Eurailspeed Parallel Session A.3 Koji Karaike Director, Marketing and sales Dept. Kyushu Railway Company Japan 1
Marketing Strategy of Kyushu Shinkansen ~ Synergistic Effect of Marketing Strategy and Local Tourism Development ~ Koji Karaike Kyushu Railway Company
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Japan Hakata Tokyo Kagoshima Kyushu 4
Hakata Kagoshima Kyushu 5
Kyushu Hakata Kagoshima 6
Kyushu Hakata Shin- Yatsushiro Kagoshima -Chuo 7
Kyushu Hakata Operation planned for Spring 2011 Operation began in March 2004 Shin- Yatsushiro 130km 127km Kagoshima -Chuo 8
Profile of Kyushu Shinkansen Line section 127 km Between Shin-Yatsushiro and Kagoshima-Chuo Gauge Standard gauge railway Top speed 260km/hour Travel time 2 hrs 11min (Hakata ~ Kagoshima-Chuo) Stations Shin-Yatsushiro, Shin-Minamata, Izumi, Sendai, and Nishi-Kagoshima Train name TSUBAME Commissioned March 13, 2004 9
Travel Time Comparison Before/After Opening of Kyushu Shinkansen Hakata Kumamoto Kagoshima-Chuo Existing EX train 1h 15min 2h 34min 3hr 49min Shinkansen partial operation (Now) Shinkansen full operation 260km/h Shinkansen full operation Estimated 300km/h 1h 10min 35min 24 45min 40min 1h Travel time Approx 2hr Approx 10min 2h 10min Approx 1hr 20min Approx 1hr 4min 0:00 1:00 2:00 3:00 4:00 Data source by Kyushu Shinkansen Construction Steering Committee 10
Passenger Comparison 1.8 million increase (230%) in passengers after Kyushu Shinkansen opened Unit: 1,000 passengers 千人 4000 3.2 million 3000 2000 1.4 million 2.1 million Target 1000 0 FY2002 (before opening) FY2004 (after opening) 11
Criticisms Before Opening of Kyushu Shinkansen Far from urban area because of partial operation at Kyushu s southern end Low awareness of Southern Kyushu s tourist attractions Insufficient accommodations for tourists in Southern Kyushu Slower than air travel Costs more than transport by bus Inconvenience of changing from local train to Shinkansen at Shin-Yatsushiro Station Difficulty of reaching the target of an 130% increase in passengers projected 12
Marketing Strategy for the Opening of Kyushu Shinkansen Target of 700,000 passenger increase (150% increase from previous year)! 1. Raising Kyushu Shinkansen s competitive power 2. Creating a brand of southern Kyushu tourism 3. Providing information about southern Kyushu to urban cities: Tokyo, Osaka and other parts of Kyushu 13
1. Raising Shinkansen s Competitive Power Arrival time shortens (3 hrs 50 min between Hakata and Kagoshima 2 hrs 10 min) Improvement in frequency of trains (every 30 min) 60% cheaper than air travel Direct transfer from local train to Shinkansen from the same platform at Shin-Yatsushiro Station Sophisticated, comfortable coach and on-board service 14
2. Creating a Brand of Southern Kyushu Tourism Upgrade meals and services of hotels and inns Improve access to tourist points Establish stations or gates of tourist points as landmarks for local tourism Enhance hospitality throughout local tourist sites 15
Southern Kyushu Tourist Sites Kirishima Ibusuki Sakurajima 16
Network of Sightseeing Trains Shin- Yatsushiro Hitoyoshi Kagoshima-Chuo Ibusuki 17
Southern Kyushu s Sightseeing Trains and Highly Favored Stations 18
3. Providing Information about Southern Kyushu to Urban Cities: Tokyo, Osaka and other parts of Kyushu Provide issue of the Michelin Tourism Guide (star ratings of southern Kyushu s tourist sites) Advertise in magazines for women Create TV commercials using a top Japanese actress Publicize events at stations and downtown Promote sales through travel agencies Secure mass-media coverage 19
Encouraging Passengers to Travel by Kyushu Shinkansen Travel before opening of Kyushu Shinkansen Others 14% 7% By highway bus 43% By JR Kyushu express train By air 17% 18% By automobile 20
Reasons Why People Selected Kyushu Shinkansen Short arrival time Wanted to ride the train for the first time Comfortable ride Frequency of trains Easily accessible Cheap price Other reasons 0 1000 2000 3000 4000 5000 (persons) (6,654 respondents in total; multiple answers allowed) 21
Passenger Comparison 1.8 million increase (230%) in passengers after Kyushu Shinkansen opened Unit: 1,000 passengers 千人 4000 3.2 million 3000 2000 1.4 million 2.1 million Target 1000 0 FY2002 (before opening) FY2004 (after opening) 22
Kyushu Hakata Operation planned for Spring 2011 Operation began in March 2004 Shin- Yatsushiro 130km 127km Kagoshima -Chuo 23
Thank you. 24