S A L E S G U I D E 2 0 1 1 JAPAN & KOREA SALES OFFICE

JAPAN & KOREA SALES OFFICE
S A L E S G U I D E 2 0 1 1

Message from Betty Ozaki, Regional Director, Japan & Korea
Dear Member Hotels,
The Japan and Korean regions for The Leading Hotels of the World continues to grow. Revenues
combined for 2010 exceed 2009 by 21.6% or USD 2.3 million. And, 2011 has begun with a very
promising outlook – future reservations have already exceeded 2010 amounts.
Japan’s unstable economy, shaky political party and falling stock prices have both business
sentiment and consumer confidence declining. The IMF forecast for Japan’s real economic growth
in 2011 is at 1.5%, a 0.3% point lower than originally predicted, noting the yen's appreciation and a
U.S. economic slowdown would affect its exports.
According to a survey by JATA (Japan Association of Travel Agents) overseas travel will decrease
for the first quarter of 2011. The survey shows a diffusion index (DI) of -19% for the first quarter
which is the first decline after five-consecutive term improvements. These numbers do not reflect
the production from our Tokyo office.
A new runway opened at the central Tokyo International Airport in October 2010 and now
accommodates over 70 new international flights. Previously, Narita International Airport,
approximately 1.5 hours from central Tokyo, offered no domestic connections. The addition of the
new runway now links every major and secondary city in Japan, offering significant convenience to
those living outside of Tokyo and Osaka. Convenience and available seats to popular luxury
destinations such as Honolulu, Paris, New York, Los Angeles and San Francisco is expected to
increase outbound figures higher for 2011 and beyond.
The continuing strength of Japan’s currency against global currencies, particularly the U.S. dollar
and Euro is enticing the luxury segment to travel more by giving them a sense of buying power
while overseas.
Finally, corporate travel is expected to continue to recover at a moderate pace while incentive
travel and honeymooners are expected to decline 9% and 7%, respectively.
We look forward to working with member hotels in generating more revenues for 2011.
Sincerely,
Betty Ozaki,
Regional Director, Japan & Korea
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Table Of Contents
CONTACTS 4-5
SALES TERRITORIES 6-11
Japan 6
Korea 11
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Contacts
LHW Japan & Korea Team
Betty Ozaki
Regional Director, Japan & Korea
Tel: (+81-3) 5551-0080
E-mail : betty.ozaki@lhw-offices.com
Kaz Kutara
Director of Sales
Tel: (+ 81-3) 5551-0085
E-mail : yoshikazu.kutara@lhw-offices.com
Kaz oversees the travel trade and airline FFP in Japan as well as all market
segments for Korea. His expertise is developing programs to increase market share
with credit card companies such as American Express and Visa.
Luke Teramoto
Sales Manager
Tel: (+81-3) 5551-0085
E-mail: ryuta.teramoto@lhw-offices.com
Luke continues to focus on corporate and MICE business. He oversees major
corporate travel agents, such as CWT and American Express, while working closely
with direct corporate accounts and stimulating new corporate business from
Japanese companies. He is also heavily involved in targeting groups business.
Kenneth Suzuki
Sales Manager
Tel: (+81-3) 5551-0101
E-mail : noboru.suzuki@lhw-offices.com
Ken has a dual role as Reservations Manager and Leisure Sales Manager. He has
improved servicing by reservations agents and increased conversion percentage
while significantly growing Leaders Club membership. He also oversees leisure
travel agents and works closely with them to develop programs to attract more
direct consumers.
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Yoshie Yoneda
PR & Marketing
Tel: (+81-3) 5551-0089
Email : yoshie.yoneda@lhw-offices.com
Yoshie oversees Public Relations efforts that include direct consumer and trade
publications. She also coordinates photo shoots, media seminars and press tours
to increase awareness and develops promotional flyers for Leaders Club members.
Yoshie also ensures that all press releases are translated and released to the media
and approves all print and website releases.
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JAPAN
Market Overview:
Outbound travel steadily increased throughout 2010 with an average increase of 7.7% (or,
16,637,224) passengers travelling overseas.
