A new Net Promoter Score (NPS) survey has revealed a crucial insight into Japan’s highly competitive Online Travel Agency (OTA) market: domestic powerhouse Jalan.net holds the top position in customer loyalty, surpassing global competitors like Booking.com and Expedia. The study, conducted by NTT Docomo Business X, underscores the formidable strength of local players and offers a clear message to international brands aiming to capture a larger share of the Japanese travel industry.
The Power of Localization: Why Jalan.net Leads
The survey attributes Jalan.net’s high rating to its deeply localized product offerings and an exceptionally user-friendly application. This success is not accidental but is built on a profound understanding of the Japanese consumer.
Jalan.net, operated by the Japanese conglomerate Recruit, boasts an unparalleled inventory of domestic accommodations. This includes not only major hotels but also a vast number of traditional Japanese inns (ryokan), guesthouses (minshuku), and hot spring (onsen) resorts that are often underrepresented on international platforms.
Furthermore, its platform is meticulously designed for the Japanese user. This goes beyond simple language translation to encompass search filters tailored to local preferences—such as the option to search for rooms that include dinner and breakfast (“ippaku nishoku”), private open-air baths, or specific types of onsen water. The integration with Ponta, one of Japan’s most popular loyalty point programs, also creates a powerful incentive for repeat business, a strategy that resonates deeply in the Japanese market.
Background: A Market Defined by Domestic Travel
To understand Jalan.net’s dominance, one must look at the structure of Japan’s travel market. For decades, it has been overwhelmingly driven by domestic tourism. This has allowed local OTAs like Jalan.net and its main domestic rival, Rakuten Travel, to build immense trust, brand recognition, and a comprehensive network of partner facilities.
While global giants like Booking.com and Expedia have made significant inroads, particularly with inbound tourists and in major urban centers, they often face challenges in penetrating the more traditional, regional, and nuanced segments of the market. Issues can range from a user interface that feels foreign to Japanese consumers to gaps in their accommodation listings outside of major cities.
Future Outlook and Implications for the Global Market
Jalan.net’s top ranking in customer loyalty serves as a critical case study for international players.
A Roadmap for International OTAs and Hotels
For global OTAs, this survey highlights that a surface-level approach is insufficient. To truly compete, they must invest in deeper localization. This involves securing a more diverse domestic inventory, adapting their user experience to local expectations, and offering more integrated and compelling loyalty programs. High-quality, native-level customer support is also a non-negotiable factor for earning trust.
For international hotel groups, the message is clear: a strong presence on leading domestic OTAs is essential for reaching the vast majority of Japanese travelers. Relying solely on a global brand website or international booking platforms means missing out on a significant segment of the market.
The Next Challenge for Domestic Champions
With Japan’s inbound tourism recovering rapidly post-pandemic, the landscape is set to evolve. The next challenge for Jalan.net and other domestic platforms will be to enhance their services for international visitors. Improving multilingual support, accommodating a wider range of international payment methods, and making their platforms more intuitive for non-Japanese users will be key to capturing a larger piece of the growing inbound market and defending their leading position against the global competition.
Ultimately, the NTT Docomo Business X survey confirms that in Japan’s sophisticated travel market, customer loyalty is won not just by price, but by a deep, authentic understanding of the local culture and consumer.
