japanese tourism trend and potential for baltics & south ...tokyo 38.6 mio nagoya 7.4 miio osaka 17...
TRANSCRIPT
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Japanese tourism trend and potential for Baltics & South Coast of Finland
Expectation and cultural differences of Japanese tourists
Working culture of Japanese travel agencies
Shigeyoshi Noto Foresight Marketing
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Tokyo 38.6 mio
Nagoya 7.4 miio
Osaka 17 mio
• GDP: World No.3, 4.58 trillion € (8.2% of world GDP)
• 128 mio population, • 10th biggest population in the
world • 3 metropolitan areas (Tokyo
metropolitan area is No.1 in the world)
• 11 cities more than 1mio population
Geography
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The shortcut between Asia and Europe
Flying via Helsinki means the geographically shortest route, smooth and uncongested transits, and straighter flights that generate fewer emissions.
35 weekly flights from Japan
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Japanese outbound traveling
-
The difference between 2 Asian markets The year of liberalization of overseas traveling
China
(1997)
Korea
(1989)
Japan
(1964)
Matured
6
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Dawn of Japanese overseas traveling 1964
-
The number of Japanese travelling abroad
(Thousands)
Source: Ministry of Justice “Statistics of Immigration Control” 8
0
20 00
40 00
60 00
80 00
1 00 00
1 20 00
1 40 00
1 60 00
1 80 00
2 00 00
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Financial crisis
Great East Japan Earthquake Iraq war/
SARS
-
Number of Overseas Travelers by Month
0
2 00
4 00
6 00
8 00
10 00
12 00
14 00
16 00
18 00
Jan. Feb. Mar Apr May Jun Jul Aug Sep Oct Nov Dec
(Thousands)
Source: Ministry of Justice “Statistics of Immigration Control” 9
Spring holidays Summer holidays
Golden Week
Silver Week
Fiscal year starts
-
• Many national holidays • Frequent long weekends • Short holidays • Less consumption of paid holidays
-
January
-
April
-
Golden Week
-
June-July
-
August
-
Silver Week
-
December
-
Numbers of Overseas Travelers by Gender and Age Group (2015)
(Thousands)
Source: Ministry of Justice “Statistics of Immigration Control” 18
2 93
3 80
9 94
17 30
22 52
19 03
12 78
4 48
2 85
4 79
15 42
12 93
11 23
9 81
8 83
3 53
0
5 00
10 00
15 00
20 00
25 00
0-9 10-19 20-29 30-39 40-49 50-59 60-69 70+
Male
Female
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Number of Overseas Trips Taken and Previous Travel Experience
An average of 1.6 trips were taken by overseas travelers during the year 2015. The highest average number (2.0) was for middle-aged men, while the lowest (1.2) was for housewives.
Once; 68,6%
Twice; 18,9%
3 times; 6,5%
4 times; 2,6% 5 or more;
3,3%
Number of Overseas Trips in 2015
Average: 1.6 times in 2015 Average: 17.0 times
Source: JTB Tourism Research & Consulting Co. “Factual Survey of the Overseas Travel Situations” 19
Once; 4,9%
2-3 Times; 12,4%
4-5 Times; 12,1%
6-9 Times; 16,1%
10-19 Times; 23,9%
20 or more times; 29,6%
No answer; 0,9%
Previous Experience of Overseas Travel by Market Segment in 2015
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Destinations by Market Segment
East Asia; 24,8%
China; 7,2%
Southeast Asia; 21,9%
U.S. Mainland; 6,4%
Canada; 1,3%
Hawaii; 10,3% Guam/Saipan; 4,5%
South Pacific islands; 0,7%
Oceania; 2,5% Europe/Russia;
16,5%
Latin America & the Caribbean; 1,6%
Middle East/Africa etc.; 2,1% No answer; 0,1%
Source: JTB Tourism Research & Consulting Co. “Factual Survey of the Overseas Travel Situations” 20
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Purpose of Travel
Source: JTB Tourism Research & Consulting Co. “Factual Survey of the Overseas Travel Situations” ”
Tourism; 70,6% Honeymoon; 3,9%
To visit family or friends;
5,2% Business trips;
13,0%
Training/inspection trips; 1,6%
Conference attendance; 1,6%
Overseas study/School trips;
1,3%
Others; 1,8%
No answer; 1,0%
21
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Travel Duration: Europe/Russia
2,1%
31,3%
33,2%
39,7%
58,9%
23,4%
5,6%
4,8%
0,1%
0,9%
Europe/Russia
Overall average
1-4 days 5-7 days 8-14 days 15 days or more No answer
Source: JTB Tourism Research & Consulting Co. “Factual Survey of the Overseas Travel Situations”
(100%)
22
(n = 710)
(n = 4,302)
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Travel Companions
Traveling alone continued to expand.
