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Planning, PR & Revenue Management (Travel Agency Act, PMS, OTA Commissions, OCC/ADR/RevPAR & Branding)

Accommodation (SSW 2) · 宿泊分野(2号) · Written by Tokutei Pass based on the official study texts; not copied verbatim.

Creating Accommodation Plans and Complying with the 'Travel Agency Act' (Restrictions on Transport Arrangements)

In planning operations at the Specified Skilled Worker (ii) level, staff analyze market trends and customer data to plan and create attractive accommodation packages combining the facility's strengths (hot springs, local cuisine, scenic views, etc.) with surrounding tourism resources.

A law that must strictly be observed when planning accommodation packages is the 'Travel Agency Act (Ryokogyoho)'. There is no problem with an accommodation facility creating and selling plans that combine its own 'lodging and meals' or 'in-house activities'.

However, if an accommodation facility that does not hold a travel agency registration plans and sells an accommodation package incorporating 'transportation tickets such as airplanes, trains (Shinkansen, etc.), or buses' or 'arrangements at external tourist facilities', it constitutes a 'violation of the Travel Agency Act' and is prohibited.

If a facility wishes to create and sell package tours combining transportation and lodging, it must either obtain 'Travel Agency Registration' from the prefectural governor or Japan Tourism Agency Commissioner, or partner with a registered travel agency.

Key points


  • For an unregistered accommodation facility to plan and sell lodging packages bundled with 'transportation such as airplanes, trains, or buses' is a 'violation of the Travel Agency Act'.

  • A facility can freely plan and sell packages combining its own lodging, meals, and in-house services.

  • To sell transportation-included package tours, the facility must register as a travel agency or partner with a registered travel agency.
WordMeaning
compliance with the Travel Agency Act (Ryokogyoho)
arranging transportation (airplanes, trains, buses)
travel agency registration (Ryokogyo toroku)
creating package tours

Hotel Management System 'PMS', 'Booking Engine', and 'Best Rate Guarantee'

The core IT system supporting modern accommodation operations is the 'PMS (Property Management System)'. It centrally manages reservations, room inventory, check-in/check-out, billing and accounting, housekeeping status, and guest profiles.

Additionally, the reservation system embedded on the facility's own official website that allows guests to directly search room availability, book, and complete payment is called a 'Booking Engine'.

When guests book directly with the facility via the Booking Engine or telephone without going through a travel agency or OTA, it is called 'Direct Booking', an important sales method that reduces sales commissions and increases profit margins.

A representative initiative to boost direct bookings is the 'Best Rate Guarantee'. This is a promise to customers that 'for the exact same accommodation plan conditions, the rate on the facility's official website is guaranteed to be the lowest price (or equal to the lowest price) compared to any other booking site (such as OTAs)'.

Key points


  • A 'PMS (Property Management System)' centrally manages reservations, room inventory, accounting, and guest information.

  • A direct reservation system integrated into the official website is called a 'Booking Engine', promoting 'Direct Bookings'.

  • Promising that the official website's rate will never be higher than other sites (guaranteed lowest or equal rate) is called a 'Best Rate Guarantee'.
WordMeaning
PMS (Property Management System)
Booking Engine (official website booking system)
Direct Booking (direct sales without intermediaries)
Best Rate Guarantee (lowest price guarantee)

Sales Channel Management and OTA Referral Commissions (Approx. 8%–15% of Sales)

When selling guest rooms, accommodation facilities attract guests by combining multiple sales channels: 'OTAs (Online Travel Agents)', brick-and-mortar 'travel agencies', and 'direct sales (Direct Booking)'.

Domestic and international OTAs have massive traffic and customer-attracting power, making them highly effective for acquiring new customers; however, whenever a stay is completed via an OTA, the facility must pay a 'referral commission (Sokyaku tesuryo / Sales commission)' to the OTA.

The standard OTA referral commission rate is 'approximately 8% to 15% of accommodation sales' (and sometimes even higher for certain overseas OTAs). This figure—'approx. 8% to 15%'—is an essential number to memorize for the 2go exam.

Because excessive reliance on OTAs increases commission expenses and squeezes facility profits, an effective strategy is to use OTAs to acquire first-time guests while guiding repeat guests (2nd stay onward) toward commission-free direct bookings on the official website.

Key points


  • While OTAs (Online Travel Agents) offer strong customer reach, they charge a 'referral commission' on completed bookings.

  • The standard referral commission paid to OTAs is 'approximately 8% to 15% of sales revenue'.

  • Use OTAs to attract new guests while guiding repeat guests to commission-free 'Direct Bookings' to improve profit margins.
WordMeaning
OTA (Online Travel Agent)
OTA referral commission (approx. 8%–15% of sales)
optimizing sales channels
guiding repeaters to direct booking

Target-Specific Marketing Strategies (Inbound, FIT, VIP, and Up-selling Strategy)

With Japan's domestic market experiencing a declining birthrate and aging population, attracting foreign travelers visiting Japan—'Inbound' tourism—has become an indispensable pillar for the growth of accommodation facilities.

