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

Geography • GDP: World No.3, 4.58 trillion € (8.2% of world GDP) Osaka 17 mio • 128 mio population, • 10 th biggest population in the world • 3 metropolitan areas (Tokyo metropolitan area is No.1 in the world ） • 11 cities more than 1mio Tokyo 38.6 mio population Nagoya 7.4 miio

31 weekly flights from Japan 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.

Japanese outbound traveling

The difference between 2 Asian markets The year of liberalization of overseas traveling Matured Japan (1964) Korea (1989) China (1997) 5

The number of Japanese travelling abroad (Thousands) Great East Japan Iraq war/ Financial Earthquake SARS crisis 20 000 18 000 16 000 14 000 12 000 10 000 8 000 6 000 4 000 2 000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Ministry of Justice “Statistics of Immigration Control” 6

Number of Overseas Travelers by Month Summer holidays Spring holidays (Thousands) 1 800 Golden Silver 1 600 Week Week 1 400 1 200 1 000 800 600 400 200 0 Jan. Feb. Mar Apr May Jun Jul Aug Sep Oct Nov Dec Fiscal year starts Source: Ministry of Justice “Statistics of Immigration Control” 7

Numbers of Overseas Travelers by Gender and Age Group (2015) (Thousands) 2 500 2 252 2 000 1 903 1 730 1 542 1 500 1 293 1 278 Male 1 123 Female 994 981 1 000 883 479 500 448 380 353 293 285 0 0-9 10-19 20-29 30-39 40-49 50-59 60-69 70+ Source: Ministry of Justice “Statistics of Immigration Control” 8

Destinations by Market Segment Middle East/Africa etc.; 2,1% Latin America & the No answer; 0,1% Caribbean; 1,6% Europe/Russia; East Asia; 24,8% Oceania; 2,5% 16,5% South Pacific islands; 0,7% China; 7,2% Guam/Saipan; 4,5% Hawaii; 10,3% Southeast Asia; 21,9% U.S. Mainland; 6,4% Canada; 1,3% Source: JTB Tourism Research & Consulting Co. “Factual Survey of the Overseas 9 Travel Situations”

Purpose of Travel Overseas Others; 1,8% study/School trips; Conference 1,3% attendance; 1,6% No answer; 1,0% Training/inspection To visit family trips; 1,6% or friends; Business trips; 5,2% 13,0% Tourism; 70,6% Honeymoon; 3,9% Source: JTB Tourism Research & Consulting Co. “Factual Survey of the Overseas 10 Travel Situations” ”

Travel Reservation Methods 70 Internet Internet 60,6 60,8 62,2 58,4 60 56 Travel agency outlets (%) 54 51,7 50 45 Mail order/telephone 40 30 Airlines 26,1 21,3 19,7 20,5 20 17,3 17,4 17,2 15,7 14,9 Don't know because don't 16 14 11,7 11,7 13,5 12,1 12,6 12 book myself 11,5 10 11,5 10,2 10,1 9,5 12,3 8,8 5,7 3,5 2 3,7 3,2 5,4 3,5 3,2 3 Others 1 0 0,4 0,3 0,2 0,1 0,3 0,4 2008 2009 2010 2011 2012 2013 2014 2015 Source: Japan Tourism Marketing Co., “Factual Survey of the Overseas Travel 11 Situation”

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. Travel Arrangement by Destination (2015) Package tours Group travel Individually arranged travel Others No answer 1,4% 0,5% Overall average 37,8% 3,1% 57,2% (n = 4,302) (n = 710) Europe/Russia 43,5% 2,7% 52,4% 0,4% 1,0% 0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 % Source: Japan Tourism Marketing Co., “Factual Survey of the Overseas Travel 13 Situation”

Factors Hindering Overseas Travel Security concerns 51,6% Simply don't feel like it 39,7% Language concerns 35,1% Costs too much 30,9% Do not like foreign food 29,7% Fear of flying 26,1% Anxiety about health 23,2% Concerned I may become ill 19,5% Cannot take time off 18,1% Dislike foreign travel 13,0% Tiresome travel applications and procedures 11,9% Need to care for family, animals and/or plants 11,6% “Security concerns” declined but still came top Don't agree with foreign customs like tipping 7,9% for a fifth year. Concerned No destination I would like to visit 7,6% over the international Takes too long to get to airport 6,8% situation and costs Overseas travel is extravagant 4,8% declined; those over health grew. No one to go with 3,1% Hard to align holidays with desirable companions 2,5% No acceptable tour schedule/itinerary/price 1,1% 0% 10% 20% 30% 40% 50% 60% Source: JTB Tourism Research & Consulting Co. “Opinion Survey of Overseas Travel Preference” 14

Japanese Travel Trade

How many travel agencies in Japan ? 10,145 companies in J.A.T.A. 2013 Category Ⅰ Category Ⅱ Category Ⅲ Referral Agent 837 701 2,869 5,378 Organize packages Organize packages Sell packages Consignment • • • Overseas Domestic Overseas sales under the • • Domestic Sell packages Domestic name of travel • Sell packages Overseas Ordered agents. • • • Overseas Domestic Overseas • • Domestic Ordered Domestic • Ordered Overseas • • Overseas Domestic • Domestic

Structure Accommodations Travel agents Retailers Restaurants Land Operators Whole sellers Consumers Transportation Airlines Guides Activities

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 Demographics • 60s + • Rich senior couples • Retired “I don’t want to miss the world’s must -see touching sites/experiences in my life” Who they travel with • Travel on her own • With Husband, or Female friends GREY Worldwide Inc. 23

Important Segment - Culture oriented girls Demographics • 25 – 45 year old female • mid to high income • Living in metropolitan areas “I like to travel as if I were living like stylish locals…” • Travel on her own • With Husband, or Female friends 24

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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