Market Profile In 2012, Japan was Australia s fifth largest inbound market for visitor arrivals and total expenditure, and sixth for visitor nights. It was also the seventh largest market for total dispersed nights 1 during 2012. Findings from Tourism Australia s recent international tourism research project 2, indicate that when selecting a holiday destination Japanese visitors are wanting (in order of importance): a safe and secure destination, world class beauty and natural environments, rich history and heritage, good food and wine, and value for money. Compared to other out of region destinations, Australia ranks very highly for safety and security, natural beauty, being family friendly and having clean cities. The research shows that Australia delivers a positive holiday experience that exceeds the expectations of Japanese visitors. The latest forecast by the Tourism Forecasting Committee (TFC), released in October 2012, estimates that arrivals from Japan will grow 2 per cent in 2012/13 and 3 per cent in 2013/14, with a 2 per cent annual compound growth rate expected between 2011/12 and 2016/17. $2.7-3.3bn Potential for the Japan market to be worth by 2020 (Tourism 2020) $1.6bn total spend Total spend from Japan in 2012 (up 15 per cent on 2011) 4 353,900 arrivals Japanese visitor arrivals in 2012 (up 6.4 per cent on 2011) 5 Key airlines and share of passengers in 2012 3 Jetstar Japan Airlines/JALways Qantas Singapore Airlines Cathay Pacific Airways Other Table includes direct and indirect capacity Visitor profile in 2012 10% 6% 6% 15% 15% 48% 9.8m total nights Japanese visitor nights spent in Australia in 2012 (up 32 per cent on 2011) 4 3.2m dispersed nights 1 Japanese visitor nights spent outside gateway cities in 2012 (up 19 per cent on 2011) 4 Australia ranks 12th among all out of region outbound destinations for Japanese travellers 6 45% repeat visitors 4 78% of total arrivals are for leisure 5 15-29 years largest demographic 5 $4,818 average spend 4 30 nights average stay 4 Peak booking period one month prior to travel Jan-Mar and Jul-Sep peak travel period In this Market Profile Market Performance Consumer Research Aviation Landscape Distribution Find More Information Sources: 1. Dispersed nights refer to nights spent outside gateway cities of Sydney, Melbourne, Brisbane and Perth 2. Tourism Australia, Australian Consumer Demand Research, conducted by BDA Marketing Planning, 2012 3. Department of Immigration and Citizenship (Aviation) 4. International Visitor Survey (Tourism Research Australia) 5. Australian Bureau of Statistics, Overseas Arrivals & Departures 6. Tourism Economics, Tourism Decision Metrics 1 Japan Market Profile April 2013
Market Performance 1.1 Arrivals trends 900,000 History of Visitors from Japan into Australia Source: Australian Bureau of Statistics, Overseas Arrivals & Departures 800,000 Total Arrivals per Year 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 Dec80 Dec84 Dec88 Dec92 Dec96 Dec00 Dec04 Dec08 Dec12 > > In 2012, Japan was Australia s fifth largest inbound market for visitor arrivals. > > Arrivals from Japan peaked in 1997, when Japan was Australia s largest inbound source market. Between 2002 and 2012, arrivals have seen an annual compound decline rate of 7 per cent. > > Arrivals to Australia dropped in the aftermath of the Asian Financial Crisis in 1997. The outbreak of SARS in Asia and other influenzas also affected outbound travel demand across the region between 2002 and 2009. > > Arrivals from Japan were showing signs of improvement in 2010, however the Tohoku earthquake and tsunami in March 2011 curbed further growth and the market declined 16.4 per cent in that calendar year. > > On the back of a weak year, arrivals from Japan grew 6.4 per cent on 2012, as the market recovered from the aftermath of the natural disasters. Whilst this was an encouraging result, visitor numbers are yet to return to 2010 levels. 2 Japan Market Profile April 2013
