Online bookings in Japan to grow, still lagging behind mature markets
Oct 21, 2014
With the financial jury still out on the recovery of Japan’s economy, Euromonitor International reports that online travel is set for eye-watering levels of growth over next five years, at the expense of offline channels.
Travel retail is expected to post a 1% CAGR in terms of value sales at constant 2013 prices to reach ¥8.1 trillion (£47 billion) in 2018. Travel retail online sales are expected to grow by an 18% CAGR to take share from travel retail offline sales.
An 18% growth for online compared with 1% for the overall market over the next five years is impressive. In terms of share, however, it is lagging – online sales in Japan in 2013 were worth ¥1.5 trillion (£8.7 billion), equivalent to around 19% of the total market worth ¥7.7 trillion (£44.7 billion). By 2018, online travel sales will be ¥3.4 trillion (£19.7 billion), giving it a 42% share of the market.
But this share still sees Japan’s online travel sector lagging behind other mature e-commerce markets, suggesting that the growth story still has more legs in what is the world’s third largest economy.
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