Top destinations for all outbound passengers include:
Destination Passengers Growth
China 3,731,100 12.47%
South Korea 3,023,009 -0.99%
USA
Hawaii
3,386,076
1,229,762
16.03%
5.28%
France
Paris
2,272,424
1,453,861
3.61%
9.54%
Leading Hotels’ statistics vary from the above figures and some countries do not provide data;
such as Italy, which continues to be one of our top destinations.
USA (Hawaii)
France (Paris)
Italy
South Korea
Germany
7,231 Room nights
2,101 Room nights
2,121 Room nights
2,541 Room nights
1,142 Room nights
Tokyo’s Haneda Airport (located near the city center, compared to a two-hour drive from Narita
International Airport), has also added a new runway and is offering a 24-hour operation as of
October 2010. This is expected to significantly increase travel to Asia, Hawaii and the United
States; and some parts of Europe.
Hotel “Must Do” to tap into Japanese Markets
Translate your collateral into the Japanese language. English brochures are fine, however,
fact sheets, promotional flyers or anything you wish for the Japanese to read and take
action on, should be translated into Japanese as they will not take the time to read it.
Participate in various credit card programs that our office has worked together, such as
Diners Club, American Express and Visa that will provide you the best customer.
Participate in the Tokyo Showcase as this will provide you a venue to meet key accounts
(proven producers) and the media (media seminar/workshop is part of the showcase.) Our
staff is able to assist in translations.
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Participate in Leading Leisure. We will introduce you to the appropriate wholesalers for
your market and can negotiate on your behalf and bring you to a mutually beneficial
contract. We will review their brochures to ensure that you are properly positioned to
ensure a competitive-edge to comparable hotels in your area/region.
Direct Consumers
Japan continues to host a large percentage of the Asia Pacific HNWI population and its wealth.
It still ranks in second place with 1,085,584 millionaires. Japan’s Leaders Club membership
continues to grow with current membership exceeding 3,500. Annual revenues for 2010 grew
39% year-over-year for an additional USD 1.1million.
Current partnerships targeting luxury travelers :
American Express Credit Card
Visa
Citibank – Diners Club
HSBC
Riviera Yacht Club
Yucasee Millionaire’s Club
Niles Luxe (exclusive high-end membership only magazine & website)
Media/publications managed to target luxury travelers include:
Crea Traveller
Niles Niles
Nikkei Business
Departures
Values
Seven Hills
Pavone
Act4
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Travel Trade Leisure and Wholesale Markets
Japan’s senior market; “baby boomers” have a large disposable income and tend to take one
long haul trip with an average of six to seven days in length.
Affluent travelers tend to take one to two trips and prefer to create their own itinerary verses
package tours offered by wholesalers.
Popular destinations include Hawaii, United States, Europe (France, Italy and Switzerland) and
parts of Asia (Bangkok, Seoul and Hong Kong). Golf and spa holidays are very popular.
The heaviest travel month is August and the busiest travel weeks are Golden Week (April 30 –
May 5) and year-end.
Japan, being a heavily service oriented country, many consumers still prefer to book by voice
instead of the Internet. The Internet, however, is growing significantly as younger travelers
work on computers daily.
TMC/Travel Agency Accounts Managed:
American Express International
American Express Nippon Travel Agency Inc.
Business Travel & Incentive Tour
Hanshin Travel Service Co.,Ltd. (Tokyo)
HIS Co., Ltd. / Global Web Team
Jal Sales Co. Ltd.
Japan Gray Line Co.,Ltd.
JGC Corporation
JTB -CWT Business Travel Solution, Inc.
K Line Travel, Ltd.
M.O. Tourist Co.,Ltd.
Merrill Lynch Japan Securities
Nippon Express Co., Ltd.
NOE Corp.
Onward Travel
Toppan Travel Service Corp.
Tourist International Assistance Service, Inc.
Travel Kids Co., Ltd.
Travel Nippon. Inc.
World Travel Associates Co., Ltd.
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Corporate
Japan’s fiscal year is April to March, and travel during March and April is significantly
slower. New hires begin April 1 and shifts in positions or to regional offices also take effect
April 1.
A fragile economy, slim budgets and security concerns are forcing companies to limit the
number of hotels they contract and business travel must comply with RFP approved hotels.
The majority of large corporations such as, Nomura Securities, Toyota and Sony have their
USA and European offices handle RFP’s. Often local contracts are negotiated.
