Over the past few years, accommodation prices in Japan have changed dramatically. This is due to the structural depreciation of the yen and the rapid increase in inbound demand. In urban areas such as Tokyo and Osaka, even business hotels charge 15,000 to 20,000 yen per night, and it is not unusual for the price to rise even higher in tourist areas and during peak seasons.
Business hotels, which once sold "inexpensive and convenient," now set their prices aggressively against the backdrop of strong demand from foreign tourists visiting Japan. According to statistics from the Japan Tourism Agency, the national average hotel rate per night is now about 19,000 yen, and in Tokyo the rate exceeds 26,000 yen. Similar trends can be seen in rural areas as well, in areas with abundant tourism resources.
Capsule hotels are a relative "refuge."
In this environment, capsule hotels are relatively inexpensive. Normally, they are affordable, ranging from 2,000 to 5,000 yen per night, and are an attractive option for independent travelers and business trip savers. Especially in urban areas, new capsule hotels targeting both tourists and business travelers are increasing in number, and are revamping the traditional "just sleep" image in terms of interior design and facilities.
However, there is a caveat here as well. During peak periods such as Golden Week and major events, the concentration of demand can lead to rates exceeding 10,000 yen in some cases. In some cases, the price has risen to nearly 20,000 yen, so it is no longer possible to say that capsules are always inexpensive.
Background of price hikes
- Structural depreciation of the yen
From a foreign perspective on a yen basis, lodging in Japan is undervalued. As a result, demand from tourists visiting Japan is accelerating.
- supply shortage
The supply of rooms is not keeping up with the number of accommodations that have closed due to the Corona disaster and the shortage of personnel.
- Change in traveler demographics
High-priced hotels are driving the market due to an increase in affluent inbound and luxury-oriented domestic customers.
Advice for Travelers
- Book Early
Especially in urban and tourist areas, there is a noticeable tendency for prices to jump when last-minute reservations are made.
- Shift your lodging by one stop.
In many cases, just a short distance from the center of the city, prices drop.
- Use of capsule hotels and guesthouses
New types of facilities are increasingly available to save money and provide comfort.
- Campaign Use
Check with local governments and travel agencies for discount plans as needed.
Future Outlook
The number of foreign visitors to Japan is expected to continue to increase, and hotel rates will inevitably remain high, especially if the yen continues to depreciate. On the other hand, there is still room for affordable accommodation if you target rural areas and off-seasons. As lodging options diversify, strategic consideration of "where and when to stay" is likely to become a requirement for future travelers.
