Guided Journeys Through Tokyo's Landmarks

In 2024, Japan welcomed a record-breaking 35 million visitors, prompting the government to set an ambitious goal of reaching 60 million tourists by 2030. More recently, the focus has shifted from quantity to quality, with a new target of achieving over JPY 15 trillion in annual tourism spending by 2030. In your view, what are the main reasons Japan continues to stand out as a prime destination for international travelers?

Japan is a prime destination for tourists because of its rich history, beautiful natural landscapes, and renowned food culture. There are many iconic locations such as Mount Fuji, Kyoto, and Kamakura, each with deep historical roots. The unique blend of ancient traditions and modern developments is a major draw for visitors. For example, Tokyo’s Sensoji Temple has a history spanning 1,400 years, and from there, you can see the modern Tokyo Skytree in the background—a striking combination of tradition and innovation. New commercial attractions, such as TeamLab’s interactive exhibits, are also gaining popularity.

Japan’s food culture is another key appeal. Whether it’s traditional Japanese cuisine, Western dishes, or Chinese food, the country offers a rich variety of high-quality meals. The emphasis on craftsmanship and aesthetic presentation is central to Japanese dining and adds to the overall experience.

The distinct four seasons further enhance Japan’s appeal. Each season offers something unique: cherry blossoms in spring, vibrant festivals and fireworks in summer, colorful foliage in autumn, and activities like ice fishing in winter. Onsen (hot springs) are also a major attraction year-round, as are regional festivals held across rural areas. In addition, Japan is known for its safety and for its spirit of omotenashi—deeply rooted hospitality that leaves a lasting impression on visitors.

What is your perspective on omotenashi, and what do you believe makes it so unique compared to the service philosophies found in other countries around the world?

What makes Japanese omotenashi truly unique is the ability to anticipate a person's needs without them having to say anything. It’s about sensing what someone wants or needs through observation and intuition, rather than relying on verbal communication. That silent attentiveness is what sets omotenashi apart from other forms of hospitality around the world.

The surge in inbound tourism presents a major business opportunity, but managing record-breaking numbers of visitors also brings significant challenges. At the same time, Japan is facing a demographic crisis that’s leading to labor shortages—particularly in human-centric industries like tourism and transportation. In your industry, the situation has been further complicated by the so-called “2024 problem” and the new overtime regulations for bus drivers aimed at improving safety. How has Hato Bus been addressing these challenges?

Labor shortages are a major issue across many industries in Japan, including ours. At Hato Bus, our top priority is protecting the integrity and reputation of our brand. To address this challenge, we focus on continuously increasing our value and securing our workforce through thorough employee training and development.

The word hato means "pigeon," a symbol of safety, peace, and comfort. Pigeons are known for their ability to travel safely and return to their original location —this is the spirit behind our name. The safety of our customers always comes first, and we uphold that commitment with a strong foundation of omotenashi hospitality. These core principles have earned us a high level of trust from our customers.

Looking ahead, we will continue to enhance both safety and comfort, while improving the overall value we provide. We aim to serve our customers with excellence while also protecting the well-being of our employees. I believe this balanced approach will help us retain and secure our workforce for the future. All of our bus guides and drivers undergo extensive training that also contributes to their personal growth.

You just mentioned the importance of safety in your business, but another growing priority for today’s travelers is sustainability. We’re seeing more eco-conscious behavior not only in hotel choices but also in transportation preferences. What initiatives is Hato Bus implementing to reduce its environmental impact and meet the expectations of increasingly sustainability-minded customers?

One of the key initiatives we’ve implemented is the introduction of hybrid buses. Out of the 100 buses in our fleet, 13 are hybrids. These buses　use two different power sources to operate, typically combining an internal combustion engine with an electric motor. These buses are designed to improve fuel efficiency, reduce emissions, it’s still quite rare to use hybrid buses for tourist transportation, so this sets us apart. We are also considering the introduction of EV buses.

Another important initiative is our focus on sustainability-themed tours. We are a member of the Eco-Tourism Association and actively promote these tours using our hybrid buses. These experiences are designed to highlight regional culture, history, and Japan’s natural heritage. Through these tours, we aim to raise awareness and promote sustainability by helping customers connect with the environment in a meaningful way.

We also try to be creative in how we structure and promote these tours. A portion of the revenue is donated to environmental preservation efforts. One example is our new tour to Hinohara, located in West Tokyo—an area known for its rich wildlife and natural beauty. This tour just launched earlier this month, and it’s already proven very popular—it’s fully booked for the next month.

Who are the primary customers for these sustainability-focused tours? Are they mainly domestic travelers, or are you also seeing strong interest from inbound international tourists?

