H.I.S. Co., Ltd.

Business Details

Engages in the arrangement, planning, and sale of overseas and domestic travel, along with related businesses. Leveraging a global network of 150 domestic locations and 136 locations in 104 cities across 54 countries overseas, the segment serves a wide range of customers including individuals, corporations, and inbound visitors to Japan. Business areas include overseas travel to Europe, the Middle East, Asia, Hawaii, etc., domestic travel to Okinawa, Kyushu, etc., inbound travel to Japan mainly from North America, and corporate business for government agencies and municipalities. This is the flagship segment, accounting for approximately 82% of the Group's consolidated net sales.

Recent Overview

Net sales increased 106.2% year-on-year, but operating profit declined to 84.7% of the prior-year level.

In H1 FY2026 (November 2025 to April 2026), Travel Business net sales rose to ¥158,880 million (106.2% year-on-year), securing an increase in revenue, but operating profit fell sharply to ¥4,747 million (84.7% year-on-year). Earnings were pressured by the cancellation of tours using connecting flights through the Middle East and a slowdown in new bookings due to escalating Middle East tensions, as well as by the weak yen, rising prices overseas, and elevated fuel surcharges. On the other hand, some areas performed well, such as the Inbound Travel to Japan business, which achieved a record-high monthly sales in March. As of the end of April 2026, the company had 150 domestic locations and 136 locations in 104 cities across 54 countries overseas.

Key Products

Growth Drivers

• Continued high levels of visitors to Japan (21.51 million in H1 FY2026, 101.8% year-on-year), expanding demand for inbound travel reception
• Steady recovery in the number of Japanese outbound travelers (7.35 million in H1 FY2026, 107.6% year-on-year), supporting a recovery trend in overseas travel demand
• Diversification of the earnings base in the Inbound Travel to Japan business through expansion of high-value-added products and a shift toward the Taiwan and Southeast Asia markets
• Strengthening of the growth foundation for the overseas inbound business through the strategic partnership with Korea's HANATOUR SERVICE INC.
• Steady expansion of orders in the corporate business as outsourced projects for government agencies and municipalities become larger and more sophisticated
• Creation of group synergies through strengthened collaboration with group companies (such as South Wing Co., Ltd.)
• Operational efficiency improvements and enhanced customer experience value through AI/DX (AX) utilization
• Diversification of revenue sources through strengthening non-travel areas (export business, sports business, etc.)

Risks

• Delayed recovery in overseas travel demand due to rising travel costs from continued yen depreciation, rising prices at destinations, and persistently high fuel surcharges
• Cancellation of tours using connecting flights through the Middle East and slowdown in new bookings due to escalating Middle East tensions, as well as impact on inbound visitors to Japan from Europe
• Sluggish inbound demand due to stagnation in the Chinese market (impacted by deteriorating Japan-China relations)
• Geopolitical risks in the outbound business of overseas local subsidiaries, such as weak demand for U.S.-bound travel at the Canadian subsidiary
• Continued impact in the current period from the withdrawal from the outbound travel business due to the business restructuring of the Turkish subsidiary
• Impact on travel demand from external environment uncertainty, including developments in U.S. trade policy
• Competitive pressure on the agency model from changes in the sales platform environment (expansion of direct carrier sales and OTAs)
• Group governance risk stemming from the employment adjustment subsidy issue (a special investigation committee has already conducted an inquiry)