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H.I.S. Co., Ltd.: Company Strategy & Performance Analysis

H.I.S. Co., Ltd.: Company Strategy & Performance Analysis

Summary

H.I.S. along with its subsidiaries offers travel and tourism services worldwide. The company’s businesses include air ticket reservation, hotel operations, tour services and other travel related businesses. Ciao, Impresso, VACATION, Kaito and Suma yado are some of the major brands through which the company offers its services. The company owns and operates 200 branches in 130 cities worldwide and 303 retail stores in Japan.

MarketLine Premium’s company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading travel intermediary companies. The reports detail company operations in key geographies as well as comprehensive analysis of each company’s growth strategy and financial performance. Furthermore, the reports allow benchmarking company performance through the provision of key performance indicators including revenue.

Key Highlights

Increase in net working capital

The company maintained a healthy liquidity position, which enabled it to carry its business activities effectively. The company’s net working capital posted a growth of 61.6% from US$743.4 million in 2015 to US$1,200.0 million in 2016. The increase in its net working capital was due to a 7.0% decline in its total current liabilities to US$944.5 million in 2016 from US$1,010.0 billion in 2015. There was a 21.9% increase in the value of current assets from US$1,700.0 million in 2015 to US$2,100 million in 2016. The company also reported a ratio of 2.3 as against 1.7 in 2015. The increasing current ratio indicates that the company has strong financial position and is more capable of meeting its short-term obligations than in the previous year. The company’s cash and cash equivalents increased to US$1,500.0 million in 2016 from US$1,100.0 million in 2015, reflecting an increase of 29.7% over that in 2015.

Decline in the transaction amount of inbound travel to Japan

The company reported a decline in transaction amount of inbound travel, which had an adverse effect on overall travel revenue. The transaction amount of inbound travel in Japan increased from US$101.6 million in 2015 to US$106.6 million in 2016 reporting an increase of 4.9%. However in actual currency it reported a decline of 5.7%. The incidents such as Kumamoto earthquake have affected the travel revenues.

Expansion initiatives to boost its market presence

The company implemented various strategies to expand its presence. These initiatives have the potential to improve the company’s profitability and market position. For instance, H.I.S partnered with the French National Tourism Organization and launched a promotional campaign “Atout France”. In addition, the company worked to enhance high value-added products, including art appreciation tours of two key destinations in France, namely, Palace of Versailles and the Louvre Museum.

Scope

  • Company Snapshot - detail key indicators and rankings of H.I.S.Co., Ltd. in terms of revenue, net income and operating income in the company’s key markets.
  • Company SWOT Analysis - outlines H.I.S.Co., Ltd.’s Strengths and Weaknesses, and weighs Opportunities and Threats facing the company.
  • Growth Strategies - understand H.I.S.Co., Ltd.’s corporate goals and strategic initiatives and evaluate their outcomes.
  • Company Performance and Competitive Landscape - analyse the company’s performance by business segments such as operating revenue, merchant revenue, agency revenue and advertising and media revenue besides peer comparison on parameters such as revenue.
  • Key Developments - showcase H.I.S.Co., Ltd.’s significant recent corporate events, changes or initiatives.
  • ICT Spending Prediction - Understand how the company allocates its ICT budget across the core areas of enterprise ICT spend, namely hardware, software, IT services, communications and consulting.
Reasons to buy
  • How does H.I.S.Co., Ltd. rank among peers in terms of revenue globally?
  • What are H.I.S.Co., Ltd.’s main growth strategies and how successful has the company been at implementing them?
  • How has the company performed since 2014 in terms of its segments?
  • How has H.I.S.Co., Ltd. performed in comparison to competitors such as TUI, Priceline Group, Thomas Cook Group and Expedia Inc?
  • What are H.I.S.Co., Ltd.’s strengths and weaknesses and what opportunities and threats does it face?


Company Snapshot
Company SWOT Analysis
Growth Strategies
Company Performance
Competitive Landscape
Deals
Key Developments
ICT Spending Predictions
Financial Summary
Appendix

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