Japan Online Accommodation Market Size (2024 - 2029)

The Japan Online Accommodation Market is projected to experience significant growth over the forecast period, with its market size expanding as it captures a larger portion of the overall lodging sector. The market's expansion is driven by the increasing dominance of online bookings, particularly through mobile platforms, which are favored by younger travelers. Despite the challenges posed by the COVID-19 pandemic, the market is recovering, with a notable rise in hotel room availability, especially in key cities like Kyoto, Osaka, and Tokyo.

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Market Size of Japan Online Accommodation Industry

Japan Online Accommodation Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 2.92 Billion
Market Size (2029) USD 4.50 Billion
CAGR (2024 - 2029) 7.50 %
Market Concentration Medium

Major Players

Japan Online Accommodation Market Major Players

*Disclaimer: Major Players sorted in no particular order

Japan Online Accommodation Market Analysis

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 Industry Segmentation

Online accommodation refers to the lodging booked online by travelers for a stay. Travelers can choose from the various available accommodations such as hotels, hostels, resorts, vacation rentals, etc. Accommodation can be booked through various sources, which include online travel agencies, hotel websites, booking through agents, and direct bookings.

Japan's online accommodation market is segmented by platform, by mode of booking. By platform the market is segmented into mobile application, website. By mode of booking the market is segmented into third party online portals, direct/captive portals. The report also covers the market sizes and forecasts for the japan's online accommodation market in value (USD) for all the above segments.

By Platform
Mobile application
Website
By Mode of Booking
Third party online portals
Direct / captive portals
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Japan Online Accommodation Market Size Summary

The Japan Online Accommodation Market is poised for significant growth over the forecast period, driven by the increasing shift towards digital platforms for travel bookings. The market, which experienced a downturn due to the COVID-19 pandemic, is rebounding as travel restrictions ease and consumer confidence returns. The rise of online travel agencies (OTAs) and mobile booking apps has transformed the landscape, making it easier for travelers to compare and book accommodations. This shift is particularly appealing to younger generations who prefer the convenience of mobile technology. The market is characterized by a diverse range of options, from traditional hotels to short-term rentals, with major players like Airbnb and OYO offering competitive alternatives. The expansion of hotel rooms in key cities such as Kyoto, Osaka, and Tokyo further underscores the market's growth potential.

Technological advancements and increased digital literacy are key factors propelling the online accommodation market in Japan. The market is fairly fragmented, with numerous local and international players competing for market share. Companies like Rakuten Travels, JAPANiCAN, Agoda, Jalan.net, and Booking.com are prominent in the region, leveraging partnerships and technological innovations to enhance their offerings. Recent developments, such as Bear Luxe's collaboration with Sabre and RateGain's partnership with Rakuten Travel Xchange, highlight the ongoing efforts to expand market reach and improve booking capabilities. These strategic moves aim to increase direct bookings and provide travelers with a broader selection of accommodations, thereby driving the market's growth trajectory.

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Japan Online Accommodation Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitutes

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Insights on Impact of Technology and Innovation on Online Accommodation Market

    6. 1.6 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Platform

      1. 2.1.1 Mobile application

      2. 2.1.2 Website

    2. 2.2 By Mode of Booking

      1. 2.2.1 Third party online portals

      2. 2.2.2 Direct / captive portals

Japan Online Accommodation Market Size FAQs

The Japan Online Accommodation Market size is expected to reach USD 2.92 billion in 2024 and grow at a CAGR of 7.5% to reach USD 4.50 billion by 2029.

In 2024, the Japan Online Accommodation Market size is expected to reach USD 2.92 billion.

Japan Online Accommodation Market Report Snapshots

Japan Online Accommodation Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)