JTB drew up its new midterm business plan to accelerating the digital-base business with goals of operating profit of 30 billion JPY as early as FY2024 and 45 billion JPY as early as FY2028. Offering services for new values and lifestyles, JTB is reorganizing its business portfolios to three business fields of ‘Tourism,’ ‘Area Solution’ and ‘Business Solution’ in three time zones of ‘Cost Structure Reform period,’ ‘Recovery to Growth period’ and ‘Growth to Leap period.’
Through the Cost Structure Reform, JTB is drastically cutting expenses by about 140 billion JPY by the end of FY2021 ended March 31 2022, expecting that recovery of the overseas travel and the global travel businesses may be slow. JTB aims to make a profit in the next fiscal year and to consolidate its business fundamentals for the future growth.
Tourism, as one of the main business fields, is seeking more digital transformation than before to support customers’ purchase and travel experiences and to heighten their life values.
Area Solution is focusing on stock-typed businesses, such as stable subscription business, by developing sustainable businesses not relying on movement of people through collaborations with local stakeholders, such as DMOs, local tourism providers or local governments.
Business Solution for corporate customers is continuously placed as one of the core businesses, offering tailor-made services fitting to their PDCA processes.
All of the three business field will be based on digital approaches, and on top of that, JTB will take advantage of human resources as its strength. JTB expects to earn the same amount of profits from Tourism and Business Solution, followed by Area Solution.
For travel products to individual travelers, JTB is developing hybrid and seamless system by combining conventional off-line channels with smartphone-based online channels, designing travel experiences from lifestyles, not from before traveling, to after traveling on a platform.
Changing its customer target from group to individual, JTB has a plan to raise the ratio of dynamic package for domestic travel from 22% today to 80% by the end of FY2021.