Japan Outbound Travel 2007Increasing Outbound to 20 million by 2010
Masato Takamatsu
Director and Vice President, Marketing (JTM)JATA World Tourism Congress
Tokyo, September 13th , 2007
1. Current Outbound Travel Market
2. Travel Style
3. Key Market Segments
4. Recent Topics in Japan
5. Approach To Japanese Travel Companies
Content
1. Current Outbound Travel Market
2. Travel Style
3. Key Market Segments
4. Recent Topics in Japan
5. Approach To Japanese Travel Companies
Content
1. Current Outbound Travel Market
11,791 11,934
13,579
15,29815,806
16,358
17,819
16,216 16,523
10,634
13,296
16,83116,80316,695
10,997
17,404 17,535
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Thousand persons
Japanese International Departure
Gulf WarOpening
of Kansai
Airport
Highest Yen
appreciation
in history
Asian Financial
Crisis and
implementation
of 5% service
tax
9.11
Terrorist
Attack
SARS
Source: Ministry of Justice, arranged by JTM
1. Current Outbound Travel Market
4.3 4.1 4.9 5.26.0
6.8 7.6 7.7 7.3 7.7 8.37.3 7.4
5.77.3 7.7 7.6
6.7 6.5
8.4
9.1 9.18.5
8.7
9.5
8.9 9.1
7.6
9.59.7 9.9
6.86.9
7.5
0
2
4
6
8
10
12
14
16
18
20
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Million
Male
Female
Source:Ministry of Justice
Overseas Departures by Gender (1990-2006)
Slow Recovery of Women vs. Growth of Male Market
1. Current Outbound Travel Market
2.84.1
10.4
26.5
3.4
22.0
15.3
18.920.9
5.0
8.59.0
15.0
2.7
5.4
13.1
0
5
10
15
20
25
30
0~9 10~19 20~29 30~39 40~49 50~59 60~69 70~
Male Female
Source: Ministry of Justice
in hundred thousand
Departures by Gender and Age-Group (2000)
1. Current Outbound Travel Market
4.85.9
15.7
5.2
24.3
22.0
14.7
27.9
23.1
5.0
11.312.1
17.3
2.9
7.7
12.7
0
5
10
15
20
25
30
0~9 10~19 20~29 30~39 40~49 50~59 60~69 70~
Male Female
Source: Ministry of Justice
in hundred thousand
Departures by Gender and Age-Group (2006)
1. Current Outbound Travel Market
Percentage Change from 2000 to 2006
Age groups Male Female
0~9 2.9% 2.6%
10~19 -8.7% -13.8%
20~29 -24.8% -31.0%
30~39 5.8% 8.3%
40~49 16.7% 4.9%
50~59 7.2% -5.8%
60~69 14.2% 8.2%
70+ 17.5% 23.3%
Source: Ministry of Justice “Statistics on Immigration Control”
1. Current Outbound Travel Market
Departure Ratio by Gender and Age-Group (2006)
4.85.9
14.715.7
5.25
24.3 23.1
27.9
22
11.3
7.7
17.3
12.1 12.7
2.9
0
5
10
15
20
25
30
0~9 10~19 20~29 30~39 40~49 50~59 60~69 70~
Male Female
Source: Ministry of Justice
1. Current Outbound Travel Market
Departures by Age and Gender from 1990 to 2006
Source: Ministry of Justice “Statistics on Immigration Control”
6.6
7.1
7.8
8.6
9.7
10.4
10.7
11.7
12.1
12.6
12.9
12.3
11.7
11.6
11.5
11.8
12.6
12.5
12.2
10.6
11.1
12.8
13.3
14.5
16.3
12.0
11.8
11.7
10.3
9.5
9.8
9.8
9.9
9.1
8.7
8.6
7.7
7.1
6.8
6.6
6.4
10.4
11.3
12.7
14.9
16.5
17.4
17.5
16.7
15.8
9.3
9.3
8.9
8.4
7.9
6.7
5.9
5.4
5.4
5.1
4.9
5.2
5.8
5.6
5.5
5.2
7.0
6.8
7.3
7.3
6.7
6.1
5.9
5.4
4.8
7.1
6.7
6.7
6.3
5.5
5.1
4.7
4.2
3.814.0
11.0
11.0
6.0
7.0
5.0
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2006
2004
2002
2000
1998
1996
1994
1992
1990
Male 0~9 10~19 20~29 30~39 40~49 50~59 60~Female 0~9 10~19 20~29 30~39 40~49 50~59 60~
1. Current Outbound Travel Market
Source: Ministry of Justice “Statistics on Immigration Control”
0
500
1,000
1,500
2,000
2,500
2000 2001 2002 2003 2004 2005 2006
