Japan as the most matured market in Asia VISIT VUOKATTI - - PowerPoint PPT Presentation

Japan as the most matured market in Asia

VISIT VUOKATTI (KAJAANI-OULUJÄRVI) OPENING SEMINAR

Shigeyoshi Noto Foresight Marketing

Tokyo 38.6 mio Nagoya 7.4 miio Osaka 17 mio

• GDP: World No.3, 4.58 trillion €

(8.2% of world GDP)

• 128 mio population,
• 10th biggest population in the

world

• 3 metropolitan areas (Tokyo

metropolitan area is No.1 in the world）

• 11 cities more than 1mio

population

Geography

The shortcut between Asia and Europe

Flying via Helsinki means the geographically shortest route, smooth and uncongested transits, and straighter flights that generate fewer emissions.

31 weekly flights from Japan

Japanese outbound traveling

The difference between 2 Asian markets

The year of liberalization of overseas traveling

China (1997) Korea (1989)

Japan

(1964)

Matured

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The number of Japanese travelling abroad

(Thousands) Source: Ministry of Justice “Statistics of Immigration Control”

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2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 18 000 20 000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Financial crisis Great East Japan Earthquake Iraq war/ SARS

Number of Overseas Travelers by Month

200 400 600 800 1 000 1 200 1 400 1 600 1 800

Jan. Feb. Mar Apr May Jun Jul Aug Sep Oct Nov Dec

(Thousands) Source: Ministry of Justice “Statistics of Immigration Control”

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Spring holidays Summer holidays Golden Week Silver Week Fiscal year starts

Numbers of Overseas Travelers by Gender and Age Group (2015)

(Thousands) Source: Ministry of Justice “Statistics of Immigration Control”

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293 380 994 1 730 2 252 1 903 1 278 448 285 479 1 542 1 293 1 123 981 883 353

500 1 000 1 500 2 000 2 500 0-9 10-19 20-29 30-39 40-49 50-59 60-69 70+

Male Female

Destinations by Market Segment

East Asia; 24,8% China; 7,2% Southeast Asia; 21,9% U.S. Mainland; 6,4% Canada; 1,3% Hawaii; 10,3% Guam/Saipan; 4,5% South Pacific islands; 0,7% Oceania; 2,5%

Europe/Russia; 16,5%

Latin America & the Caribbean; 1,6% Middle East/Africa etc.; 2,1% No answer; 0,1%

Source: JTB Tourism Research & Consulting Co. “Factual Survey of the Overseas Travel Situations”

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Purpose of Travel

Source: JTB Tourism Research & Consulting Co. “Factual Survey of the Overseas Travel Situations” ”

Tourism; 70,6%

Honeymoon; 3,9% To visit family

• r friends;

5,2% Business trips; 13,0% Training/inspection trips; 1,6% Conference attendance; 1,6% Overseas study/School trips; 1,3% Others; 1,8% No answer; 1,0%

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Travel Reservation Methods

45 51,7 54 56 60,6 58,4 60,8 62,2

26,1 21,3 20,5 19,7 17,4 15,7 17,2 16 14,9 17,3 14 13,5 12,1 12,6 10,1 8,8 5,7 1 0,3 0,2 0,1 0,4 0,4 0,3 11,7 11,5 11,5 10,2 9,5 12,3 11,7 12 5,4 2 3,2 3,2 3,5 3,5 3,7 3

10 20 30 40 50 60 70

2008 2009 2010 2011 2012 2013 2014 2015

Internet Travel agency outlets Mail order/telephone Airlines Don't know because don't book myself Others

Internet

(%) Source: Japan Tourism Marketing Co., “Factual Survey of the Overseas Travel Situation”

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SNS in Japan Jan,2016

Source: Nielsen research

Travel Arrangement by Destination Europe/Russia

Package tour usage was high for both resort-type and touring destinations. The proportion of individually arranged travel did decline from the previous year (2014) and there was a noticeable increase in package-tour usage. 43,5% 37,8% 2,7% 3,1% 52,4% 57,2%

