Bill 54, and the Council’s Budget Committee has given it preliminary approval.

Our hope is that Bill 54 runs out of gas before it reaches the full Council next week. Providing a predictable, affordable fare for arriving tourists should be a matter of customer service, not government intervention.

Hotel executives told the Budget Committee they are seeking relief for customers who would like to know before they get off the plane how much they’ll pay to reach their hotels in Waikiki. Outrigger Enterprises executive Max Sword said guests complain "frequently" about being overcharged, and that a flat rate, set at a fare amenable to cabbies, is the best way to ensure a positive experience for both traveler and taxi driver.

This concern is a reasonable one. But legislation is unnecessary. Bill 54 represents an overreach on the part of the hotel industry. If the full Council goes along, it will be intruding with excessive regulation on a transportation and tourism issue that could be solved with business savvy. Better partnerships among the hotels and the taxi companies are a good place to start.

As a city administrator pointed out at the Budget Committee hearing, there’s nothing stopping taxi companies from offering flat rates now, and some do, for around $30 each way. Hotels could highlight these deals as guests make reservations for rooms, the price of which are dictated by market demand. Perhaps hotels could negotiate lower rates based on volume, and make cab fare part of a package deal for guests who prefer that mode of transportation.

During rush hour, cabbies say, the 10-mile trip from the airport to Waikiki can take an hour. When traffic is light, it’s a matter of minutes. The metered fare reportedly ranges from about $30 to $50. We’re confident that the variation in price has more to do with traffic congestion than with unscrupulous drivers. Traffic is something that tourists — even in paradise — should arrive expecting.

Charley’s Taxi President Dale Evans, who opposes the bill, warns that it could exacerbate an existing shortage of taxis at the airport, where drivers already pay a $5-per-ride pickup fee. That fee is assessed by the state, and the city prevents drivers from passing it on to customers. Fewer than 400 cab drivers wait for pickups at the airport now, down from 1,200 in the mid-1990s. When passengers from several large flights disembark at once, travelers sometimes wait up to 45 minutes for a taxi, no doubt steamed by the time they climb in the back seat —and ready to complain to anyone who will listen.

City Council Chair Ernie Martin, who introduced the bill, said, "I think any measure we can take to make it a more pleasurable experience for our tourists should be considered."

The budget committee has considered Bill 54, and now the full Council should let it perish, in favor of a competitive market that will naturally reward taxi companies who publicize and deliver the best deal.