Types of Travel Arrangements Handled by Japanese Travel Agencies

Travel contracts are broadly divided into two categories: package travel contracts and arranged travel contracts.

● Package Travel Contract

Under a package travel contract, the travel agency prepares the travel itinerary and presents the travel price as an all-inclusive package price (a single total price that includes travel-related expenses, the travel agency’s profit, and other associated costs).

Package travel contracts are further divided into two types: standard offering type and custom order type.

〈Standard Offering Package Travel Contract〉

The travel agency prepares the travel itinerary in advance and offers it broadly through brochures and other media.
This corresponds to what is commonly called a package tour.

〈Custom Order Package Travel Contract〉

The travel agency prepares the travel itinerary based on the traveler’s request and may not offer it generally to others.
Examples include company trips, school excursions, and community group trips where the organizer asks the travel agency to create the itinerary.

● Arranged Travel Contract

An arranged travel contract is a contract under which the travel agency undertakes, at the traveler’s request, to arrange transportation, accommodation, and other travel services provided by third parties.

Examples include arranging train tickets, airline tickets, and accommodation.

Under an arranged travel contract, the following must be stated separately:

Fees set by transportation and accommodation providers; and
Service charges collected by the travel agency (travel handling fees).

Unlike package travel contracts, the price cannot be presented as a single all-inclusive amount, and therefore so-called price bundling is not permitted.

Classifications of Travel Agencies in Japan

Japanese travel agencies are classified as follows:

Class 1 Travel Agency
Class 2 Travel Agency
Class 3 Travel Agency
Region-Limited Travel Agency

Only Class 1 Travel Agencies may plan and operate standard offering package tours for overseas travel.

However, Class 2 and Class 3 Travel Agencies may also plan and operate custom order package tours.

All Class 1, Class 2, and Class 3 Travel Agencies may handle arranged overseas travel.

Region-Limited Travel Agencies may plan package tours and handle arranged travel only within a limited area of Japan (in principle, within adjacent municipalities).