Loading

Japan’s outbound demand is still struggling to gain momentum – but inbound is soaring

Premium Analysis

While outbound travel demand from Japan is trending in the right direction, the growth rate remains low, and recovery to pre-pandemic levels is proving to be an elusive target for Japanese airlines.

Further weakening of the yen is a major factor in dampening overseas leisure travel, executives from All Nippon Airways (ANA) and Japan Airlines (JAL) told Aviation Week Network at the recent IATA annual general meeting in Dubai. This is being partially offset by strong inbound demand, but the outbound weakness is still holding back the overall international demand recovery.

The recovery of the Japanese outbound market has been closely watched over the past few years, as it has not followed the trend in other countries: which was a fast rebound after travel restrictions were lifted.

Other factors are involved in addition to the unfavourable exchange rate. As in many countries, the popularity of domestic tourism in Japan surged in the immediate post-pandemic period, and this trend is likely continuing.

Visa issues still persist in the mainland China market, which is inhibiting Japanese tourism. And for many airlines serving Japan, fleet sizes are still down from pre-pandemic levels.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 1,050 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.

This article was written on 10-Jun-2024.