2015
2014
2013
2011
2009
2007
22,2%
20,5%
20,0%
23,6%
21,2%
22,7%
20,9%
20,0%
20,7%
22,6%
23,2%
22,6%
19,3%
20,3%
20,3%
21,7%
23,3%
21,1%
9,4%
11,9%
11,5%
8,8%
9,6%
11,5%
23,6%
22,7%
22,6%
19,7%
19,7%
17,3%
3,0%
2,7%
2,8%
2,2%
2,2%
3,6%
1,6%
1,8%
2,1%
1,5%
0,9%
1,3%
Husband or wife Family/ relatives Friends/ acquaintances Fellow employees
Alone Others No answer
(n = 3,960)
(n = 4,363)
(n = 4,262)
(n = 4,485)
(n = 4,376)
(n = 4,302)
(100%)
Source: JTB Tourism Research & Consulting Co. “Factual Survey of the Overseas Travel Situations” 23
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Activities at Destinations
2,8%
0,2%
0,3%
1,1%
1,7%
2,0%
2,3%
2,3%
3,4%
3,4%
3,4%
4,5%
5,3%
5,8%
6,1%
7,9%
8,3%
8,3%
14,6%
25,2%
28,1%
52,1%
58,7%
59,9%
61,8%
0% 20% 40% 60% 80% 100%
Others
Skiing
Business
Cruises with one or more overnight stays
Watching sports
Playing golf
Wedding ceremony
Gambling
Other sports
Driving
Hiking/ Mountaineering
Scuba diving
Night tour
Visiting family/friends
Day-return cruises
Theme parks
Theater performances/Concerts/Movies
Swimming
Beauty treatments/Massage
Rest & Relaxation
Art galleries & Museums
Historic and cultural attractions
Shopping
Gourmet sampling
Natural & scenic attractions
2015
2014
Source: JTB Tourism Research & Consulting Co. “Factual Survey of the Overseas Travel Situations”
“Viewing natural and scenic attractions” retained top place for the second year. “Shopping” dropped blow 60% for the first time in 12 years.
24
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Travel Costs by Destination: Europe/Russia
Looking at the total expediture of travelers who participated in package tours, they were the highest for trips to Latin America, at 660,000 yen. This was followed by other remote locations including Canada at 462,000 yen, the South Pacific Islands at 432,000 yen, and Europe & Russia at 406,000 yen. Tour costs generally declined as a percentage of total expenditure for all major destinations.
32,2
19,6
2,7
2,8
4,8
3,8
0,9
0,9
0 10 20 30 40 50 60
Europe/ Russia
Overall average
Tour participation costs Local travel charges Shopping Other costs
Total: 27.0
(10,000 yen)
(n = 309)
(n = 1,628)
(Share) (72.5%) (10.2%) (13.9%)
(3.3%)
(79.3%) (Share) (6.6%) (11.8%)
(2.2%) Total: 40.6
25 Source: JTB Tourism Research & Consulting Co. “Factual Survey of the Overseas Travel Situations”
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Destination and Repeat Travelers: Europe/Russia
57,5
42,8
14,8
15,5
24,9
39,8
2,8
2
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Europe/ Russia
Overall average
Number of Repeat Visits to Destinations (2015)
First Second Third or subsequent No answer
(n = 4,302)
(n = 710)
26
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Motivation for Overseas Travel
Could take a holiday; 38,3%
There was a destination I wanted to
visit; 32,7% Travel regularly; 20,6%
Recommended or invited by
family/friends; 18,1%
The cost was low; 13,9%
Could afford it; 10,2%
Honeymoon/ Overseas wedding ceremony; 5,5%
Frequent flyer miles; 4,1%
Graduation, retirement or other cerebration; 3,9%
Others; 4,3%
27 Source: JTB Tourism Research & Consulting Co. “Factual Survey of the Overseas Travel Situations”
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Travel Arrangement by Destination: Europe/Russia
Package tour usage was high for both resort-type and touring destinations. The proportion of individually arranged travel did decline from the previous year (2014) and there was a noticeable increase in package-tour usage.