20 to 29 30 to 39 40 to 49 50 to 59 60 +
Thousand persons
Male Age Groups Departure (2006)
1. Current Outbound Travel Market
0
500
1,000
1,500
2,000
2,500
3,000
2000 2001 2002 2003 2004 2005 2006
20 to 29 30 to 39 40 to 49 50 to 59 60 +
Thousand persons
Female Age Groups Departure (2006)
Source: Ministry of Justice “Statistics on Immigration Control”
1. Current Outbound Travel Market
Share of Airline Seat Supply by Airports (2006)
50.4
54.7
58.5
56.2
54.9
25.4
21.9
22.3
22.2
10.2
9.6
9.1
9.6
10.7
5.1
5.1
4.4
4.6
8.9
7.5
6.1
7.3
7.655.0
22.0
23.2
11.0
4.5
4.0 8.0
0% 20% 40% 60% 80% 100%
2001
2002
2003
2004
2005
2006
Narita Kansai Nagoya Fukuoka Other
Source: Ministry of Justice “Statistics on Immigration Control”
1. Current Outbound Travel Market
Airport / Port No. of
Persons
Growth
Narita 9,636,548 0.6%
Kansai 3,861,045 0%
Nagoya 1,925,881 3.6%
Fukuoka 702,339 -9.6%
Haneda 422,829 17.6%
Hakata Port 136,833 -15.4%
Hiroshima 135,551 15.3%
New Chitose 110,389 -2.9%
Sendai 102,270 3.0%
Niigata 72,366 3.0%
Okayama 86,662 8.0%
Share for Airports / Port (2006)
New Chitose
Niigata
Okayama
Hiroshima
Fukuoka
Kansai
Chubu
Haneda
Narita
Sendai
Source: Ministry of Justice “Statistics on Immigration Control”
1. Current Outbound Travel Market
(1) Tokyo – 25.35%
(2) Kanagawa – 21.5%
(3) Chiba – 18.1%
(8) Saitama – 15.19%(5) Aichi -16.11%
(4) Nara – 16.35%
(6) Osaka – 15.6%
(7) Hyogo – 15.4%
(9) Kyoto – 15.07%
(10) Fukuoka – 11.04%
Top 10 Departure Ratio by Prefecture
Source: Ministry of Justice “Statistics on Immigration Control”
1. Current Outbound Travel Market
Top 20 Destinations (1)
Ranking (2006) Country Arrivals (Thousand)
1 China 3,746
2 Korea 2,339
3 Hawaii 1,374
4 U.S Mainland 1,345
5 Hong Kong 1,311
6 Thailand 1,294
7 Taiwan 1,164
8 Guam 953
9 Australia 653
10 France 647
Source: National (Regional) tourist offices
1. Current Outbound Travel Market
Ranking (2006) Country Arrival (Thousand)
11 Switzerland 596
12 Singapore 594
13 The Philippines 422
14 Canada 386
15 Vietnam 384
16 Malaysia 354
17 U.K 323
18 Saipan 270
19 Austria 268
20 Spain 261
Source: National (Regional) tourist offices
Top 20 Destinations (2)
1. Current Outbound Travel Market
Japanese Arrival by Destination (1)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
U.S Mainland China Korea Hawaii Hong Kong
2000 2001 2002 2003 2004 2005 2006
Thousand persons
Source: National (Regional) tourist offices
1. Current Outbound Travel Market
Japanese Arrival by Destination (2)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Taiwan Singapore Thailand Guam Australia
2000 2001 2002 2003 2004 2005 2006
Thousand persons
Source: National (Regional) tourist offices
1. Current Outbound Travel Market
Growth Rates of Japanese Visitor Arrival (1)
Asia 2005/2004 2006/2005
Korea -0.1 -4.1
China 1.7 10.5
Hong Kong 7.5 8.3
Macau 38.4 30.2
Taiwan 26.6 3.3
Singapore -1.7 1.0
Malaysia 12.8 4.2
Thailand -0.5 8.9
Vietnam 20.0 19.7
The Philippines 8.7 1.5
Americas 2005/2004 2006/2005
Canada 2.2 -8.7
U.S.A 3.6 -5.4
Hawaii 2.4 -9.4
Guam 5.4 -0.3
Source: National (Regional) tourist offices
1. Current Outbound Travel Market
Europe 2005/2004 2006/2005
Austria 8.6 -3.9
France 3.9 -3.0
Germany 2.1 5.3
Italy -3.4 -
Spain 15.1 44.2
Switzerland - 1.8
U.K -4.4 -2.7
Pacific 2005/2004 2006/2005
Saipan -7.8 -23.3
