The consolidated financial statements of Nippon Travel Agency (NTA) for the year ended in December 2009 (January 1 to December 31, 2009) disclosed that operating revenue plummeted 17.3 percent from the previous year to 41,597 million yen. Operating loss swelled by 1,038 million yen to 1,602 million yen, posting a loss for two straight years. Recurrent loss more than doubled to 657 million yen, and net loss tripled to 1,062 million yen. Global economic slowdown and the new type of influenza incurred corporate restraint on business trips and cancellation of group tours, driving the agency into the corner.

In 2009, NTA set up MICE Department within the headquarters to get hold of group travel and corporate business and at the same time reorganized the business location network in the Tokyo metropolitan area in an attempt to have a bigger share of the market. A new computer system was made operative to get a slice of growing online business in overseas travel in a move to offer price-appealing products and capture late bookings. The agency reviewed store management including business days and business hours to find the optimum in pursuit of cost-efficiency.

In 2010, placing group sales, retail sales at stores, and tie-up sales with other agencies on the basis of growth, NTA gives top priority to the group sales. As of January 1, it reorganized the corporate structure and set up Group Tour Promotion Headquarters to supervise each department that handles ordinary group, educational group, domestic group, and overseas group. Every piece of information collected by each department is to be passed onto the Headquarters for consolidation with a view to following the changing market closely and working out strategies swiftly. Store closures in quantities or termination of tie-up agreements with other agencies are not foreseen for the time being but will be reviewed from time to time if necessary. NTA aims at 30 percent growth overall in the fast-growing segments of online sales, business travel management (BTM), and inbound travel. Online sales deal mainly with price-competitive products and tours open to late bookings, in contrast with quality tours sold at store counters; thus, web sales and store sales complement with each other. With reference to BTM, the agency will increase business with national universities to scoop up MICE business related to the academic conference.

For reference’s sake, NTA’s operating revenue by travel sector was as follows: domestic travel 27,753 million yen (-14.5%), overseas travel 12,166 million yen (-23.3%), inbound travel 1,066 million yen (-13.0%), and auxiliary business 609 million yen (-16.5%).


(Note: This article translated from Japanese into English)