Market Performance 1.2 Australia s market share 7 Australia s market share of Japanese outbound travel > > Outbound travel from Japan increased slightly in 2012 to 18.7 million trips, up from 16.5 million trips in 2011. > > Australia s share of Japan s total outbound travel has declined from 4 per cent in 2002 to 1.7 per cent in 2012. Japan: Total Outbound & Australia's Market Share Source: Tourism Economics (Tourism Decision Metrics) 30,000 16,216 3.79% 16,523 3.95% 13,296 4.33% 16,831 3.86% 17,404 3.59% 17,535 3.40% 17,295 3.03% 15,987 2.62% 15,445 2.11% 16,637 2.19% 16,481 1.85% 18,710 1.73% 6.0% Outbound Travellers (000s) 15,000 3.0% Market Share (%) 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (f) Total Outbound (000s) Australia's Share of Total Outbound (%) Note: 2012 is a forecast value 0.0% Top five outbound destinations from Japan > > In 2012, the top five outbound destinations from Japan were the USA, China, South Korea, Taiwan and Thailand. > > Australia ranked 17th among all outbound destinations in 2012, unchanged from 2011. 4,500 Trend of Top 5 Outbound Destinations from Japan Source: Tourism Economics (Tourism Decision Metrics) 4,000 Outbound Travellers (000s) 3,500 3,000 2,500 2,000 1,500 1,000 500 0 United States China South Korea Taiwan Thailand Australia 2001 2012 Note: 2012 is a forecast value 7. Figures for 2012 in this section are based on forecast data, last updated 14 February 2013 3 Japan Market Profile April 2013
Market Performance Australia s market share of out of region travel > > Out of region travel from Japan excludes travel to North East Asia. > > Out of region travel from Japan has fluctuated over the decade, from a peak of 14 million trips in 2002, to 11.4 million trips in 2009 and 14 million trips in 2012. > > Australia s share of the Japan s total out of region outbound travel has declined from 4.7 per cent in 2002 to 2.3 per cent in 2012. Outbound Out of Region Travellers (000s) 20,000 10,000 14,528 4.23% 13,996 4.67% Japan: Out of Region Outbound & Australia's Out of Region Market Share 11,732 4.91% 13,318 4.88% Source: Tourism Economics (Tourism Decision Metrics) 13,532 4.62% 13,769 4.33% 13,603 3.86% 12,595 3.32% 11,362 2.86% 12,342 2.95% 12,204 2.50% 13,974 2.32% 6.0% 3.0% Market Share (%) 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (f) Total Outbound (000s) Australia's Share of Total Outbound (%) Note: 2012 is a forecast value 0.0% Australia s competitor destinations from Japan > > In 2012, the top five destinations for Japanese travellers outside of North East Asia were the USA, Thailand, Germany, France and Singapore. > > Australia s ranking among out of region destinations remained at 12th in 2012, unchanged from 2011. 4,500 Trend of Top 5 Out of Region Outbound Destinations from Japan Source: Tourism Economics (Tourism Decision Metrics) Outbound Out of Region Travellers (000s) 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 United States Thailand Germany France Singapore Australia 2001 2012 Note: 2012 is a forecast value 4 Japan Market Profile April 2013
Market Performance 1.3 Visitor arrivals by age and purpose of visit Analysis of visitors from Japan in 2012 > > In 2012, the majority of arrivals from Japan visited Australia for Leisure purposes, with Holiday representing 69 per cent of total arrivals, and Visiting Friends and Relatives (VFR) representing 9 per cent. > > The largest age demographic was 15 to 29 years, representing 37 per cent of total visitors. > > Of total Business arrivals from Japan in 2012, there were 11,400 convention/conference visitors. Visitors from Japan by Age and Purpose of Visit for 2012 Source: Australian Bureau of Statistics, Overseas Arrivals & Departures 140,000 Holiday 242,550 (69%) Visit Friend/ Relatives 31,960 (9%) Business 35,170 (10%) Education 19,920 (6%) Employment 11,420 (3%) Other 12,960 (4%) 120,000 Total Japan 353,980 (100%) + - 100,000 Total Number of Visitors 80,000 60,000 40,000 20,000 0 Under 15yrs 15 to 29yrs 30 to 44yrs 45 to 59yrs 60yrs & over 29,350 (8%) 132,400 (37%) 87,090 (25%) 59,650 (17%) 45,490 (13%) 5 Japan Market Profile April 2013
Market Performance Age demographic of visitors from Japan for 2002-2012 > > Since 2002, the largest visitor segment out of Japan for Australia has been the 15 to 29 years of age demographic, however all age segments declined over the past decade. 300,000 Japan: Visitor Arrivals by Age for 2002-2012 Source: Australian Bureau of Statistics, Overseas Arrivals and Departures Under 15 yrs Total number of visitors 250,000 200,000 150,000 100,000 50,000 15 to 29 yrs 30 to 44 yrs 45 to 59 yrs 60 yrs & over - 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Visitor segments from Japan for 2002-2012 > > Holiday visitors, the largest segment out of Japan for Australia for the last decade, reached a peak in 2004 before significantly declining to lows in 2009 and 2011. > > From 2002 to 2012, the VFR and Employment segments have shown resilience, achieving an annual compound growth rate of 2 per cent and 8 per cent respectively. > > Business arrivals have remained relatively flat over the past decade. Japan: Visitor Arrivals by Purpose of Visit for 2002-2012 Source: Australian Bureau of Statistics, Overseas Arrivals and Departures 600,000 Holiday Total number of visitors 500,000 400,000 300,000 Visit Friends/Relatives Business 200,000 Education 100,000 Employment - 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Others 6 Japan Market Profile April 2013
