Fluctuations in Travel Demand and the Accommodation Booking-Site Market

「According to a survey by the Japan Tourism Agency, total guest nights in Japan from July 2025 to May 2026 declined by approximately 3.3% year on year, including a decline of approximately 4.2% in guest nights by foreign visitors, indicating that accommodation demand has been somewhat soft.」

「According to a Japan Tourism Agency survey, the cumulative number of guest nights in Japan from July to November 2025 declined approximately 1.8% year on year, while foreign guest nights increased approximately 1.1%, with inbound demand supporting accommodation demand. Foreign guest nights accounted for approximately 24.7% of total guest nights in Japan from July to November 2025, up approximately 0.7% year on year, indicating that inbound demand remained firm. According to the Japan National Tourism Organization, the annual number of foreign visitors to Japan in 2025 was approximately 42.68 million, up approximately 15.8% year on year and setting a new record high.」

「According to a Japan Tourism Agency survey, the cumulative number of guest nights in Japan from July 2024 to May 2025 increased approximately 3.1% year on year, including an approximately 22.9% increase in foreign guest nights, and accommodation demand remained firm. Foreign guest nights accounted for approximately 26.3% of total guest nights from July 2024 to May 2025, up approximately 4.3 percentage points from approximately 22.5% in the same period of the previous year.」

「According to the Japan National Tourism Organization, the total number of foreign visitors to Japan from July to December 2024 was approximately 19.08 million, up approximately 32.9% year on year and above the previous year. The total for the same period was approximately 25% higher than in 2019, setting a new record high.」

「According to a Japan Tourism Agency survey, the cumulative number of guest nights in Japan from July 2023 to May 2024 increased approximately 15% year on year, including an approximately 140% increase in foreign guest nights, and accommodation demand remained firm. Foreign guest nights accounted for approximately 22% of total guest nights from July 2023 to May 2024, up approximately 11 percentage points from approximately 11% in the same period of the previous year. According to the Japan National Tourism Organization, the total number of foreign visitors to Japan from July 2023 to May 2024 was approximately 29 million, up approximately 142% year on year and substantially above the previous year. The total number of foreign visitors to Japan in the 12 months through May 2024 had recovered to approximately 97% of the 2019 level.」

「In the accommodation and travel industry, accommodation demand and spending remained firm as inbound demand recovered in addition to domestic travel during the year-end and New Year period and spring holidays.」

「In the accommodation and travel industry, accommodation demand recovered as the effects of activity restrictions and restrictions on entry to Japan associated with COVID-19 subsided. According to a Japan Tourism Agency survey, the cumulative number of guest nights from July to November 2023 increased approximately 25% year on year, while foreign guest nights increased approximately 565%, with the increase in foreign guest nights driving the overall figure higher. According to the Japan National Tourism Organization, the total number of foreign visitors to Japan from July to December 2023 was approximately 14.35 million, up approximately 332% year on year and substantially above the previous year.」

「According to a Japan Tourism Agency survey, total guest nights in Japan from July through August 2023 increased approximately 32% year on year, while guest nights by foreign visitors increased approximately 1,375%, with the increase in foreign guest nights lifting the overall figure. According to the Japan National Tourism Organization, total international visitor arrivals to Japan from July through August 2023 were approximately 4.47 million, up approximately 1,323% year on year and substantially higher than the prior-year level.」

「According to a Japan Tourism Agency survey, the cumulative number of guest nights from July 2022 to May 2023 increased 40.8% year on year, a substantial rise.」

「The accommodation and travel industry saw a recovery in accommodation demand as it entered the year-end and New Year period and spring holidays without activity restrictions for the first time in 3 years. According to a Japan Tourism Agency survey, room occupancy rates at all accommodation facilities were 46.3% in January 2023 and 52.1% in February, up 11.5 percentage points and 17.8 percentage points, respectively, from the corresponding months of the previous year.」

「The easing of restrictions on entry to Japan and the launch of the National Travel Assistance programme in Japan from 11 October 2022 led to a rapid recovery in travel demand. According to the Japan Tourism Agency, room occupancy rates at all accommodation facilities were 53.8% in October 2022 and 55.8% in November, up 13.0% and 8.9%, respectively, from the corresponding months of the previous year.」

「According to the Japan Tourism Agency, overall room occupancy rates at accommodation facilities were 47.8%* in July 2022 and 50.1%* in August, up from 45.3% in June 2022 before the seventh wave. From 11 October 2022, border-control measures were substantially eased, including the removal of the daily cap on arrivals and the admission of individual travellers, while the National Travel Assistance programme was launched domestically. We therefore expect the recovery trend in the accommodation and travel industry to strengthen further.」

「The cumulative number of guest nights from July to December 2021 increased 4.5% year on year* and the occupancy rate for all accommodation facilities rose only 3.1 percentage points*, whereas from January to May 2022 the corresponding increases were 25.1%* in guest nights and 11.5 percentage points* in occupancy rates, indicating a recovery toward the second half of the fiscal year. However, concerns about a renewed spread of COVID-19 remained, and it was necessary to continue monitoring infection levels and market trends.」

