In a significant discussion outlining the future of Japan’s travel landscape, leaders from Booking.com, Trip.com, and Expedia have signaled a major shift in strategy, with Artificial Intelligence (AI) and regional diversification at its core. Their vision for 2026 and beyond points to a new era for tourism in Japan, one that promises to alleviate pressure on major hubs and unlock the rich potential of areas like the Kansai region.
The Context: A Resurgent Market Facing New Challenges
Japan’s tourism industry has experienced a remarkable recovery post-pandemic. According to the Japan National Tourism Organization (JNTO), the number of international visitors reached over 25 million in 2023, rapidly approaching the pre-pandemic peak of nearly 32 million in 2019. This surge, however, has intensified the issue of overtourism, particularly in the “Golden Route” cities of Tokyo, Kyoto, and Osaka. In 2023, prefectures like Osaka and Kyoto saw visitation rates of 39.7% and 29.1% respectively among international tourists, concentrating crowds and straining infrastructure.
It is against this backdrop that the global Online Travel Agencies (OTAs) are rethinking their approach. Their focus is shifting from simply selling popular destinations to curating more sustainable and fulfilling travel experiences.
AI: The Key to Personalized Discovery
A central theme of the discussion was the transformative power of AI. The executives highlighted how AI-driven platforms can move beyond generic recommendations to offer truly personalized itineraries. For international travelers, this technology can act as a cultural bridge, demystifying unique Japanese experiences that might otherwise seem inaccessible.
Instead of just booking a hotel in Namba, an AI-powered travel assistant could suggest a stay at a traditional ryokan (Japanese inn) in Arima Onsen near Kobe, based on a user’s interest in wellness and cultural immersion. It can help travelers discover local festivals, book a table at a hard-to-find izakaya, or navigate the complex public transport system to reach a scenic spot on the Kii Peninsula. This level of personalization is crucial for encouraging visitors to explore beyond the beaten path.
Shifting Focus to Regional Japan: A Boon for Kansai
The commitment to promoting regional destinations is perhaps the most impactful strategy for the Kansai area. While Osaka serves as a major international gateway, the OTA leaders’ vision involves encouraging travelers to use the city as a base to explore the wider region’s hidden gems.
What This Means for the Kansai Region:
- Diversified Destinations: Travelers will be increasingly guided towards destinations like the serene shores of Lake Biwa in Shiga, the ancient capital of Asuka in Nara, the pilgrimage routes of the Kumano Kodo in Wakayama, or the coastal beauty of Himeji and Kinosaki Onsen in Hyogo.
- Economic Growth: This dispersal of tourists will bring economic benefits to local hotels, restaurants, and tour operators in these lesser-known areas, fostering a more sustainable tourism ecosystem across the entire region.
- Enhanced Traveler Experience: By avoiding the largest crowds, visitors can enjoy more authentic and relaxed experiences, deepening their appreciation for Japanese culture and hospitality.
Future Outlook: The Road to 2025 and Beyond
This strategic shift by global OTA giants is perfectly timed, especially with the upcoming Expo 2025 Osaka, Kansai, which is expected to draw an estimated 28.2 million visitors. The event will place a global spotlight on the region, creating an unprecedented opportunity to showcase its diversity.
For travelers planning a trip to Osaka and the surrounding Kansai area, the future looks bright. Expect more intelligent travel tools that cater to your specific interests, making it easier than ever to craft a unique journey. The push towards regional exploration means your next trip could lead you to discover a side of Kansai you never knew existed, creating memories far beyond the neon lights of Dotonbori.
