Rakuten Travel Reports 15.6% Growth in Operating Income for Second Quarter
The financial results of Rakuten Travel for the second quarter (January 1 – June 30, 2010) turned an operating profit of 4,110 million yen, up 15.6 percent from last year, on revenue of 10,197 million yen, up 21.2 percent. The growth is attributable to a wider range of merchandise following the broader collaboration with East Japan Railway Company (JR-East) and accelerated demand of business trip reflecting the economic recovery. Gross sales in retail terms soared 22.4 percent to 172.6 billion yen, and the number of nights booked for accommodation rose 13.3 percent over last year. At the press interview held on August 5, Hiroshi Mikitani, chairman and CEO of Rakuten Inc., was quoted as saying, “Strong leisure demand worked for our good performance.”
On a quarterly basis from April to June, gross sales were up 20.6 percent to 9,080 million yen with 8.3 million nights booked for accommodation, up 13.1 percent. Actual revenue was 5,322 million yen, up 23.5 percent while operating profit was 2,040 million yen, up 17.1 percent. What is worth mentioning is that group bookings named “Ride-share” made a remarkable growth benefiting from the Twitter and the Facebook to attain half a billion yen a month in gross sales. Mikitani says this model is setting a new trend and that its monthly gross sales will reach somewhere around one billion yen by the end of this year.
Masashi Okatake, president of Rakuten Travel, disclosed that they will handle sooner or later international trips originating in foreign countries and bound for some other countries, like trips to Guam made by Chinese or Koreans, for example. They are in the process of establishing a new website for this purpose, and will soon start negotiation with hotels at the destinations for necessary arrangements.
Source: Travel Vision
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Hyatt Hotels and Resorts hosted Hyatt Fair 2010 in Tokyo and Osaka from July 28 through 30. Approximately 50 representatives from its group hotels the world over visited Japan for individual business sessions with Japanese travel agencies. At the reception held on July 30, Louis Kievit, Vice President–Sales, International Operation at Hyatt International Corporation, said demand is getting strong all in all and that business travelers are fast coming back. Recovery of leisure and group travelers is a bit tardy but is in sight, he added.


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