Travel Sectors

The Japanese government accepted a FY2021 budget draft of 40.9 billion JPY, 40% less than the FY2020 budget, for Japan Tourism Agency (JTA) that is focusing on new travel styles including Workcation and promotion of digital transformation for the tourism services as new policies in FY2021.

Sales of 47 major travel companies reduced by 65.7% year on year to 155.6 billion JPY in total in October 2020. Domestic travel were down by 38.7% to 151 billion JPY, improving from from a 62.8% reduction in September, boosted by ‘Go To Travel' that has included Tokyo in October.

HIS will reduce its retail stores in Japan from 259 to 212 in the end of FY2020 and to 154 in Q1 of FY2021, as it posted net loss of 25 billion JPY for the full year of FY2020 ended October 31 2020. Chairman Sawada said “We are trying to regain profit in the latter half of FY2021.”

The Japanese government decided to suspend the domestic travel recovery initiative ‘Go To Travel’ nationwide until January 11 to make all efforts to stop infection spread. Compensation of cancellations for travel operators is up to 50% of the booked travel price.

Japan Tourism Agency (JTA) is developing ‘decentralized travel’ campaign as a New Normal traveling style. Using the special logo, travel operators are developing their original campaigns, creating decentralized travel-themed products and offering reward opportunities.

The JTB survey on travel trend in this coming New Year holidays results find that the ratio of ‘traveling including homecoming’ accounted for 14.8% including ‘probably traveling (6.9%),’ which was 5.2 lower points than a year ago.

JAL will provide all international flight passengers with ‘JAL Corona Cover,’ an insurance service to compensate medical, testing and quarantine expenses for a positive case in traveling, from December 23 2020 to June 30 2021.

Travel Voice has released its original survey report titled ‘Overseas Case Studies on Travel Demand Stimulus Strategies’ to analyze cases similar to ‘Go To Travel’ and ‘COCOA,’ a contact-tracing app, giving a clear picture of comparisons among the governments' initiatives.

JAL has started selling ‘JAL Dynamic Package ‘ tours to motivate living in two regions for Obihiro City (Hokkaido), Toyoka City (Hyogo), Munakata City (Fukuoka) and Aso City (Kumamoto).

JAL Group LCC ZIPAIR sells optional PCR test package to passengers on it Narita-Honolulu flights, which will be launched on December 19, to ensure their travel confidence.

The Japanese government has decided to extend 'Go To Travel' to the end of June next year from originally January 31 2021 and also to receive small group inbound travelers step by step toward Tokyo Olympics next summer.

Users for the Japanese government’s leading domestic travel recovery initiative ‘ Go To Travel’ reached about 52.6 million by November 15. For the half a month by November 15 only, about 8.25 million users increased.

The number of home sharing hosts giving up their businesses reached 7,807 as of November 10 2020, according to Japan Tourism Agency, The major reason is 'Not expecting to make a profit' amid the COVID-19 crisis with a share of 49.1%.

JTB aims to achieve operating profit of 30 billion JPY as early as FY2024 and 45 billion JPY as early as FY2028, for which its new midterm business plan focuses on accelerating the digital-base business for new values and lifestyles services not only relying on people's movement.

ANA has decided to raise as much as 332.1 billion JPY by issuing new stocks to consolidate its financial base and to accelerate its business portfolio reform including purchase of efficient and eco-friendly Boeing 787.

JTB has started selling the subscription-typed resort working program in Okinawa, which allows you to use a hotel, co-working places, rent-a-car, delivery of baggage and flights to resort islands for a year whenever you want to, by paying 30,000 JPY.

ZIPAIR Tokyo, a JAL subsidiary LCC, will serve 16 Narita-Honolulu flights in the period between December 19 and the end of January 2021, offering a PCR test package at Narita Airport as an option service.

Posting record-high half-year deficit due to COVID-19, JTB is cutting 6,500 jobs and cost of 140 billion JPY and shutting 25% of all retail stores in Japan (115 stores) to survive the ongoing crisis and also is leveraging the domestic dynamic package business.

Japanese LCC Peach Aviation offers an antigen test opportunity to a passenger at test fee of 3,000 JPY on domestic Kansai-Miyazaki and Kansai-Amami routes. Peach expects to verify how the test is effective to improve travelers’ confidences.

Sales of 48 major travel companies unprecedentedly reduced by 78.9% year on year to 91.9 billion JPY in total in September 2020, and sales of domestic travel were down by 62.8% to 88.4 billion JPY, however, the monthly reduction rate improved from 76.3% in August.