Japan Online Accommodation - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2020 - 2029

Japan Online Accommodation - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2020 - 2029

The Japan Online Accommodation Market size is estimated at USD 2.92 billion in 2024, and is expected to reach USD 4.5 billion by 2029, growing at a CAGR of 7.5% during the forecast period (2024-2029).

The year 2020 was a very devastating worldwide year for the tourism industry due to the COVID-19 pandemic. The second half of 2021 bought a little hope for the hospitality business in Japan. The pandemic has significantly impacted the online accommodation market due to travel restrictions across the globe to prevent the pandemic from spreading. Online travel has been negatively affected; thus, travel and hotel visits have decreased.

The Online Accommodation market is expected to grow steadily by increasing its share in the overall lodging market. Most hotel booking revenues are derived online, with an even higher share for short-term rentals. Most online accommodation market is presently controlled by several online intermediaries, such as online travel agencies (OTAs). Market players are extensively offering travel services through mobile websites and apps, as it is one of the most preferred mediums of travel bookings, particularly among the new Generation. The number of hotel rooms opening has increased 2.5 times over the past year. Kyoto will have the highest ratio of new rooms, followed by Osaka & Tokyo.

Japan Online Accommodation Market Trends

Advancement in Technology has led to Growth in the Online Accommodation Market

The emergence of the Internet has led to intense exposure, and travelers are now exposed to a diverse range of hotel options at reasonable costs by various market players. Customers compare accommodation options at several websites to get the best affordable deal. Travelers choose specialized online accommodation providers such as Airbnb Inc. and OYO Rooms because they provide a wide range of lodging alternatives.

Technology has changed how people communicate, travel, and stay across the globe. With evolving technology and the increase in the use of mobiles, easy and efficient methods are being for booking a comfortable stay, thus increasing the growth of the online accommodation market. Mobile apps are gradually gaining pace in the market and are preferred by people to make their online bookings. Thus, an increase in the usage of smartphones and growth in digital literacy is likely to increase the growth of the online accommodation market.

With the advancement in technology, the online hotel market is rising quickly. COVID-19 has also accelerated the digitization of the accommodation market.

Online Travel Agencies (OTA’s) Accounts for Major Bookings

Based on the booking mode, the online travel agencies (OTAs)segment accounted for a considerable share of the Japanese online accommodation market. The OTAs have gained popularity due to the low-cost booking options and variety of hotels. They allow travelers to plan and book hotels as and when required. Currently, OTA majorly contributes to the revenue generation of hotels. The players operating in the online travel industry have adopted product launch and business expansion as their key developmental strategies to expand their market share, increase profitability, and remain competitive in the market.

Japan Online Accommodation Industry Overview

Japan's Online Accommodation Market is fairly fragmented, with many established local players in each region. The major players in the accommodation industry are Rakuten Travels, JAPANiCAN, Agoda, Jalan.net, and Booking.com.

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