Japanese tourism trend and potential for Baltics & South ...Tokyo 38.6 mio Nagoya 7.4 miio Osaka 17...

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

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

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

Japanese outbound traveling

The difference between 2 Asian markets The year of liberalization of overseas traveling

China

(1997)

Korea

(1989)

Japan

(1964)

Matured

6

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)


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

Golden Week

June-July

August

Silver Week

December

Numbers of Overseas Travelers by Gender and Age Group (2015)

(Thousands)


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

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

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%


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

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)

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%)


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

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”

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

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”

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

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


(n = 1,763)

(n = 328)

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”

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

(%)


SNS in Japan Jan,2016

Source: Nielsen research

SNS in Japan (2)

SNS in Japan (3)

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

２０１２２０１３２０１４ 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

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

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

What information Japanese TO’s are looking for?

Shigeyoshi Noto

Foresight Marketing

• 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

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

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?”

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.

THANK YOU

Japanese tourism trend and potential for Baltics & South ...Tokyo 38.6 mio Nagoya 7.4 miio Osaka 17...

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