1,0% 1,4% 0,4% 0,5%

0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 % Europe/Russia Overall average Travel Arrangement by Destination (2015)

Package tours Group travel Individually arranged travel Others No answer

(n = 4,302) (n = 710) Source: Japan Tourism Marketing Co., “Factual Survey of the Overseas Travel Situation”

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Factors Hindering Overseas Travel

1,1% 2,5% 3,1% 4,8% 6,8% 7,6% 7,9% 11,6% 11,9% 13,0% 18,1% 19,5% 23,2% 26,1% 29,7% 30,9% 35,1% 39,7% 51,6%

0% 10% 20% 30% 40% 50% 60%

No acceptable tour schedule/itinerary/price Hard to align holidays with desirable companions No one to go with Overseas travel is extravagant Takes too long to get to airport No destination I would like to visit Don't agree with foreign customs like tipping Need to care for family, animals and/or plants Tiresome travel applications and procedures Dislike foreign travel Cannot take time off Concerned I may become ill Anxiety about health Fear of flying Do not like foreign food Costs too much Language concerns Simply don't feel like it Security concerns

“Security concerns” declined but still came top for a fifth year. Concerned

• ver the international

situation and costs declined; those over health grew.

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Source: JTB Tourism Research & Consulting Co. “Opinion Survey of Overseas Travel Preference”

Japanese Travel Trade

10,145 companies in 2013 Category Ⅰ 701 Category Ⅱ 2,869 Category Ⅲ 5,378 Referral Agent 837

How many travel agencies in Japan ?

Organize packages

• Overseas
• Domestic

Sell packages

• Overseas
• Domestic

Ordered

• Overseas
• Domestic

Organize packages

• Domestic

Sell packages

• Overseas
• Domestic

Ordered

• Overseas
• Domestic

Sell packages

• Overseas
• Domestic

Ordered

• Overseas
• Domestic

Consignment sales under the name of travel agents. J.A.T.A.

Structure

Land Operators Travel agents Whole sellers

Accommodations Restaurants Transportation Guides Activities

Retailers Consumers

Airlines

Role of Land (Tour) Operators

• Offices in Japan
• Communication in Japanese
• Frequent sales calls
• Interpretation between local and Japanese culture
• Control package tour itineraries
• Support sales events of agents

Possibility to shift toward direct consumer sales

Travel Agency Act

• Strict consumer protection law
• Indirect influence to you

New trend and new comers

Trippiece (http://trippiece.com) Veltra (http://www.veltra.com/jp/)

Japanese consumer behavior

Japanese generally

• They have very limited linguistic ability
• Well known as good manner people
• Their holidays are quite short

Trend going on

• Group traveling →Individual traveling
• Ordinary sightseeing →Purpose led programs
• Touring around → Single destination

Important Segment – Travel Savvy Seniors

GREY Worldwide Inc. 23

“I don’t want to miss the world’s must-see touching sites/experiences in my life”

Demographics

• 60s +
• Rich senior couples
• Retired

Who they travel with

• Travel on her own
• With Husband, or

Female friends

Important Segment - Culture oriented girls

24

“I like to travel as if I were living like stylish locals…”

Demographics

• 25 – 45 year old female
• mid to high income
• Living in metropolitan areas
• Travel on her own
• With Husband, or Female

friends

Decision making process

• Ladies are decision makers
• Influence by

short-haul destination: word of mouth long-haul destination: HP of tourist offices & agents

Preparation period

• Japanese still appreciate printed materials in

Japanese

• They want to get as much as practical

information such as weather, cloths, transportations, map e.t.c.

• Concrete proposals are more attractive for

them.

During trip

• Smiling is worth while million euro promotion
• Japanese are not so active people.
• Wifi is must service in accommodation
• “Enjoy yourself “ doesn’t work
• We can treat them in local way, but a bit more

explanation

After trip

• They are potential repeat travelers
• Complains come afterward

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