HIS, a Japan’s leading travel company, says, “We can see exit of the long tunnel,” with a large decrease in mid-term deficit

HIS, a Japan’s leading travel company, succeeded in increasing sales considerably and shrinking deficit in the first six months of FY2023 (November 1 2022 to April 30 2023) mainly due to rapid recovery of its core travel business. 

HIS posted 103 billion JPY in sales, 50% more than a year ago, 3.4 billion JPY in operating loss (28.1 billion JPY in loss a year ago), 3.6 billion JPY in recurring loss (28.1 billion JPY in loss a year ago) and 4.8 billion JPY in net loss (26.9 billion JPY in loss a year ago). 

The core travel business increased sales to 79.7 billion JPY from 23.5 billion JPY a year ago and improved operating loss to 3.5 billion JPY from 14.8 billion JPY a year ago. HIS made a profit for the overseas travel business, which used to account for about 80% of the entire group profit, in the latest three months from February 2023, “We can see exit of the long tunnel,” Motoshi Yada, HIS President, said. “We aim to make a yearly profit and get back to a growth track.”

HIS revealed that overseas travel bookings have recovered to around 70% of the 2019 level. 

The domestic travel business sales increased by 1.4% year on year thanks to the national travel boosting campaign, while the inbound travel business still suffered a 78.1% reduction over 2019 because travelers from China do not be back yet. 

The hotel business sales increased by 130% year on year to 8.2 billion JPY, even more than 5.5 billion JPY in 2019, and operating profit reached 50 million JPY. Hideo Sawada, HIS Hotel Holdings President or HIS Advisor, said, “We see much better booking status. In the last three years, our network extended to 45 hotels globally. We plans to open more, expecting more profits.” 

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