Japan Outbound Travel 2007 Increasing Outbound to 20 million by bhq98505

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									Japan Outbound Travel 2007
Increasing Outbound to 20 million by 2010

               Masato Takamatsu
  Director and Vice President, Marketing (JTM)
             JATA World Tourism Congress
             Tokyo, September 13th , 2007
                                       Content




1. Current Outbound Travel Market
2. Travel Style
3. Key Market Segments
4. Recent Topics in Japan
5. Approach To Japanese Travel Companies
                                       Content




1. Current Outbound Travel Market
2. Travel Style
3. Key Market Segments
4. Recent Topics in Japan
5. Approach To Japanese Travel Companies
                                                                                                      1. Current Outbound Travel Market


                            Japanese International Departure

Thousand persons
20,000
                                                                                             17,819
                                                                                                                                        17,404 17,535
18,000
                                                           16,695 16,803
                                                                           15,806
                                                                                    16,358            16,216 16,523            16,831
16,000                                            15,298

                                         13,579                                                                       13,296
14,000
                         11,791 11,934
12,000                                                                 Asian Financial
         10,997 10,634
                                                                          Crisis and
10,000                                                                 implementation
                                                                        of 5% service                                      SARS
                                                                              tax
 8,000
                                                     Highest Yen
                                                     appreciation
 6,000
                                                      in history

 4,000
                    Gulf War                                                                               9.11
                                             Opening                                                     Terrorist
 2,000                                       of Kansai                                                    Attack
                                              Airport
     0
         1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006




                                                                                                             Source: Ministry of Justice, arranged by JTM
                                                                               1. Current Outbound Travel Market


          Slow Recovery of Women vs. Growth of Male Market
                                Overseas Departures by Gender (1990-2006)
Million
20

18

16
                                                                                                                      Male
14
                                                                  9.5
                                                9.1                                             9.7     9.9
12                                        9.1               8.7         8.9   9.1         9.5
                                                      8.5
                                    8.4
10                      6.8   7.5
                  6.9                                                               7.6
 8
      6.7   6.5
 6
                                                                                                                      Female
 4                                        7.6   7.7         7.7   8.3                           7.7     7.6
                                    6.8               7.3               7.3   7.4         7.3
                              6.0                                                   5.7
                  4.9   5.2
 2    4.3   4.1

 0
     1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006



                                                                                                      Source:Ministry of Justice
                                                                            1. Current Outbound Travel Market


            Departures by Gender and Age-Group (2000)

                                Male                                                 Female
in hundred thousand
30
                                          26.5

25
                                                 20.9
                                                               18.9         22.0
20

                                   15.3                 15.0
15
                                                                                   13.1
                                                                                          10.4
                                                                      9.0                        8.5
10

 5                    4.1 5.4
        2.8 5.0                                                                                            3.4 2.7

 0
        0~9           10~19        20~29         30~39         40~49        50~59         60~69             70~



                                                                                                  Source: Ministry of Justice
                                                                              1. Current Outbound Travel Market


             Departures by Gender and Age-Group (2006)

                                  Male                                                 Female
in hundred thousand
30
                                                                27.9

                                           24.3
25                                                23.1
                                                                              22.0

20
                                                         17.3
                                                                                            15.7
                                    14.7
15
                                                                       12.1          12.7
                                                                                                   11.3
10
                            7.7
                      5.9                                                                                     5.2
         4.8 5.0                                                                                                    2.9
  5

  0
         0~9          10~19          20~29        30~39         40~49         50~59         60~69             70~



                                                                                                    Source: Ministry of Justice
                                     1. Current Outbound Travel Market


    Percentage Change from 2000 to 2006

Age groups          Male                              Female

   0~9              2.9%                                2.6%

  10~19            -8.7%                               -13.8%

  20~29            -24.8%                              -31.0%

  30~39             5.8%                                8.3%

  40~49            16.7%                                4.9%

  50~59             7.2%                                -5.8%

  60~69            14.2%                                8.2%

   70+             17.5%                               23.3%



                            Source: Ministry of Justice “Statistics on Immigration Control”
                                                                       1. Current Outbound Travel Market


     Departure Ratio by Gender and Age-Group (2006)


                         Male                                               Female

30
                                                        27.9
                                   24.3   23.1
25
                                                                      22
20
                                                 17.3                             15.7
                            14.7
15
                                                               12.1        12.7          11.3
10                 7.7
             5.9                                                                                       5.2
     4.8 5
                                                                                                             2.9
 5

 0
     0~9     10~19         20~29          30~39         40~49         50~59       60~69                70~



                                                                                                Source: Ministry of Justice
                                                                                               1. Current Outbound Travel Market


       Departures by Age and Gender from 1990 to 2006

  Male 0~9          10~19            20~29              30~39                       40~49               50~59                    60~
  Female 0~9        10~19            20~29              30~39                       40~49               50~59                    60~

1990         12.1             14.0             16.3                    9.9          6.0               15.8               5.4 5.2 4.8 3.8

1992         11.7            12.6            14.5                9.8          6.4                  16.7             5.9         5.5        5.4 4.2

1994         10.7        11.8           13.3               9.8           6.6                   17.5                6.7         5.6     5.9 4.7