Australia -3.5 -5.0
New Zealand -6.1 -12.0
Growth Rates of Japanese Visitor Arrival (2)
Source: National (Regional) tourist offices
1. Current Outbound Travel Market
2. Travel Style
3. Key Market Segments
4. Recent Topics in Japan
5. Approach To Japanese Travel Companies
Content
2. Travel Style
Holidays & Seasonality for Outbound Travel
0
200
400
600
800
1000
1200
1400
1600
1800
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Spring
Break
Mar20 -
Aprl5
Golden
Week
Apr29 -
May 5
End of year
New Year
Dec29 -
Jan 3
Summer
VacationJul20 - Aug31
O-Bon
Aug10 to Aug15
End of year
New Year
Dec29 -
Jan 3
in thousands
Source: Ministry of Justice “Statistics on Immigration Control”
2. Travel Style
Survey Outline
1.Factual Survey of the Overseas Travel Situation
1.1 Respondents
Individual men and women who traveled overseas in 2006, live in
Tokyo, Osaka, Aichi and are of at least 15 years old.
1.2 Methodology
Respondents with experienced overseas travel in 2006 selected
by Internet survey. (Telephone survey until 2005) Questionnaires
were mailed by post to the respondents and returned upon
completion.
1.3 Period
April 2007
1.4 Valid Sample Size
2,719 respondents (person)
4,179 respondents (trip)
2. Travel Style
Purpose of Travel Overseas (1997-2006)
77.9
74.2
72.9
71.9
74.4
72.2
74.6
72.4
77.7
12.9
17.6
16.8
14.6
15.3
18.5
17.9
16.6
6.4
7.3
7.7
8.4
8.5
7.9
7.3
6.5
5.7
75.0
18.0
17.0
5.0
0% 20% 40% 60% 80% 100%
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Leisure Travel Business Travel Other
Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
2. Travel Style
Purpose of Travel by Destination (2006)
77.7
78.9
53.5
74.2
59.8
89.5
90.3
82.4
80.7
79.1
74.3
88.5
16.6
41.2
16.9
32.2
5.3
2.2
1.2
2.9
6.3
13.6
11.4
90.0
8.0
15.0
0% 20% 40% 60% 80% 100%
Overall
East Asia
China
South-East Asia
U.S Mainland
Canada
Hawaii
Guam, Saipan
South Pacific Islands
Oceania
Europe, Russia
South America
Middle East, Africa and others
Leisure Travel Business Travel Other
Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
2. Travel Style
Travel Duration (2000-2006)
22.3
30.1
35.9
38.6
33.6
26.2
6.5
4.5
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2000
2006
1-4 days 5-7 days 8-14 days 15 days and over
Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
2. Travel Style
Travel Duration by Destination (2006)
Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
78.7
59.7
43.9
19.0
5.9
5.5
4.6
38.9
18.2
36.8
37.1
57.2
71.4
55.9
56.4
48.6
27.0
44.7
18.2
14.2
26.3
3.5
15.7
19.0
20.8
32.4
32.7
35.6
62.9
51.3
66.7
76.1
4.5
4.8
11.2
8.6
3.9
15.2
8.8
30.3
0% 20% 40% 60% 80% 100%
Overall
East Asia
Guam, Saipan
China
South-East Asia
Haw aii
South Pacif ic Islands
Oceania
U.S. mainland
Europe, Russia
Canada
South America
Middle East, Africa and others
1-4 days 5-7 days 8-14 days 15 days and above
2. Travel Style
Travel Companions (2006)
Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
2. Travel Style
Travel Companions by Destination
Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
22.7
19.1
20.3
21.1
28.1
14.3
44.1
30.9
30.7
31.4
38.1
22.9
20.2
10.2
16.9
31.6
42.8
50.4
17.6
30.9
19.6
17.7
4.1
2.5
2.9
2.9
7.9
3.6
2.3
3.1
7.4
2.9
3.5
21.1
27.6
19.7
24.5
14.1
18.4
18.1
21.7
23.5
12.1
19.1
5.7
16.8
10.6
12.5
21.3
9.5
3.9
4.2
8.1
4.9
6.4
2.9
6.2
