H.I.S. to Close One-Third of Outlets in Japan

Economy

Tokyo, June 24 (Jiji Press)--Major Japanese travel agency H.I.S. Co. <9603> said Wednesday that it will close 80 to 90 of its 263 domestic outlets, or about one-third of the total, over the next 12 months to cut costs in response to slumping tourism demand amid the new coronavirus crisis.

Meanwhile, the company aims to boost sales of tour products online to make up for an expected drop in revenue from the outlet closures.

Many of the outlets subject to closure are in major cities, H.I.S. officials said, noting that their business areas overlap. Jobs of employees at these outlets will be maintained, the officials said.

With demand for overseas travel unlikely to recover soon amid the virus crisis, H.I.S. plans to shift its focus to domestic tour products. The company intends to bolster its annual revenue from the domestic operations by 50 pct to some 100 billion yen.

Also on Wednesday, H.I.S. reported consolidated revenue of 344,353 million yen for the six months to April, down 8.9 pct from a year before, and a net loss of 3,459 million yen, against the year-before profit of 4,964 million yen.

[Copyright The Jiji Press, Ltd.]

Jiji Press