HIT Travel


It took more than a decade for Tokyo air-ticket prices to be in sync with those in other major cities. Gone are the times when Tokyoites had to pay twice, even thrice as much as travelers abroad. Those with the inside scoop on how it all happened can be counted on the fingers of one hand. One such man is Shorati Hadi, President of HIT Travel. Tokyo Journal visited Hadi at his Ebisu office.


tj Mr Hadi, you were around when the very first “shoestring” travel agency opened in Tokyo way back in 1985. At that time you were working at one of the major travel agencies.

Hadi Yes, this is how it all started. A major travel agent (the one I was working for at that time) opened a discount ticket shop targeting foreigners. And as a result the entire industry changed. Today even JTB offers discount tickets, last but not least because the Japanese customers are more price-conscious now than they used to be. When we first started selling cheap tickets from a little room inside a rundown office building in Shinjuku, it was absolutely unthinkable that companies like JTB would ever move into discount sales.

tj Were it not for the frugal foreigners, would the Japanese still be paying through the nose today?

Hadi Cheap tickets were always available in other parts of the world. Most notably in Bangkok and Hong Kong, places most foreigners would visit to renew their visas. In the old days foreigners would buy all their tickets outside Japan, even if it meant forfeiting one leg of a round trip. In the end it always saved them money.

tj In the beginning there was only one discounter. Today there are dozens. What happened?

Hadi The early bird gets the worm. But it didn’t take long for other entrepreneurs to follow. Before you knew it, discount travel agencies had sprung up all over town. However, business for our agency was blooming. I worked myself up from supervisor to manager to branch manager, eventually being responsible for a staff of 60 representing 48 different nationalities. Just imagine. Guys speaking 48 different languages, all with different cultural backgrounds. And you have to find a way to motivate them all for a common goal.

tj There came a day when you made a bold move and decided to go independent. Today you are President of HIT Travel, one of the fastest-growing travel agencies in Tokyo. How does it feel to be in full control?

Hadi It feels great. Here I am in my own office in Ebisu, selling tickets to foreigners and opening my first branch office in Okinawa at this very moment. This will make me the first in Tokyo to seriously offer domestic travel packages to sunny Okinawa, where you can scuba all year round, enjoy Chinese food, and relax on the beach. In short, for very little money you can get away from the city
stress and be in a completely different environment. All without visa hassles or expensive reentry permits. Why go to Guam, when
paradise is right at your front door?

tj What is the secret of your success? How can you offer better service at better prices than most of your competitors?

Hadi From the traveler’s point of view the art of running a successful travel agency may look quite simple. A guy walks into a shop, buys a ticket, and that’s it. In reality the secret of success is accurately predicting demand — being able to foresee travel trends, and then securing blocks of tickets well ahead of time. Let’s say at the beginning of the year I commit to buying a certain number of tickets from a certain airline to a certain destination. The higher the number I commit to, the larger the discount I get. This in turn allows me to offer cheaper tickets to such a destination than the competition can.

tj I guess this is what all other travel agencies are trying to do as well — betting on travel patterns and trying to get the best deals.

Hadi Apart from there being two types of agents, wholesalers and retailers, this is basically an accurate description of how the business works in Japan today. Learn to become better at this game or you’re out. Fortunately I have been getting better for the last 15 years.

tj So your customers are getting the best deals
because you are the best.

Hadi Exactly.

tj As a businessman you have the ability to show us the future. In what direction is the travel industry headed?

Hadi In the discount market you have to work with extremely slim profit margins. Companies that do not produce volume will not be able to compete in the long run. If you have volume you can offer lower prices and still generate enough profit to maintain a healthy business. This is where management skills and experience come in. I see smaller agencies getting squeezed out of the market. More and more shops will lose money if they continue to stay open, but they will lose all opportunity to make money if they close. It is the survival of the fittest. There will be a shakeout in the industry that will affect companies on both the high and the low end.
We need to demonstrate stability and reliability through good management. Only through wise planning and solid business strategy can we continue to offer the best prices and still maintain good enough profit margins to attract capable staff.

tj Beyond good prices and reliable service,
what do your customers get from you?

Hadi They get the human touch. The customers must feel that you are genuinely trying to help them. The fact that HIT Travel is doing just fine in this department is evidenced by our large base of satisfied repeat customers. Theoretically you could sell tickets from vending machines. But in practice this only works for full-fare class. To compete successfully my staff must work for the full satisfaction of their customers. Postcards from all over the world from happy customers are witness to our personal relationship with our customers. That’s what makes us happy and gives us the motivation to provide reliable but also friendly service.

tj HIT Travel, the team that serves you with a smile?
Hadi Exactly.

Contact: HIT Travel
3F Miura Building, 3-16-10 Higashi
Shibuya-ku, Tokyo 150-0011
Tel: 3473-9040, Fax: 3473-9041

E-Mail: hit@mail.findex.ne.jp

* Fax your ticket requests 24 hours a day * We are able to arrange tickets the same day of your departure * English-speaking customer service staff * Make payment by bank transfer from any Japanese bank - US$ also accepted * Special Family and Group rates available * Earn points toward future discounts *

Office Hours: Mon-Fri 9:30 - 6:30, Sat 10:30 - 5:00

 

 

 

 

TJ Current Issue

 

Subscribe to
Tokyo Journal