Car rental is an important area of overall tourism in Japan, with popular tourists sights such as Hokkaido and Okinawa easily accessible by car. Within Japan, younger consumers’ waning interest in owning material goods, as they redirect their spending power to other areas, is undermining car ownership and helping to boost demand in car rental.
The rise in inbound arrivals is expanding another dimension of demand in car rental. Indeed, car rental operators are increasingly targeting inbound travellers by focusing on the development of multi-language websites, which are serving to drive rising online sales, both directly and through intermediaries.
With renting cars a particularly popular option for tourists visiting more remote areas where public transport is more limited than in cities, the Japan Tourism Agency’s plans to subsidise nature-orientated travel products and boost tourism in less well-known areas of the country should provide a significant boost to car rental during the forecast period.
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This industry report originates from Passport, our Travel And Tourism market research database.