Japan remains a relatively good deal for travelers, especially those from countries whose currency remains strong against the country’s weak yen. However, that demand is starting to drive prices up.
A new report this week says that hotels are more expensive than ever. That’s bad news for the country’s business travelers and domestic tourists, who were already struggling.
According to Nikkei, hotel industry data solutions firm STR analyzed average unit prices across 2,000 hotels across Japan. The average price is now up to 22,880 yen (USD $146) – up 18% from the previous year. That’s higher than the previous high watermark of 22,245 yen in 1997, making a new record.
Other data from STR shows that Japan’s RevPAR – Revenue Per Available Room – is skyrocketing relative to other countries. RevPAR is up 34.7% in Japan compared to this same time last year.

As in 1997, one cause of the spike is the weak yen. With Japan experiencing record numbers of inbound travelers who are willing to pay more than domestic visitors due to the currency difference, ADR (Average Daily Rate) at hotels is slowly creeping up. Demand from foreign travelers is also decreasing available rooms, driving up prices further.
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In particular, tourism from the US, whose dollar is strong against the yen, has gone up around 30%. Some hotels, such as Tokyo’s Grand Hyatt, report that 90% of their guests are foreign tourists.
As we’ve previously reported, this spike is leaving domestic business travelers screwed. Japanese business travelers are usually given a fixed budget for hotels and food for their trips. That’s forcing many to select hotels that are hell-and-gone from where their business is.
One 30-year-old woman interviewed by Nikkei who came to Tokyo recently said she had to stay in a hotel in Saitama. It can take up to 90 minutes to get from Saitama City to central Tokyo locations such as Roppongi.
Nikkei says that prices in hot winter tourist spots are reaching insane levels. A room at HANAZONO in popular ski resort area Niseko will run you 250,000 yen ($1,603) – a 20,000 yen ($128) increase from last year.
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