A major Japanese travel agency is predicting that spending by domestic travelers during the upcoming holiday season will hit a record. It says a major reason for that is the higher cost of accommodation.

JTB says an estimated 28 million people are planning a domestic trip involving at least one overnight stay between December 23 and January 3. That is the same level as a year ago.

The travel agency says the number is not expected to rise because household budgets are tight and people are concerned about the future.

JTB projects average spending per traveler will increase 4.9 percent from a year earlier to 43,000 yen, or 284 dollars.
That is the highest since it began tracking such data in 1996.

The company points to a rise in accommodation charges amid an increase in foreign visitors and a labor shortage. It also says that many travelers are planning a longer break as the New Year public holidays immediately precede a weekend this time around.

JTB says that 520,000 people are planning overseas trips, up 13 percent from a year earlier. But that is still only about 60 percent of the pre-pandemic figure five years ago.

JTB officials say that people's attitudes towards hobbies and travel have become polarized, with some choosing to spend more and others tightening their purse strings. They also say that some people are choosing to take breaks at less busy periods to avoid overcrowding.