JTB, a leading Japanese travel company, announced that consolidated sales for FY2024 ending March 31 2025 slightly reduced by 1% year on year to 1,073 billion yen, achieving more 1,000 billion yen in sales for two consecutive fiscal years. With 10.8 billion yen more operating expenses than a year ago for strategic investments, operating profit was down 51% to 14.9 billion yen, and net profit down 61% to 8.6 billion yen.
The posted operating profit, however, was 28% more than initially planned. Eijiro Yamakita, JTB CEO, explained that JTB had invested to human resource development, system renewals, DX developments and innovation creation as it initially planned as one of efforts for the business structure reform. He said, “The investment plan is essential for our future. I believe that it will be a power of growth.”
In FY2024, JTB succeeded in increasing both sales and profits in all travel segments of overseas travel from Japan, inbound travel to Japan and global DMC business. Especially, gross profit in the third-countries travel segment except travel from/to Japan was up 29.6% to record-high 23.3 billion yen.
Sales in the MICE business also increased by 12% to 78 billion yen compared to FY2019 before the pandemic, as JTB succeeded in acquiring more demands of corporate events and conventions not only in Japan but also globally.
On the other hand, JTB reduced both sales and profit in the domestic travel business, influenced by rise in prices in Japan and cautious consumption.
Sales in the inbound travel business were just up 14%, although the number of international visitors to Japan was up 35% to 38.9 million in 2024. JTB explained that it resulted from negative reactions from the last year, when large-scale international sports events were held in Japan.
Sales in the travel segment totally increased by 9% to 834.3 billion yen, comprising 436 billion yen for the domestic travel (down 6%), 224.3 billion yen for the overseas travel from Japan (up 41%), 62.2 billion yen for the inbound travel to Japan (up 14%) and 111.8 billion yen for travel among third countries except Japan (up 27%).
Expecting 20% more sales in FY2025
JTB aims at 1,298 billion yen in sales (up 21% over FY2024) and 12 billion yen in operating profit (down 20% over FY2024) in FY2025 ending March 31 2026 under the phase 3 of its midterm business plan. Yamakita said, “We continue investing to human resources and digital developments and driving the business structure reform.”
One of the efforts for future growth strategy is to enhance the global business. Yamakita emphasized, “We are going to make overwhelming positions in Seat-in-coach (tour bus), global DMC and hospitality businesses.
For Seat-in-coach, JTB aims to be No.1 operator in users in Europe and Canada. In Europe, Europa Mundo Vacations, acquired in 2014, handles approximately 170,000 guests per year. Calgary Tours of Canada, acquired in 2019, has a high share of the market in the Rocky Mountains. The future plan is for both companies to expand their businesses and broaden travel destinations beyond Europe to include Japan, East Asia, the Middle East, and other destinations.
For global DMC, JTB intends to expand the travel business from Europe, U.S. and Australia to Asia through strong partnership among JTB group companies of Kuoni Tumlare, Singapore-based Tour East and Japan-based JTB Global Marketing & Travel.
For hospitality, JTB has a goal to make Hawaii-based DMC MC&A one of the top 3 companies in US.