1996         10.4       11.5           12.8            9.5             6.8                   17.4               7.0        5.8         6.1    5.1

1998         9.7        11.6          11.1           10.3              7.1                  16.5              7.9         5.2         6.7     5.5

2000         8.6       11.7          10.6           11.0           7.7                     14.9              8.4         5.0         7.3      6.3

2002        7.8        12.3          11.0           11.7               8.6                 12.7              8.9         4.9         7.3      6.7

2004        7.1       12.9           12.2             11.8              8.7                 11.3             9.3         5.1         6.8      6.7

2006        6.6       12.6           12.5             12.0              9.1                 10.4          9.3         5.4        7.0         7.1

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


                                                                                      Source: Ministry of Justice “Statistics on Immigration Control”
                                                                     1. Current Outbound Travel Market


                            Male Age Groups Departure (2006)


                          20 to 29      30 to 39      40 to 49                50 to 59                     60 +
Thousand persons
     2,500

     2,000

     1,500

     1,000

       500

          0
                   2000          2001    2002      2003          2004             2005                2006




                                                            Source: Ministry of Justice “Statistics on Immigration Control”
                                                                1. Current Outbound Travel Market


                     Female Age Groups Departure (2006)


                     20 to 29      30 to 39      40 to 49                50 to 59                     60 +
Thousand persons
3,000

2,500

2,000

1,500

1,000

 500

    0
              2000          2001    2002      2003          2004             2005                2006




                                                       Source: Ministry of Justice “Statistics on Immigration Control”
                                                                1. Current Outbound Travel Market


            Share of Airline Seat Supply by Airports (2006)


              Narita           Kansai         Nagoya             Fukuoka                        Other

2001                         50.4                        25.4                     10.2         5.1         8.9


2002                           54.7                          23.2                    9.6        5.1        7.5


2003                            58.5                              21.9                   9.1         4.4    6.1


2004                           56.2                             22.3                  9.6       4.6        7.3


2005                           55.0                          22.2                   10.7        4.5        7.6


2006                           54.9                          22.0                   11.0        4.0        8.0


       0%              20%              40%            60%                      80%                              100%




                                                       Source: Ministry of Justice “Statistics on Immigration Control”
                                                          1. Current Outbound Travel Market


                  Share for Airports / Port (2006)
Airport / Port No. of        Growth                                    New Chitose
               Persons
                                                                  Niigata
Narita           9,636,548            0.6%
Kansai           3,861,045              0%        Okayama


Nagoya           1,925,881            3.6%
                                              Hiroshima
Fukuoka            702,339            -9.6%


Haneda             422,829        17.6%
Hakata Port        136,833        -15.4%                                                        Sendai


Hiroshima          135,551        15.3%                                                        Narita

New Chitose        110,389            -2.9%                                                 Haneda

Sendai             102,270            3.0%                                                 Chubu


Niigata             72,366            3.0%                                    Kansai

                                                             Fukuoka
Okayama             86,662            8.0%

                                                Source: Ministry of Justice “Statistics on Immigration Control”
                                                         1. Current Outbound Travel Market


   Top 10 Departure Ratio by Prefecture



                  (4) Nara – 16.35%
                  (6) Osaka – 15.6%
                  (7) Hyogo – 15.4%
                  (9) Kyoto – 15.07%




(10) Fukuoka – 11.04%




                                                                  (1)   Tokyo – 25.35%
                                                                  (2)   Kanagawa – 21.5%
                                                                  (3)   Chiba – 18.1%
                                       (5) Aichi -16.11%          (8)   Saitama – 15.19%




                                                Source: Ministry of Justice “Statistics on Immigration Control”
                                      1. Current Outbound Travel Market


                 Top 20 Destinations (1)


Ranking (2006)           Country           Arrivals (Thousand)
      1                   China                      3,746
      2                   Korea                      2,339
      3                   Hawaii                     1,374
      4                U.S Mainland                  1,345
      5                 Hong Kong                     1,311
      6                  Thailand                    1,294
      7                   Taiwan                     1,164
      8                   Guam                         953
      9                  Australia                     653
     10                   France                       647



                                              Source: National (Regional) tourist offices
                                         1. Current Outbound Travel Market


                 Top 20 Destinations (2)


Ranking (2006)            Country           Arrival (Thousand)
     11                 Switzerland                     596
     12                  Singapore                      594
     13                The Philippines                  422
     14                   Canada                        386
     15                   Vietnam                       384
     16                   Malaysia                      354
     17                     U.K                         323
     18                    Saipan                       270
     19                    Austria                      268
     20                    Spain                        261



                                               Source: National (Regional) tourist offices
                                                            1. Current Outbound Travel Market


                          Japanese Arrival by Destination (1)


                   2000      2001           2002    2003   2004        2005                2006
Thousand persons
4,000
3,500
3,000
2,500
2,000
1,500
1,000
  500
    0
            U.S Mainland            China          Korea     Hawaii            Hong Kong



                                                                  Source: National (Regional) tourist offices
                                                         1. Current Outbound Travel Market


                          Japanese Arrival by Destination (2)


                   2000      2001     2002     2003     2004        2005               2006
Thousand persons

