Narita Airport is Japan's gateway to the world. Will it see more or less traffic in the months to come?
For a long time we have known that Japanese in their 20s have less interest in traveling abroad than previous generations. But now that so many other formerly rich countries are going through Japan-style economic slumps of their own, is this a pattern that we will see repeated worldwide?
Visa recently conducted a worldwide study that found that two out of three travelers were rethinking their holiday plans this year. (Some newspapers decided it was positive that one in three wasn’t rethinking, surely a sign of negative headline fatigue.) If they weren’t going to cancel their breaks entirely, they were considering holidaying closer to home.
Some airlines are responding with dramatic fuel surcharge reductions (from 14,500 yen to 2,000 yen on an ANA flight from Tokyo to Singapore) or discount campaigns (“35,000 yen return” from Tokyo to London on British Airways), but others are already cutting schedules: JAL is currently operating 33% fewer flights to Bangkok.
As the Golden Week holidays approach, there are also signs that the Japanese travel market is at a tipping point that will strongly favor the domestic industry.
It’s worth noting that flights to SE Asia mid Golden Week are still available for as low as 35,000 yen return (on United), while prices to Okinawa remain sky high. That suggests that people are making travel plans not only for economic reasons; it also “feels wrong” in these lean economic times. There is a deeper shift in consumer behavior going on toward the local, the safe and the humble.
As more demographics choose to travel locally, expect a more diverse range of leisure options to develop in Japan targeted not only at the Silver Market and families with children, but also at sophisticated and wealthy consumers who used to go overseas. They will be looking for international-standard hospitality within easy reach of Japan’s urban centers. Products and services offering understated luxury, eco-awareness, wellness and experience will prosper.