Hotels - Japan | Statista Market Forecast

Hotels - Japan

Japan

Highlights

Japan's Hotels market is projected to experience a significant growth in revenue in the coming years.
By 2024, the projected revenue is estimated to reach US$25.78bn.
Moreover, it is expected to show an annual growth rate of 3.39%, resulting in a projected market volume of US$30.45bn by 2029.
As for the number of users in the Hotels market, it is expected to reach 49.38m users by 2029.
In 2024, the user penetration rate is expected to be 37.8%, and it is anticipated to increase to 41.4% by 2029.
The average revenue per user (ARPU) is expected to amount to US$556.60.
Furthermore, it is predicted that 86% of the total revenue generated in the Hotels market will come from online sales by 2029.
It is worth noting that in global comparison, United States is expected to generate the most revenue in this sector.
In 2024, the projected revenue United States is estimated to reach US$111bn.
Japan's hotel market continues to innovate with a focus on traditional hospitality and technology integration.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Japan's Hotels market has been experiencing a significant growth in recent years, driven by various factors influencing consumer behavior and market dynamics.

Customer preferences: Customers in Japan are increasingly seeking unique and personalized experiences when choosing accommodations. This trend is fueled by a growing desire for authenticity and cultural immersion, leading to a rise in demand for traditional ryokans and boutique hotels that offer a more intimate setting. Additionally, there is a preference for hotels that provide high-tech amenities and services to enhance convenience and comfort during the stay.

Trends in the market: One notable trend in the Japanese Hotels market is the increasing popularity of luxury and upscale accommodations, especially in major cities like Tokyo and Kyoto. These properties cater to affluent travelers looking for premium services and facilities, contributing to the overall upscale shift in the market. Moreover, the rise of eco-friendly and sustainable hotels reflects the growing environmental consciousness among consumers, driving the development of green initiatives and practices in the industry.

Local special circumstances: Japan's unique cultural heritage and diverse landscapes play a crucial role in shaping the Hotels market. The country's rich history and traditions attract both domestic and international tourists, influencing the design and theme of hotels to reflect Japanese aesthetics and values. Furthermore, the seasonal nature of tourism in Japan, with peak travel periods during cherry blossom season and autumn foliage, impacts hotel occupancy rates and pricing strategies, prompting industry players to adapt their offerings accordingly.

Underlying macroeconomic factors: The Hotels market in Japan is also influenced by macroeconomic factors such as demographic shifts and government policies. The aging population and declining birth rates have implications for the hospitality industry, leading to a focus on catering to the needs of senior travelers and promoting family-friendly accommodations. Additionally, initiatives to boost tourism, such as visa relaxations and infrastructure improvements in preparation for major events like the Olympics, contribute to the overall growth and competitiveness of the market.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.