4,000
3,500
3,000
2,500
2,000
1,500
1,000
   500
      0
                   Taiwan      Singapore     Thailand     Guam                Australia



                                                               Source: National (Regional) tourist offices
                                 1. Current Outbound Travel Market


 Growth Rates of Japanese Visitor Arrival (1)
     Asia           2005/2004               2006/2005
    Korea             -0.1                      -4.1
    China              1.7                      10.5
  Hong Kong            7.5                       8.3
    Macau             38.4                      30.2
    Taiwan            26.6                       3.3
  Singapore           -1.7                       1.0
   Malaysia           12.8                       4.2
   Thailand           -0.5                       8.9
   Vietnam            20.0                      19.7
The Philippines        8.7                       1.5

  Americas          2005/2004               2006/2005
   Canada              2.2                      -8.7
    U.S.A              3.6                      -5.4
    Hawaii             2.4                      -9.4
    Guam               5.4                      -0.3

                                       Source: National (Regional) tourist offices
                                1. Current Outbound Travel Market


Growth Rates of Japanese Visitor Arrival (2)
  Europe           2005/2004              2006/2005
  Austria             8.6                      -3.9
  France              3.9                      -3.0
 Germany              2.1                       5.3
   Italy             -3.4                        -
   Spain             15.1                      44.2
Switzerland            -                        1.8
   U.K               -4.4                      -2.7




  Pacific          2005/2004              2006/2005
  Saipan             -7.8                     -23.3
 Australia           -3.5                      -5.0
New Zealand          -6.1                     -12.0



                                      Source: National (Regional) tourist offices
                                       Content




1. Current Outbound Travel Market
2. Travel Style
3. Key Market Segments
4. Recent Topics in Japan
5. Approach To Japanese Travel Companies
                                                                                                          2. Travel Style

                     Holidays & Seasonality for Outbound Travel

       End of year         Spring      Golden             Summer                                               End of year
        New Year           Break        Week                                                                    New Year
         Dec29 -           Mar20 -     Apr29 -
                                                          Vacation                                               Dec29 -
          Jan 3             Aprl5      May 5              Jul20 - Aug31                                           Jan 3
                                                              O-Bon
in thousands                                             Aug10 to Aug15
1800
1600

1400
1200

1000
 800
 600
 400

 200
   0
           Jan       Feb   Mar       Apr     May   Jun     Jul     Aug          Sep          Oct         Nov          Dec



                                                                 Source: Ministry of Justice “Statistics on Immigration Control”
                                                                   2. Travel Style


Survey Outline

1.Factual Survey of the Overseas Travel Situation

1.1 Respondents
        Individual men and women who traveled overseas in 2006, live in
        Tokyo, Osaka, Aichi and are of at least 15 years old.

1.2 Methodology
        Respondents with experienced overseas travel in 2006 selected
        by Internet survey. (Telephone survey until 2005) Questionnaires
        were mailed by post to the respondents and returned upon
        completion.

1.3 Period
         April 2007

1.4 Valid Sample Size
          2,719 respondents (person)
          4,179 respondents (trip)
                                                                                                2. Travel Style


                Purpose of Travel Overseas (1997-2006)


                 Leisure Travel                   Business Travel                       Other



2006                                     77.7                                          16.6        5.7

2005                                    75.0                                        17.9           5.0

2004                                   72.4                                      18.5             6.5

2003                                    74.6                                       15.3           7.3

2002                                   72.2                                     17.0              7.9

2001                                    74.4                                     14.6            8.5

2000                                   71.9                                     16.8             8.4

1999                                   72.9                                     18.0              7.7

1998                                   74.2                                      17.6             7.3

1997                                      77.9                                          12.9      6.4


       0%              20%               40%               60%               80%                       100%



       Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
                                                                                                      2. Travel Style

               Purpose of Travel by Destination (2006)

                                        Leisure Travel                      Business Travel             Other


                       Overall                               77.7                                     16.6
                     East Asia                                78.9                                     15.0
                        China                      53.5                                       41.2
              South-East Asia                                74.2                                     16.9
                  U.S Mainland                        59.8                                     32.2
                      Canada                                          89.5                                          5.3
                        Hawaii                                        90.0                                     2.2
                Guam, Saipan                                          90.3                                    1.2
        South Pacific Islands                                       82.4                                 2.9
                      Oceania                                       80.7                                 6.3
              Europe, Russia                                  79.1                                     13.6
               South America                                   74.3                                    11.4
Middle East, Africa and others                                       88.5                                      8.0

                                 0%         20%              40%                   60%          80%                       100%



      Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
                                                                                           2. Travel Style


                            Travel Duration (2000-2006)



              1-4 days             5-7 days             8-14 days             15 days and over



2006               30.1                             38.6                            26.2           4.5




2000           22.3                         35.9                             33.6                 6.5



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



        Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
                                                                                                                           2. Travel Style


                   Travel Duration by Destination (2006)

                                      1-4 days              5-7 days              8-14 days              15 days and above

                      Overall                 30.3                                 38.9                            26.3              4.5
                    East Asia                                             78.7                                            18.2

               Guam, Saipan                                  59.7                                               36.8                 3.5

                       China                         43.9                                         37.1                     15.7
             South-East Asia           19.0                                       57.2                                 19.0          4.8

