Thanks to the strong dollar, I feel that Japan is 35% cheaper than it was five years ago.
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TThe US dollar is currently appreciating against many foreign currencies, making it a bargain for international travel for savvy shoppers. One of the easiest ways for American travelers to get a “good deal” when traveling abroad is to destinations that have a relatively high dollar value and automatically discount local costs such as hotels, food, and attractions. is to choose.
Traveling to many countries in Asia is now easier on the wallet than in recent years. Are Bangkok and Phuket on your bucket list? Dollar-to-Thai baht purchases increased by 8.5% compared to a year ago. In addition, the dollar will purchase 8.5% more Vietnamese dong and Indonesian rupiah, 6.2% more Malaysian ringgit, and 5% more Taiwanese dollar.
However, the Asian currency most affected by the strong US economy is by far the Japanese yen. The dollar currently buys for 156.36 yen, up 15% from a year ago and an astonishing 43% from five years ago.
Thanks to the weaker yen, Japan has become Asia's most popular destination. According to the Japan National Tourism Organization (JNTO), the number of foreign tourists visiting Japan exceeded 3 million in a single month for the first time in March 2024. This was an increase of 69.5% compared to the same month last year and an increase of 11.6% compared to March 2019.
The majority of visitors come from neighboring Asian countries, but American travelers have also received similar reports. In March, a record 290,100 Americans visited Japan in a single month. This is a 42% increase year-over-year and a 64% increase compared to the same month in 2019.
Unsurprisingly, the weaker yen has meant that holidaymakers with more money to spend than at any time in decades are spending less. Foreign tourists visiting Japan spent 1.75 trillion yen ($11.2 billion) from January to March, according to JNTO data. This is a 52% increase compared to pre-pandemic 2019.
Flight tickets to Japan
Japan is very popular right now. According to airfare tracking site Hopper, it accounted for 29% of all U.S.-based searches for travel to Asia this summer and 8% of all international searches.
Due to this huge demand, airfares continue to rise. Flights from the U.S. to Japan departing in May cost an average of $1,281 each, up 4% from the same period last year. Flight tickets this summer average $1,379 per ticket, up 2% from last year and 26% from this time in 2019, according to Hopper data.
Meanwhile, additional capacity is curbing airfare inflation as Japanese and U.S. airlines expand flights between the two countries. Currently, there are about 60 flights from the U.S. to Japan each day, down 6% from pre-pandemic levels. Still, this is a big improvement compared to this time last year, when only 49 flights a day were departing to destinations in Japan.
From June to August, the airline plans to fly 9% more seats than last summer. And by midsummer, the U.S.-Japan market will be back to near pre-pandemic production capacity.
Currently, four U.S. airlines fly to Japan. United Airlines accounts for his 19% of seat capacity. Delta Air Lines, 10%. Hawaiian Airlines and American Airlines each account for 7% of seat capacity. (Three Japanese airlines, Japan Airlines, All Nippon Airways, and ZipAir, account for more than half of all scheduled seats.)
According to Hopper data, 92% of U.S. travelers planning a trip to Japan prefer to fly to Tokyo, but there are a limited number of flights available to and from Haneda Airport. The Japanese government will decide how many slots will be made available to U.S. airlines, which must apply to the U.S. Department of Transportation (DOT) for route rights.
Last year, United Airlines and American Airlines applied to the Department of Transportation to launch nonstop flights between the United States and Tokyo. United wanted a new nonstop flight from Houston's George Bush Intercontinental Airport (IAH) to Haneda. Instead, a new route from Guam to Tokyo was acquired and launched on May 1, joining United Airlines' other flights to Tokyo. From Newark, Los Angeles, San Francisco, Honolulu, Washington DC, and other cities.
American Airlines' newest route to Japan will launch on June 28th. The flight from New York's John F. Kennedy International Airport to Tokyo will be the airline's fourth daily nonstop flight to Haneda, joining existing flights from Dallas, New York, Chicago, Los Angeles and San Francisco. Francisco and other cities.
