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Cherry Blossom Tourism Boom: Do Japan’s Hotel Prices Reflect Market Demand? – Image Credit Unsplash+
Budding blossoms grow. The people admire in droves. The hotelier smiles.
It’s not every day we start with a haiku, but Japan’s cherry blossom season is no ordinary event. As we approach peak bloom, Sakura fever is sweeping the country, attracting both domestic and international travelers in record numbers. This season presents a major revenue opportunity for hoteliers – if they price strategically.
An annual pilgrimage that’s turned into an international attraction
Each year Sakura, or cherry blossoms, blanket Japan in shades of pink and white for a fleeting few weeks, creating a highly anticipated spectacle.
Traditionally, this has brought out a vast wave of domestic tourists who head to some of the country’s most well-known locations to see the blossoms. For those who aren’t able to take vacation time, there are viewing parties in their local parks, known as hanami.
It is very much a national ritual, with forecasts for the first blooms watched closely and reported on by national news. Records of the first cherry blossoms in Kyoto, a popular viewing site and former imperial capital, extend back more than 1,200 years.
Now, international visitors are also seeking out this most Japanese of pleasures, with the Sakura being added to the travel itineraries of well-heeled travelers, boosting demand for accommodations dramatically during that period.
Kyoto will experience one of its highest peaks of the year during the forecasted plum and cherry blossom periods in the first half of 2025.
According to our forward demand indicator composite index, which factors in searches and hotel availability, forecasts the highest demand on Saturday, April 5, just before full bloom is forecast in the city.
Late March through mid-April shows consistently high demand, marking this as one of Kyoto’s peak hospitality seasons and underlining how valued this period of natural beauty has become.
Peak blossom season brings a boost to Japanese hotel bookings
Cherry blossom season always brings increased interest, but 2025 is shaping up to be one of the busiest in years. Year-on-Year (YoY) comparisons reveal a notable surge in demand, particularly in the second and third weeks of the season.
Since cherry blossoms have a brief lifespan, accurate bloom forecasting is crucial for optimal viewing. With peak bloom predictions now becoming reliable just weeks away, we’re seeing a surge in bookings that’s on track to surpass 2024’s numbers.
As the 2025 blossom dates fall almost exactly at the same time as 2024, we can compare the two years directly.
While early-season demand is down -20% YoY, the latter half of the 2025 season is surging.
At the peak point of overall demand on 5th April, indicators are up +7% YoY and for the following day of 6th April, which is expected to be the first day of full bloom across the city, the figure rises to +21%.
The run of strong demand continues, with indicators generally up by nearly 40% throughout April, reaching a point of maximum annual increase between 13th-17th April, when daily demand is up between +49% and +63%.
This sustained high demand surpasses 2024 trends, largely driven by a sharp rise in international travelers. For hoteliers, this extended period of high occupancy represents a crucial revenue window.
Japanese hotels are adjusting prices upwards with room to go further
As the demand picture has become clearer, hotels are increasing their rates—though not as aggressively as market conditions might warrant.
When comparing Kyoto hotel prices advertised in late February against those from a month earlier, we see rates rising during the anticipated cherry blossom period. However, our data indicates room prices still appear to be lagging behind the strong demand indicators.
For the most in-demand date of 5th April Hotels have increased rates 12.8% over this 30-day period, indicating awareness of an improving picture now consumers are confident in their bookings coinciding with conditions.
However, on the following day, prices were raised just 1.6% compared to a month prior, while for those days of maximum YoY increase in daily demand indicators running from 13th-17th April, room rates are up between 6.4% and 11%, which while still substantial, pales in comparison with the rising wave of interest from potential guests.
Similarly, comparing YoY performance in average hotel prices shows that there may be an abundance of caution in the Kyoto market and a gap between the emerging picture and the pricing strategy.
Overall, the average price for a standard hotel room in Kyoto at the peak points of demand is just 1.7% higher than in 2024. While there is a longer overall period of high demand in 2025, in real terms prices have in fact fallen YoY, as the rate of inflation in Japan is currently running well above 3% and Bank of Japan targets.
At the luxury end of the market, hoteliers are implementing a notably more aggressive pricing strategy.Comparing the peaks for five-star hotels shows a 13.3% increase in 2025 and a sustained period of raised rates to capitalize on this strong period.
We’re observing a clear mismatch in pricing strategy at mid-range and economy hotels, suggesting significant untapped potential for rate increases as April approaches.
The extended period of heightened demand in 2025 appears to be driven largely by the return of international tourists, who typically book longer stays and are more likely to visit midweek
In January 2025 alone the Japan National Tourist Organization reported a provisional 40.6% increase in overseas arrivals compared to the same month last year.
Set the right price with Lighthouse
This data highlights the critical importance of having a comprehensive view of emerging market conditions, especially for time-sensitive events like cherry blossom season where demand patterns can shift rapidly.
Cherry blossom season represents a prime revenue opportunity, yet many hotels—particularly in the mid-tier segment—aren’t aligning their pricing strategies with actual demand trends. With international arrivals surging and demand indicators pointing to one of the strongest Sakura seasons in years, hotels that fail to adjust rates appropriately risk leaving significant revenue on the table.
The key challenge lies in keeping up with shifting booking patterns, evolving traveler behavior, and market-wide pricing strategies – which is only possible with access to accurate, forward-looking data.
Ensure your property is set up for success during high-demand periods and major events. Tap into the same market intelligence and pricing insights that shaped this analysis to capture every revenue opportunity.
With Lighthouse’s industry-leading tools, you’ll have the real-time data and strategic insights needed to make confiden pricing decisions and stay ahead of market shifts.
Discover the impact Lighthouse can have on your revenue strategy today. Start your free trial now.
About Lighthouse
Lighthouse (formerly OTA Insight) is the leading commercial platform for the travel & hospitality industry. We transform complexity into confidence by providing actionable market insights, business intelligence, and pricing tools that maximize revenue growth. We continually innovate to deliver the best platform for hospitality professionals to price more effectively, measure performance more efficiently, and understand the market in new ways.
Trusted by over 65,000 hotels in 185 countries, Lighthouse is the only solution that provides real-time hotel and short-term rental data in a single platform. We strive to deliver the best possible experience with unmatched customer service. We consider our clients as true partners – their success is our success.
This article originally appeared on Lighthouse.
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