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Understanding Localization's Role in Japan's Accommodation

In the realm of digital travel, Agoda, operated by Agoda Company Pte. Ltd., has released a significant report titled "Winning Strategies: Mastering Localization to Attract Asian Travelers to Japan." With the increasing demand from Asian travelers, the necessity for effective localization in Japanese accommodations has become more pressing than ever. However, this report reveals that only 34% of accommodations go beyond the basics of localization.

At the core of this report, Agoda examines how Japanese hotels can maximize revenue opportunities through advanced localization efforts, emphasizing the importance of going beyond rudimentary practices. Out of the surveyed accommodations, a striking 71% in the initial stages of localization report noticeable revenue improvements. In fact, hotels implementing comprehensive localization strategies are witnessing positive results across the board.

According to the Japan National Tourism Organization (JNTO), the number of foreign visitors to Japan is projected to exceed 42 million by 2025, a significant increase of 16% from previous years. Over 80% of these travelers come from Asia, highlighting the need for region-specific strategies in Japan’s inbound market.

The report focuses on the fact that about 70% of inbound travelers are from five key Asian markets: South Korea, China, Taiwan, Hong Kong, and Thailand. In such a concentrated market, Agoda emphasizes that a standardized response won't suffice; instead, strategies must cater to the specific demands of each market. For instance, customized payment methods, multilingual support, and culturally sensitive experiences will be crucial. Approximately 80% of hotels adopting this integrated approach have reported increased booking numbers.

Despite recognition of these requirements, Japanese accommodations still face several challenges in advancing their localization initiatives. The survey indicates that integration of payment systems and lack of marketing resources (cited by 51% of participants) are significant barriers. Additionally, deficiencies in foreign language capabilities and cultural comprehension (noted by 49%) contribute to the impediment of market-specific strategic advancements.

The Japanese tourism market is increasingly influenced by within-Asia travel, making culturally localized experiences a vital differentiator. The report presents key insights that hotels should consider based on traveler characteristics from each market:

• - Korea: Emphasizes cultural and unique local experiences.
• - China: Tends to spend more on dining and activities rather than accommodations.
• - Taiwan: Shows a strong interest in gourmet and wellness experiences.
• - Hong Kong: Values convenience, flexibility, and has a high repeat visitor rate.
• - Thailand: Family-oriented travel with a focus on cost-effective short-distance trips.

Agoda's localization support leverages a network of over 6 million accommodations worldwide, facilitating optimal proposals tailored to each market's needs. Their platform supports 39 languages and offers multi-currency payment options along with 24/7 customer service, ensuring a seamless and regionally appropriate travel experience.

Moreover, initiatives like the "Agoda Growth Program" aim to boost visibility in key markets, while "Agoda Media Solutions" aids in country-specific promotions and campaigns in native languages. These endeavors empower partners to overcome challenges, acquire new customer bases, and maximize revenue opportunities.

Expert Commentary

According to Masaru Ikai, Senior Country Director at Agoda International Japan, only 34% of hotels have reached advanced localization, indicating a vast growth opportunity to enhance customer experiences across various touchpoints. By bridging gaps in payment, language, and cultural understanding, hotels can strengthen their connections with Asian travelers, leading to sustainable competitive advantages. Agoda remains committed to supporting partners in these initiatives through data, technology, and insights tailored to each market.

Research Data

This report is based on findings from a comprehensive survey involving 526 accommodation providers across 12 Asian markets, focusing specifically on the Japanese market. It organizes localization techniques across marketing, booking, and local experiences while offering practical insights to tap into traveler demand from key Asian markets. Additionally, it incorporates data from Agoda's "Travel Outlook Report 2026," summarizing traveler profiles and actionable insights from markets including Malaysia, China, India, and Korea, thereby equipping accommodations to devise market-specific strategies.

For more information, visit Agoda.