At present, domestic travelers are the main customer base for these tours　but we believe that interest from inbound is also high.

It’s clear that more travelers are booking their trips to Japan through OTAs like Trip.com and Booking.com, rather than directly through Japanese company websites. At the same time, we’ve seen that many hotels and transportation providers are working to reduce their reliance on OTAs by strengthening their direct booking channels through technology and marketing. What strategies has Hato Bus implemented to improve direct bookings and become less dependent on OTAs?

Our direct booking rate for domestic travelers is currently 92%, which is quite high. However, when it comes to international customers, about 60% still book through OTAs. We recently renewed our website to improve usability and make the booking process more seamless. That said, simply upgrading the website doesn’t automatically lead to an increase in direct bookings. The key challenge we’re now addressing is brand awareness. Our current focus is on improving recognition of the Hato Bus brand among inbound travelers, so they feel confident booking with us directly.

Japan’s population has been declining since 2008, and by 2050, it’s expected to fall below 100 million, with a significantly aging demographic. Looking ahead, how do you envision the future customer base of Hato Bus evolving? What percentage of your customers do you expect to be inbound tourists, and are you targeting specific traveler segments—such as people with disabilities, solo female travelers, or families? Where do you see the greatest growth potential?

Currently, over 90% of our customers are Japanese, with less than 10% coming from inbound tourism. As you noted, Japan is facing a shrinking and aging population, so we need to increase the proportion of inbound tourists. but at this stage, it’s difficult to predict specific figures or the future ratio of inbound customers.

That said, there are still many places within Japan that even our customers from Tokyo have never visited. We focus on attracting repeat and new customers by continuously offering new services and destinations. And we will increase the number of courses inbound tourists can ride together with Japanese locals. For this reason, I believe there are still meaningful opportunities to grow our business portfolio, even in the context of a declining birth rate and population.

Founded in 1948, Hato Bus played a significant role in shaping Japan’s post-war tourism industry, growing into more than just a tourism company. Looking back on more than 75 years of history, what would you identify as some of the key milestones in the company’s journey?

One of the key milestones in our history was the Tokyo Olympics in 1964. That event marked the moment when Hato Bus became known to people around the world. At the time, Japan was undergoing a massive transformation, with numerous construction projects—skyscrapers and other major buildings—completely reshaping the Tokyo cityscape and turning it into a popular tourist destination. We were 　providing transportation services for both Olympic athletes and visitors. Following the Games, we even launched a dedicated tour course that took customers to Olympic venues where Japan had won gold medals. During that year, we served 1.23 million customers—a record that still stands today.

Another significant milestone came in 1978, when we standardized our bus color to lemon yellow. This move helped strengthen our brand image, as the bright yellow buses are highly recognizable—even on cloudy days or in shaded areas—and have become a symbol of Hato Bus.

We also faced a major turning point after the burst of Japan’s bubble economy. Like many others, we experienced economic hardship and were unable to provide dividends to our shareholders for four consecutive years. That period forced us to return to basics. We thoroughl retrained our entire workforce and began integrating customer feedback more deeply into our services. This internal transformation raised employee awareness and led to improvements in customer satisfaction. It ultimately helped turn our business performance around. The spirit and lessons we gained during that period continue to guide us today, making it a crucial milestone in our company’s history.

The Japanese tourism market is more competitive than ever, with a wide range of options available—from digital tours and self-driving buses to private guides. In this increasingly crowded landscape, what sets Hato Bus apart from other competitors, particularly when it comes to serving foreign tourists visiting Japan?

Tours for visiting foreign tourists not only take them to iconic sightseeing spots in Tokyo but also offer experiences such as matcha tea ceremonies and Tokyo Bay cruises. For travelers eager to see Mount Fuji, a highly popular destination, tours operate on weekdays from convenient locations like Tokyo Station and Shinjuku Station. Each course is accompanied by a dedicated guide who provides in-depth knowledge beyond what can be found in guidebooks, making the experience even more special.

Our bus stops at Tokyo Station are particularly convenient and easily accessible. To meet diverse customer needs, we provide a range of tour formats—including half-day, full-day, and short-duration tours that can be completed in just a few hours. For our shorter tours, we also offer services in eight different languages, ensuring accessibility for a wide range of international travelers.

At Hato Bus, we strive to make our services unique by offering a variety of premium experiences.　A key differentiator is the variety of destinations we offer, including many tours that highlight regional and rural areas. Additionally, some of our tours include access to locations that are typically difficult for individuals to reserve, making the experience even more special and accessible.

