Navigating Japan’s Travel Challenges: Airlines Adapt as Outbound Tourism Reaches Just 70% of Pre-Pandemic Levels

Navigating Japan's Travel Challenges: Airlines Adapt as Outbound Tourism Reaches Just 70% of Pre-Pandemic Levels

Japan’s Outbound Travel Falls to 70% of Pre-Pandemic Levels as Airlines Adjust

Japan’s outbound travel has not fully bounced back since the pandemic. In 2025, the total number of trips made abroad by Japanese citizens reached only about 70% of the level seen before COVID-19. This slow recovery comes mainly due to the weak Japanese yen, which makes traveling overseas more costly for Japanese tourists. Despite efforts by major airlines like All Nippon Airways (ANA) and Japan Airlines (JAL), the challenges persist as fewer Japanese travelers head abroad.

The Impact of the Weak Yen on Outbound Travel

The yen’s low exchange rate means that Japanese travelers face higher expenses for accommodation, food, and other costs in foreign countries. For example, when the yen weakens against the dollar or euro, Japanese travelers must spend more yen to acquire the same amount of foreign currency. This has discouraged many from planning international trips.

Before the pandemic, in 2019, Japanese nationals took over 20 million overseas trips. By 2025, this number dropped to around 14.7 million. The Japanese government originally aimed to surpass pre-pandemic outbound travel numbers by 2025 but has since pushed this goal back to 2030 due to these economic challenges.

Airlines Face the Effect and Shift Strategies

ANA and JAL have felt the pressure from this decline in outbound travel. Because fewer passengers book international flights, revenue from these routes has shrunk. To cope, both airlines have made strategic changes.

First, ANA and JAL are focusing on premium services to attract wealthier travelers. They enhance business class offerings by improving in-flight meals, seating comfort, and customer service. Such travelers tend to be less affected by currency fluctuations.

Second, both airlines invest more in domestic flights within Japan. They offer more routes to popular local destinations to capture demand from travelers who now prefer exploring their home country. This helps offset the decline in international travel.

Third, ANA and JAL adjust prices to remain competitive on the remaining international routes. They try to entice travelers interested in going abroad despite higher costs, sometimes through promotional fares or loyalty program rewards.

Inbound Tourism and the Hospitality Sector

While outbound travel struggles, inbound tourism to Japan has surged. In 2025, Japan welcomed a record 42.7 million foreign visitors. This boom benefits hotels, restaurants, and tourist sites, especially in major cities such as Tokyo, Kyoto, and Osaka.

Japan’s hospitality industry has responded by upgrading services and raising prices to meet rising demand. Foreign tourists often seek authentic cultural experiences, driving hotels to offer unique local tours, regional cuisine, and themed stays. Domestic tourists, who now travel more within Japan, also contribute to this demand.

Changes in Traveler Demographics and Behavior

The makeup of Japanese outbound travelers has shifted. Younger Japanese women, especially those in their 20s, now represent the most active international travel group. This change reflects evolving social norms and growing interest in unique, global experiences.

Conversely, travel by older Japanese citizens, particularly those aged 70 and above, has decreased. Health concerns and budget limits may explain this trend. Airlines and tourism companies are adapting by creating more accessible travel options for these groups.

Advice for Japanese Travelers Facing Higher Costs

Those planning to travel abroad can take steps to manage expenses amid the weak yen:

  • Book flights and hotels early to secure lower rates.
  • Use budget airlines like Peach Aviation for short regional trips.
  • Look out for deals on premium class services offered by ANA and JAL.
  • Travel during off-peak seasons to save on accommodation.
  • Use airline loyalty points or miles to offset costs.
  • Check exchange rates before booking and consider travel cards that reduce conversion fees.
  • Stay informed about travel restrictions and airline safety protocols.
  • Pack light to avoid extra baggage fees.

Looking Ahead

Experts expect the weak yen to continue affecting outbound travel from Japan in 2026. Airlines and the tourism sector must keep adjusting to these financial realities and shifting traveler preferences. Whether outbound travel will fully recover remains uncertain, but new patterns and strategies appear to be shaping the future of Japan’s travel industry.

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