Market Performance 1.4 Spend by age and purpose of visit Breakdown of spend by visitors from Japan for 2008-2012 > > On average from 2008 to 2012, the largest spending segment was Holiday visitors, representing 65 per cent of total spend. This was followed by Education, representing 14 per cent. > > The largest spending age group was 15 to 29 year olds, representing 47 per cent of total spend by Japanese visitors. Spending by Visitors from Japan by Age and Purpose of Visit for 2008-2012 Source: International Visitor Survey (Tourism Research Australia) Holiday $1,006,559 (65%) Visit Friend/ Relatives $78,043 (5%) Business $157,680 (10%) Education $215,214 (14%) Employment $35,495 (2%) Other $50,712 (3%) $800,000 $700,000 $600,000 Total Japan $1,543,704 (100%) + - Total Spend by Visitors (A$ 000s) $500,000 $400,000 $300,000 $200,000 $100,000 $0 Under 15yrs 15 to 29yrs 30 to 44yrs 45 to 59yrs 60yrs & over Not covered by $732,365 (47%) $396,772 (26%) $245,958 (16%) $168,608 (11%) the IVS Note: Data in graph refers to an average of 2008-2012 7 Japan Market Profile April 2013
Market Performance Spend by age group from Japanese visitors for 2002-2012 > > Visitors aged 15 to 29 years have consistently spent more money in Australia over the past decade than any other age group. > > Spend by visitors aged 15 to 29 years peaked in 2002, before declining by a total of 40 per cent by 2009. The segment is starting to show signs of recovery, surpassing the 2010 spend levels in 2012. > > Spend from all age groups (except 45 to 59 years) grew in 2012 compared to 2011. $1,400,000 $1,200,000 Japan: Visitor Spend by Age for 2002-2012 Source: International Visitor Survey (Tourism Research Australia) 15-29 yrs Total Spend (A$ 000s) $1,000,000 $800,000 $600,000 $400,000 $200,000 30-44 yrs 45-59 yrs 60 yrs & over $- 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Spend by purpose of visit segments for 2002-2012 > > Japanese Holiday visitors have consistently spent more money than other visitor segments over the past decade. Holiday spend in 2012 grew 16 per cent compared to 2011, however it did not reach 2010 levels. > > VFR, Education and Employment have shown the fastest rate of recovery since the Tohoku earthquake in 2011, with spend from these segments growing and surpassing the 2010 figures. Japan: Visitor Spend by Purpose of Visit for 2002-2012 Source: International Visitors Survey (Tourism Research Australia) $2,500,000 Holiday $2,000,000 Visiting Friends/Relatives Total Spend (A$ 000s) $1,500,000 $1,000,000 Business Education $500,000 Employment $- 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Others 8 Japan Market Profile April 2013
Market Performance 1.5 Visitor profiles for spend and nights Average visitor Spend per trip $4,399 Stay 23.5 nights Spend per night $187 Purpose of visit Holiday Spend per trip $4,002 Stay 16.6 nights Spend per night $242 Visiting Friends and Relatives Spend per trip $2,698 Stay 15.5 nights Spend per night $174 Business Spend per trip $4,372 Stay 14.3 nights Spend per night $305 Other (including education and employment) Spend per trip $8,756 Stay 90.4 nights Spend per night $97 Age groups 15 to 29 years Spend per trip $5,105 Stay 39.1 nights Spend per night $131 30 to 44 years Spend per trip $4,110 Stay 16.7 nights Spend per night $247 45 to 59 years Spend per trip $3,693 Stay 8.6 nights Spend per night $432 60 years & over Spend per trip $3,801 Stay 10.5 nights Spend per night $363 International Visitor Survey (Tourism Research Australia) Note: Data refers to an average of 2008-2012 9 Japan Market Profile April 2013
