Fuel prices and soft demand hit leading Japanese travel agent’s 2007 results – 20/02/08

JAPAN. One of Japan’s leading tour operators and travel agents, Nippon Travel Agency, has revealed a -2.6% dip in sales for 2007, to Y466.81 billion (US$4.3 billion). The figures were reported by Travel Journal International Online.

The agency blamed the effect of fuel price rises among airlines and lacklustre business sentiment for depressed sales of outbound travel. Sales of outbound travel fell by -4.8% to Y160.83 billion (US$1.48 billion). Within the outbound segment, educational tours saw a rise of +15.4% to Y9.47 billion (US$87 million).

Domestic demand fell -1.8% in the year, said Nippon Travel Agency. Inbound travel sales surged +23.2% to Y6.98 billion (US$64 million), while sales from other business slipped -19.2% to Y213 million (US$1.9 million).

The year ended on a strong note for the agency, though outbound travel continued to suffer in December. Total sales in the monthrose +5.0% to Y34.37 billion (US$318 million). Domestic travel sales surged +11.3% but outbound travel revenues dropped -8.7%.

*Editor’s note: The Moodie Report works closely with TJI Online, the pre-eminent provider of information on the Japanese travel industry. Week in, week out, it provides timely and sharp analysis of the all-important Japanese travel market – international and domestic. To subscribe go to http://tji/tjinet.co.jp. It comes with our highest recommendation.

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