Intensifying competition and price competition, including private lodging and entrants from other industries
First written in FY2020. 2 of 3 entries say "Worsened", first in FY2022. Latest entry: FY2023-Q2.
Washington Hotel moved to the "Worse" side of this theme in 2022, 3 years after the typical company in this theme (2019).
The whole theme swung hardest in 2019: 7 of 11 companies on the "Worse" side.
4 other companies' latest entry also says "Worsened".
- FY2023-Q2WorsenedAnnual report
「Meanwhile, in addition to an oversupply of business hotels, particularly in major cities, business travel demand has declined with the spread of web conferences and other developments. As some of our operating locations are still in the process of recovering, we will implement measures to strengthen sales going forward, as described in “II. Business Overview, 1. Business and Other Risks, Significant Events and Conditions Related to the Going Concern Assumption.”」
An oversupply of business hotels in major cities coincides with declining business travel demand, while some operating locations remain on the path to recovery. - FY2022WorsenedAnnual report
「Intensifying competition may trigger excessive price competition, leading to lower prices and potentially reducing sales.」
In addition to the existing risks of new market entrants and intensifying competition, the possibility of price declines and lower sales due to excessive competition was explicitly stated. - FY2020First statedAnnual report
「In addition to existing competitors, new business formats such as private lodging have entered the market, and companies from other industries have also recently entered the sector. Intensifying competition could reduce customer traffic and lower occupancy at the hotels operated by our group.」
The company identified as a new risk the possibility that intensifying competition, including private lodging and entrants from other industries, could reduce customer traffic and occupancy.