Consumer Research In 2012, Tourism Australia undertook a major international tourism research project 8 into how global consumers view Australia and what most motivates them to visit, identifying the triggers and experiences important to the consumer when selecting a holiday destination. The research involved 13,389 consumers across 11 markets, who have travelled long haul in the past two years and/or plan to travel long haul in the next few years. The results below refer to the responses of Japanese consumers. Japan 2.1 What travellers from Japan want in a holiday destination Participants were asked what they look for when choosing any holiday destination. The graph below outlines the top five considerations of Japanese respondents. Their key considerations are: safety and security, world class beauty and natural environments, rich history and heritage, good food and wine, and value for money. Japan: Top 5 Importance Factors A safe and secure destination 77 World class beauty and natural environments Rich history and heritage 50 52 Good food, wine, local cuisine and produce 45 A destination that offers value for money 37 A family friendly destination A range of quality accomodation options Clean cities, good road infrastructure with clear signposts 27 29 30 Flights with no stop-overs Friendly and open citizens, local hospitality 24 23 Romantic destination Spectacular coastal scenery Great swimming beaches 15 17 17 Native or cultural heritage or activities Great shopping / world class brand names Ease of obtaining visa 11 11 10 Luxury accommodation and facilities Different and interesting local wildlife Good leisure activities such as nightclubs/bars and/or casinos 5 6 7 Read as: 77 per cent of Japanese respondents ranked a safe and secure destination in their top five considerations when choosing a destination 8. Tourism Australia, Australian Consumer Demand Research, conducted by BDA Marketing Planning, 2012 10 Japan Market Profile April 2013
Consumer Research 2.2 Associations with Australia For Japanese respondents, Australia is known for being safe and secure, having beautiful natural environments, and being a family friendly destination with clean cities and good infrastructure. Compared to other out of region destinations, Australia ranks highly (first, second or third) for safety and security, natural beauty, family friendliness and clean cities. 2.3 Opportunities for Australia highlighted by the research The research shows that Australia delivers a positive holiday experience that meets or exceeds the expectations of Japanese visitors. This was particularly clear for their perception of Australia offering good food and wine and value for money. Food and wine rankings were very high amongst those who have visited Australia and sampled the country s offering, compared to the perceptions of those had not been, presenting future marketing opportunities. Despite currently unfavourable exchange rates, Japanese respondents who had visited Australia perceived their experiences delivered value for money. Noting that value was not defined during the research and is considered a subjective term. 2.4 Preferred Australian experiences Japanese respondents prefer experiences in Australia which include wildlife (both aquatic and non-aquatic), food and wine, coastal or harbour settings and/or shopping. 11 Japan Market Profile April 2013
Aviation Landscape 3.1 Summary > > Following years of capacity decline due to withdrawn services, capacity to Australia from Japan grew in 2012. > > This introduction of Low Cost Carriers (LCCs) to Japan is expected to be one of the most significant developments in decades for the Japanese travel environment, as consumers discover and adapt to this type of travel. Three new LCCs (Jetstar Japan, Peach and AirAsia Japan) commenced operations in Japan in 2012 and plan to expand their combined fleets by 2016. To support these new services, Osaka and Tokyo Narita are also developing new LCCs Terminals. > > Japan Airlines and All Nippon Airways have invested in foreign-owned LCCs, Jetstar Japan and AirAsia Japan respectively, in order to secure their stake in domestic routes. These domestic services will improve access to Sapporo, Fukuoka and Okinawa and onward connections to Australia. > > An open skies agreement between Australia and Japan was signed in September 2011. This has resulted in more slots becoming available at Haneda and Narita airports, providing an opportunity for existing and new carriers to increase flights between the two countries. > > Codeshare agreements are also changing the Japan aviation landscape:»» the expanded code