New leisure facilities and hotels entering the market and price competition
First written in FY2017. 3 of 7 entries say "Worsened", first in FY2020. Latest entry: FY2021.
Hiroshima Electric Railway moved to the "Worse" side of this theme in 2019.
0 other companies' latest entry also says "Worsened".
- FY2021WorsenedAnnual report
「In the hotel business, both inbound foreign visitors and domestic tourists declined sharply due to the spread of COVID-19, and most reservations in the banquet business were canceled because of concerns about the spread of the infection. In addition, the closure of operations at the end of January 2021, due to the aging of the building and the expected prolonged downturn in the business caused by the spread of COVID-19, also affected results, resulting in a substantial decline in revenue compared with the previous consolidated fiscal year.」
The hotel business faced both the loss of demand from the spread of COVID-19 and an expected prolonged downturn, in addition to the competitive environment, resulting in the closure of hotel operations and a substantial decline in revenue. - FY2021-Q3WorsenedAnnual report
「In the hotel business, both inbound foreign visitors and domestic tourists declined sharply due to the spread of COVID-19. The impact of the Go To Travel campaign was also limited and did not lead to a recovery in accommodation occupancy. In the banquet business, most reservations were canceled due to concerns about the spread of the infection, resulting in a substantial decline in revenue.」
In the hotel business, the impact of the spread of COVID-19, in addition to the existing competitive environment, continues to contribute to deteriorating profitability. - FY2020WorsenedAnnual report
「In the hotel business, competition intensified following the opening of new nearby hotels. Although growth in international visitors and the effect of the 10-day Golden Week holiday continued through the end of December, revenue declined from the fourth quarter onward because room sales were suspended for 30 days from January to February 2020 for renovation work, and because the spread of the novel coronavirus caused a sharp decline in guests and significantly reduced banquet bookings and other demand.」
In addition to intensifying competition among nearby hotels, repair work and the spread of COVID-19 emerged as factors contributing to deteriorating hotel profitability. - FY2020-Q2RestatedAnnual report
「In the leisure and services business, room occupancy at the hotel business declined slightly due to intensifying competition following the opening of new hotels nearby, although」
The intensification of competition following the opening of new hotels nearby continues to appear as a slight decline in room occupancy. - FY2020-Q1MaterialisedAnnual report
「In the leisure and services business, room occupancy at the hotel business declined slightly due to intensifying competition following the opening of new hotels nearby, although」
The intensification of competition following the opening of new hotels nearby materialized as a slight decline in room occupancy. - FY2018RestatedAnnual report
「New leisure facilities and hotels continue to open in the Group's operating areas, with some currently in the planning stage. In addition, leisure activities have diversified in recent years and consumers have developed a preference for lower prices. Depending on the location and features of competing facilities, this could reduce visitor numbers at the Group's similar facilities and lower profitability due to intensifying price competition, affecting business performance.」
The risk of declining visitor numbers and profitability due to new leisure facilities and hotels entering the market, the diversification of leisure activities and price competition continues. - FY2017First statedAnnual report
「New leisure facilities and hotels continue to open in the Group's operating areas, with some currently in the planning stage. In addition, leisure activities have diversified in recent years and consumers have developed a preference for lower prices. Depending on the location and features of competing facilities, this could reduce visitor numbers at the Group's similar facilities and lower profitability due to intensifying price competition, affecting business performance.」
The company has specifically identified as new risks the decline in visitor numbers and profitability resulting from new leisure facilities and hotels entering the market, the diversification of leisure activities and consumers' preference for lower prices.