Inventory risk associated with charter cruises
First written in FY2018. 4 of 8 entries say "Mitigated", first in FY2019. Latest entry: FY2026.
No other company in this theme has enough history to compare yet.
- FY2026MitigatedAnnual report
「On the sales front, gross profit substantially exceeded the previous year because sales of charter cruises departing during Golden Week significantly exceeded the plan.」
Regarding inventory risk associated with charter cruises and cabin purchases, the company states that sales of the charter cruise departing during Golden Week 2026 substantially exceeded plan. - FY2025MaterialisedAnnual report
「However, because sales for the cabin purchases and charter cruises operated during Golden Week fell below initial expectations, conditions were difficult in terms of profitability.」
Regarding cabin purchases and charter cruises involving inventory, the company states that sales fell below initial expectations and that an actual impact on earnings occurred. - FY2024Expansion of inventory-based operationsAnnual report
「In addition, we actively purchased cabins on foreign-flagged ships departing from and arriving in Japan, including cruises operated during Golden Week, and focused on promoting them. To strengthen these promotions, we ran some of our largest-ever campaigns, including the “Midsummer Cruise Travel ‘Great Opening’ Festival” and the “Happy New Year ¥100 Million Total Super-Return New Year Sale 2024,” receiving reservations from many customers.」
The company states that it actively handled products involving the purchase of cabins and secured many reservations through some of its largest-ever campaigns. No unsold inventory is reported. - FY2024-Q3MitigatedAnnual report
「For this year's Golden Week, we purchased cabins on MSC Bellissima, but were able to obtain reservations substantially exceeding the number of cabins purchased.」
Regarding inventory from the purchase of some cabins, the company states that it secured substantially more reservations than the number of cabins purchased, indicating the status of its response to the risk of unsold inventory. - FY2024-Q2Addition of products involving inventoryAnnual report
「A Yokohama round-trip cruise on MSC Bellissima during Golden Week, for which the company purchases some of the cabins」
In addition to charter cruises, a product involving the purchase of some cabins is described, expanding the scope of offerings involving inventory. No actual occurrence of risks such as insufficient sales has been reported. - FY2020-Q1MitigatedAnnual report
「For the Group's first charter cruise involving inventory, scheduled to operate in April 2020, both enquiries and bookings have been strong since sales began, and the cabin sell-through rate was 97% as of December.」
For the first charter cruise scheduled for April 2020, the cabin sell-through rate rose from more than 90% as of September in the previous disclosure to 97% as of December, indicating a reduction in the risk of unsold inventory. - FY2019MitigatedAnnual report
「For the Group's first charter cruise business, reservations opened in May 2019 for the cruise scheduled to operate in April 2020. Both enquiries and bookings have been strong since sales began, and more than 90% of the cabins had sold out as of September.」
For the first charter cruise involving inventory, scheduled for April 2020, more than 90% of the cabins had been sold out as of September, indicating that the risk of failing to sell the inventory had been reduced. - FY2018First statedAnnual report
「One of our growth strategies is to actively develop original products and secure repeat customers by operating charter cruises for which we hold inventory. In implementing this strategy, we will purchase inventory based on thorough plans informed by analysis of past sales statistics and sell it using our marketing and sales expertise. However, if sales fall substantially short of plan due to unforeseeable changes in market conditions or other factors, this may affect the group's performance.」
The company identifies as risks its plan to hold inventory for charter cruises and the impact on performance if sales fall short.