Shift to safe and secure travel and review of the cost structure during the pandemic

「Compared with the second quarter (first half) of the fiscal year ended March 2019, before the COVID-19 pandemic, operating income increased by ¥710 million, or 46.5%, due to the effects of business-structure reforms.」

「In addition, in preparation for increasingly frequent earthquakes and other natural disasters, we will continue to provide products that place customers' peace of mind and safety first by re-examining our crisis-management system and conducting emergency-response drills.」

「Against this backdrop, while taking all possible measures against COVID-19, including the use of vaccine and testing packages, the Group worked to operate school trips and other group tours and domestic individual tours, and sought to expand tour sales at 近畿日本ツーリスト㈱ and クラブツーリズム㈱ using subsidies such as the Prefectural Residents' Travel Discount and Block Travel Discount.」

「In addition to closing or downsizing 40 近畿日本ツーリスト individual-travel outlets, 18 group-travel branches, 9 クラブツーリズム株式会社 travel centers and the head offices of 4 companies, including the Company, the Group made substantial efforts to reduce personnel expenses, office rents and other costs by consolidating 9 近畿日本ツーリスト regional companies and other entities to centralize back-office functions.」

「Against this backdrop, the Group focused on selling travel products that remained in demand during the COVID-19 pandemic, including online tours, travel to nearby areas and school trips conducted with thorough infection-control measures, while also working diligently to operate tours using subsidies such as the Residents' Travel Discount and Neighboring Prefectures' Travel Discount.」

「In addition to reducing IT costs related to legacy systems, the company is reviewing its organization and promoting changes in working practices, including telework and a free-address office layout. In the short term, it plans to reduce office space by approximately 40% and is pursuing further reductions in office and other expenses.」

「Under these conditions, the group generally cancelled escorted tours to areas covered by declarations of a state of emergency and shortened the operating hours of travel sales offices, while focusing on selling travel products with demand even during the COVID-19 pandemic, including online tours, travel to nearby areas and educational travel with thorough infection-control measures.」

「In addition, through the following review of its cost structure, the company aims to achieve approximately ¥20 billion in cost savings in fiscal 2022 compared with fiscal 2018, and expects an improvement of at least ¥10 billion on an operating profit basis in fiscal 2025.」

「After stores reopened in June, the company focused on selling safe and secure trips with demand even during the COVID-19 pandemic, including Club Tourism New Style tours with thorough infection-control measures and Kinki Nippon Tourist's Daisuki Series, which expanded travel to nearby areas under the slogan "Stay in your local area!"」

「Through the following review of its cost structure, the company aims to achieve approximately ¥20 billion in cost savings in fiscal 2022 compared with fiscal 2018, and expects an improvement of at least ¥10 billion on an operating profit basis in fiscal 2025.」

「After stores reopened in June, the company focused heavily on selling safe and secure trips with demand even during the COVID-19 pandemic, including Club Tourism New Style tours with thorough infection-control measures and Kinki Nippon Tourist's Daisuki Series, which expanded travel to nearby areas under the slogan "Travel to the region you love and bring it back to life!"」

「As demand declined sharply, the group cancelled all overseas and inbound travel, closed all stores from mid-April through the end of May, suspended the operation of packaged tours for domestic travelers through the end of May, and made substantial efforts to reduce personnel and other costs. During this period, in individual travel, Club Tourism proposed a new form of travel suited to the new normal of living with COVID-19, including by launching Club Tourism New Style trips that limited bus capacity to 19 window-seat passengers and implemented thorough infection-control measures, including confirming infection-prevention measures at accommodation facilities and throughout itineraries.」

「The group had no choice but to review this business model during the COVID-19 pandemic and will focus on providing safer and more secure travel with lower infection risk. In terms of products, it will select more reliable transportation and accommodation providers and design itineraries that avoid crowded conditions. In sales, it will take measures including expanding web sales, providing online customer service such as the Travel Concierge, and using an appointment system for store visits. In parallel, based on deliberations by the Board of Directors, the group will review its cost structure to reflect the new operating environment.」