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Monday, March 14, 2005

Wedding firms battle for piece of $200M market

Prabha Natarajan

Pacific Business News

A lack of harmony within Hawaii's romance industry is striking a discordant note even as the state is trying to bring more weddings to the islands.

Hawaii, viewed as one of the most romantic destinations in the world, has an estimated market share of 20 percent -- about $200 million -- of the $1 billion destination wedding industry in the United States.

This market share, up from the 13.5 percent share a decade ago, has generated an uncontrolled surge in the number of wedding planners, ministers, florists, caterers, photographers, limousine companies, chapels and even musicians.

In 1990, there were four wedding coordinators on Maui. Today, there are nearly 300, including full-time planners at hotels and resorts.

The result is increased competition that has mostly benefited couples by keeping pressure on prices. But because there are few barriers to entering the business and little regulation, some in the industry are concerned about an erosion of ethics and professionalism.

"Ethics and integrity are the biggest concern for us," said Haunani Rossi, co-owner of Kauai Aloha Weddings Inc. and co-founder of the Kauai Wedding Professionals Association.

There are stories of brides crying when they find the intimate beach wedding they were promised is actually being held in a public park, or couples troubled to see their wedding planner also serving as minister and photographer. And then there are the dented limos, over-the-hill disc jockeys and stale catered food, along with hidden fees and exorbitant prices, that can turn a Hawaii wedding into a nightmare.

The trend in the industry is destination weddings, where the couple picks an exotic location outside of their daily environment, to get married.

Hawaii is the leader in the choice of a honeymoon destination but comes a distant fourth to Florida, Las Vegas and Jamaica as the site for a wedding, said Tom Curtin, vice president and publisher of Bridal Guide magazine.

In an attempt to woo these couples, state tourism officials have committed to spending $1 million this year in Mainland and Japanese markets. The state's focus on the romance market includes proposals, vow renewals, anniversaries, weddings and honeymoons.

With all the competition, Hawaii can't afford to have bad referrals or brides spewing on the Internet about their bad experience, said Tammy Perkins, president of First Class Weddings Inc. in Kahului, Maui.

Tying the knot for $75

Cheap doesn't necessarily mean bad. More and more multitasking entrepreneurs are offering fast and inexpensive weddings, using the Internet for direct marketing access to customers.

Beach weddings start at $75 on Oahu and $175 on Neighbor Islands, compared to a base price of $400 typically charged by a wedding coordinator. The simple weddings are especially popular with Hawaii military personnel, especially those headed for deployment.

"I keep it real simple and stress free," said Rev. Kermit Rydell, the owner and sole employee of A Beach Wedding $95 on Oahu. "All the couple has to do is tell me, 'I want to do this, this and this' and forget about it. It's not complicated."

Jason Sikorski and Nina Despres of Montreal came to Hawaii on a business trip and decided to tie the knot. Rydell's name popped second in a Google search for Hawaii beach weddings. Sikorski called Rydell, made the arrangements and was married last week at an Ala Moana Beach Park ceremony attended by co-workers.

There's enough business from couples who want to get married on short notice, said Rydell, who works out of his Portlock home.

Last year, he did 723 weddings and brought in $100,000 in revenue. The most expensive wedding cost $3,500. Rydell doesn't do receptions.

Such solo operations frustrate wedding coordinators who have been in the business for years, have a storefront, employees and pay the cost of being a small business in Hawaii.

"A lot of them come and go and have a Vegas feeling; that's not what Maui is about," said Carolee Higashino, president of A White Orchid Wedding Inc. in Wailuku.

Setting some standards

Some wedding planners are trying to set up professional associations to establish standards for members.

"The more communication that happens within the industry the better it is for us," said Sue Kanoho, executive director of the Kauai Visitors Bureau.

The Kauai Wedding Professionals Association has 50 members, but is far from representing all wedding businesses on the island. Maui created a similar group and Oahu is working on one.

Competitors such as the island nations in the Caribbean have taken similar steps. Operators in the 34 Caribbean nations banded together to form the Caribbean Wedding Association, with a stated mission of education and certification of its members.

These associations set guidelines for service levels and are a way for the industry to be self-governed, said Susan O'Donnell, president of Aloha Wedding Planners in Honolulu, who is spearheading the effort to start an Oahu trade group.

Some wonder if that's enough.

It's easy to pay $75 in dues and get on the association's approved-members list but that doesn't make a member a professional business that will offer high-quality services, said Perkins, the owner of First Class Weddings.

"There's no resources to help learn more about the industry and apply it on the job," Perkins said.

Reach Prabha Natarajan at 955-8041 or pnatarajan@bizjournals.com.