Japanese corporate travel is still very “old school” whereby negotiated rates are based on
relationships. GDS is still unused in most companies – even the larger companies.
Those companies without RFP’s contact their local offices in the region to arrange their
hotel bookings.
Key growing industries: finance and banking, IT related, electronics, pharmaceutical and
medical
Managed Corporate Accounts:
Autodesk Ltd.
B Braun Aesculap Co., Ltd.
BNP Paribas Securities ( Japan ) Ltd
Brown Brothers Harriman Investment Services (Japan)
Goldman Sachs Japan Holdings, Ltd,
HSBC Services Japan Limited
Ignite Japan K.K.
Life Technologies Japan Co., Ltd.
Merrill Lynch Japan Securities
Mizuho Securities Co., Ltd.
Morgan Stanley Japan Securities Co., Ltd.
Nomura Securities
Sumitomo Corporation
SymBio Pharmaceuticals Limited
Wallenius Wilhelmsen Logistics Japan
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Groups
Majority of leisure travel groups and incentives are handled by receptive Japanese operators.
Slowly, Japanese corporations and travel agencies are booking direct, by-passing tour
operators to secure better rates and avoid mark-ups.
A large majority of corporate regional meetings/conferences are organized out of Hong Kong
and Singapore as many are headquartered there.
RFP accounts are being advised by their corporate headquarters to use preferred hotels in
order to secure better transient rates for the following year.
Lead time ranges from four to eight weeks for small to medium size groups and five to six
months for large groups (200 rooms and above).
Managed Corporate Meetings & PCO’s:
Amex / NTA
Amway Japan
Brown Brothers Harriman Investments
BT&I
Chugai Business Support
JTB / CWT
Goldman Sachs
Hanshin Travel Service
Japan Grayline
Japan Tobacco Inc
Johnson & Johnson
Kinki Nippon
MO Tourist
NOE Corp
NTT Travel Service
Sony Human Capital
Top Tour
Toppan Travel
Tradeshows & Showcases
Tokyo Showcases are held every other year with 2011 being the next event. A bulletin will
be sent in due course.
Blossom, a new high-end luxury tradeshow was held January 2011 and proved quite
successful. (Similar to ILTM/ALTM). The show will move to Kyoto for 2012 and be held in
February.
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Korea
Market Overview
South Korea represents one of the world’s most promising markets for fuel cell adoption
and is one of the foremost countries for fuel cell manufacturing. It has expertise in
Research and Development and manufacturing of stationary, portable and transport fuel
cells, with early markets for domestic adoption and large export opportunities.
Their economy is growing at its fastest rate in nine years. As of 2010, South Korea is
the world's eighth largest exporter. It is ranked first in the world in Digital Opportunity
Index and is the most wired country in the world with the world’s highest broadband
Internet access per capita.
The consumer electronics industry is the fastest growing exporter in the world.
Companies such as Samsung and LG are among the top three manufacturers of
televisions and mobile telephones. Samsung is currently the world’s most valued
consumer electronics brand in the world. This is an excellent sign that Korea’s
economy is doing well and consumer confidence is high.
While the top 10 tour operators report that the number of package travelers is down
(approximately 20%) the ratio of the FIT market over group travel market is slowly
increasing.
Unlike Japanese consumers, many rely on on-line bookings for their travels. Top destinations
for leisure travelers are:
o China (30%)
o Japan (20%)
o Other Southeast Asian countries (33%)
o North America (7%)
o Oceania (4%)
o
Europe (about 7%) but growing fast. Europe is preferred as luxurious destination; most
popular European destinations include Germany, the United Kingdom, France and Italy.
While Korea is a relatively new market for Leading Hotels, we expect significant growth over
the next few years as we increase our penetration of their direct-consumers, along with the
very profitable corporate and travel trade segments. We currently manage Samsung global
RFP program and are in the process of formatting a Visa Card hotel benefit program to
stimulate new Leaders Club members.
Some of the Accounts Managed in Korea include, but are not limited to:
Samsung (Corporate)
Redcap Tour (Corporate TA)
BT&I (Meetings and Incentives)
Global Passage (Corporate and Leisure)
Smile Global Air Travel (Leisure)
Lotte Card (credit card, direct-consumer)
Visa (credit card, direct-consumer)
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