                     Haw aii                                               71.4                                           20.8

         South Pacific Islands 5.9                                 55.9                                         32.4
                      Oceania 5.5                                  56.4                                         32.7

                U.S. mainland 4.6                           48.6                                         35.6                     11.2
              Europe, Russia                  27.0                                              62.9                               8.6

                      Canada                         44.7                                                51.3                        3.9
                South America          18.2                                          66.7                                     15.2
Middle East, Africa and others        14.2                                               76.1                                      8.8

                                 0%              20%                      40%                   60%             80%                  100%


       Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
                                                                                   2. Travel Style


                     Travel Companions (2006)




Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
                                                                                                                                                                     2. Travel Style


                          Travel Companions by Destination

                                      Husband or wife                               Family/relatives                                            Mother and daughter
                                      Friends/acquaintances                         Fellow employees                                            Alone

                      Overall                22.7                           22.9                   4.0                   21.1                         10.6                      17.4

                   East Asia            19.1                         20.2             4.1                         27.6                                12.5                       16.4
                       China           15.0                10.2      2.5            19.7                                  21.3                                           24.1

             South-East Asia             20.3                        16.9           2.9                    24.5                           9.5                            23.9
               U.S. mainland            17.8                         19.0           2.9            14.1                          19.0                                     23.0
                     Canada              21.1                               31.6                            7.9                  18.4                 3.9                  22.4
                      Hawaii                    28.1                                                42.8                                        3.6               18.1                  4.2
              Guam, Saipan            14.3                                          50.4                                           2.3                  21.7                           8.1

        South Pacific Islands                                 44.1                                                   17.6                                         23.5                        2.9
                     Oceania                        30.9                                           30.9                           3.1            12.1             4.9             13.0

              Europe, Russia                    30.7                               19.6                   7.4                   19.1                  6.4                   20.6

               South America                        31.4                                    20.0                   2.9     5.7     2.9                             28.6
Middle East, Africa and others                         38.1                                   17.7                 3.5                 16.8                 6.2                 16.8

                                 0%                    20%                         40%                              60%                                 80%                                   100%



          Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
                                                                                                                       2. Travel Style


                     Travel Arrangement by Purpose (2006)


                                      Package tours          Group travel            Individually arranged travel             Others


                    Overall                           50.7                          4.4                 38.2                          6.7

                    Holiday                                   67.3                                                  26.8                   2.9

               Honeymoon                                                   90.6                                                      5.2


 Visiting family and friends        10.3                                          82.8                                                6.9

             Business trips 3.5                                         78.3                                                  17.0


  Research and field trips      5.0               35.0                                    34.0                         26.0

Conferences and meetings 4.3 4.3                                             78.3                                               13.0


            Exchange trips            14.8                       44.4                                 27.8                      13.0


                               0%              20%                   40%                    60%                80%                         100%


        Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
                                                                                                       2. Travel Style


         Travel Arrangement by Travel Experience (2006)


                          Package tours       Group travel     Individually arranged travel             Others


            Once                            59.0                            12.9          16.5            11.5


       2~3 times                                  67.0                             7.6          20.1         5.3


       4~5 times                           56.6                       8.9                28.3                6.3


       6~9 times                           56.9                     4.9                  34.1                 4.2


10 times and above                  43.9                                       46.2                         7.5


                     0%            20%                   40%        60%                  80%                  100%



      Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
                                                                                                                            2. Travel Style


              Travel Arrangement by Destination (2006)

                                       Package Tours                                     Group Travel
                                       Individually Arranged Travel                      Others

                        Overall                       50.7                       4.4                       38.2                     6.7

                     East Asia                         52.8                        5.2                       36.2                    5.7

                         China                 38.2                        6.5                  44.0                             11.4

              South-East Asia                     45.2                                                45.3                           6.1

                 U.S. mainland          22.7          4.0                              64.4                                         8.9

                       Canada                            55.3                                               38.2                     5.2

                        Hawaii                                  66.9                                                 24.4            4.7

                 Guam, Saipan                                       72.5                                     6.6          15.1       5.9

         South Pacific Islands                                      70.6                                    8.8              20.6

                      Oceania                                59.2                             7.2                  27.4              6.2

               Europe, Russia                          51.1                      2.6                       40.0                      6.3

                South America                         48.6                                          40.0                         11.4

Middle east, Africa and Others                                      69.9                                            23.0             6.2


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


      Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
                                                                                       2. Travel Style


                   Travel Reservation Method (2006)
                                   Other
%
                          Airlines 4.8%
                           4.8%




                            Mail order,
                            telephone
                              17.1%                      Internet
                                                          38.0%



                                    Travel agent
                                       30.5%




    Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
                                                                                          2. Travel Style


               Travel Reservation Method (2001-2006)


             Travel firms          Internet          Mail order/telephone     Airlines     Others

%
50
45
40
35
30
25
20
15
10
 5
 0
          2001              2002              2003            2004          2005         2006

     Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
                                                                                             2. Travel Style


                       Travel Reservation Method
                  by Overseas Travel Experience (2006)

           Travel firms        Internet        Mail order, telephone          Airlines          Others