43,5%
37,8%
2,7%
3,1%
52,4%
57,2%
1,0%
1,4%
0,4%
0,5%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Europe/Russia
Overall average
Travel Arrangement by Destination (2015)
Package tours Group travel Individually arranged travel Others No answer
(n = 4,302)
(n = 710)
Source: Japan Tourism Marketing Co., “Factual Survey of the Overseas Travel Situation” 28
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Travel Package Type by Destination: Europe/Russia
Full-package tours are for mainly touring destinations; free-time tours are popular for resort areas. In terms of their destinations, full-package tours for touring destinations headed the list in the Middle East & Africa, etc. and in Europe & Russia.
82,9%
50,3%
16,8%
47,8%
0,3%
1,4%
0,5%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Europe/Russia
Overall average
Travel Package Type (Full vs Free Time) by Destination (2015)
Full-package tours Free-time package tours Others No answer
Source: Japan Tourism Marketing Co., “Factual Survey of the Overseas Travel Situation” 29
(n = 1,763)
(n = 328)
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Factors Hindering Overseas Travel
1,1%
2,5%
3,1%
4,8%
6,8%
7,6%
7,9%
11,6%
11,9%
13,0%
18,1%
19,5%
23,2%
26,1%
29,7%
30,9%
35,1%
39,7%
51,6%
0% 10% 20% 30% 40% 50% 60%
No acceptable tour schedule/itinerary/price
Hard to align holidays with desirable companions
No one to go with
Overseas travel is extravagant
Takes too long to get to airport
No destination I would like to visit
Don't agree with foreign customs like tipping
Need to care for family, animals and/or plants
Tiresome travel applications and procedures
Dislike foreign travel
Cannot take time off
Concerned I may become ill
Anxiety about health
Fear of flying
Do not like foreign food
Costs too much
Language concerns
Simply don't feel like it
Security concerns
“Security concerns” declined but still came top for a fifth year. Concerned over the international situation and costs declined; those over health grew.
30 Source: JTB Tourism Research & Consulting Co. “Opinion Survey of Overseas Travel Preference”
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Travel Reservation Methods
45 51,7
54
56
60,6 58,4
60,8 62,2
26,1
21,3 20,5 19,7
17,4 15,7 17,2 16 14,9
17,3
14 13,5 12,1 12,6
10,1 8,8 5,7
1 0,3 0,2 0,1 0,4
0,4 0,3
11,7
11,5 11,5 10,2 9,5 12,3
11,7 12
5,4 2
3,2 3,2 3,5
3,5 3,7 3
0
10
20
30
40
50
60
70
2008 2009 2010 2011 2012 2013 2014 2015
Internet
Travel agency outlets
Mail order/telephone
Airlines
Don't know because don'tbook myself
Others
Internet
(%)
Source: Japan Tourism Marketing Co., “Factual Survey of the Overseas Travel Situation” 31
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SNS in Japan Jan,2016
Source: Nielsen research
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SNS in Japan (2)
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SNS in Japan (3)
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The number of overnights by Japanese in Finland
134264 136831
146451
176936
205968
191462
200392
214472
2009 2010 2011 2012 2013 2014 2015 2016
-
Overnights by Japanese in Finland
13782
21312
15584
6088
14213
17824
22818
27617
25872
17018
14738
17395
0
5000
10000
15000
20000
25000
30000
January February March April May June July August September October November December
2014
2015
2016
-
3 client’s profiles for 3 seasons
•Elderly couples in summer season •All generations in winter season •Ladies in 20’s-40’s through the year
37
-
The number of overnights in Estona
8778
10768
17303
22865 23953
2012 2013 2014 2015 2016
-
The number of overnights in Estonia by month
0
500
1000
1500
2000
2500
3000
3500
4000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-
No of tourist & overnights in Latvia by Japanese
7322
8988
15606
21575
23191
12765
15776
24798
30033
32387
2012 2013 2014 2015 2016
Number of tourists
Number of overnights
-
Japanese Travel Trade
-
10,100 companies in
2016
Category Ⅰ
708
Category Ⅱ
2,827
Category Ⅲ
5,668
Referral Agent
810
How many travel agencies in Japan ?