17.4
16.4
24.1
23.9
22.4
2.9
20.6
28.6
16.8
17.8
15.0
20.0
19.0
4.0
19.0
13.0
23.0
0% 20% 40% 60% 80% 100%
Overall
East Asia
China
South-East Asia
U.S. mainland
Canada
Hawaii
Guam, Saipan
South Pacific Islands
Oceania
Europe, Russia
South America
Middle East, Africa and others
Husband or wife Family/relatives Mother and daughter
Friends/acquaintances Fellow employees Alone
2. Travel Style
50.7
67.3
90.6
10.3
3.5
4.3
14.8
4.4
35.0
4.3
44.4
38.2
26.8
5.2
78.3
78.3
27.8
6.7
2.9
6.9
17.0
26.0
13.0
13.0
5.0 34.0
82.8
0% 20% 40% 60% 80% 100%
Overall
Holiday
Honeymoon
Visiting family and friends
Business trips
Research and field trips
Conferences and meetings
Exchange trips
Package tours Group travel Individually arranged travel Others
Travel Arrangement by Purpose (2006)
Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
2. Travel Style
56.6
56.9
43.9
12.9
7.6
8.9
16.5
20.1
28.3
46.2
11.5
5.3
6.3
4.2
7.5
67.0
59.0
4.9 34.1
0% 20% 40% 60% 80% 100%
Once
2~3 times
4~5 times
6~9 times
10 times and above
Package tours Group travel Individually arranged travel Others
Travel Arrangement by Travel Experience (2006)
Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
2. Travel Style
Travel Arrangement by Destination (2006)
50.7
52.8
38.2
45.2
22.7
55.3
66.9
72.5
70.6
59.2
51.1
48.6
69.9
4.4
5.2
6.5
4.0
6.6
8.8
7.2
2.6
38.2
36.2
44.0
45.3
64.4
38.2
24.4
15.1
20.6
27.4
40.0
40.0
23.0
6.7
5.7
11.4
6.1
8.9
5.2
4.7
5.9
6.2
6.3
11.4
6.2
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Overall
East Asia
China
South-East Asia
U.S. mainland
Canada
Hawaii
Guam, Saipan
South Pacific Islands
Oceania
Europe, Russia
South America
Middle east, Africa and Others
Package Tours Group TravelIndividually Arranged Travel Others
Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
2. Travel Style
Travel Reservation Method (2006)
%
Internet
38.0%
Travel agent
30.5%
Mail order,
telephone
17.1%
Airlines
4.8%
Other
4.8%
Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
2. Travel Style
Travel Reservation Method (2001-2006)
0
5
10
15
20
25
30
35
40
45
50
2001 2002 2003 2004 2005 2006
Travel firms Internet Mail order/telephone Airlines Others
%
Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
2. Travel Style
Travel Reservation Method
by Overseas Travel Experience (2006)
0
5
10
15
20
25
30
35
40
45
50
1 time 2-3 times 4-5 times 6-9 times 10+ times
Travel firms Internet Mail order, telephone Airlines Others
Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
%
2. Travel Style
Travel Reservation Method by Market Segment (2006)
Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
29.6
47.6
37.2
39.3
33.1
30.5
38.9
51.4
40.8
31.8
39.4
27.3
33.3
25.3
32.9
29.4
27.1
29.1
39.7
22.6
33.6
43.0
29.4
26.9
14.1
10.0
13.0
18.0
27.1
8.5
11.1
15.2
16.6
18.4
18.4
25.5
7.0
3.0
6.5
5.5
3.8
7.8
4.2
4.0
4.4
3.8
0% 20% 40% 60% 80% 100%
Male students
Single men
Married men
Middle-aged men
Elderly men
Female students
Single women (15-29)
Single women (30-44)
Married women-employed
Married women-housewives
Middle-aged women
Elderly women
Internet Travel firm Mail order, telephone Airlines
1. Current Outbound Travel Market
2. Travel Style
3. Key Market Segments
4. Recent Topics in Japan
5. Approach To Japanese Travel Companies
Content
3. Key Market Segments
3.1 Baby Boomers