「In the accommodation and travel industry, which is closely related to the Application Services business, the room occupancy rate for all accommodation facilities, which had recovered to an average of 45.2% over the 3 months from October to December 2021, fell again to 34.8% in January 2022 and 34.5%* in February, according to a Japan Tourism Agency survey, partly because priority preventive measures were implemented amid the spread of the Omicron variant of COVID-19. According to the Japan National Tourism Organization, the total number of foreign visitors to Japan in January and February 2022 was 34,500, equivalent to 64% of the year-earlier level and below the previous year. From 1 March 2022, new entry by foreign nationals for purposes other than tourism was permitted, and measures were introduced to ease the mandatory quarantine period, generally set at 7 days, depending on the country or region of residence and whether the traveller had received a third vaccine dose. Although the easing of border-control measures is expected to increase the number of foreign visitors to Japan, new entry for tourism purposes was still not permitted, and recovery in domestic accommodation demand driven by inbound demand was expected to take time.」

「As a result, the overall room occupancy rate at accommodation facilities, which was in the 30% range from July to September 2021, rose to 41.2% and 46.0%* in October and November of the same year, respectively. Although these were not high levels, they were close to the occupancy rates in October and November 2020, when the Go To Travel campaign was in effect. Meanwhile, the number of foreign visitors to Japan remained low, reaching 22,100 in October 2021, down 19.3% year on year, and 20,700 in November, down 63.5% year on year, according to announcements by the Japan National Tourism Organization.」

「The fourth state of emergency, declared in response to the rapid spread of variant strains, reduced the number of domestic leisure and business travellers staying at accommodation facilities. Room occupancy rates remained low despite increased accommodation demand from people involved in the Tokyo 2020 Olympic and Paralympic Games.」

「Direct flights to Japan continued to be substantially suspended or reduced. Although the growth rates in April and May 2021 were 273.7% and 501.3%*, respectively, compared with the same months of the previous year, when the first state of emergency was declared amid the spread of COVID-19, both months were still down in the 99% range compared with the corresponding months of 2019, before the spread of the infection. Recovery remained a long way off, and difficult conditions continued.」

「According to a survey by the Japan Tourism Agency, overall room occupancy at lodging facilities began to show signs of recovery, reaching around 40% from October through November 2020 when travel in all regions, including travel to and from Tokyo, was eligible for the Go To Travel campaign. After the campaign was temporarily suspended, however, occupancy remained in the 20% range in January and February 2021, at 23.48% and 26.9%*, respectively.」

「While the overall room occupancy rate at accommodation facilities was around 30% from July to September 2020, it rose to 42.8% and 46.1%* in October and November of the same year, respectively, reaching the 40% range, and signs of a gradual recovery in domestic accommodation demand began to emerge,」

「According to a survey by the Japan Tourism Agency, overall occupancy rates at accommodation facilities in Japan were approximately 50 percentage points below the year-earlier month in both April and May, when a state of emergency was in effect, compared with declines of 37.8% in June, 33.7% in July and 37.3%* in August, indicating a recovery from the period under the state of emergency. However, although the Go To Travel campaign began in July, there was no recovery compared with before the campaign began, and its effect during the period was limited.」

「Cumulative international visitor arrivals to Japan during the fiscal year were affected in the first half by a decline in arrivals from South Korea amid changes in Japan–South Korea relations and in the second half by travel restrictions resulting from the spread of COVID-19. Arrivals fell 93% year on year in March 2020 and 99.9% in each month from April through June. Total arrivals for the full year were approximately 19.19 million, representing a sharp year-on-year decline to 60%, and difficult conditions continue.」

「Although conditions remained firm in many countries and regions, the number of foreign visitors to Japan during the quarter fell 3.4% year on year to approximately 7.464 million, partly because of the decline in visitors from South Korea.」

「In the accommodation and travel industry, which is closely related to the Application Services business, the number of foreign visitors to Japan fell below the year-earlier month in August 2019 for the first time in 11 months, partly because of a slowdown in South Korea, a market accounting for a large number of visitors to Japan, according to the Japan National Tourism Organization.」

「However, technological innovation in reservation systems could affect the accommodation booking-site controller market. In addition, unforeseen events such as natural disasters, outbreaks of viral diseases and international conflicts could reduce the number of domestic travellers and foreign visitors to Japan, worsening the revenues of accommodation facilities and accommodation booking sites and potentially affecting our business and results.」

「During the cumulative third-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」

「During the cumulative second-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」

「In September, travel demand, particularly from East Asia, stagnated because of Typhoon No. 21 and the Hokkaido Eastern Iburi Earthquake. As a result, the number of foreign visitors to Japan fell below the year-earlier month for the first time in 5 years and 8 months.」

「However, technological innovation in reservation systems could affect the accommodation booking-site controller market. In addition, unforeseen events such as natural disasters, outbreaks of viral diseases and international conflicts could reduce the number of domestic travellers and foreign visitors to Japan, worsening the revenues of accommodation facilities and accommodation booking sites and potentially affecting our business and results.」

「During the cumulative third-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」

「During the cumulative second-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」

「During the cumulative first-quarter period, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「However, technological innovation in reservation systems could affect the accommodation booking-site controller market. In addition, unforeseen events such as natural disasters, outbreaks of viral diseases and international conflicts could reduce the number of domestic travellers and foreign visitors to Japan, worsening the revenues of accommodation facilities and accommodation booking sites and potentially affecting our business and results.」

「During the cumulative third-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」

「In addition, a decline in domestic travelers and visitors to Japan due to unforeseen circumstances such as natural disasters, outbreaks of viral diseases and international conflicts could reduce the profitability of accommodation facilities and accommodation booking websites, affecting the Company's business and performance.」