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,
• 10th 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
Korea (1964)
(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
(Thousands) Spring holidays Summer holidays
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
994 981 Female
1 000 883

479 448
500 380 353
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
Latin America & the etc.; 2,1% 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
Travel Situations” 9
 Purpose of Travel
Overseas
Conference study/School trips; Others; 1,8%
attendance; 1,6% 1,3%
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
Travel Situations” 10
 Travel Reservation Methods

70
Internet
Internet 60,6 60,8 62,2
60 58,4
56
(%)
54 Travel agency outlets
50 51,7
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 14 16 Don't know because don't
11,7 13,5 12,1 12,6 11,7
11,5 12 book myself
10 11,5 10,2 9,5 12,3 10,1 8,8
5,7 3,5
2 3,7
5,4 3,2 3,2 3,5 3
1
Others
0 0,3 0,2 0,1
0,4
0,4 0,3
2008 2009 2010 2011 2012 2013 2014 2015

Source: Japan Tourism Marketing Co., “Factual Survey of the Overseas Travel
Situation” 11
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)

Europe/Russia 43,5% 2,7% 52,4% (n = 710)

1,0% 0,4%

0% 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %

Source: Japan Tourism Marketing Co., “Factual Survey of the Overseas Travel
Situation” 13
 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”
Don't agree with foreign customs like tipping 7,9% declined but still came top
No destination I would like to visit 7,6% for a fifth year. Concerned
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
No one to go with 3,1% grew.
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
2013 J.A.T.A.

Category Ⅰ Category Ⅱ Category Ⅲ Referral Agent

701 2,869 5,378 837

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

Restaurants Travel agents Retailers

Land Operators Whole sellers Consumers
Transportation

Guides Airlines

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
THANK YOU