Could you share some examples of those hard-to-access locations or emerging destinations that Hato Bus currently includes in its tour offerings?

A prime example of a location that can only be accessed via a bus tour is Haneda Airport. Even areas that are normally inaccessible to individuals are incorporated into the tour, allowing passengers to disembark off the bus and get up close and personal to see planes taking off and landing. Hato Bus has met strict safety standards and made it possible to offer tours to locations

Another popular tour course includes a visit to the Akasaka State Guest House. As for emerging tourist destinations, Toyosu Market is a notable addition. The associated tourist facilities tend to be crowded, but if you take a Hato Bus tour you can enter without having to wait in line.

Your company is majority-owned by the Tokyo Metropolitan Government and JTB. Given that JTB is not only Japan’s largest travel agency but also one of the biggest globally, what synergies or advantages do you gain from being under their ownership?

We have built an important partnership with JTB.As for our inbound tourism business, around 60% of bookings come through OTAs, with the majority of those handled by JTBGMT, and one other major OTA. These partnerships play a significant role in connecting us with international travelers.

Are you actively seeking new partnerships, particularly with overseas OTAs, to expand your international reach?

Yes, we would like to expand our partnerships with overseas OTAs. Additionally, we seek to expand our sales channels through major travel agencies. To boost direct bookings for chartered bus services, we will also strengthen sales efforts with international travel companies.

Earlier, you mentioned offering tours to hard-to-reach destinations. We also know that Hato Bus provides open- top buses and night tours. Looking ahead, are there any new services or tour offerings you plan to launch in the coming months?

Currently, experiential tours are gaining popularity, and we are developing a tour that allows participants to experience training in the mountains. As a new service, we have revamped the multilingual guide system for open-top buses, enabling customers to listen to the tour commentary on their smartphones. While this service is currently available on limited courses, we plan to gradually introduce it to a wider range of tours.

Are your package tours also designed to appeal to inbound tourists, or are they currently focused primarily on domestic travelers?

Our package tours are available to both inbound tourists and domestic travellers, with a significantly higher proportion of domestic customers.. In fact, inbound visitors often notice aspects of Japan that may go unnoticed by local residents, and we want to continue developing tours that highlight this hidden appeal.

In addition to your tour bus business, you also operate a hotel in Ginza—a prime location for tour departures and conveniently close to Tokyo Station and popular attractions like Tsukiji Market. How do you leverage your Ginza hotel to support and expand your other offerings?

Our Ginza Capital Hotel gives us greater flexibility when it comes to providing meal services. It can sometimes be difficult to secure lunch reservations for an entire bus of customers, especially as many hotels and restaurants in Japan are currently experiencing labor shortages. However, because we operate our own hotel in Ginza, we can offer customizable lunch options based on customer preferences, budget, and the theme of each tour. We integrate these meal plans into the tour design from the very beginning.

In addition to serving Hato Bus customers, we also provide meal services to other bus tour groups. Some customers choose to stay at our hotel either before or after their tour—particularly when tours depart early in the morning or return late at night. It’s important to respond to these emerging needs, especially for customers looking for a convenient base in central Tokyo. Our Ginza Capital Hotel is both accessible and ideally located to meet those expectations.

To further streamline the experience, our tour booking site is directly linked to our hotel reservation platform, making it easy for customers to plan both their tours and accommodations in one place.

Two-thirds of our hotel reception staff are non-Japanese, and we currently offer services in 12 different languages. For example, we communicate with Indonesian guests in their native language, which leads to higher levels of customer satisfaction. Additionally, we utilize auto-translation tools that support up to 109 languages.

When it comes to your tours, are you actively recruiting foreign tour guides or bus drivers? In some of our interviews, including with companies like Mimaru Hotel, we've seen that a majority of their staff are foreign nationals. As Japan’s population decline impacts not only the customer base but also staffing for operations, is the recruitment of foreign talent—particularly tour guides or drivers—part of your strategy moving forward?

For our tour courses designed for visiting foreign tourists, we only employ guides who hold national certification. Additionally, we hire Japanese drivers. This policy will remain in place for the foreseeable future.

Hato Bus was founded in 1948, so in 2048, it will be a hundred-year-old company. Where do you see Hato Bus at by its 100th anniversary? What ambitions or goals would you like the company to achieve by then?

Our goal is for Hato Bus to be widely recognized around the world as a company that delivers satisfaction and inspiration to its customers, becoming a preferred choice for international guests visiting Tokyo.We would be honored if you experience Hato Bus and allow us to help create wonderful memories for you.

For more information, visit their website at: https://www.hatobus.com/v01/en.