Summary of Research Findings

While the outbreak of COVID-19 in 2020 had a prolonged and severe impact across the leisure industry, the lifting of activity restrictions in 2023, coupled with the reclassification of COVID-19 as a Category 5 infectious disease, supported recovery across multiple segments. In particular, the resurgence of inbound tourism—driven by the removal of border controls and the sharp depreciation of the yen—significantly boosted demand in the domestic travel, accommodation, and dining sectors. At the same time, travel activity by Japanese residents increased, contributing further to the recovery in food service demand.
Growth has also been evident in the sports sector, most notably in the sporting goods market. Beyond the normalization of sports activities following the containment of the pandemic, successive product price increases resulting from rising raw material costs have expanded the market in value.

Noteworthy Topics

AI Adoption Expands in Leisure Industry

Artificial Intelligence (AI) is being deployed across a wide range of industries, and leisure industry is no exception. One of the most prominent applications is dynamic pricing, whereby prices are adjusted in real time based on demand forecasts. Sectors that have already adopted dynamic pricing—such as hotels, airlines, and ticketing business for professional sports and theme parks—have achieved greater revenue optimization and more efficient inventory management, contributing to improved earnings stability.

In the accommodation segment, AI-enabled cameras are used to monitor congestion during peak periods, such as at breakfast buffets hours. By providing real-time information on peak times via guests’ smartphones and on-site digital signage, these systems help reduce waiting times and alleviate guest stress.　In addition, AI is increasingly used by the tourist destinations to automatically recommend optimal sightseeing routes based on visitors’ budgets, itineraries, and other preferences. Personalized travel suggestions tailored to individual needs and interests enhance tourist satisfaction and may encourage longer stays.

Overall, in the leisure sector, AI is evolving beyond a tool for operational streamlining to become a key driver of customer experience enhancement and revenue growth. Although the collection and utilization of large volumes of personal data (including viewing histories, search logs, and location data) to improve AI accuracy raises concerns regarding privacy protection and data leakage, the operating environment of the leisure industry is strongly supportive of further adoption. Persistent labor shortages, together with rising demand for enhanced customer experience and convenience, as well as the need to streamline operations and improve profitability, are expected to underpin the continued expansion of AI use in the leisure sector going forward.

Research Outline