share agreement between Singapore Airlines and Virgin Australia provides opportunities to connect six airports in Australia to four airports in Japan via Singapore.»» Jetstar Japan and Japan Airlines commenced code sharing on 12 domestic Japanese routes from 6 March 2013. Jetstar and JAL have been code sharing on international flights to Australia since 2007.»» Qantas, Jetstar and Jetstar Japan were also recently approved to increase coordination of services and marketing in Japan. Singapore Manila Various ports in Japan Osaka 6% 15% 6% Key airlines and share of passengers Tokyo Airline 2008 2009 2010 2011 2012 Jetstar 26% 40% 43% 47% 48% Japan Airlines/ JALways 27% 26% 21% 13% 15% Qantas 34% 14% 16% 16% 15% Singapore Airlines 5% 5% 6% 7% 6% Cathay Pacific Airways 3% 4% 4% 6% 6% Other 5% 11% 10% 11% 10% Table includes direct and indirect capacity 10% 15% 48% Darwin Cairns Sydney Gold Coast 12 Japan Market Profile April 2013
Aviation Landscape 3.2 Trends Capacity > > In 2012, capacity from Japan to Australia rebounded, up 12 per cent following years of declines. Growth was driven by Jetstar launching services to Darwin via the Philippines and Singapore. > > Further growth of 10 per cent is expected during 2013 as average loads continue to improve. > > Australia has lost significant market share of total capacity out of Japan compared to similar haul destinations, in particular Hawaii. Seats per year (000s) Capacity from Japan to Australia vs competitor destinations Source: Innovata; Department of Infrastructure and Transport Forecasts 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 l l l l l l l l l Australia - Up 12.0% United States - Up 7.7% Thailand - Up 5.6% Singapore - Up 9.3% Germany - Up 14.0% France - Up 6.2% Indonesia - Up 2.1% Canada - Up 8.8% New Zealand - Up 14.1% Note: Chart includes direct capacity only and above percentages reflect change in direct capacity from 2011 to 2012 Average loads > > Load factors or seat utilisation is the ratio of passengers carried to the number of seats available, expressed as a percentage. > > Despite strong capacity growth, average load factors increased from 71 per cent in 2011 to 73 per cent in 2012 due to the strong rebound in Australians travelling to Japan (up 29 per cent). Japanese visitors to Australia also increased 6 per cent in 2012. > > While average loads have increased overall, loads still remain soft between April and June. Monthly load factors 100% 95% 90% 85% 80% 75% 70% 65% 60% 55% 50% Loads and seasonality in 2012 Japan to Australia Source: Department of Infrastructure and Transport Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Low seat availability Sustainable seat availability High seat availability Note: Chart includes direct capacity only 13 Japan Market Profile April 2013
Distribution 4.1 Distribution system Japan has a highly regulated travel distribution system, with three levels of travel agencies. The major operators in the Japanese market control all levels of the distribution system. Traditionally, the key focus for Australia has been wholesale package tour divisions of the General Travel Agents (GTAs). However, increasing focus is being placed on the Free Independent Travel (FIT) segment, as Japanese outbound travellers mature. The evolution of the Japanese travel industry into a more specialised, consumer-oriented sector is expected to continue. Wholesalers/ Large Agents Commission Level: 15% to 20% > > The top five wholesalers for Australia in Japan are JTB, HIS, KNT, NTA and JALPAK, all of which produce Australian brochures. > > There are also strong regional brand wholesalers such as Meitetsu in Nagoya and Nishitetsu in Fukuoka. These wholesalers have overseas departments to develop Australian products in the destination. > > Wholesalers compete for retail business as most have a retail chain under the same brand. Major wholesalers provide national coverage by distributing packages through their own retail outlets as well as external agencies. Special Interest > > Australia is the most popular destination for overseas school excursion programs from Japan. Major wholesalers handling this market include JTB, KNT, NTA, TOP and HIS, who have dedicated sales teams. Retail Agents Commission Level: 5% to 10% > > Japan has a highly regulated travel industry structure with three levels of travel agencies. The industry applies strict and complex licensing laws, with high