Success Stories

Tourism Powerhouse KKday Now Focused on the Japanese Market

KKday, founded in Taipei, Taiwan, under the leadership of CEO Ming Ming Chen, is making strides in the Japanese tourism sector. This move comes as the industry experiences a robust revival post-COVID-19, with KKday harnessing its unique SaaS solutions and technology to come onto the market.

The digital transformation (DX) landscape within Japan's tourism industry is poised for substantial growth across inbound, outbound, and domestic travel. We interviewed Kosei Ohbuchi, Japan country manager of KKday, about the company's expansion into the Japanese market and the allure of investing in Japan.

Establishment
2016/02
Destination
Tokyo・Kanto

  • ICT
  • Tourism
  • Taiwan

Update : 2024/03

The Allure of Japanese Market Entry

KKday is a Taiwan-founded company that operates one of the biggest online reservation sites in Asia. It has hundreds of thousands of travel offerings available, covering more than 550 cities in 92 countries, and its platform focused on local tours and activities is quite popular. The booking site offers better travel experiences and enhanced convenience for many users, and is vying for increased presence in the Japanese tourism DX market, which has seen a surge in demand since the end of the COVID-19 pandemic.

Ohbuchi explains, "Our company was founded in 2014 and we set up our branch office in Japan in 2016. Japan is a market with tremendous potential on three fronts: inbound, outbound and domestic tourism. It has a population of over 100 million people as well as a thriving economy. Japan has wonderful cities and abundant natural beauty; the country is safe and the people are friendly. Japan is a very important investment target for KKday as we aim to become the top online booking site in Asia.”

Kosei Ohbuchi, Japan Country Manager, KKday Japan

Japan's potential in terms of tourism resources is limitless, according to Ohbuchi:

"There are many incredible tourist attractions and activities to do in Japan that are still largely undiscovered. In developing these offerings, we focuson actually visiting these locations and meeting the proprietors on the ground, to truly understand their needs. Establishing a presence in Japan has brought us closer to different service providers, which offers great advantages in terms of developing our offerings.”

Current Japanese Tourism Industry Challenges

The Japanese tourism industry is facing its own particular set of challenges. Particularly in the area of optional tours and activities, "DX at local suppliers has been lagging," according to Ohbuchi.

"In terms of hotels and accommodations, collaboration with overseas online travel agents (OTAs) has always been solid. But at the same time, many local non-hotel tourism suppliers are still managing their inventory and bookings on paper. This kind of request-based booking system inevitably results in a time lag when users make reservations," he said.

He continues, "We believe that DX in the tourism sector will become increasingly widespread. For example, QR codes and digital payments are finally becoming common, and I feel that on-site digital literacy has been increasing significantly. Promoting DX in tourism will yield many benefits, including eliminating losses of opportunity through more efficient sales and addressing manpower and human resource shortages, just to name a few areas that can be improved."

KKday app

Nikko Toshogu Shrine Solves Issues Through DX Tourism

At Nikko Toshogu Shrine, one of Japan's most-visited tourist locations and a historic World Heritage Site, KKday has been able to address issues using DX initiatives.

"Nikko Toshogu Shrine, as one of the most popular tourist spots in Japan, had inherent challenges including long lines at the entrance gate in the post-pandemic period. At KKday, we were able to eliminate some issues due to over-tourism such as lines and crowds by enabling suppliers to implement inventory management systems, which allowed users to book tickets online and make cashless payments,” according to Ohbuchi.

Nikko Toshogu Shrine found out about KKday's system through a nearby facility that had used KKday's supplier-targeted inventory management system to great success. The system likewise provided a solution for Nikko Toshogu Shrine. In the future, KKday hopes to use its knowledge of digital marketing to combine its own big data with data from nearby tourist locations to help boost sales throughout different regions in Japan.

Government Agency Support for Business Expansion in Japan

During the expansion, KKday had significant backing from government bodies and related organizations.

"KKday received outstanding support from organizations such as JETRO and the Cool Japan Fund when expanding its business in Japan. They explained how to expand our office in Japan, helped us build relationships with national and local governments and suppliers when we were still unknown as a company, and gave us the financial support we needed,” explains Ohbuchi.

KKday's Vision for the Japanese Market

KKday's prospects in Japan's tourism sector, anticipated to see sustained high-value growth, is filled with potential according to Ohbuchi.

"We are convinced that we can secure a balance in the tourism business when both inbound and outbound tourism are made viable. Regarding the culinary sphere, at restaurants and elsewhere, there are still an abundance of tourism resources in Japan that have not been explored in depth. From the viewpoint of product and commercial development, there remains significant room for growth in the Japanese tourism market. At KKday, we are focusing on inbound demand, while also strengthening our business in outbound tourism from Japan, as well as Japanese domestic tourism, to keep every type of new customer satisfied."

Ohbuchi believes that Japan's tourism market is highly alluring, with great untapped potential as an investment target. Moving forward, we will be keeping a close eye on KKday's moves in the travel and tourism sectors.

Discovering untapped tourism resources for new services

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