Japan Online Accommodation Market - Growth, Trends, COVID 19 Impacts, and Forecast (2022 - 2027)

Japan's Online Accommodation Market is segmented By Platform type (Mobile application, Website) and Mode of Booking Type (Third Party online portals, Direct/Captive portals).

Market Snapshot

Japan Online Accommodation Market- CAGR
Study Period: 2018-2027
Base Year: 2021
CAGR: >8 %

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Market Overview

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).

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 the travel restriction across the globe to prevent the pandemic from spreading. Online travel has been negatively affected; thus, travel and hotel visits have decreased.

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.

Scope of the Report

Online accommodation refers to the lodging booked online by travelers for 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 Online Accommodation Market is segmented By Platform type (Mobile application, Website) & By Mode of Booking Type (Third Party online portals, Direct/Captive portals).

By Platform
Mobile application
By Mode of Booking
Third party online portals
Direct / captive portals

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Key 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 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.

Japan online Accommodation Market- Online and Offline share

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 Market - Revenues from hotel

Competitive Landscape

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.

Recent Developments

· April 2022: Bear Luxe and a B2B membership portal signed a distribution agreement with Sabre to expand Sabre’s footprint in Japan. Sabre’s corporate booking tools will allow the Japanese company to connect with corporate travel buyers. This partnership will also enable the Bear Luxe platform to drive direct bookings, increase engagement, and trigger conversions through the deep retail focus of the Sabre SynXis Booking Engine.

· July 2021: Hoshino Resorts Iriomote Hotel aims to become Japan’s first eco-tourism resort to protect the island’s natural environment and create a sustainable tourism system. They launched three initiatives in the spring of 2021: ecological hotel management, nature tours to feel the values and charm of the island, and conservation of Iriomote wildcats.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitutes

      5. 4.4.5 Intensity of Competitive Rivalry

    5. 4.5 Insights on impact of technology and innovation in Online Accommodation Market

    6. 4.6 Impact of COVID-19 on the Market


    1. 5.1 By Platform

      1. 5.1.1 Mobile application

      2. 5.1.2 Website

    2. 5.2 By Mode of Booking

      1. 5.2.1 Third party online portals

      2. 5.2.2 Direct / captive portals


    1. 6.1 Market Concetration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Rakuten Travels

      2. 6.2.2 JAPANiCAN

      3. 6.2.3 Agoda

      4. 6.2.4 Jalan

      5. 6.2.5 Booking

      6. 6.2.6 Expedia

      7. 6.2.7 Hotels.com

      8. 6.2.8 Japan Online Traveler

      9. 6.2.9 Yahoo Travel

      10. 6.2.10 JTB Group

    3. *List Not Exhaustive


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Frequently Asked Questions

The Japan Online Accommodation Market market is studied from 2018 - 2027.

The Japan Online Accommodation Market is growing at a CAGR of >8% over the next 5 years.

Rakuten Travels, JAPANiCAN, Agoda, Jalan.Net, Booking.com are the major companies operating in Japan Online Accommodation Market.

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