levels of consumer protection. > > First Level Agencies: General Travel Agencies (GTAs) provide package, wholesale and retail services for international and domestic tours. They generally have the following:»» Wholesale Division, which designs and produces wholesale packages and group tours. The tour products are then on-sold to retailers, either via their own retail shops or to other agencies.»» Media Sales Division, which produces packaged tours for direct sale to consumers and promoted through advertising, members magazines and online.»» Group Tour Sales Division, which arranges and sells special order and one-off tours for clients (including schools/corporate) and niche tour organisers.»» Retail Division and Retail Shops, which sell travel directly to consumers via retail shops. These shops sell packages produced by the in-house wholesale division as well as packages produced by other agencies. > > Second Level Agencies: these agencies sell international products which have been produced by GTAs. They do not package or wholesale international products. > > Third Level Agencies: these retail travel agencies sell international and domestic packages produced by GTAs and second level agencies. They do not have wholesale or packaging departments. Online > > Up until recently, travel agencies with a retail presence sold the same retail package products online. However, some travel agents are selling special online packages to improve price competitiveness. > > In recent years, Online Travel Agencies (OTAs) who have no retail presence have been growing sales by focusing on flexible airfare and hotel booking systems. Examples of this are Rakuten and Expedia Japan. > > Another style of online agent is those who only handle land content. Examples of these are Australian Tour Specialists and Alan One. > > The number of consumers who book airfares only through airline websites is increasing. Aussie Specialists > > Tourism Australia s Aussie Specialist Program (ASP) in Japan runs in conjunction with the Japan Association of Travel Agents (JATA) Destination Specialist program. > > As at March 2013, there were 318 qualified Aussie Specialists in Japan and a further 246 agents in training. > > Tourism Australia has a two-tier trade engagement programs in Japan. Tier one is called Club Oz and targets the general manager-level staff of travel agencies. Tier two is called Oznet and targets product planning staff and qualified ASP agents who focus on general product and experience development. As part of this program, Tourism Australia with State, Territory and Regional Tourism Organisations provides educational opportunities, including seminars and monthly newsletters. Inbound Tour Operators Commission Level: 5% to 10% > > JTB, HIS, KNT and NTA operate their own Inbound Tour Operators (ITOs) in Australia. These inbound companies buy products, operate tours and provide product information to their respective head offices in Japan. > > Medium and small travel agencies and some sections of large GTAs use Australian ITOs. These ITOs have a sales office in Japan and in many cases sell other international destinations. Business Events > > Major travel wholesalers handle the business events segment using dedicated event and group sales teams. 14 Japan Market Profile April 2013
Distribution Brochures and rates Brochure Validity > > The Kamiki period is April to September Brochure Space Policy > > The Shimoki period is October to March > > There are also quarterly brochures (January-March, April-June, July-September and October-December) > > Most travel sellers require financial support to secure inclusion in their brochure Setting Rates > > Rates are required six to twelve months in advance for the Kamiki period. During this planning period brochure content is reviewed and new products may be introduced. Shimoki is a succession of Kamiki with only minor changes to the program such as rates and new timetables. Standard Rate Validity Periods > > 1 April to 31 March 70% Seasonality of Visitors from Japan Source: Australian Bureau of Statistics, Overseas Arrivals & Departures, 2008 to 2012 Variation from Monthly Average Arrivals more than the average 35% 0% -35% less than the average -70% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec All Purposes Leisure Business Other Avg: 158,126 Avg: 127,014 Avg: 15,144 Avg: 15,968 Seasonality > > The peak booking period for travel to Australia is one month before travel. > > The peak travel period to Australia is January to March and July to September and December. 15 Japan Market Profile April 2013