In particular, in today's inbound market, rather than group package tours organized by travel agencies, 'FIT (Foreign Independent Tour / Free Individual Traveler)' guests who book their own flights and accommodations via the internet (OTAs, SNS, etc.) have become the mainstream.

To attract FIT guests, it is effective to provide appealing multilingual information, support cashless online payments, and create individual-oriented plans featuring authentic Japanese cultural experiences (kimono, Washoku, Onsen etiquette guides, etc.).

Furthermore, provide personalized special treatment to high-spending 'VIP (affluent / top-tier)' guests, and apply an 'Up-selling strategy'—proposing higher-grade rooms or dining courses for anniversaries or special occasions—to increase average customer spend.

Target-Specific Marketing Strategies (Inbound, FIT, VIP, and Up-selling Strategy)

Key points


  • Foreign travelers visiting Japan are called 'Inbound', and foreign guests who arrange and travel individually rather than in tour groups are called 'FIT'.

  • Multilingual promotion, cashless payment, and local experience-based plans are effective for attracting FIT guests.

  • Increase average spend per guest through special treatment for VIPs and an 'Up-selling strategy' proposing higher-tier rooms and meals.
WordMeaning
Inbound (foreign travelers visiting Japan)
FIT (Foreign Independent Tour / overseas individual travelers)
VIP (Very Important Person / key clientele)
Up-selling strategy (increasing average spend per guest)

Formulas and Practical Calculations for Revenue Metrics (OCC, ADR, RevPAR)

The Specified Skilled Worker (ii) exam features calculation problems using the three major room revenue metrics: 'OCC', 'ADR', and 'RevPAR'. First, 'OCC (Occupancy Ratio)' indicates the percentage of available rooms sold: 'OCC (%) = Rooms Sold / Available Rooms x 100'.

Second, 'ADR (Average Daily Rate)' indicates the average selling price per occupied room actually sold: 'ADR (Yen) = Room Revenue / Rooms Sold' (unsold vacant rooms are NOT included in the denominator).

Third, 'RevPAR (Revenue Per Available Room)' measures earning power across all available rooms including vacant rooms: 'RevPAR (Yen) = Room Revenue / Available Rooms', or 'RevPAR = ADR x OCC (as a decimal)'.

(Calculation Example) If a hotel with 100 available rooms sells 80 rooms and earns 1,200,000 yen in room revenue: OCC = 80 / 100 x 100 = '80%'; ADR = 1,200,000 / 80 = '15,000 yen'; and RevPAR = 1,200,000 / 100 (or 15,000 x 0.8) = '12,000 yen'.

Key points


  • 'OCC (Occupancy Ratio)' = Rooms Sold / Available Rooms x 100 (%).

  • 'ADR (Average Daily Rate)' = Room Revenue / Rooms Sold (divide by the number of rooms actually sold).

  • 'RevPAR (Revenue Per Available Room)' = Room Revenue / Available Rooms = ADR x OCC.

  • Example: When 200 rooms are sold out of 250 available rooms with room revenue of 3,600,000 yen → OCC = 200 ÷ 250 × 100 = 80%, ADR = 3,600,000 ÷ 200 = 18,000 yen

  • Example: When ADR is 18,000 yen and OCC is 80% (0.8) → RevPAR = 18,000 × 0.8 = 14,400 yen (or room revenue 3,600,000 yen ÷ 250 available rooms = 14,400 yen)
WordMeaning
calculating OCC (Occupancy Ratio)
calculating ADR (Average Daily Rate)
RevPAR (Revenue Per Available Room)
rooms sold vs. total available rooms

Revenue Management, Dynamic Pricing, and Yield Management

Hotel guest rooms have the unique characteristic that 'if a room goes unsold today, it cannot be stored as inventory and carried over to be sold tomorrow'. Therefore, management techniques to maximize revenue (RevPAR) from a limited number of rooms are essential.

'Revenue Management' is a management method that forecasts market demand based on historical booking data to sell the right room, to the right customer, at the right time, and at the right price in order to maximize sales and profit.

Within revenue management, the pricing method of flexibly raising or lowering room rates daily according to fluctuations in demand—such as peak vs. off-peak seasons, days of the week, major local events, and remaining room inventory—is called 'Dynamic Pricing'.

Additionally, a term originating from the airline industry that refers to controlling prices and room allocations across limited inventory to maximize the return rate (yield) on invested capacity is called 'Yield Management'.

Revenue Management, Dynamic Pricing, and Yield Management

Key points


  • 'Revenue Management' maximizes revenue by controlling selling prices and room inventory based on demand forecasting.

  • Flexibly adjusting room rates according to supply and demand (seasons, events, remaining rooms) is called 'Dynamic Pricing'.