%
50
45
40
35
30
25
20
15
10
 5
 0
         1 time           2-3 times          4-5 times            6-9 times              10+ times


     Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
                                                                                                          2. Travel Style


    Travel Reservation Method by Market Segment (2006)

            Male students              29.6                                   33.3                          14.1
               Single men                          47.6                                   25.3           10.0      7.0
              Married men                   37.2                                   32.9                    13.0        3.0
         Middle-aged men                39.3                                 29.4                   18.0              6.5
              Elderly men             33.1                           27.1                        27.1                 5.5
                                     Internet         Travel firm   Mail order, telephone        Airlines
         Female students                    30.5                                         29.1                   8.5
     Single women (15-29)               38.9                                       39.7                     11.1       3.8
     Single women (30-44)                          51.4                              22.6           15.2           7.8
 Married women-employed                     40.8                                  33.6                   16.6         4.2
Married women-housewives             31.8                                  43.0                         18.4           4.0
      Middle-aged women                     39.4                              29.4                      18.4          4.4
            Elderly women            27.3                           26.9                         25.5                 3.8

                            0%          20%                  40%                  60%            80%                   100%
      Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
                                       Content




1. Current Outbound Travel Market
2. Travel Style
3. Key Market Segments
4. Recent Topics in Japan
5. Approach To Japanese Travel Companies
                   3. Key Market Segments
                   3.1 Baby Boomers




3.1 Baby Boomers
                                                                                          3. Key Market Segments
                                                                                          3.1 Baby Boomers

                             Japanese Population 2006
                        Baby Boomers
                        Born between (1946-1951) / Current market share of 8.5%




   Female                                                                             Male                   80+
                                                                                                             75~79
                                                                                                             70~74
                                                                                                             65~69
Baby boomers                                                                                                 60~64
                                                                                                             55~59
                                                                                                             50~54
                                                                                                             45~49
                                                                                                             40~44
                                                                                                             35~39
                                                                                                             30~34
                                                                                                             25~29
                                                                                                             20~24
                                                                                                             15~19
                                                                                                             10~14
                                                                                                                5~ 9
                                                                                                                0~ 4


6,000   5,000   4,000     3,000   2,000   1,000   0   1,000   2,000    3,000      4,000      5,000      6,000


                                                                 Source: Ministry of Justice “Statistics on Immigration Control”
                                                                     3. Key Market Segments
                                                                     3.1 Baby Boomers

       Top 15 Prefectures of Departure for Baby Boomers

   Tokyo
Kanagawa
   Osaka
    Aichi
   Chiba
 Saitama
   Hyogo
 Fukuoka
 Shizuoka
    Kyoto
   Ibaraki
Hokkaido
Hiroshima                                                                      Male
     Gifu                                                                      Female
    Nara

             0   20000   40000   60000   80000   100000   120000   140000     160000      180000
                                                                                          Persons

                                                                      Source: Japan bluebook 2006/2007
                                                                            3. Key Market Segments
                                                                            3.1 Baby Boomers

               Financial Background of Baby Boomer
                         Yearly Disposable Income


Million yen
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
              under 5M     5-10M                   10-15M                           15+M




                                   Source: Statistical data book on the Life Consciousness of Mature people 2006
                                                                  3. Key Market Segments
                                                                  3.1 Baby Boomers

            Current employment situation
                  55-59 age group


             5.2 2.3
      4.9

7.2                                                           Company employed
                                                              Casual employed
                   %          46.3                            Self-employed
                                                              Other
                                                              Don't know
                                                              Don't understand
 34.2




                         Source: Statistical data book on the Life Consciousness of Mature people 2006
                                                                                      3. Key Market Segments
                                                                                      3.1 Baby Boomers

             Reasons for Desires to Continue Employment


              Necessity to live

      Play a role in the society

      Contribute to the society

Use one's experience and skills

      To be active and healthy

              Work is one's life

    Don't want to stay at home

                Other reasons

              Don't understand

                                   0   10     20                30               40                50               60 %



                                            Source: Statistical data book on the Life Consciousness of Mature people 2006
                                                                           3. Key Market Segments
                                                                           3.1 Baby Boomers

             Characteristics of Baby Boomer
1. Concerns for the health and the environment
      Purchasing organic foods, vitamins and supplements. Volunteering in NPO
       environmental activities.
2. Desire to feel young
      Their heart is still young and they want to look young.
3. Importance of safety and independence
      High concerns in regards to security and do not want to become a burden on
       their children.
4. Enjoy living
      Strong feelings of doing what they like.
5. Intellectual curiosity
      Desire to study intellectual materials i.e. arts, classical concerts.
6. Contributing to the society
      Even after retiring they still desire to contribute to the society i.e. through NPO
       activities.
7. Distinct preferences
      Desire to have their own individual preferences met.
                                                                                                         3. Key Market Segments
                                                                                                         3.1 Baby Boomers

                                 Preferences when Traveling

                                I want to see nature

I want to visit traditional rather than modern places

          I want to go to a place I haven't been to

                       I want to go with campanions

                     I want to stay 2 nights or more

   I want to study about the destination before I go

                   I want to explore places in depth

                   I prefer quality rather than price

                   I want to arrange the trip myself                                                                        Male
I want a trip filled with experiences rather than just                                                                      Female
                       observation
                                                         0     10      20      30      40      50      60      70      80      90     100 %


                                                    Source: 2006 Leisure White Book – Baby boomers, 2007 issues and future trend in holidays
                                                                           3. Key Market Segments
                                                                           3.1 Baby Boomers

                       Baby Boomer Style of Travel
    In all surveys conducted in the past, results reveal that to ‘travel’ is the most preferred
                                    activity after retirement.

