As our data on demand trends for 2025, the first half of the year show a stronger surge in Asian destinations compared to other regions, signaling a promising increase in arrivals in the coming months. Japan, which welcomed almost 37 million inbound visitors in 2024 (as per Japan National Tourism Organisation statistics), as well as Tokyo are key players in this trend, particularly Tokyo, second top growing destination in the world’s inspirational demand in the first six months of 2025.
Tokyo’s market appeal is undeniable, positioning it as a top destination for luxury travel. The demand for high-end accommodations is driving growth in Japan’s hospitality sector, reflected in strong performance metrics such as occupancy, ADR, and RevPAR. Moreover, an increasing number of top-tier foreign hotel brands are eager to establish a presence in the city.
In addition to the traditional demand from Asian markets, arrivals from other regions, particularly Latin America, the Middle East, and Nordic Europe, are rising, with some showing strong potential for the luxury segment. To understand these trends, we analysed Tokyo’s travel demand from these regions, focusing on 5-star hotel stays. Our analysis highlights key demand drivers, visitor perceptions, and the profiles of luxury travelers, shedding light on expectations, pain points, and preferences that are shaping the market.
Prices in Tokyo’s 5-stars accommodation are on the rise, aiming at 800 euro average price threshold
Tokyo’s luxury accommodation market is experiencing significant growth, with a notable price increase of +7.7% for 5-star hotels between February and July 2025. This surge in prices reflects both strong demand and the city’s concerted efforts to position itself as a premium destination. The overall city hotel market is also seeing growth, with a +12.3% increase compared to the same period in 2024. Notably, 3-star and 4-star hotels are experiencing even higher price hikes, with increases of +12.8% and +14%, respectively. While 5-star hotels have seen more moderate growth, this increase still places the average nightly rate for these properties slightly above 750 euros, targeting the 800 euro mark.
This price threshold rise carries important implications for the high-end segment, which is expected to afford these rates while holding even higher expectations for their experience. As such, understanding the profile, preferences, and expectations of these luxury travellers becomes more crucial than ever. With the prices continuing to climb, particularly in destinations like Kyoto, where 5-star accommodations now average 1,100 euros per night for the same period analysed, the market for luxury travellers is becoming increasingly competitive.
Aligning expectations with actual experience, or why this is a critical issue for luxury travel demand in Tokyo
Once we place luxury travel demand in the context of Tokyo’s high-end accommodation prices, it becomes clearer just how high the expectations are from long-distance source markets such as Latin America, the Middle East, and Nordic Europe. However, these expectations must be aligned with the demand nuances revealed by data insights.
Data suggest that experiences should be tailored to the interests of each nationality, even though they all have one common interest: they are all primarily motivated by the city’s cultural and gastronomic offerings, with more than 50% of travellers citing arts, culture, and gastronomy as their key reasons for visiting. Nature and Outdoors is a motivation for 13% of tourists, and it is particularly relevant for Swedish travellers. Family tourism is a strong driver across all markets studied, particularly for Brazilian and Danish visitors, while gastronomy -the second strongest travel motivation- is especially significant for Nordic and Saudi travelers. Active tourism is also a major demand driver for travellers from the Middle East, and shopping is a key motivator for Latin American visitors, with Mexicans ranking it second and Brazilians ranking it fourth.
In terms of how travellers assess the tourism experience in the city, overall satisfaction of these three regional markets is slightly below Tokyo’s average, with scores from the analysed markets falling 20 to 30 points lower than the destination’s overall satisfaction score. Latin American visitors report the lowest levels of satisfaction, particularly with tourist products and services. Safety perception remains high, while weather expectations, measured using our Perception of Climate Index, align well with Tokyo’s climate for most travellers.
A key insight stands out: 5-star hotels in Tokyo face a challenge when it comes to expectations and perceived quality. The markets analysed are particularly discerning when evaluating their satisfaction with Tokyo’s 5-star hotel experience, as the expectations set by prices tend to be stricter.