3.1 Baby Boomers
3. Key Market Segments
3.1 Baby Boomers
Japanese Population 2006
0~ 4
5~ 9
10~14
15~19
20~24
25~29
30~34
35~39
40~44
45~49
50~54
55~59
60~64
65~69
70~74
75~79
80+
6,000 5,000 4,000 3,000 2,000 1,000 0 1,000 2,000 3,000 4,000 5,000 6,000
MaleFemale
Baby boomers
Source: Ministry of Justice “Statistics on Immigration Control”
Baby Boomers
Born between (1946-1951) / Current market share of 8.5%
3. Key Market Segments
3.1 Baby Boomers
0 20000 40000 60000 80000 100000 120000 140000 160000 180000
Tokyo
Kanagawa
Osaka
Aichi
Chiba
Saitama
Hyogo
Fukuoka
Shizuoka
Kyoto
Ibaraki
Hokkaido
Hiroshima
Gifu
Nara
Male
Female
Top 15 Prefectures of Departure for Baby Boomers
Source: Japan bluebook 2006/2007
Persons
3. Key Market Segments
3.1 Baby Boomers
Financial Background of Baby BoomerYearly Disposable Income
Source: Statistical data book on the Life Consciousness of Mature people 2006
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
under 5M 5-10M 10-15M 15+M
Million yen
3. Key Market Segments
3.1 Baby Boomers
Current employment situation
55-59 age group
Source: Statistical data book on the Life Consciousness of Mature people 2006
46.3
34.2
7.2
4.95.2 2.3
Company employed
Casual employed
Self-employed
Other
Don't know
Don't understand
%
3. Key Market Segments
3.1 Baby Boomers
Source: Statistical data book on the Life Consciousness of Mature people 2006
Reasons for Desires to Continue Employment
0 10 20 30 40 50 60
Don't understand
Other reasons
Don't want to stay at home
Work is one's life
To be active and healthy
Use one's experience and skills
Contribute to the society
Play a role in the society
Necessity to live
%
3. Key Market Segments
3.1 Baby Boomers
Characteristics of Baby Boomer
1. Concerns for the health and the environment Purchasing organic foods, vitamins and supplements. Volunteering in NPO
environmental activities.
2. Desire to feel young Their heart is still young and they want to look young.
3. Importance of safety and independence High concerns in regards to security and do not want to become a burden on
their children.
4. Enjoy living Strong feelings of doing what they like.
5. Intellectual curiosity Desire to study intellectual materials i.e. arts, classical concerts.
6. Contributing to the society Even after retiring they still desire to contribute to the society i.e. through NPO
activities.
7. Distinct preferences
Desire to have their own individual preferences met.
3. Key Market Segments
3.1 Baby Boomers
Preferences when Traveling
Source: 2006 Leisure White Book – Baby boomers, 2007 issues and future trend in holidays
%0 10 20 30 40 50 60 70 80 90 100
I want to see nature
I want to visit traditional rather than modern places
I want to go to a place I haven't been to
I want to go with campanions
I want to stay 2 nights or more
I want to study about the destination before I go
I want to explore places in depth
I prefer quality rather than price
I want to arrange the trip myself
I want a trip filled with experiences rather than justobservation
Male
Female
3. Key Market Segments
3.1 Baby Boomers
Baby Boomer Style of Travel
In all surveys conducted in the past, results reveal that to ‘travel’ is the most preferred
activity after retirement.
Travel companions will depend on the activities at the destination.