Organize packages • Overseas • Domestic Sell packages • Overseas • Domestic Ordered • Overseas • Domestic
Organize packages • Domestic Sell packages • Overseas • Domestic Ordered • Overseas • Domestic
Sell packages • Overseas • Domestic Ordered • Overseas • Domestic
Consignment sales under the name of travel agents.
J.A.T.A.
-
Structure
Land Operators Travel agents Whole sellers
Accommodations
Restaurants
Transportation
Guides
Activities
Retailers Consumers
Airlines
-
Role of Land (Tour) Operators
• Offices in Japan
• Communication in Japanese
• Frequent sales calls
• Interpretation between local and Japanese culture
• Control package tour itineraries
• Support sales events of agents
Possibility to shift toward direct consumer sales
-
Travel Agency Act
• Strict consumer protection law
• Indirect influence to you
-
New trend and new comers
• Travel agencies shift to inbound business
• Package tour business is getting smaller
• Aggressive non-Japanese Hotel Booking Engines
(Expedia, Booking.com)
• Cruise business is popular among senior
• Cooperation between LCC and agencies
• Website is main booking tools among consumers
• More individual traveling, more solo traveling
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Japanese consumer behavior
-
Difference by areas 1
TOKYO
NAGOYA
OSAKA
-
Difference by areas 2 Countryside
Urban area
-
Difference by generation
1964
-
Japanese generally • They have very limited linguistic ability
• Well known as good manner people
• Their holidays are quite short
Trend going on • Group traveling →Individual traveling
• Ordinary sightseeing →Purpose led programs
• Touring around → Single destination
-
Decision making process
• Ladies are decision makers
• Influence by
short-haul destination: word of mouth
long-haul destination: HP of tourist offices &
agents
-
Preparation period • Japanese still appreciate printed materials in
Japanese
• They want to get as much as practical information such as weather, cloths, transportations, map e.t.c.
• Concrete proposals are more attractive for them.
-
Informative society
-
During trip • Smiling is worth while million euro promotion
• Japanese are not so active people.
• Wifi is must service in accommodation
• “Enjoy yourself “ doesn’t work
• We can treat them in local way, but a bit more explanation
• Portion of food
• Prepared people
-
After trip
• Silent evaluation
• They are potential repeat travelers
• Words of mouth is final stage of traveling
• Complains come afterward
-
57
Market Trend
-
Preferred Travel Style (1)
0 10 20 30 40 50 60 70 80 90
As many country as possibleOne or two destinations
Travel often even it's shortTravel as long as possible, even it's…
Visit same destination repeatedlyVisit different place each time
Stay at prestagious hotel, even expensiveStay at any hotels with basic amenities
Eat delux mealsEat at restaurant locals do
Travel in large groupTravel with few friends
Source : JTB Report 2014
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Preferred Travel Style (2)
0 10 20 30 40 50 60 70 80
Seek place travelers rarely visitVisit Famous destination
Arrange myselfPackage tour
Make many shoppings including suvenirsMinimum shopping for myself
Purchase brand goodsPurchace amenities and goods locals do
Spend enjoyable time with travel…Sightseeing and experience on the spot
Source : JTB Report 2014
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What information Japanese TO’s are looking for?
Shigeyoshi Noto
Foresight Marketing
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• Is farm running actual agriculture or just tourist farm ? • Host family information • Closest hospital information and language availability • Public and private transportation information (Accessibility) • Emergency contact • Room information (Bed) Whole number of room and how many beds there are (How many twins, singles, family rooms e.t.c.) • Room information (Amenity) • Room information (Bath room and toilet) • Seasonality (Also good for winter season ?) • Price range • Description on activities guests can experience • Information on liquidation, deposit • Meal condition • Environment around the facility • Beautiful pictures for usage on pamphlet and website
These are information TO’s want on product manual
-
Quality level and the scope of the country tourism products that we could include to the tour package
Shigeyoshi Noto
Foresight Marketing
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The condition tour operator association recommend when new business starts with suppliers.
