HANATOUR JAPAN CO.,LTD.
6561・Growth Market・Services
Travel Business
The company's core profit-generating segment, centered on inbound travel arrangement
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Revenue (external customers, net) - 1Q FY2026 | ¥779 million | ¥847 million (1Q FY2025) | ↓ |
| Segment Profit - 1Q FY2026 | ¥324 million | ¥315 million (1Q FY2025) | ↑ |
| Segment Profit Margin - 1Q FY2026 | 41.6% | 37.2% (1Q FY2025) | ↑ |
| Segment Revenue (external customers, net) - Full Year FY2025 (ending December 2025) | ¥2,935 million | — | ↑ |
| Segment Profit - Full Year FY2025 (ending December 2025) | ¥1,141 million | — | ↑ |
Business Details
This segment centers on arranging inbound travel to Japan from South Korea, East Asia, Southeast Asia, Europe, the US, and Australia, covering a broad range from group package and incentive tours to individual travel (FIT). It serves as a land operator, providing one-stop arrangement of hotel, bus, and in-destination products. Revenue is presented on a net basis, offsetting handling volume against purchase costs, so the actual business scale substantially exceeds the net sales figure.
Recent Overview
Revenue down 8.1% year on year, but profit up 3.0% with a significant improvement in profit margin
Travel Business revenue for 1Q FY2026 (January to March 2026) was ¥779 million (down 8.1% year on year). Handling volume for the FIT platform "Gorilla" struggled due to the impact of the Chinese government's travel advisory and Middle East tensions, which also affected group tours departing from the Middle East and Europe (via Middle East flights). On the other hand, demand for group tours from South Korea and Southeast Asia remained solid, and growth in group tours, which carry relatively higher profitability, offset the sluggishness in FIT. Gross profit increased 2.2% year on year, and segment profit reached ¥324 million (up 3.0% year on year), maintaining a record-high level. The profit margin improved significantly to 41.6% from 37.2% in the same period of the prior year.
Key Products
Growth Drivers
- The number of inbound visitors to Japan in 1Q FY2026 reached a record 10.68 million (up 1.4% year on year), with the inbound travel market maintaining an expansionary trend
- Demand for group tours from South Korea and Southeast Asia remained solid, offsetting the impact from the Middle East and Europe (flights via the Middle East)
- Segment profit and profit margin improved despite the decline in revenue, due to the focus on higher-margin group tours
- Medium- to long-term expansion of handling volume through the expansion of the product lineup and API integration partners for the FIT platform "Gorilla"
- The new FIT platform for overseas travel agents is progressing on schedule, with demand capture expected after launch
- Regional diversification of demand (South Korea, Taiwan, Southeast Asia, Europe, the US, and Australia) is progressing, reducing dependence on any single market
Risks
- Loss of demand in specific markets due to geopolitical and country risks, such as the Chinese government's travel advisory (impact continued into 1Q FY2026)
- Risk of cancellations and reduced demand for inbound tours via Middle East routes departing from Europe, due to escalating tensions in the Middle East
- Risk of customer concentration in South Korea (parent company HANATOUR SERVICE INC.)
- Structural decline in group travel handling volume due to accelerating shift to FIT, along with transition costs and development delay risk associated with the new platform
- Risk of declining inbound demand due to rising travel costs to Japan from yen appreciation
- Risk that rumors related to earthquakes and natural disasters could directly impact inbound demand from Asia
Last updated: March 26, 2026