Famous and historical places for sightseeing, resorts and spas
⇒couples
Climbing mountains, golf, diving, sports and hobby related travels
⇒ individual or with friends
Spring and Autumn are the popular seasons after the busy seasons.
For 60+ years over 50% stay over 7 days in their trips, 50+ years 5-7 days is most
popular with around 30% preferring over 7 days.
Prefer a trip that can provide relaxation, i.e. hot springs, natural scenery, famous and
historical places.
Motivation for trips: making past dreams become reality, continuing dreams and taking
trips that reminds the „Good Old Days‟
Traveling with the family
3. Key Market Segments
3.1 Baby Boomers
55
46
49
32
17
18
57
52
41
33
34
39
29
16
12
24
30
39
21
48
Nature scenery
Staying in hot spring
Enjoying the traditional foods
Visiting famous and historical places
Driving
Visiting the traditional streets of the destination
Visiting world heritage sites
Going sight-seeing at a well-known place
Staying at a resort
Outdoor activities
Male
Female
Baby Boomer
- Activities Desired on Trips in the Next 10 Years
Source: 2006 Leisure White Book – Baby boomers, 2007 issues and future trend in holidays
3. Key Market Segments
3.2 Female Travelers
3.2 Female Travelers
3. Key Market Segments
3.2 Female Travelers
0.0
0.5
1.0
1.5
2.0
2.5
3.0
1975 1980 1985 1990 1995 2000 2005
Million
Fall in Female Travelers 20s Age Group
Source: Ministry of Justice “Statistics on Immigration Control”
3. Key Market Segments
3.2 Female Travelers
The Departure Ratio of Women in their 20s and 30s
0
5
10
15
20
25
30
35
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
20-29 30-39
Source: Ministry of Justice, arranged by JTM
3. Key Market Segments
3.2 Female Travelers
Reasons for Changes
① Continuous decline in this population
② Unstable employment and lower income
③ The extra costs of living compared with
previous generations, i.e. mobile phone
3. Key Market Segments
3.2 Female Travelers
Previous travel experience
(Avg. No.)
No. of overseas trips in the
previous year (Avg. No.)
Single women
(30-44)13.0 1.6
Married women
(employed)11.9 1.4
Married women
(housewives)11.3 1.2
Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
30s Female Today
Background for their frequent overseas travel.
Increased share of singles.
Presently 30+% of women between ages 30-34 and 20%+ of women between 35-39
are not married.
Fewer children to look after.
Less than 30% of women aged 30-34 have children, and 50% of married women
between 35-39 have children.
Rich travel experience during 1990s when they were in their 20s
3. Key Market Segments
3.2 Female Travelers
Destinations for the Single Females
25.5
17.3
8.2
4.5
4.1
3.3
2.9
2.9
0.4
0.4
25.1
5.3
0 5 10 15 20 25 30
Europe/Russia
East Asia
Southeast Asia
Hawaii
U.S Mainland
Canada
China
Oceania
Guam/Saipan
Middle East/Africa, etc
South Pacific Islands
Central and South America
Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
3. Key Market Segments
3.2 Female Travelers
Activities Undertaken at Destination
30
69.0
58
55
55
28
28
15
9
7
8
0 10 20 30 40 50 60 70 80
Shopping
Natural and scenic attractions
Gourmet sampling
Historic and cultural attractions
Rest and relaxation
Art galleries and museums
Beauty treatments/Massage
Theatre performances
Visiting family/friends
Theme parks
Night tours
Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
%
3. Key Market Segments
3.2 Female Travelers
Travel Reservation Method
51.4
22.6
15.2
7.8
1.6
12.3
0 10 20 30 40 50 60
Internet
Travel firms
Mail order/telephone
Don't know
Airlines
Others
%
Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
3. Key Market Segments
3.2 Female Travelers
Travel Arrangements
Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
1. Current Outbound Travel Market
2. Travel Style
3. Key Market Segments
4. Recent Topics in Japan
5. Approach To Japanese Travel Companies
Content
4. Recent Topics in Japan
Asia Gateway
International Airfare Deregulation in Japan
22nd June 2007: Japanese Government announced its
consideration of international airfare deregulation
Purposes
1. Strengthening Asia as a whole, deregulating, increasing trade knowledge
and networking
2. Further communication Japan to Asia-products, people and places.
3. Increasing Japan‟s cooperation with major researches and projects to do
with international issues.