  • Managing limited room inventory to achieve the most efficient return (yield) is called 'Yield Management'.
WordMeaning
Revenue Management
Dynamic Pricing (variable rate pricing)
Yield Management
demand forecasting and inventory control

Official Website Optimization (Optimal 6–15 Plans & SEO) and Six Principles of SNS Operation

To increase direct bookings on the facility's official website, a clear layout that lets customers book without hesitation is crucial. Because listing too many plans confuses customers and causes them to leave the page, narrowing the number of listed accommodation plans to 'around 6 to 15 plans' is considered optimal.

Furthermore, measures taken so that the facility's website appears near the top of search results when users search keywords like 'Region Name + Ryokan' or 'Onsen + Room with open-air bath' on search engines like Google are called 'SEO (Search Engine Optimization)'.

The 6 principles for successful 'SNS (social media)' operation as a PR tool are: (1) Clarify the purpose, (2) Select the target audience, (3) Choose the SNS platform suited to the target, (4) Build an operating structure and rules, (5) Post information continuously, and (6) Verify effectiveness (analyze traffic and improve).

Moreover, customer 'word-of-mouth reviews (Kuchikomi)' posted on OTAs, Google Maps, and SNS after check-out carry immense influence as objective third-party evaluations; reply politely to both positive and critical reviews and use them to improve service.

Key points


  • The optimal number of accommodation plans to list on an official website is 'around 6 to 15 plans' so customers do not get confused.

  • Measures to display the company's website higher in search engine results are called 'SEO (Search Engine Optimization)'.

  • Practice the 6 principles of SNS operation: 'Clarify purpose, Select target, Choose platform, Build structure, Post continuously, Verify results'.
WordMeaning
optimal number of website plans (6–15 plans)
SEO (Search Engine Optimization)
six principles of SNS operation
replying to reviews (Kuchikomi) and improving service

Key PR & Marketing Terminology (Branding, Press Release, Segmentation & Targeting)

The single most important PR and marketing term on the 2go exam is 'Branding'. Branding refers to activities that enhance a facility's unique value, worldview, and trust in order to 'escape from excessive price competition (price wars) with competitors'.

A 'Press Release' is an 'official document announcing and providing information' about new accommodation plans, facility renovations, or community events 'directed toward news organizations (mass media such as newspapers, TV, magazines, and web media)'.

In fundamental marketing strategy, dividing a diverse customer market into groups (segments) based on shared characteristics such as age, place of residence, travel purpose, or lifestyle is called 'Segmentation (market segmentation)'.

Then, from among the market segments divided through segmentation, narrowing down and selecting the specific customer group (target market) where your facility can best demonstrate its strengths is called 'Targeting'.

Key PR & Marketing Terminology (Branding, Press Release, Segmentation & Targeting)

Key points


  • 'Branding' is establishing unique value to 'escape from price competition' and win loyal fans.

  • A 'Press Release' is an official announcement document sent to news media regarding new products or initiatives.

  • Dividing a market by shared needs is called 'Segmentation', and selecting the specific customer group to aim for is called 'Targeting'.
WordMeaning
Branding (escaping from price competition)
Press Release (official announcement to news media)
Segmentation (dividing the market)
Targeting (selecting the target market)

Frequently Tested Points and Memory Tips

For legal rules and exact numbers, memorize these three facts: 'An accommodation facility without a travel agency registration cannot plan or sell packages bundled with transportation like flights, trains, or buses (Travel Agency Act violation)', 'OTA referral commission = approx. 8%–15% of sales', and 'Optimal number of plans on the official website = 6–15 plans'.

For revenue metric calculations, pay close attention to the denominator: 'OCC = Rooms Sold / Available Rooms x 100', 'ADR = Room Revenue / Rooms Sold (actual occupied rooms)', and 'RevPAR = Room Revenue / Available Rooms (total rooms) = ADR x OCC'.

For system terms: 'PMS = Core system centrally managing bookings, inventory, billing, and guest data', 'Booking Engine = Direct booking function on the official website', 'Best Rate Guarantee = Lowest rate guarantee on the official website', and 'SEO = Search engine ranking optimization'.

For marketing terms: 'FIT = Overseas individual travelers', 'Dynamic Pricing = Demand-based variable pricing', 'Branding = Escaping price competition by establishing unique value', 'Segmentation = Dividing the market', and 'Targeting = Selecting the target customer group'.

Key points


  • Unregistered accommodation facilities cannot sell plans bundled with transportation (airplanes, trains, buses).

  • OTA referral commission is 'approx. 8%–15% of sales'; optimal number of plans on the official website is '6–15 plans'.

  • OCC = Rooms Sold / Available Rooms x 100; ADR = Revenue / Rooms Sold; RevPAR = Revenue / Available Rooms (ADR x OCC).

  • PMS = Core hotel management system; Booking Engine = Official website booking tool; FIT = Foreign independent travelers.

  • Branding = Escaping price competition; Dynamic Pricing = Demand-based variable pricing; SEO = Search engine optimization.
WordMeaning
Travel Agency Act and transport arrangement restrictions
PMS, Booking Engine, and SEO
formulas for OCC, ADR, and RevPAR
Branding, Segmentation, and Targeting

Planning, Promotion & Revenue Management

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