TokyoTomo Travel Guide

Operating income margin on gross sales of category-one travel agencies (498 agencies under survey) turned out to be 0.42 percent for the fiscal year 2008, according to the data “Travel Agency Management Analysis” released by Japan Association of Travel Agents (JATA) at the JATA Management Forum 2010. The ratio was shy of the high of 0.55 percent recorded in the past 11 years, but made an improvement of 0.04 point from FY2007. The average operating profit per agency dropped 4.8 percent to 49 million yen, narrowing the range of decline compared to that of gross sales which fell 13.6 percent to 11,745 million yen. The businesses whose travel unit turned a recurring profit totaled 280, 57 fewer in number than a year before or down 16.9 percent. As far as profit-making businesses are concerned, their operating income margin on gross sales registered 1.13 percent, showing an advance from 0.55 percent of the previous year.

In light of operating income margin on net sales classified by business size, the highest-scoring travel agencies were those with 101 to 300 employees registering 18.1 percent, much higher than overall average of 4.2 percent. Their operating profit, in fact, amounted to 274 million yen to mark the highest level among all sizes of business; however, their gross sales ranked fourth.

Per capita turnover averaged at 93.9 million yen, down 9.6 percent from a year earlier. It should be noted, however, that an increase in per capita turnover was witnessed at agencies with 301 to 500 employees (133 million yen per employee, up 3.8%), at those with 21 to 50 employees (91 million yen, up 4.5%), and at those with 51 to 100 employees (95 million yen, up 0.1%).

Source: Travel Vision

Travel Vision Inc. provides information on the travel industry in Japan via "Daily Travel Vision", a Japanese-language e-mail newsletter, and the "Travel Vision" website. There are nearly 110,000 people working in the Japanese travel industry, and Travel Vision is proud to be bringing travel news to more than 30,000 people through Daily Travel Vision.

Akira Kanai, chairman of Japan Association of Travel Agents (JATA), remarked in the opening speech at the JATA Management Forum on February 16, “We should make 2010 the year for us to go on the offensive.” After having been plagued by the economic crisis and the H1N1 flu epidemic in 2009, “Travel industry is favored in 2010 by numerous exhilarating events,” he said, citing the Winter Olympics, Shanghai Expo, FIFA World Cup, and the 1300th anniversary of capital relocation to Nara on the one hand and increased landing slots at Narita Airport and internationalization at Haneda Airport on the other.

Since the administration of the Democratic Party of Japan has hammered out a policy to make tourism an integral part of the growth scenario, he clarified JATA’s stance with the remark, “We will work with Japan Tourism Agency as a private sector to promote outbound, inbound, and domestic travel in a bid to achieve the goals outlined in the Tourism Nation Promotion Basic Plan.” He also made allusion to the subject of this year’s Management Forum, “Ride on the Waves! Change Yourselves and Get a Chance!” and said, “JATA must change itself by keeping pace with the times. JATA World Tourism Congress and Travel Fair, for instance, should provide a versatile business arena for BtoB transactions in order to help member agencies collect necessary information and team up with new partners.”

Acknowledging travel industry is still undergoing a tough time, he said, “We must find a glimmer of hope even at the very bottom of the economic cycle. It is important to summon our courage to make a sure step forward in such direction. I notice some JATA members have shown outstanding performance in the midst of the flagging economy.” It goes to show, he continued, that travel agencies still stand a fair chance of making a further evolution so far as they are successful in following the market trends correctly, then repositioning quality and price of their own products, renewing distribution system, and boosting customer satisfaction. He said, “It is crucial to change ourselves in order to meet those challenges.”

Source: Travel Vision

Travel Vision Inc. provides information on the travel industry in Japan via "Daily Travel Vision", a Japanese-language e-mail newsletter, and the "Travel Vision" website. There are nearly 110,000 people working in the Japanese travel industry, and Travel Vision is proud to be bringing travel news to more than 30,000 people through Daily Travel Vision.

Pursuant to Japan Airlines’ filing for corporate reorganization proceedings and the court decision on its commencement, Akira Kanai, chairman of Japan Association of Travel Agents (JATA), issued a statement on January 20 to express JATA’s hope for JAL’s sure and steady revival. In the statement, he remarked, “We highly appreciate JAL’s dedication up to now for the cause of regional developments and broad human exchange by way of tourism promotion at home and abroad. JAL’s early comeback is very much expected so that it could bring itself to resume such tasks. We will spare no effort in continuing to play our part as travel industry for the purpose of promoting human exchange.” Kosuke Shibata, president of JATA, also said at the regular press meeting on the same day, “Not a few travel agencies have immediately voiced ‘willingness to support JAL.’ It is our desire to go hand in hand with JAL for mutual prosperity.”

Takaya Okuyama, director and secretary general of JATA, said, “The revival plans released so far were generally more on the side of corporate restructuring by means of organizational trimming and downscaling of the flight network. What we want to see is the measures to improve profitability and to keep hold of the existing customers. We do not mean to back up JAL alone, but would like to cooperate with them in marketing superb products and services as before lest their failure should cause inconveniences on other airlines and travel industry.”

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