 Travel companions will depend on the activities at the destination.
    Famous and historical places for sightseeing, resorts and spas
      ⇒couples
    Climbing mountains, golf, diving, sports and hobby related travels
      ⇒ individual or with friends

 Spring and Autumn are the popular seasons after the busy seasons.

 For 60+ years over 50% stay over 7 days in their trips, 50+ years 5-7 days is most
   popular with around 30% preferring over 7 days.

 Prefer a trip that can provide relaxation, i.e. hot springs, natural scenery, famous and
   historical places.

 Motivation for trips: making past dreams become reality, continuing dreams and taking
   trips that reminds the „Good Old Days‟

 Traveling with the family
                                                                                                3. Key Market Segments
                                                                                                3.1 Baby Boomers

                             Baby Boomer
          - Activities Desired on Trips in the Next 10 Years

                                  Nature scenery                                                                             55
                                                                                                                              57
                             Staying in hot spring                                                             46
                                                                                                                 48
                                                                                                       39
                    Enjoying the traditional foods                                                                      52
            Visiting famous and historical places                                                                  49
                                                                                                          41
                                            Driving                                           32
                                                                                               33
                                                                                            30
Visiting the traditional streets of the destination                                             34
                                                                                      24
                      Visiting world heritage sites                                                    39
                                                                                 21
       Going sight-seeing at a well-known place                                            29
                               Staying at a resort                          17                                    Male
                                                                            16
                                Outdoor activities                            18                                  Female
                                                                       12


                                           Source: 2006 Leisure White Book – Baby boomers, 2007 issues and future trend in holidays
                   3. Key Market Segments
                   3.2 Female Travelers




3.2 Female Travelers
                                                                   3. Key Market Segments
                                                                   3.2 Female Travelers

                 Fall in Female Travelers 20s Age Group

Million
3.0


2.5


2.0


1.5


1.0


0.5


0.0
          1975    1980    1985    1990    1995                 2000                  2005




                                          Source: Ministry of Justice “Statistics on Immigration Control”
                                                                          3. Key Market Segments
                                                                          3.2 Female Travelers

     The Departure Ratio of Women in their 20s and 30s


                         20-29                                      30-39

35

30

25

20

15

10

5

0
     1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006




                                                                  Source: Ministry of Justice, arranged by JTM
                                            3. Key Market Segments
                                            3.2 Female Travelers

          Reasons for Changes



①   Continuous decline in this population

②   Unstable employment and lower income

③   The extra costs of living compared with
    previous generations, i.e. mobile phone
                                                                             3. Key Market Segments
                                                                             3.2 Female Travelers

                                30s Female Today
Background for their frequent overseas travel.
 Increased share of singles.
   Presently 30+% of women between ages 30-34 and 20%+ of women between 35-39
   are not married.


 Fewer children to look after.
   Less than 30% of women aged 30-34 have children, and 50% of married women
   between 35-39 have children.

 Rich travel experience during 1990s when they were in their 20s

                                Previous travel experience         No. of overseas trips in the
                                (Avg. No.)                         previous year (Avg. No.)
Single women
                                                           13.0                               1.6
(30-44)
Married women
                                                            11.9                              1.4
(employed)
Married women
                                                            11.3                              1.2
(housewives)

    Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
                                                                                       3. Key Market Segments
                                                                                       3.2 Female Travelers

                         Destinations for the Single Females


           Europe/Russia                                                                            25.5
                 East Asia                                                                           25.1
           Southeast Asia                                                  17.3
                    Hawaii                                 8.2
             U.S Mainland                            5.3
                  Canada                       4.5
                     China                    4.1
                  Oceania                3.3
            Guam/Saipan                 2.9
    Middle East/Africa, etc             2.9
     South Pacific Islands        0.4
Central and South America         0.4

                              0                5                 10   15          20           25           30



          Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
                                                                                   3. Key Market Segments
                                                                                   3.2 Female Travelers

                        Activities Undertaken at Destination


                      Shopping                                                                  69.0
 Natural and scenic attractions                                                        58
             Gourmet sampling                                                          55
Historic and cultural attractions                                                      55
            Rest and relaxation                            30
    Art galleries and museums                               28
  Beauty treatments/Massage                                 28
         Theatre performances                     15
          Visiting family/friends        9
                  Theme parks            8
                     Night tours         7

                                    0   10       20       30       40       50       60       70        80 %




          Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
                                                                                 3. Key Market Segments
                                                                                 3.2 Female Travelers

                                 Travel Reservation Method



            Internet                                                                        51.4

        Travel firms                                  22.6

Mail order/telephone                      15.2

         Don't know                      12.3

            Airlines              7.8

             Others        1.6


                       0           10            20          30           40           50           60 %




        Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
                                                                         3. Key Market Segments
                                                                         3.2 Female Travelers

                            Travel Arrangements




Source: Japan Tourism Marketing Co. “Factual Survey of Overseas Travel Situation”, JTB Report 2007
                                       Content




1. Current Outbound Travel Market
2. Travel Style
3. Key Market Segments
4. Recent Topics in Japan
5. Approach To Japanese Travel Companies
                                                              4. Recent Topics in Japan

                              Asia Gateway


International Airfare Deregulation in Japan
 22nd June 2007: Japanese Government announced its
          consideration of international airfare deregulation
Purposes
1. Strengthening Asia as a whole, deregulating, increasing trade knowledge
    and networking
2. Further communication Japan to Asia-products, people and places.
3. Increasing Japan‟s cooperation with major researches and projects to do
    with international issues.

