Japanese Overseas Travel Faces Prolonged Downturn as Yen Weakens During Golden Week

Up to 10 consecutive holidays for GW 2024, but the yen’s depreciation will not stop

After the new Corona, demand for inbound travel to Japan is increasing rapidly. On the other hand, the number of Japanese traveling abroad remains sluggish and the number of outbound travelers is still less than half of the pre-Corona level, far from a recovery. The main reasons for this are the yen’s depreciation to over 150 yen to the dollar, persistently high airfares, and high local prices.

Nevertheless, the time for major holidays (Golden Week, GW) will soon arrive. In 2024, it will be from April 27 (Saturday) to May 6 (Monday), and if you take off the middle weekday from April 30 (Tuesday) to May 2 (Thursday), you will have 10 consecutive holidays.

Major travel agencies recently announced GW travel reservation trends. We interviewed travel industry experts to find out which are the most popular destinations for international travel, recommended countries and regions with low travel costs, and future prospects.

 

Major Travel Agencies’ GW Outlook, Overseas Travel Popularity Ranking and Analysis

In early April, JTB released its outlook for GW travel trends. Based on various economic trends and a questionnaire survey conducted by the JTB Group, the number of overseas travelers is estimated at 520,000 (167.7% of the previous year), the average cost at 269,000 yen (104.7% of the previous year), and travel expenditures at 139.9 billion yen (175.6% of the previous year).

Regarding these results, “The number of travelers recovered to 80-90% of the level before the outbreak of the new coronavirus infection (excluding 2019, when there were 10 consecutive holidays). The analysis also noted that the average travel cost (unit price) is expected to rise due to the weak yen and high prices, and that travelers are highly motivated to travel, but due to the high cost of travel, many are choosing nearby destinations, especially in Asia,” among other factors.

The top five destinations were (1) South Korea, (2) Southeast Asia, (3) Taiwan, (4) the U.S. mainland and Canada, and (5) others. Europe, which ranked second in pre-Corona ’19, and Hawaii, which ranked third, have dropped down the rankings.

HIS also announced travel reservation trends for those who applied for its tours and airline tickets. The YoY change in the number of bookings was 123.2%, and 53.3% compared to the same period in 2018 before Corona. The average unit price was 204,900 yen, 98.5% of the same period last year (147.7% of the same period in 2018). The ranking by number of bookings was (1) Seoul, (2) Taipei, (3) Honolulu, (4) Bangkok, and (5) Busan (Busan).

Hankyu Express also recently released a summary of travel trends for overseas and domestic travel based on GW reservations. The results were (1) Europe, (2) Taiwan, and (3) South Korea. Hankyu Express noted that “Demand for Asia, including South Korea, has been increasing since last year, and this trend is also noticeable during Golden Week,” but also analyzed that Europe, where travelers can easily take longer vacations, especially repeat visitors, for longer periods of time and at reasonable prices, is also popular during Golden Week. The number of European travelers who are able to take longer vacations, especially repeat visitors, are also popular during the Golden Week holiday season.