The prices for Japan Rail Pass for bullet trains in the country have been substantially increased from ¥ 47,250 (USD 316) to ¥ 80,000 (USD 535), marking a hike in the range of 65 pc to 77 pc.
Despite this substantial increase, the rail operator Japan Railways Group say that the demand for these passes is expected to remain robust. A more favourable exchange rate for the yen and a continuous influx of foreign visitors will drive the demand chain, says a press statement by Japan Railways (JR). This pass allows for 14 days of unlimited travel across the country.
JR says that starting this month, Japan’s rail pass offerings have expanded to include one- and three-week passes and a first-class option, in addition to the existing 14-day pass.
The JR Group justifies the price changes by accounting the rising availability of bullet train destinations. The JR network now spans over 19,000 km across the country, compared to when the previous fares were set. Thus, the hike is due to expansion of bullet train destinations and lack of pass adjustments for system upgrades, like online seat reservations and automatic ticket gates.
The statement adds that travellers now have the option to pay an additional fee to ride the fastest Shinkansen bullet-train services, Nozomi and Mizuho, instead of being limited to the slower ones that make more stops. These passes can be used for local lines, express trains, and even some ferries, but they cannot be purchased by residents of Japan.
Despite the higher cost, many travellers still find these passes to be a convenient and cost-effective option, adds the statement. They offer flexibility and ease of use for exploring various regions in Japan. Some travellers who purchased their tickets before the fare increase still find the passes attractive and intend to consider them even at the new prices, says JR Group.
However, the price increase may influence the choices of some travellers. Bloomberg Intelligence analyst Denise Wong suggests that some visitors may opt for low-cost carriers, such as Jetstar and Peach, both operated by All Nippon Airways for long-distance intercity travel as airfares can be significantly cheaper than regular train tickets, says the statement.
It goes on to say that though the price increase may impact long-distance travel options, trains are expected to maintain a strong advantage over airlines for shorter to medium-distance trips. Air travel is less efficient due to airport access and dwell time, and where the cost savings are modest.