Revamping Senior Tourism in Japan: Digital Strategies Post-COVID
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Chapter 1: The Return of Senior Travelers
In light of Japan's recent classification of COVID-19 as a Category 5 infectious disease, akin to influenza, the country is experiencing a resurgence of normalcy. This shift has sparked a notable trend of 'revenge travel' among the senior demographic. The Japan Tourism Agency's 'Travel and Tourism Consumption Trends Survey' highlights the immense economic potential of this group, which had previously faced restrictions during the pandemic.
Prior to the pandemic in 2019, Japanese seniors aged 60 and above allocated over 3.8 trillion yen to domestic tourism. However, the onset of COVID-19 in 2020 drastically reduced this figure to just 1.32 trillion yen, with a further decline to 1.15 trillion yen in 2021. Although 2022 marked a slight recovery to 2.27 trillion yen, this amount still represents approximately 70% of pre-pandemic spending. With Japan's gradual reopening, there are hopes that senior tourism spending will bounce back to pre-COVID levels.
Seniors contribute more than just economic benefits to Japan's tourism industry. Their adaptable schedules allow them to travel during less busy times, helping balance occupancy rates for lodging providers.
However, this age group is one of the least digitally engaged. Many seniors encounter difficulties with online booking systems, and their varied needs pose challenges for Online Travel Agents (OTAs) and Travel Technology Providers (TTPs). This gap presents an opportunity for Yuko Yuko, a startup travel company.
Yuko Yuko operates similarly to a contemporary travel agency, having developed its own booking system. The company also produces a bi-monthly magazine, which features over 500 Japanese accommodations across approximately 350 pages. This publication acts as a tangible counterpart to their digital platform, offering seniors a familiar medium.
Yuko Yuko's CEO, Kazuko Tokuda, emphasizes that the company strives to create a comfortable environment for seniors navigating the digital landscape. Unlike many OTAs that impose both commission and advertising fees on accommodation providers, Yuko Yuko charges only a transaction fee, which has led to a significant increase in listed accommodations. Currently, their platform features over 3,000 lodging options throughout Japan.
With a stable inventory of accommodations secured, Tokuda's next objective is to expand the member base. By leveraging AI to analyze a database of over 8.5 million members, the team identified one million potential customers to whom they distributed print versions of the magazine.
To bridge the gap between the magazine and the online platform, Yuko Yuko incorporates QR codes into the publication. This feature allows seniors, who have become more adept with technology during the pandemic, to easily access detailed information on the booking platform.
Despite these advancements, many seniors still find online bookings challenging. To address this, Yuko Yuko has established four customer service centers in Tokyo, Hokkaido, Ehime, and Kumamoto, offering online support to accommodate a range of specific needs, from meal preferences to room location requests.
These centers manage over 10,000 calls each day and employ "booking guides" to assist seniors with more complex inquiries via phone. Yuko Yuko also distributes personalized newsletters to foster a sense of familiarity and trust.
In summary, while the purchasing power of seniors in tourism is significant, their challenges with digital tools require thoughtful solutions. Addressing these issues from the consumers' perspective can help bridge the digital divide in ways that align with their lifestyle and comfort levels.