Market Overview

In this research, the target of analysis is tourist train operations intended to attract tourists using existing railway section, and the market size is estimated based on their basic fares (train tickets, reserved-seat tickets, package deals, etc.).  The domestic tourist train market attained 15,700 million yen in FY2018 (based on the sales of businesses). 

However, as the market size does not include additional charges spent on the train such as souvenirs, food and beverages, if such spending related to the train journey is included, the market size (ripple effect) may be greater. Services and commodity sales on/off the tourist trains are often using local services and products that are unique to the local area, and some of the package deals include accommodations. It can be said that the tourist trains contribute to promoting the charm of provinces and revitalizing the regional economy. 

Every year a new tourist train is starting the operation; several new trains began the operation in FY2019 as well. Each railway company makes efforts to improve attraction and profitability by adding value to the tourist train, for instance, by providing luxury food on board and decorating train interiors gorgeously. In FY2019, the tourist train market is projected to increase by 4.4% from the preceding fiscal year to attain 16,390 million yen.  ​

Noteworthy Topics

Partnership/Collaboration with Non-Railway Entities to Enhance the Value of Trains and Attracting Passengers: is the Largest Partner

The tourist trains are developed by the railway operators that originally “provide transportation by rail” to boost new tourism demand using railway lines, by 


creating attractive tours of “getting on the train as an attractive experience”. Some railway operators organize and oversee planning and operation by themselves; in many other cases, they seek support from the non-railway entities and associations inside/outside the region to increase attractiveness of the tourist trains, improve operational efficiency, and reinforce the ability to draw customers. As the railway companies are the only eligible entity for “running trains”, different types of businesses are entering the market by partnering with them, for example, a travel agency plans the tourist train trip and subcontracts train operation to the railway company.   


According to the results of questionnaire sent to the railway companies by post (34 respondents out of 39 companies), the largest number of their partners are the travel agencies, accounting for 82%, followed by municipalities (76%), restaurants (50%), bus companies (26%), and local shopping arcades (26%). The result shows that more railway companies collaborate with travel agencies than with the municipal offices, for they can specifically lead to sales (increase train passengers); nevertheless, the result also reveals that despite the expansion of inbound tourist demand nationwide, only 9% of the railway companies have partnered with travel agencies dedicated to foreign tourists. 


Moreover, the Destination Management Organization (DMO), an organization expected to reinvigorate tourism in provinces, accounted for only 21%, lower percentage than the municipalities, because it has not been established in some regions. Although the current number of cases are still limited, the railway operators are “realizing the effectiveness of partnership/collaborations” and are “eager for  partnership/collaboration hereafter”; hence, the collaborations with external entities are likely to expand from now on.

Future Outlook

The tourist train as an activity is gradually increasing its presence in tourism market; it has succeeded in promoting train journeys to the customer layer that had no interest in trains, and expanded the range of travelers using railways. Hereon, the tourist trains are expected to diversify, as the debut of new tourist trains are awaiting in 2020 and beyond. Considering the cases such as an overseas railway partnering with a group of entertainers, and travel agencies and lodging businesses organizing tourist trains, it is probable that the market will be stimulated further by the entrance of both railway and non-railway companies, expanding geographical areas in which the tourist trains operate, and enhancing variety of tourist trains. On the other hand, while every railway operators need to define the difference and distinctiveness of their trains, the new entrants are required to develop highly-appealing plans by analyzing current tourist trains, reassessing resources available in the train operation areas, and refining services. 


Introduction of the new tourist trains may raise concerns for widening of a gap between successful and unsuccessful lines in terms of number of passengers and popularity. However, the emergence of new tourist trains and diversification of the trains enhance attractiveness of the entire market and arouse consumer interest. The railway operators and tourist industry businesses are expected to have practical understanding of tourist trains running across Japan, promote mutual use of them, and foster an atmosphere for travelers to yearn for “making a collection” of tourist train experiences nationwide. In order to do so, as stated above, every tourist trains are required to identify their “luring uniqueness”.

Research Outline