Japan’s travel industry shows modest growth
With inbound tourism up, Japan’s travel market had its second straight year of 6% growth in yen terms, reaching $81 billion, according to a new report from travel industry research authority Phocuswright. This growth rate is expected to continue for the next few years, and is set to reach $92.4 billion by 2017 – securing Japan’s position as Asia Pacific’s second-biggest travel market.
Currency trends have been a mixed bag for the country’s travel sector. While the still-weak yen has helped attract visitors from abroad, it also obliterated the market’s gains upon conversion to U.S. dollars.
“The brightest spot for Japan’s travel industry has been inbound tourism,” says Phocuswright’s senior research analyst, Maggie Rauch. “Especially from China, which accounted for more than one-third of a 3 million inbound trip increase.”
The report’s key findings include:
Airline revenue growth is steady, as online shift and low-cost carrier (LCC) expansion continue. LCC expansion, increased airport capacity and legacy carriers’ push on international routes helped airlines maintain steady growth.
Hotel inventory is tight in the country’s biggest cities, driving up occupancy and average daily rates despite low-single digit overall growth in room nights.
Online travel agency (OTA) market share will continue to rise at supplier expense, primarily through gains in online lodging. However, traditional agencies and airlines’ travel subsidiaries are making more efforts to distribute a variety of travel products online.
Phocuswright’s Japan Online Travel Overview Eighth Edition: Inbound on the Reboundprovides market sizing and forecasts for Japan’s total and online leisure/unmanaged business travel markets from 2014 – 2017. In addition, the report discusses the key trends and developments shaping Japan’s travel and tourism industry.