Japan Travel Trade Weekly News
Keeping you abreast of what's going on in the
Japanese travel and tourism industries.
News consolidated by Travel Vision, Inc. updated every week.
JATA Starts Up Working Group for Regular Meetings with MLIT, Carriers
January 2008
Japan Association of Travel Agents (JATA) held on January 17 the
first meeting of "Working Group to Sort Out Problems Relating to
Airlines Operation." JATA is supposed to run the Visit World Campaign
with a view to boost overseas travel demand, but it acknowledges
there are several matters that require airlines' understanding and
cooperation in relation to seat supply and route operation.
Prior to the three-party meeting scheduled in February with
airlines and the Civil Aviation Bureau of Ministry of Land,
Infrastructure, Transport and Tourism (MLIT), JATA wants to sort out
relevant problems and formulate proposals to submit to the meeting on
behalf of travel agencies.
The working group is composed of JTB, JTB World Vacations, Kinki
Nippon Tourist, H.I.S., Hankyu Express, Nippon Travel Agency, and
JALPAK. At the meeting of January 17, the group held hearings from
representatives of these agencies on the present situation and will
soon get them into shape. It will conduct another round of hearings
if necessary.
LOOK JTB Takes Grip on Market with "Super Package Tour" for FY 2008;
Anticipates 1.41 Million Customers for FY 2007
January 2008
JTB World Vacations, Inc. (JTBWV) has decided a strategy of LOOK
JTB for the spring/ summer season of 2008, that is, to continue the
policy implemented during the fiscal year 2007 and take a grip on
every sector of the market with "Super Package Tour". At the same
time, the company made an estimate of 1,412,000 for the customers to
be handled during the FY 2007, an all-time high and up four percent
from the previous year.
Fumiyuki Kitajima, president of JTBWV, said, "We will end up
outperforming the total market growth despite the tough situation.
Our commitment for FY 2008 as a package tour wholesaler is to sustain
the growth qualitatively and quantitatively." His goal for the coming
year is to handle 1,450,000 customers, up three percent from FY 2007.
JTBWV is going to focus on the sale of pricey European tours, but
expect Hawaii- bound customers to drop four percent due to the
suspended flight operation. Hawaii is the only destination that will
see a negative growth in the company's projection for FY 2008.
(Forecast for FY 2007 and target for FY 2008 are listed at the bottom
of this article.)
With regard to the business environment for 2008, JTBWV assumes
that ground cost will go up in the range of 2 to 15 percent over last
year and air fare will rise by 1 percent to 5 percent because of
airlines' acute consciousness of the bottom line; consequently, tour
cost will be pushed up by 4 or 5 percent, while selling price is
being kept within a hike of 2 percent on an average.
Mr. Kitajima makes a remark in this connection: "If earnings are
everything, we may as well focus our efforts on profitable
destinations and profitable seasons alone. However, since we are
expected to fulfill our mission as a responsible wholesaler, we must
achieve a growth from both qualitative and quantitative aspects to
boost total demand."
As means to step up business volume, the company is going to sell
near-departure tours deliberately, increase online sales, and develop
the Dynamic Package. With reference to price-appealing products, he
stated that his company might be compelled to market such products
out of strategic necessities but would not do so simply because some
destinations were not selling well.
* Forecast of the number of customers handled during FY 2007
(Destination: forecast | growth over FY 2006 | target for FY 2007 |
achievement over target)
Hawaii: 264,000 | +1% | 271,000 | -2.6%
Micronesia: 254,000 | -2% | 250,000 | +1.6%
U.S.A.: 72,000 | -5% | 77,000 | -6.5%
Europe: 169,000 | +7% | 165,000 | +2.4%
Asia: 470,000 | +10% | 438,000 | +7.3%
China: 85,000 | +6% | 101,000 | -15.9%
Oceania: 98,000 | -3% | 108,000 | -9.3%
Total: 1,412,000 | +4% | 1,410,000 | +0.1%
* Target in the number of customers for FY 2008
(Destination: target | growth over FY 2007)
Hawaii: 254,000 | -4%
Micronesia: 263,000 | +4%
U.S.A.: 72,000 | 0%
Europe: 180,000 | +7%
Asia: 480,000 | +2%
China: 99,000 | +16%
Oceania: 102,000 | +4%
Total: 1,450,000 | +3%
JALPAK Likely Books Profits for FY 2007 with 7% Growth in Customers,
Will Keep Same Level for First Half of FY 2008
January 2008
Akihiko Kaji, president of JALPAK, made a comment on the latest
business performance as follows: "We made profits amounting to 500
million yen in the first half of the current fiscal year. I hope we
could finish the term with good results as favorable circumstances
have been carried on to the second half."
He emphasized that the internal shakeup had worked and
promotional measures produced a good effect on sales. He takes a
positive stance toward the market, saying, "If you are too reserved
and too cautious about the market, what you get is demand shrinkage
and a poor share of the Japanese economy. So we should step out for
the global scenes so that we could benefit ourselves from the two-way
tourism of inbound and outbound, fascinating people with memorable
trips."
JALPAK owed the good financial results in 2006 to its corporate
restructuring but in 2007 to good performance of package tour sales.
In fact, the number of customers handled during 2007 is expected to
have grown 7 percent. Although Mr. Kaji gave no indication of the
full-year results, he is confident of posting a gain in the net
profit and showing the company has restored profitability after
several years' slump.
Contributing factors to the turnaround are the implementation of
several key measures, such as reinforcement of sales capability of
contract agents, high-mix low-volume merchandising policy, system
integration of reservation and operation, and improved quality.
As an outlook for FY 2008, he sees no encouraging signs in the
market except the senior's segment, so the company continues to offer
such products as to cater to specific needs of the market.
Internally, new personnel and wage system was introduced last
year; it was intended to raise awareness of professionalism on the
part of employees and to make the most of female workforce. The
company hopes the new system will revitalize the staff and drive them
forcibly to each assignment, which would lead to an increase of sales
in the end.
* Target in the number of customers for the first half of the fiscal
year 2008 (Destination: total number | I'll | Ava -- growth over the
previous year in parenthesis)
Hawaii: 65,500 (+1%) | 17,000 (+2%) | 48,500 (+1%)
U.S.A.: 13,200 (0%) | 3,900 (+1%) | 9,300 (0%)
Europe: 21,700 (-1%) | 6,700 (+1%) | 15,000 (-2%)
Asia: 44,100 (+2%) | 10,100 (0%) | 34,000 (+3%)
Oceania: 18,750 (-4%) | 4,200 (-8%) | 14,550 (-2%)
Guam: 30,100 (0%) | 4,600 (-6%) | 25,500 (+2%)
China: 18,800 (-3%) | 4,500 (+4%) | 14,300 (-5%)
Taiwan: 10,600 (+1%) | 2,200 (+1%) | 8,400 (+1%)
Sekai-kiko: 450 (+47%) | 400 (+41%) | 50 (+117%)
Total: 223,200 (0%) | 53,600 (0%) | 169,600 (0%)
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