Digital travel platform Agoda has released a report titled “Tailored to Win: Mastering Localisation to Capture Asia’s Travellers in Japan,” highlighting a significant gap in Japan's hospitality sector. The report reveals that only 34% of Japanese hotels have moved beyond basic localisation strategies, despite the potential for increased revenue from Asia's growing travel demand.
The report indicates that whilst 71% of hotels in the early stages of localisation see positive revenue impacts, all hotels with advanced strategies report favourable outcomes. This suggests that a more comprehensive approach is essential to fully capitalise on the influx of Asian travellers. In 2025, Japan welcomed over 42 million international visitors, with nearly 70% coming from South Korea, China, Taiwan, Hong Kong, and Thailand.
Tadashi Ikai, Senior Country Director for Japan at Agoda, stated, “Only 34% of hotels have reached advanced stages of localisation today with real opportunity lying in accelerating these efforts across the guest experience.” He emphasised the importance of closing gaps in payments, language, and cultural understanding to connect with Japan’s concentrated Asian traveller base.
The report also identifies challenges faced by Japanese hotels, such as limitations in payment integrations and marketing resources, as well as gaps in foreign language capabilities and cultural awareness. To address these, Agoda offers targeted “Quick Wins” based on traveller motivations and a digital suite for localisation, supporting hotels in aligning their offerings with diverse traveller preferences
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