Current Actions
Revision of existing price restriction and approval of airfare pricing
Foreign LCCs may enter the market
spur competition
increasing consumer convenience
4. Recent Topics in Japan
Deregulation in IT Charter Flight SystemDeregulation of ITC (Inclusive Tour Charter)
⇒ Announced 2007 May 31st , by the Ministry of Land, Infrastructure and Transport.
Northern lights, Swiss hiking, the red maple leaves in Canada and China are current destinations tour operators are focusing on.
Old Regulation New Regulation Opportunities
One is required to stay at the
carrier‟s country of location
No stay requirement The use of foreign carriers in
tour packages
All accommodation is required
to be pre-arranged
Only 50% of accommodation
needs to be pre-arranged
Some free nights can be
included into tour packages
Carriers are only permitted from
country of departure or arrival
Third country airline is permitted Wider selection of choice and
supply
Operation frequency is
restricted
Where there is no schedule on
the route, no restrictions for
same day operations
Pave the way for future
scheduled services
4. Recent Topics in Japan
Low Cost CarriersAll Nippon Airlines
Announced to launch up a LCC, targeting the
Japanese-Asian market
Korean Airlines
Plans to launch LCC within the next 3 years
Jetstar (Australia)
Already operating:
Brisbane ↔ Osaka
Sydney ↔ Osaka
Economy airfares:
USD$240 – USD$300 (excluding tax)
Cairns ↔ Nagoya
Economy fares:
USD$240 (excluding tax)
Starting from Oct, 8th 2007:
Cairns ↔ Osaka
4. Recent Topics in Japan
Obstacles and the Usage of Regional Airports
Lack of slots at main airports
usage of regional airports
Restriction of slots
(mainly Narita and Haneda)
High cost of main airport use
(landing / hard standing fees)
Narita
Haneda
Kansai
Hiroshima
Sendai
Niigata
Okayama
New Chitose
Chubu
Fukuoka
4. Recent Topics in Japan
Purpose of survey:
consider the viewpoints of senders and receivers and seek the issues
that are Japan is facing in the overseas travel market
Questionnaire for JATA World Tourism Congress 2007
4. Recent Topics in Japan
Strengths Weaknesses
Japanese good manners Depreciation of the Yen
High credibility in payment Low profitability
High contribution to the visitor arrival Decrease in personal income
Stagnant economic growth
Japan’s business standards compared with global standards
⇒ Japanese business practices are considered to be different
Overall 90% Suppliers 50% Travel Agencies 30%
⇒ Deposits and bloc allotments to most differ, at 60% and 46% respectively
⇒ However, Japanese business practices will not be an obstacle to expand
its outbound market
Suppliers 50% Travel Agencies 70%
Revitalizing Japan’s outbound market
4. Recent Topics in Japan
Supplier travel agencies or tour wholesalers that
loaded the inventory, it has contracted
into own database
Supplier several, different supplier inventory
management systems
Vendor/Provider only travel agents and wholesalers
Vendor/Provider any company having a system to
directly access multiple inventory management
systems from suppliers
Pricing/Change of Rates depends on travel agent‟s or
wholesaler‟s sales volume
(inclusive tour fares)
Pricingbased on most updated availability by suppliers
(i.e. hotels, airlines)
(individually published fares)
Changes of Rates according to supplier‟s revenue
management policies
Customer combines travel available components
from preferred travel agency or
wholesaler
Customer builds own tour package by choosing
best product and price from several,
different suppliers
D
y
n
a
m
i
c
P
a
c
k
a
g
i
n
g
4. Recent Topics in Japan
Supplier travel agencies or tour wholesalers that
loaded the inventory it has contracted
into own database
Supplier several, different supplier inventory
management systems
Vendor/Provider only travel agents and wholesalers
Vendor/Provider Any company having a system to
directly access multiple inventory management
systems from suppliers
Pricing/Change of Rates Depends on travel agent‟s or
wholesaler‟s sales volume
(inclusive tour fares)
Pricingbased on most updated availability by suppliers
(i.e. hotels, airlines)
(individually published fares)
Changes of Rates according to supplier‟s revenue
management policies
Customer combines travel available components
from preferred travel agency or
wholesaler
Customer Builds own tour package by choosing
best product and price from several,
different suppliers
Differences:
distribution systems
international airfare
range of products offered to customer
4. Recent Topics in Japan
Dynamic Packaging in JapanDynamic Packaging in JapanAwareness and opinions of consumers.
