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H.I.S. Reports Results for the First Half; Net Income Up 13.1%

Tokyo : – H.I.S. Co., Ltd, a leading travel and airline ticket agency, has announced results for the first half ended April 30, 2013. The H.I.S. Group recorded net sales of 224,633 million yen (up 11.6% from the previous fiscal year), operating income of 6,056 million yen (up 20.2%), ordinary income of 7,847 million yen (up 21.9%), and net income of 4,681 million yen (up 13.1%).

During the first half of the fiscal year under review, things are looking up. The government policies have been well received, and measures such as correcting the high value of the Yen and ending deflation have led to greater confidence that the economy will recover. Foreign affairs issues and foreign currency fluctuations still exert some influence on those traveling overseas, but the travel industry remains strong, due to increases in individual consumer spending, and a greater willingness to travel in the senior generation. According to the Japan National Tourist Organization (JNTO), the (estimated) number of Japanese departing Japan from November 2012 through April 2013 is forecast to have fallen by 5.1% compared with the previous year to approximately 8,550,000 people.

In this economic climate, the Group will continue to improve on its standards of “safety, security, service and quality,” and has developed many innovative solutions with the purpose of expanding its business in Japan and overseas.

In the domestic travel industry, we have launched our first trials of the luxury liner Costa Victoria, providing cruises for independent travelers, and a great many customers have taken advantage of these cruises. This summer, we plan to launch our “six ship continuous Costa cruise special package.” As part of our policy of new service, we are also supporting our over 60s customers, not only by introducing discounts for senior citizens, but also by providing special assistance at Narita and Haneda airports (the “airport assistant”), and by opening a Visa Center and acting as agents for all visa applications.

As for sales channels, we plan to improve the effectiveness by concentrating on points of sale. As well as our present emphasis on setting up sales branches in shopping centers, we will also be strengthening our presence in specialist outlets offering services such as foreign weddings. We have expanded our branches so that we can serve more customers, part of which is the opening of our new flagship branch at Shinjuku 3 Chome in Tokyo.

As for initiatives in the area of online sales, we have improved our online presence by setting up a “air ticket and hotel” site that our customers can access by smartphone. Our reservation site “Sumayado” covers over 5,000 hotels and ryokan, or Japanese-style inns. We are committed to building this site to improve convenience for our customers.

Our group travel activity is strong due to the increase in orders for large scale group travel, such as corporate trips, events, and school trips. We have also developed global contracts with businesses and other corporates to take advantage of the corporate travel market, such as business trips.

The market for domestic travel services that have been sold from all our branches in Japan from the previous fiscal year, such as our original Shuttle service in the main Okinawa Island and Ishigaki Island (the Yuntaku shuttle), and our quick rent a car service, continues to get stronger.

 

Turning to the business overseas, we are promoting the development of many more branches in Bangkok, Thailand to consolidate our outbound foreign travel activity. In order to target overseas customers, we set up an online booking service in our sixth country Australia, and started a service in Hong Kong, concentrating on expanding business to the favorable Asian region. Our inbound travel operation to Japanese and overseas customers is also doing well. We are acting as wholesalers to other travel businesses (BtoB business), so we can offer our customers the services and activities of overseas branches, and increase our sales activity. We have expanded our base in Europe, with a presence in 49 countries, 106 cities and 145 branches as of the end of April 2013. In addition, we have expanded our overseas hotel reservation sites. We have made direct arrangements with major hotel chains, which have allowed us to establish a presence overseas and buy hotel rooms and optional tours. Our H.I.S VACATION business then sell these as vacation packages directly to Japanese and overseas travelers via the internet. These types of initiatives have helped ensure that our overseas travel business remains strong.

As a result of the initiatives described above, net sales for the first half has increased 4.1% year on year to 200,707 million yen. However, in the current climate of foreign affairs pushing down customer demand in Asia, the main destination, and of sudden currency fluctuations, operating income was down 27.3% year on year to 3,641 million yen.

- Hotel Business

The Guam Reef & Olive Spa Resort, which was added to our group in the previous fiscal year, was refurbished in all Beach Towers and lobbies and the surrounds. We planned to use the Watermark Hotel Nagasaki to improve visits to Japan, concentrating on the Asian market, with improved success. As a result of our efforts to improve customer satisfaction and profits in hotels in Australia and Sapporo, Japan, our hotel business moved into the black. Net sales increased 57.6% year on year to 2,121 million yen, and operating income was 25 million yen, compared with a loss of 33 million yen from the same period last year.

- Theme Park Business

HUIS TEN BOSCH Co. Ltd., the theme park business, started rebuilding Alexanderplatz (now Amsterdam Square) in February, 2013. They planted 550 varieties of tulips, the most seen in Japan, for the March tulip festival, and opened “The Maze,” a 3 dimensional maze in March. HUIS TEN BOSCH also produced “The Kingdom of Light Series,” from November 2012 to March 2013, an extravaganza of 10 millions bulbs that only HUIS TEN BOSCH experience could provide. The series scaled up from the No. 1 in the East to the World’s No.1., and contributed to an increase in the number of visitors. As a result, the visitors number in the first half of the fiscal year increased 47.6% year on year to 1,292,000. Net sales increased 39.5% to 10,387 million yen, and operating income increased 133.1% year on year to 2,793 million yen.

- Transportation Business

On October 13, 2012, the Ocean Rose vessel suspended operation for a long term period. As a result, net sales was down 18.7% year to year to 32 million yen, and operating loss was 326 million yen, compared with a loss of 289 million yen the same period previous year. The vessel has been chartered to a foreign corporation in a 3 year bareboat chartering agreement, starting February, 2013.

- Kyushu Sanko Group

KYUSHU INDUSTRIAL TRANSPORTATION Group, a holding company of KYUSHU INDUSTRIAL TRANSPORTATION HOLDINGS CO., LTD., recorded net sales of 12,412 million yen and operating income of 765 million yen, having synergies effect in the H.I.S. Group. The H.I.S. Group had turned KYUSHU INDUSTRIAL TRANSPORTATION HOLDINGS CO., LTD. into a consolidated subsidiary from the fourth quarter of the previous fiscal year.

 

Source : ACN Newswire

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 H.I.S. Reports Results for the First Half; Net Income Up 13.1%

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