Transportation • The company licensed by local authority • Utilizing the vehicles licensed by local authority • Following the low to maintenance the vehicles • Following the driving regulation by local authority • Having insurance regulated by local authority • Having emergency contact • Driver hopefully speaks English • Check the record of serious accident • Having appropriate working condition of the drivers
-
The condition tour operator association recommend when new business starts with suppliers.
Accommodations ・ Licensed by local authority • Following the local laws as accommodation • Having proper system for fire such as exits • Good security system • Following the local sanitation law • Immediate action plan for injuries and emergency
. Restaurants • Licensed by local authority and following the food, sanitary regulation • Having proper system for fire such as exits • Environment around restaurant should be clean enough • Check the record of accidents, incidents, criminal case by local authority
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Target Groups
Shigeyoshi Noto
Foresight Marketing
-
Married couple travelers & solo travelers are growing, which really reflects 2 emerging segments
67
23,6
23,6
23,6
21,2
22,7
19,1
17,7
18,5
17,1
13,3
22,9
22,6
23,8
21,8
22,9
22,8
22,7
23,4
23,7
20,9
20,3
21,7
19,9
20,8
21,1
23,0
23,7
25,8
25,0
29,4
8,8
8,8
10,6
12,6
10,6
11,6
10,4
11,5
12,6
14,5
19,6
19,7
18,8
19,0
17,4
15,5
13,2
10,5
12,6
12,1
2,4
2,2
2,4
3,1
3,8
4,5
4,7
6,1
5,2
6,3
2,5
1,5
1,0
1,5
1,5
3,4
7,6
4,1
3,8
3,5
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2012
2011
2010
2008
2006
2004
2002
2000
1998
1996
Husband or wife Family/relatives Friends/acquaintances Fellow employees Solo Others No answer
Source : Japan Tourism Marketing Co. “Factual Survey of the Overseas Travel Situation”
“Who do you travel with?”
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Emerging Segment(1) – Travel Savvy Seniors
68
“I don’t want to miss the world’s must-see
touching sites/experiences in my life”
Demographics
• 60s +
• Rich senior couples
• Retired
Who they travel with
• Travel on her own
• With Husband, or
Female friends
-
Emerging Segment(1) – Travel Savvy Seniors
GREY Worldwide Inc. 69
Activities
• They clearly understand what they want. So they focus on a couple of activities they really want to experience.
• Specific World Heritages even if it’s in a hard-to-access area
• Also, specific restaurants/gourmets, shops, and hotel in a city area
-
Emerging Segment (2) - Culture oriented girls
70
“I like to travel as if I were living like stylish locals…”
Demographics
• 25 – 45 year old female
• mid to high income
• Living in metropolitan areas
•Travel on her own
•With Husband, or Female
friends
-
Emerging Segment – (2) Culture oriented girls
71
Activity
• Rambling around the local stylish districts for inspiration
- Trendy restaurants, cafés, bars which are not touristy
- Shopping at local cute boutiques/shops, not luxury brands
- Taking photos of them to upload to SNS
• Taking short trip to rural natures/historical places for
healing herself
-
Emerging Segment – (2)Culture oriented girls
Lots of media have been igniting the growth of this segment
• Travel issues of female Fashion & lifestyle magazines are very well sold. Some of those already featured Finland.
• A series of guidebook named “Ko-trip” targeted at this segment has been selling 8 million copies as a total.
72
“Ko-trip” are sold 8 million copies (!)
“Finnish healing forests”
“Turkish holiday in Istanbul”
“Let’s find something cute in Estonia, Latvia,
Lithuania”
-
2 segments look different superficially, but have common driver
73
Culture-oriented Girls Travel Savvy Seniors
They are fascinated by a country with;
1. A combination of sophisticated culture & touching nature
2. Which are unique in the country
3. And, which are presented as must-see-in-life, as special
experience they can never get anywhere else.
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THANK YOU