Despite Weak Yen, Japan's Travel Industry Shows Modest Growth

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." 

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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.

Purchase Phocuswright's Japan Online Travel Overview Eighth Edition: Inbound on the Rebound for a comprehensive look at this unique and complex travel marketplace.