Current Actions
 Revision of existing price restriction and approval of airfare pricing
 Foreign LCCs may enter the market
                           spur competition
                           increasing consumer convenience
                                                                                 4. Recent Topics in Japan

                     Deregulation in IT Charter Flight System
                        Deregulation of ITC (Inclusive Tour Charter)
       ⇒ Announced 2007 May 31st , by the Ministry of Land, Infrastructure and Transport.



       Old Regulation                     New Regulation                        Opportunities

One is required to stay at the     No stay requirement                  The use of foreign carriers in
carrier‟s country of location                                           tour packages

All accommodation is required      Only 50% of accommodation            Some free nights can be
to be pre-arranged                 needs to be pre-arranged             included into tour packages

Carriers are only permitted from   Third country airline is permitted   Wider selection of choice and
country of departure or arrival                                         supply

Operation frequency is             Where there is no schedule on        Pave the way for future
restricted                         the route, no restrictions for       scheduled services
                                   same day operations



 Northern lights, Swiss hiking, the red maple leaves in Canada and China are current destinations
                                   tour operators are focusing on.
                                                            4. Recent Topics in Japan

                       Low Cost Carriers
All Nippon Airlines
                  Announced to launch up a LCC, targeting the
                  Japanese-Asian market



Korean Airlines
                  Plans to launch LCC within the next 3 years




Jetstar (Australia)
                  Already operating:
                             Brisbane ↔ Osaka
                             Sydney ↔ Osaka
                                       Economy airfares:
                                       USD$240 – USD$300 (excluding tax)
                             Cairns    ↔ Nagoya
                                       Economy fares:
                                       USD$240 (excluding tax)
                  Starting from Oct, 8th 2007:
                             Cairns    ↔ Osaka
                                                        4. Recent Topics in Japan

                 Obstacles and the Usage of Regional Airports

                                          New Chitose

                                            Niigata
 Lack of slots at main airports
           usage of regional airports     Okayama

                                          Hiroshima
 Restriction of slots
                                          Fukuoka
          (mainly Narita and Haneda)


 High cost of main airport use
         (landing / hard standing fees)                               Sendai

                                                                       Narita

                                                                      Haneda

                                                                      Chubu

                                                                      Kansai
                                                           4. Recent Topics in Japan




Questionnaire for JATA World Tourism Congress 2007


Purpose of survey:
 consider the viewpoints of senders and receivers and seek the issues
  that are Japan is facing in the overseas travel market
                                                                     4. Recent Topics in Japan


Japan’s business standards compared with global standards

⇒ Japanese business practices are considered to be different
       Overall  90%       Suppliers  50%                Travel Agencies  30%

⇒ Deposits and bloc allotments to most differ, at 60% and 46% respectively

⇒ However, Japanese business practices will not be an obstacle to expand
  its outbound market
                          Suppliers  50%                Travel Agencies  70%

Revitalizing Japan’s outbound market

Strengths                                  Weaknesses

Japanese good manners                      Depreciation of the Yen

High credibility in payment                Low profitability

High contribution to the visitor arrival   Decrease in personal income

                                           Stagnant economic growth
                                                                          4. Recent Topics in Japan


                                             D
                                             y
              Supplier
                                             n                    Supplier
 travel agencies or tour wholesalers that
 loaded the inventory, it has contracted
                                             a        several, different supplier inventory
                                                             management systems
            into own database                m
                                             i
         Vendor/Provider                                     Vendor/Provider
    only travel agents and wholesalers      c           any company having a system to
                                                   directly access multiple inventory management
                                                               systems from suppliers
                                             P
                                             a                      Pricing
                                                 based on most updated availability by suppliers
    Pricing/Change of Rates                  c                (i.e. hotels, airlines)
       depends on travel agent‟s or                     (individually published fares)
         wholesaler‟s sales volume           k
          (inclusive tour fares)
                                             a              Changes of Rates
                                                         according to supplier‟s revenue
                                             g                management policies
                                             i
              Customer
                                             n                    Customer
 combines travel available components       g        builds own tour package by choosing
     from preferred travel agency or                   best product and price from several,
               wholesaler                                       different suppliers
                                                                      4. Recent Topics in Japan




              Supplier                                        Supplier
 travel agencies or tour wholesalers that        several, different supplier inventory
 loaded the inventory it has contracted                  management systems
            into own database
Differences:
         Vendor/Provider                                 Vendor/Provider
    only travel agents and wholesalers              Any company having a system to

distribution systems
                                               directly access multiple inventory management
                                                           systems from suppliers



                                                                Pricing

international airfare
                                             based on most updated availability by suppliers
 Pricing/Change of Rates                                  (i.e. hotels, airlines)
       Depends on travel agent‟s or                 (individually published fares)
         wholesaler‟s sales volume
          (inclusive tour fares)
                                                        Changes of Rates
range of products offered to customer               according to supplier‟s revenue
                                                          management policies




              Customer                                        Customer
 combines travel available components            Builds own tour package by choosing
     from preferred travel agency or               best product and price from several,
               wholesaler                                   different suppliers
                                                              4. Recent Topics in Japan

                       Dynamic Packaging in Japan
                       Awareness and opinions of consumers.




