(Image source: Pakutaso)
Booking.com, one of the world’s largest digital travel platforms, has released its latest report on Japan’s hospitality industry in collaboration with Statista, a provider of statistical data platforms, continuing their partnership from last year. This study is based on telephone interviews conducted by Statista with 250 executives and managers in Japan’s travel and hospitality sector, analyzing the recovery of travel demand, performance comparisons between short-term rentals (STR) and hotels, and challenges faced by accommodation providers.
In 2024, Japan’s hospitality industry has fully overcome the lingering impact of COVID-19 from 2023, presenting an optimistic outlook. The tourism sector has made a strong recovery from the pandemic, with a notable surge in visitors from the Asia-Pacific (APAC) region driving industry growth. Additionally, the historically weak yen has made Japan a more attractive destination for foreign travelers. As a result, key performance indicators such as average daily rate (ADR) and occupancy rate have improved significantly compared to 2023. More than half of accommodation providers reported a substantial increase in ADR, and approximately two-thirds observed higher occupancy rates.
At the same time, accommodation providers are facing financial challenges, with concerns over profitability and business continuity risks. The most pressing issue for 2024 is the “potential for tax increases,” cited by 70% of respondents. This is followed by concerns over “energy costs” (65%) and “competition with other accommodation providers” (60%). Additionally, 54% identified “labor costs,” “declining consumer travel demand,” “insufficient funding and capital procurement,” and “input costs and service fees” as risks.
In terms of business opportunities, increasing online visibility is seen as key to boosting revenue. Among accommodation providers, 79% consider “enhancing social media marketing” an important opportunity, while 75% see “listing on online travel booking platforms” as a way to drive growth. Furthermore, 70% believe that “optimizing their own website” presents a business opportunity.
The role of online travel booking platforms is becoming increasingly important for Japanese accommodation providers. More than half of them use at least two platforms, with the most common reasons being “overall increase in bookings,” “streamlining the reservation process,” and “attracting foreign travelers.” Additionally, 76% use these platforms to “reduce vacancies through last-minute bookings,” while 73% leverage them to “increase room rates.”
Government policies are also a crucial factor in the hospitality industry. In the 2024 survey, only 7% of accommodation providers said they did not see policies as important. Meanwhile, 70% considered them “highly important,” citing the need for improvements in funding and capital procurement, tax relief, and enhancements to public transportation as key areas for industry growth.
Founded in Amsterdam in 1996, Booking.com is part of Booking Holdings Inc. and operates under the corporate mission of “making it easier for everyone to experience the world.” Through its platform, which allows users to book a diverse range of accommodations and transportation options seamlessly in one place, the company provides memorable experiences to travelers worldwide. Additionally, members of Booking.com’s Genius loyalty program can enjoy discounts and travel perks at hundreds of thousands of eligible properties and car rentals across the globe.
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