Awareness,
January 2007
Information source
Reasons for use
Don't know
72.7%
Know but
don't use
23.8%
Know and use
3.5%
Source: Travel Journal, Jan. 1.8, 2007
4. Recent Topics in Japan
Dynamic Packaging in JapanDynamic Packaging in Japan
1.5
1.6
12.2
14.8
0% 2% 4% 6% 8% 10% 12% 14% 16%
Internet-search
Pop-ups
Newspaper
articles
Word-of-mouth
Source: Travel Journal, Jan. 1.8, 2007
Awareness and opinions of consumers.
Awareness,
January 2007
Information source
Reasons for use
4. Recent Topics in Japan
Dynamic Packaging in JapanDynamic Packaging in Japan
18.1
8.8
25.8
35.7
54.9
69.1
0% 20% 40% 60% 80%
Price
Loyalty to company
Detailed information
Online booking and payment
Selection of sights
Other than sight-seeing
Source: Travel Journal, Jan. 1.8, 2007
Awareness and opinions of consumers.
Awareness,
January 2007
Information source
Reasons for use
1. Current Outbound Travel Market
2. Travel Style
3. Key Market Segments
4. Recent Topics in Japan
5. Approach To Japanese Travel Companies
Content
5. Approach to Japanese Travel Companies
Type
General Travel Company
Retail Company
In-house Agency
Wholesaler
Direct Marketing Company
(Media Sales)
Online Travel Agent
Business Travel Management
Company
Leis
ure
FIT
(Air / H
ote
l)
Pa
cka
ge
Wh
ole
sale
Pa
cka
ge
Re
tail
Dire
ct P
KG
Sale
s
Bu
sin
ess
Tra
ve
l
Gro
up/
Ince
ntive
Business Domain Business fields handled by some companies of the type
Travel Companies in Japan
5. Approach to Japanese Travel Companies
Types of Travel Agencies by Registration
and Designated Services
Classifications
of Reservation
To organize
(produce)
Wholesale
Package Tour
To retail Package
Tour
To make Travel
Arrangements for
the client as an
agent
To handle
Overseas
Visitors
Inter-
nationalDomestic
Inter-
nationalDomestic
Inter-
nationalDomestic
1st category
2nd category×
3rd category×
Sub-Agents for
Travel Agencies× × ×
www.jata-net.or.jp/english/membership/index-m.htm
5. Approach to Japanese Travel Companies
Number of Registered Japanese Travel Agencies
Year
Travel Agencies CategoryTravel-
Sub agenciesTotal
1st 2nd 3rd
2000 874 2,747 6,090 1,358 11,069
2001 868 2,762 6,188 1,308 11,126
2002 855 2,780 6,312 1,201 11,148
2003 841 2,782 6,314 1,129 11,066
2004 784 2,765 6,259 1,061 10,869
2005 781 2,727 6,179 1,015 10,702
2006 817 2,757 6,088 959 10,621
5. Approach to Japanese Travel Companies
Package Tour Distribution Channel in Japan
Airlines
Hotels
Other Suppliers
Bus/Rail
Restaurants
Tour Guides
Attractions
Duty free & Shopping
ConsumersLand
operator
s
WholesalersJTB World Vacations
Kinki Nippon Tourist
NTA
JALPAK,
ANA Sales
Nippon Express
RetailJTB Group
KNT
NTA
H.I.S.
PTS
Call Center
Web Site
Online AgentDirect Marketing
CompanyClub Tourism
Nikko Travel
World Air & Sea Service
Hankyu Trapics
JTB Tabi-monogatari
Airline seat
distributors
International
Offices of
Major Travel
Companies
Thank you for your kind
attention!
Masato Takamatsu
Director and Vice President, Marketing (JTM)JATA World Tourism Congress
Tokyo, September 13th , 2007