 Awareness,
  January 2007                                                                     Know but
                                                                                   don't use
                       Don't know                                                   23.8%
                         72.7%

 Information source

                                                                          Know and use
                                                                             3.5%
 Reasons for use




                                                              Source: Travel Journal, Jan. 1.8, 2007
                                                                     4. Recent Topics in Japan

                       Dynamic Packaging in Japan
                       Awareness and opinions of consumers.




 Awareness,
  January 2007          Internet-search                                                            14.8



                              Pop-ups                                                 12.2

 Information source       Newspaper
                                                1.6
                            articles


                        Word-of-mouth           1.5
 Reasons for use

                                          0%   2%     4%   6%   8%    10%        12%       14%        16%




                                                                     Source: Travel Journal, Jan. 1.8, 2007
                                                                           4. Recent Topics in Japan

                       Dynamic Packaging in Japan
                       Awareness and opinions of consumers.




 Awareness,                                 Price                                                       69.1
  January 2007
                               Loyalty to company                                               54.9

                              Detailed information                               35.7

 Information source   Online booking and payment                       25.8

                                Selection of sights              18.1

 Reasons for use          Other than sight-seeing         8.8

                                                      0%     20%           40%              60%            80%




                                                                               Source: Travel Journal, Jan. 1.8, 2007
                                       Content




1. Current Outbound Travel Market
2. Travel Style
3. Key Market Segments
4. Recent Topics in Japan
5. Approach To Japanese Travel Companies
                                                          5. Approach to Japanese Travel Companies

                      Travel Companies in Japan




                             (Air / Hotel)
                             Leisure FIT




                                                                     Direct PKG
                                              Wholesale




                                                                                  Business




                                                                                             Incentive
                                              Package



                                                           Package




                                                                                             Group/
                                                                                  Travel
                                                           Retail



                                                                     Sales
             Type

General Travel Company


Retail Company


In-house Agency


Wholesaler


Direct Marketing Company
(Media Sales)

Online Travel Agent


Business Travel Management
Company

   Business Domain                           Business fields handled by some companies of the type
                                                      5. Approach to Japanese Travel Companies

                  Types of Travel Agencies by Registration
                          and Designated Services



                     To organize                                To make Travel
                                                                                                To handle
                      (produce)         To retail Package      Arrangements for
                                                                                                Overseas
Classifications       Wholesale                Tour             the client as an
                                                                                                 Visitors
of Reservation      Package Tour                                     agent
                   Inter-                Inter-                 Inter-
                             Domestic              Domestic                    Domestic
                  national              national               national
1st category

2nd category
                    ×
3rd category
                    ×
Sub-Agents for
Travel Agencies     ×          ×                                                                      ×




                                                              www.jata-net.or.jp/english/membership/index-m.htm
                                                  5. Approach to Japanese Travel Companies

         Number of Registered Japanese Travel Agencies


                 Travel Agencies Category
                                                             Travel-
  Year                                                                         Total
                                                          Sub agencies
           1st             2nd              3rd

2000       874             2,747            6,090             1,358           11,069

2001       868             2,762            6,188             1,308           11,126

2002       855             2,780            6,312             1,201           11,148

2003       841             2,782            6,314             1,129           11,066

2004       784             2,765            6,259             1,061           10,869

2005       781             2,727            6,179             1,015           10,702

2006       817             2,757            6,088              959            10,621
                                                            5. Approach to Japanese Travel Companies

               Package Tour Distribution Channel in Japan


               Airline seat                                          Retail
                                   Wholesalers                      JTB Group
Airlines       distributors        JTB World Vacations                KNT
                                   Kinki Nippon Tourist               NTA
                                           NTA                        H.I.S.
                                                                      PTS
                                        JALPAK,
                                        ANA Sales
                                                                 Call Center
                                     Nippon Express
                                                                  Web Site
 Hotels
                                                                                    Consumers
                 Land                                           Online Agent
                operator         Direct Marketing
 Other             s                 Company
Suppliers                              Club Tourism
  Bus/Rail
Restaurants                            Nikko Travel
                 International
Tour Guides                       World Air & Sea Service
                  Offices of
 Attractions     Major Travel         Hankyu Trapics
Duty free &       Companies        JTB Tabi-monogatari
 Shopping
Thank you for your kind
      attention!
             Masato Takamatsu
Director and Vice President, Marketing (JTM)
            JATA World Tourism Congress
            Tokyo, September 13th , 2007

								
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