Transition from a low-margin, high-volume model to high-value-added travel services

「We focused on securing sales by strengthening bookings for inbound tours, operating overseas golf tours and conducting sales activities with embassies and cooperatives. Going forward, we will strengthen customer acquisition by operating various tours and launching new themed tours.」

「In the travel business, outbound travel was adversely affected by the weaker yen and rising prices overseas. Meanwhile, robust inbound demand continued, supported by Japan's popularity as a travel destination. We focused on securing revenue by strengthening sales for inbound tour bookings, operating overseas golf tours and conducting sales activities targeting embassies in Japan and cooperatives. Going forward, we will strengthen customer acquisition by operating various tours and launching new themed tours. 株式会社エスプリ・ゴルフ has operated high-priced tours leveraging connections with prestigious golf courses overseas, as well as golf trips with carefully tailored themes, Major League Baseball viewing tours, FIFA World Cup viewing tours, Open Championship viewing tours and F1 viewing tours, including its flagship Masters viewing tour, receiving favorable reviews from customers. It will continue to develop various plans, provide customers with greater satisfaction and focus on expanding its customer base.」

「株式会社エスプリ・ゴルフ operates golf trips and tours to attend major league baseball games and Formula 1 races, particularly trips built around specific themes, as well as high-priced tours leveraging its connections with prestigious overseas golf courses, and these have been very well received. As new services, it also opened the members’ salon “100club” and the matching golf salon “Le Lian (ル・リアン)” and began holding various events.」

「株式会社エスプリ・ゴルフ has operated theme-based golf trips with carefully tailored content, Major League Baseball viewing tours and high-priced trips leveraging connections with prestigious golf courses overseas, receiving favorable reviews. Going forward, it will continue to develop attractive plans and focus on acquiring new outbound customer segments.」

「株式会社エスプリ・ゴルフ operated golf trips and tours to attend major league baseball games and Formula 1 races, particularly trips built around specific themes, as well as high-priced tours leveraging its connections with prestigious overseas golf courses, successfully developing new customer segments.」

「Against this backdrop, our Group focused on providing differentiated value, including theme-based golf trips with carefully tailored content and various arrangements for companies receiving trainees from overseas. In particular, 株式会社エスプリ・ゴルフ, which joined our Group in February, operated unique, highly distinctive viewing tours for overseas major golf tournaments, including the Masters, enabling us to provide experiences unavailable elsewhere.」

「Against this backdrop, the number of tours operated and the volume of travel transactions during the nine months ended the third quarter of the current consolidated fiscal year both remained above the previous year, while we shifted sales toward products with higher profit margins to further improve profitability.」

「Against this backdrop, the number of tours operated and the volume of travel transactions during the nine months ended the third quarter of the current consolidated fiscal year both remained above the previous year, while we shifted sales toward products with higher profit margins to further improve profitability.」

「As a result of these initiatives, the travel business remained firm, and the volume of travel transactions increased 20.1% year on year. However, revenue declined because the proportion of handling fees and other items, which are recorded using different accounting methods, increased. Looking ahead, we will strengthen tour planning and procurement in anticipation of a further recovery in demand toward year-end.」

「However, the number of international scheduled flights was only about 60% of normal levels, so overseas ticket arrangements did not recover substantially. Expecting travel demand to increase further toward summer and year-end, we prepared new travel products.」

「Against this backdrop, we aim to improve earnings power by increasing operational efficiency and shifting from our traditional low-margin, high-volume services to high-value-added services.」

「Accordingly, the Group also actively planned and operated domestic package tours and bus tours for foreign residents in Japan. As the sharp depreciation of the yen is expected to further increase demand for travel to Japan, we will also strengthen air-ticket sales.」

「Accordingly, we focused on planning and operating domestic golf trips tailored to each theme and bus tours for foreign residents in Japan. Anticipating a further recovery in demand from summer through winter, we strengthened planning for various tours and procurement.」

「Under these circumstances, the easing of Thailand's entry restrictions in March led to an increase in Thai nationals living in Japan who wished to return temporarily, while entry by corporate trainees began to be permitted, and the movement of people gradually increased. We therefore prepared for the expected sharp recovery in travel demand from summer onward, including by developing new travel products.」

「In addition to reducing sales of unprofitable products and shifting to internally developed travel products to improve margins, we seconded surplus personnel to other Group companies, fundamentally reviewed internal workflows and improved management efficiency. For travel bookings, which had traditionally centered on telephone and in-person reservations, we newly launched the travel booking website "たびたび," creating an environment in which bookings could be completed online.」

「Accordingly, our Group focused on domestic package tours and planned and operated small-group domestic golf trips and domestic package tours. We also continued selling specialty products from across Japan by leveraging the network developed through the travel business. In addition, anticipating a sharp recovery in demand after COVID-19 had settled, we made preparations with a long-term view, including a major review of the work processes for ticket sales.」

「In the travel business, amid the impact of restrictions on the movement of people to prevent the spread of COVID-19, we relocated the head office and suspended operations in an effort to achieve further cost reductions. As the suspension of overseas routes continued, we focused on domestic package tours and planned and operated small-group domestic golf trips and bus tours.」

「We also began selling specialty products from across Japan as a new service by leveraging the network developed through the travel business. In addition, we continued to reduce operating costs, including by closing branches and placing employees on temporary leave.」

「Against this backdrop, we aim to improve earnings power by increasing operational efficiency and shifting from our traditional low-margin, high-volume services to high-value-added services.」

「While continuing to reduce costs to secure earnings, we planned numerous Okinawa tours for the year-end and New Year period and relocated the Osaka office, thereby establishing a sales expansion structure for business development after COVID-19.」

「As travel demand declined, we continued the restructuring undertaken to date, including rotating staff through temporary leave and closing regional branches, in order to secure earnings. While strengthening management, improving operational efficiency through IT and implementing thorough cost reductions, we resumed organized tours, including golf trips and bus tours, after implementing thorough infection-control measures.」

「We also pursued initiatives in parallel to prepare for the period after the situation had settled, including sales activities for contracted group travel, development of new products and improvement of operational efficiency through the use of IT.」

「We continued structural reforms, including reviewing low-margin products and underperforming locations and improving operational efficiency through IT, while developing a structure to strengthen our earnings base. Temporary restructuring costs, together with ¥18.327 million in amortization of goodwill, have made it difficult to secure profits, but we will continue the reforms and work to improve earnings power.」

「Meanwhile, we continued to pursue structural reforms to strengthen our earnings base, including reviewing the product mix with low profit margins, consolidating and closing regional branches, and optimally reallocating human resources to growth areas. Although earnings were pressured by temporary restructuring costs, we aim to build a sound management base by accelerating these reforms further.」

「Although upfront investment in these initiatives has temporarily increased expenses, we are currently pursuing restructuring centered on improving operational efficiency through the use of IT and strengthening management, while also reviewing costs to improve management standards and strengthen earnings power.」

「Against this backdrop, we aim to improve earnings power by increasing operational efficiency and shifting from our traditional low-margin, high-volume services to high-value-added services.」