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.
Spring Holiday Bookings Decline by 10% to 40% Due to Unfavorable
Holiday Calendar and China Tour Slump
Late-April 2008
Tour bookings for the spring holiday, dubbed "golden week," stay
far below the level of last year at major tour operators. Travel
Vision's survey conducted with eight operators found that the least
decline registered was that of H.I.S. at 9.6 percent, followed by JTB
at 10 percent, and Kinki Nippon Tourist (KNT) at 14.6 percent, while
others suffering a sharp drop of around 30 percent or even 40 percent
at worst.
However, as far as the second chunk of the holiday that comes
round in May is concerned, JTB shows a growth of 6 percent from May 3
to May 5 over the previous year and KNT shows a growth of 4 percent
from May 1 to May 6. JALPAK is successful in keeping the decline
within the range of 5 percent from May 1 to May 6.
Departure dates spread to before and after the core period of
spring holiday. In case of bookings at H.I.S., the second busiest day
comes on April 24 and the fifth busiest day on April 25 if the survey
period is extended to include April 24. Hankyu Express has heavy
bookings for departures on May 5 and 6, admitting brisk sales of
relatively inexpensive tours after the peak dates.
It happens because many of the agency's customers are senior
citizens who are free from holiday calendar. A JTB representative
says, "Families are more flexible than ever in picking up a departure
date and selecting a reasonably priced tour by making use of only a
portion of the holiday, as it has become easier for their children to
stay away from school even on weekdays."
By destination, visitors to Micronesia are up 31 percent at KNT
because of its charter operation to Rota and up 13 percent at JTB.
Visitors to Asian destinations increase 10 percent at Hankyu Express
and 8 percent at JALPAK just for May.
It appears that hikes of oil surcharge and unfavorable holiday
calendar direct tourists to short-haul destinations that can cap the
travel expenses within their modest means.
Destination China, in the meantime, suffers from people's anxiety
over food safety and political turmoil in Tibet, which at some
agencies reduces China-related revenue to almost a half of last year.
Many agencies surveyed commented that slackened business to China
creates a major negative impact on them as it was initially expected
to amass hefty sales.
The best selling destinations at H.I.S. are - in the order of
popularity - Seoul, Guam, Bangkok, Honolulu, and Taipei, and the top
10 destinations were either Asia or Micronesia, with an exception of
Hawaii.
Many operators say that, despite the slump of the spring holiday,
bookings for summer season are going strong. For instance, total
bookings from June through September are progressing at a growth of 3
percent at Nippon Travel Agency (NTA) and those for Hawaii mark a
22.3 percent growth. Bookings at Hankyu Express for May and June are
at the same level as last year. Bookings at JALPAK exceed those of
last year for August.
It should be noted, however, that some say the spring holiday
bookings looked robust until a month ago staying at the same level as
last year but failed to accumulate late bookings thereafter. They
explain this phenomenon by saying, "Early bookings are becoming
habitual among consumers. Besides, release of new seasonal product
lineup is brought forward by two weeks every year."
* Note: Survey was made with JTB, KNT, NTA, JALPAK, ANA Sales,
H.I.S., Hankyu Express, and Club Tourism, but not on the same day.
The exact period of the spring holiday varies depending on the
definition of each company.
JATA Proposes to Include Oil Surcharge into IT Fares from Next
Spring/ Summer Season; Way of Description in Tour Brochure under
Discussion
Late-April 2008
Japan Association of Travel Agents (JATA) is looking for a new
rule for fixing IT fares for package tours that include oil
surcharge. Jun Ishiyama, leader of JATA's FSC Team, says on this
issue, "Oil surcharge is something like the fluctuation of foreign
currencies in terms of the risks caused by external factors after
finalizing IT fares."
However, since the realization of such scheme is subject to
consent by airlines, JATA is making request to that effect to two
Japanese carriers but not to foreign carriers yet. Mr. Ishiyama hopes
the mutual understanding can be reached preferably in time for this
autumn/ winter season, or no later than for next spring/ summer
season.
Most travel agencies support the idea on the ground that it is
beneficial to the consumers. As soon as the carriers agree to this,
package tour operators will sit at the negotiation table weighing
involved risks. When IT fares come to include fuel surcharge this
way, tour pricing may somewhat be affected and tour operators will be
compelled to review their tour lineup.
JATA, in the meantime, is discussing with Ministry of Land,
Infrastructure, Transport and Tourism (MLIT) about the alteration of
the Ministry's notice that demands denotation of the surcharge
amount. The existing notice specifies that the surcharge must be
shown alongside the tour price stating expressly that it must be paid
in addition to the tour price.
MLIT is positive to change the guidance so far as it serves to
benefit the consumers, so the Ministry is said to be studying how it
should revise the instruction already given, including other points
to amend. Once the notice is renewed, it will be implemented
progressively, starting with media- advertised tours and ad-hoc
tours.
Narita Airport Golden Week Outbound Traffic Down 4.8%; Departure
Peaks on May 3
Late-April 2008
According to the traffic estimate by Narita International Airport
(NAA) for the Golden Week which runs this year from April 24 to May
7, the number of outbound passengers is forecast to decline 4.8% to
485,000 and the number of inbound passengers is also expected to drop
4.9% to 484,900 year-on-year. The aggregated number of passengers,
outbound and inbound, is estimated to decrease by 4.8% to 969,900.
The spring holiday calendar this year is not favorably aligned.
The departure traffic peak is as late as May 3 when 4-day holiday
starts, and the passenger number is down 13.5% to 43,600 compared to
the year-ago peak period (April 28).
The arrival traffic peaks on May 6, the same date as last year,
but the passenger number is down 17.6% to 47,800. The second peak
date for the departure traffic falls on Saturday April 26 with 42,600
passengers, followed by the third peak on April 24 with 37,600.
In a comparison by terminal at Narita, the total number of
departure and arrival passengers is forecast to edge down 0.9% to
495,800 at the Terminal 1 and decline 8.6% to 474,100 at the Terminal
2.
In terms of the departing passenger number, the Terminal 1
expects a decrease of 1.5% to 248,500 and the Terminal 2, a decrease
of 8% to 236,500 while, in terms of the returning passenger number,
the Terminal 1 will see a slight decrease of 0.3% to 247,300 and the
Terminal 2, a decrease of 9.3% to 237,600.
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