Insights for 5-stars Latin American Market: Hotel Experiences Meet Expectations, But Travel Experience Needs to Improve
Latin American countries analysed (Mexico, Brazil, and Argentina) are markets with potential for the luxury segment considering our data insights. Hotels are the preferred accommodation choice when visiting Tokyo (average of 86% of visitors) and, among them, 3.5% choose 5-star hotels. Nevertheless, some issues should be taken into account:
- 5-stars hotels experience is particularly fulfilling for Latin American travellers: Latin Americans rate their 5-star stays above Tokyo’s average (90+ points), surpassing overall accommodation satisfaction levels by five points, posing a great opportunity. Brazilians are the most satisfied with 5-star hotels among LATAM visitors.
- Couples & Families Dominate 5-stars hotels demand: Latin American 5-star hotel guests are mostly couples, especially Brazilians (47% of the segment), while family travellers form a significant share, particularly among Mexicans.
- Shopping, beyond culture and gastronomy, is a key demand driver: Even though culture and gastronomy are at the core of the reasons LATAM visitors travel to Tokyo, shopping is also relevant, ranking 2nd for Mexicans, 3rd for Argentinians, and 4th for Brazilians.
- Tourist Satisfaction Gaps: While overall satisfaction remains high, Latin American travellers report lower-than-average satisfaction with Tokyo’s tourism services, particularly in Brazil. Main pain points are related to lack of tailored experiences or complicated booking processes, over-commercialized attractions, or inconveniences to enjoy arts & crafts shopping.
Insights for 5-stars Middle East Market: A High Potential, Yet Discerning Market In the Luxury Segment
More than 1 out of 10 Middle East (United Araba Emirates and Saudi Arabia) travellers visiting Tokyo stay in 5-star hotels: this sole figure reflects the reach on the luxury market from both countries, and how important it is to ensure the positive perception of the destination’s experience reflects in the hotel stays.
- Families dominate both the general Middle East traveller profile and even more so among 5-star hotel guests, as they make up 38.2% of the Middle East market in this accommodation category, while couples represent one third of 5-star hotel stays. Family travel is a very important trend in this market, and hotel facilities and services should consider the particularities of this segment, ranging from family rooms to special activities to cater all family members in a travel party.
- Middle East Travellers Show Contrasting Perceptions Of 5-stars Hotel Experience: Even though still in the high tier, Emirati visitors rate 5-star hotel experiences lower than Saudis.It is not challenging but, considering the volume of 5-star demand, it is key to keep Hotel Satisfaction Index as high as possible.
- Tokyo’s Climate Is an Advantage: Weather perception aligns well with expectations, making Tokyo’s climate a favorable factor for visitors from the Middle East. This is particularly positive considering that while culture and gastronomy dominate, active tourism ranks as the third most important motivation for Middle Eastern travellers.
- Safety Is a Relevant Factor, Varying Between Emiratis and Saudis: Perception of Security Index is particularly strong among UAE travellers, but Saudis rate it significantly lower than other markets, showing a 22-point gap compared to Tokyo’s average (93.8 points).
Insights for 5-stars Nordic Europe Market: Challenges to Meet the High Nordic Accommodation Standards
Among the Nordic European markets studied (Finland, Denmark, and Sweden), families are the largest segment of Nordic travellers staying in 5-stars hotels in Tokyo, especially visitors from Denmark. Conversely, the Hotel Satisfaction Index for the 5-star accommodation of their choice, even though still high, rates up to 11 points below the destination’s average (82,1 out of 100 possible), signaling a gap between expectation and actual experience.
- Check-in , Entertainment, and Room Experience, Key Pain Points for 5-stars Nordic Guests: Room sizes and facilities, family-friendly options and plans, concierge services, the check-in process, and entertainment alternatives are among the key aspects that affect overall satisfaction of Nordic travellers with the 5-star accommodation, indicating areas that high-end hotels Tokyo should revise.
- A Lower Share of 5-Star Guests that Stay Longer: 88% of Nordic travellers visiting Tokyo choose to stay in hotels; however, only 2.7% opt for 5-star accommodation, but stays are slightly longer, reaching five days.
- Strongly Drawn by Experiences in Nature and Outdoors: Culture, gastronomy, and nature are the core of Nordic travellers’ motivations, with some highlights worth mentioning. Danish travellers are keen on family plans, and wellness plans gain relevance among Finnish travellers.
- The Advantage of Safety Perception for Tokyo: Travellers from Finland, Denmark, and Sweden have a strong preference for destinations they perceive as safe. Given their Perception of Safety Index of Tokyo, this presents a key advantage to leverage in attracting them.
