Yen Fluctuations & Japan Travel: Yay or Nay?

If you've been keeping up with the news, or checking exchange rates before your trip to Japan, you’ve probably noticed that the value of the Japanese yen has been fluctuating quite a bit lately. 

With the global markets in a state of turbulence, it's natural to wonder what these shifts might mean for your upcoming travels. 

Will Japan travel become more expensive? Will your plans need to change? 

The short answer to both of these (very valid) questions is… maybe. But of course you want a better answer than that. So keep reading!

First Off: Don’t Panic – Japan’s Still a Great Travel Destination

Right off the bat, it’s important to remember that exchange rates are always fluctuating.

Japan was a great travel destination 30 years ago – when it was pretty much a travel secret hiding in plain sight – at a rate of more like 100 yen to the US dollar.

It remained excellent as the yen weakened, interest in Japan expanded and Japan’s travel scene began to boom.

And it’s still great today, for many of the same reasons as before – and the added benefit to many visitors of being a relative “bargain” compared to travel in other countries (including one’s own).

Even if the yen strengthens to, say 125 or 115 yen to the US dollar, it’s still affordable – and still great – for the vast majority of travelers.

I don’t mean to sound callous, though. We should acknowledge that a fair number of travelers (or potential travelers) to Japan will feel the pinch more than others. My advice is that, if you’re among that group, please don’t dismiss the opportunity to visit Japan – but also, please consider options, and it’s possible that your best option might be to put off that trip, save up some more and come here when it fits your plans and budget better.

For everyone else, Japan travel will either be more or less the same proposition (a darn good one); or a travel option that remains good but requires some budgeting adjustments and potential modifications to your Japan travel itinerary.

With that, let’s go into some of the details about how the fluctuating (and likely strengthening) yen could affect your Japan travel plans.

Japan Airfare Booked? You’re Good. Still Looking? Might Get a Little Bouncy!

The good news is if you've already booked and paid for your flights, your airfare is locked in. You don’t need to worry about last-minute price hikes due to currency fluctuations. 

However, if you're still in the process of booking, be aware that airfares may rise, especially on Japanese airlines like Japan Airlines (JAL) and All Nippon Airways (ANA). As the yen weakens against other currencies, airlines may adjust their pricing. However, airfares are also subject to market competition (this means that they could also go down, or up, and nobody — no matter what they might insist they know — knows how or when or why). 

Other carriers may react by adjusting their prices to stay competitive, which could help keep things stable – or at least prevent a big price surge.

Airlines, like most businesses, keep an eye on exchange rates, but also take into account demand, oil prices and other market forces. So, if you’re waiting to book, it might be worth checking fares sooner rather than later, just in case the market shifts further.

Japan Hotel Reservations: It Depends on How You Book(ed)

When it comes to accommodations, things get a bit more complicated. 

If you’ve prepaid for your hotel stay, your price is set – no matter how the yen moves. This applies whether you’re staying at a local ryokan or boutique hotel, a Japanese hotel group or an international chain. 

But what if you haven’t paid yet, and you’re staying at a property that charges in yen? If the yen strengthens against your home currency, you could end up paying more.

For example, if you booked a Japanese hotel via a Japanese website or directly with a local chain, your payment will likely be in yen, and that means the exchange rate will affect your final cost when you check out. 

On the flip side, if you’ve booked through an international hotel chain, such as Hilton, Hyatt, or Marriott, your reservation might be priced in USD (or your home currency). This could buffer you from yen-related price changes, but it's not guaranteed. Best to double-check your booking terms to see which currency you're paying in.

Also worth noting: Hotels in major tourist areas like Tokyo or Kyoto may have higher rates regardless of exchange rate fluctuations due to demand. Even with the exchange rate at your side, expect to pay a premium for those high-traffic locations.

Day-to-Day Japan Travel Expenses: What’s the Impact?

While the yen's fluctuation might not have a huge impact on your big-ticket items, the day-to-day spending could add up. 

If you're budgeting for meals, transportation, shopping and entertainment, a stronger yen might make things feel a little more expensive than they have been in recent years.

For example, eating at ramen shops, grabbing snacks from konbini (convenience stores) or purchasing souvenirs are all part of the Japan travel experience. But if the yen strengthens, that 500-yen meal may cost you a bit more in dollars or pounds, making the once affordable options a little pricier (but still affordable).

Transportation is another area that could be affected. Bullet trains, domestic flights, taxis or even local subways & buses are all priced in yen. While the overall transportation system in Japan remains relatively efficient and affordable, any increase in the yen could make your travel costs feel higher.

Still, we must acknowledge that Japan was cheap at 160 yen to the US dollar. Truly.

A few years ago, it was more like 125 yen to the dollar. And even then, many expats and visitors felt that Japan was an affordable and very lucrative destination.

So while ATM yen cash withdrawals (best rates in general) in Japan haven’t been such a big hit on visitors bank accounts in recent years, those might cost a bit more going forward.

The Near & Longer Future of Japan Travel: Should You Worry About Exchange Rates?

Exchange rates are a part of life, and unfortunately, they're out of our control. 

I've lived in Japan at various points in history when the exchange rate was anywhere from 74 yen to the dollar all the way up to 160 yen. In my experience, while fluctuations can affect your budget, the bigger picture is always the same: Japan remains an incredible place to visit.

So, should you panic? Absolutely not. 

While it’s true that Japan may feel a little more expensive (or, as I like to see it, “less cheap”) than it did last year or two years ago, it’s still a top destination for value, adventure and experiences. 

At Japan Travel Pros, we’re here to help you navigate these changes and make sure you’re getting the best experience possible when visiting Japan.

If you need to adjust your plans to stay on budget, we’re happy to help. Whether that means suggesting affordable alternatives, recommending off-the-beaten-path restaurants or helping you get the most out of regional passes and transport deals, we’ve got your back.

To find out more, use the calendar below to schedule your free Japan travel consultation.