Only 34% of Japan hotels reached advanced localisation; opportunities ahead: Report
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According to the report, hoteliers cite limitations in payment integrations and marketing resources (each at 51%) as key barriers, alongside gaps in foreign language capabilities and awareness of cultural norms (each at 49%). These constraints continue to slow the adoption of more advanced, market-specific strategies.
Digital travel platform Agoda, in its latest report “Tailored to Win: Mastering Localisation to Capture Asia’s Travelers in Japan,” spotlights a key gap in Japan’s hospitality landscape, with only 34% of hotels having moved beyond basic localisation strategies.
Among surveyed properties, 71% of hotels at early stages of localisation reported positive revenue outcomes, compared to all hotels that have implemented more advanced localisation, showing that while early efforts are delivering results, a more holistic approach maximises commercial outcomes.
According to the Japan National Tourism Organisation (JNTO), the market welcomed over 42 million international visitors in 2025, a 16% year-on-year increase, with Asian travellers accounting for over 80% of all arrivals. With such a high concentration of regional travellers, tailored strategies are becoming essential for hotels looking to better capture Japan’s Asian visitor market.
The report highlights that with around 7 in 10 visitors coming from just five key Asian markets (South Korea, China, Taiwan, Hong Kong, and Thailand), hotels need to move beyond one-size-fits-all strategies and tailor their offerings to the distinct preferences of each market, whether through localised digital payment options, language support or culturally relevant on-site experiences. Hotels that adopt this more integrated approach are already seeing results, with around 80% of surveyed hoteliers reporting improvements in bookings.
“Only 34% of hotels have reached advanced stages of localisation today with real opportunity lying in accelerating these efforts across the guest experience,” said Tadashi Ikai, Senior Country Director for Japan at Agoda. “By closing gaps across payments, language, and cultural understanding, hotels can better connect with Japan’s highly concentrated Asian traveler base and turn this into a sustained competitive advantage.”
According to the report, hoteliers cite limitations in payment integrations and marketing resources (each at 51%) as key barriers, alongside gaps in foreign language capabilities and awareness of cultural norms (each at 49%). These constraints continue to slow the adoption of more advanced, market-specific strategies.
As Japan’s tourism landscape becomes increasingly shaped by regional travel, the ability to deliver culturally attuned and localised guest experiences is becoming a key differentiator. To help partners navigate these challenges, Agoda’s report highlighted targeted “Quick Wins” based on travellers motivations including South Korean travellers seeks cultural exploration and unique local experiences; Chinese travellers spends more on experiences such as dining and activities rather than accommodation; Taiwanese travellers are strongly motivated by culinary exploration and wellness experiences; Hong Kong travellers are frequent, tech-savvy repeat visitors who value flexibility and convenience; and Thai travellers often travel in families and favour budget-conscious, short-haul getaways.