Distribution 4.2 Trends 4.3 Planning a visit to market Distribution > > The Japanese travel industry is one of the most vertically integrated in the world. Major Japanese companies control all levels of the distribution system. Although distribution channels are becoming more fragmented, this integration remains a key feature of the Japanese travel trade. > > There is an increasing focus on the FIT market, as Japanese outbound travellers become more confident to travel independently and are less reliant on packaged tours. > > As demand for FIT travel grows, the Japanese travel industry will continue to become more specialised and consumer-oriented. > > Large wholesalers are increasing their focus on retail consultants to meet consumer demand for FIT travel. > > In addition to the two major brochure seasons of Kamiki (April to September) and Shimoki (October to March), wholesalers have begun packaging tours on-demand, taking advantage of last-minute trends and peak or low travel periods. > > The number of online-only businesses in Japan is increasing, and major wholesalers are expanding online services and advertising. > > Consumers are increasingly booking flights through airline websites. Some online travel agents are growing business from these consumers by focusing on accommodation and optional tours only. > > Major wholesaler JTB has announced a shift in global strategy to move towards a Destination Management Company model, which provides a travel agent, tour operator and conference bureau. Planning and purchasing travel > > When buying travel products there are a number of distribution channels available to consumers. According to findings from Tourism Australia s Consumer Demand Research 9 Japanese respondents would use a mix of online and offline sources when researching a trip to Australia. This includes a general internet search, looking through guidebooks, visiting a travel agent or Government website and brochures. The use of brochures for research by Japanese consumers was above the average across all markets in the study. > > Repeat travellers tend to use the internet more for research and bookings, in addition to the traditional distribution channels. > > Operators are now searching for new and more cost effective marketing methods, including increasing their focus on digital marketing and social media. Top tips for sales calls > > Communication with the retail industry is handled by Tourism Australia, the airlines and the State and Territory Tourism Organisations (STOs) based in Japan. Generally, Australian products liaise with their Inbound Tour Operator (ITO) then the wholesaler. It is not advisable for Australian product to visit retail agencies directly, unless for specific activities and only after the relevant ITO and wholesaler have been consulted. > > The best time of year for sales calls is in August, September, February and March. > > It is preferable to avoid Golden Week (end April to early May), Obon (mid August) and New Year (late December to early January). > > The key market centres to visit are Tokyo and Osaka, followed by Nagoya, Fukuoka and Sapporo. > > For more general information on sales calls and planning a visit to market, please see Tourism Australia s Planning for Inbound Success at www.tourism.australia.com/inboundsuccess 9. Tourism Australia, Australian Consumer Demand Research, conducted by BDA Marketing Planning, 2012 16 Japan Market Profile April 2013
Distribution 4.4 Key trade and consumer events Key Trade and Consumer Events Event Location Date JATA Travel Showcase 2013 Tokyo 13-15 September 2013 State and Territory Tourism Various Various 2013 Organisations Sales Missions Where to Find More Information Tourism Australia s activities in Japan are managed from Tourism Australia s Tokyo office. For more information visit Tourism Australia s Corporate website at www.tourism.australia.com Australian State and Territory Tourism Organisations operating in Japan include Destination New South Wales, Tourism NT, Tourism and Events Queensland, Tourism Tasmania, Tourism Victoria and Tourism Western Australia. Also see: Japan Country Brief published by the Department of Foreign Affairs and Trade at www.dfat.gov.au/geo 17 Japan Market Profile April 2013