International Railroad Discussion > WSJ: "Orient Express: Japan Rolls Out Luxury Train Tours"

Excerpt: "...Japan’s biggest railway companies, which pack millions of commuters into rush-hour trains, are introducing luxury rail tours that cost as much as $22,000 per couple. The tours, which sell out months in advance, are one way the companies are trying to grow as a shrinking population saps their core business..."

https://www.wsj.com/articles/orient-express-japan-rolls-out-luxury-train-tours-1507282203?mod=nwsrl_business&cx_refModule=nwsrl

Can't read article without a subscription. But $22,000 doesn't sound too high, especially compared with 12 hours in Delta One going over for $13,000.

Well it craps me out.

andersonb109 Wrote:
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> Can't read article without a subscription. But
> $22,000 doesn't sound too high, especially
> compared with 12 hours in Delta One going over for
> $13,000.

Once again, you just inject your thoughts as if they apply to all.

It may not be too high to your high ego, but to the average income of Japan, that is almost a year's earnings.

Here! Hear!!!

Ed

jst3751 Wrote:
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> It may not be too high to your high ego, but to
> the average income of Japan, that is almost a
> year's earnings.

I just looked up certain stats (debt per GDP, average savings per household, etc.) and while Japan's debt per GDP ranks close to the U.S., their savings per household (cash ready to spend) is much higher, and they start their practice young, like in their 20s. That could be one of the factors why NIRP (Negative Interest Rate Policy) hadn't worked for a decade or two, because people decided to save even more money instead of loosening up, which is what the economists hoped would happen (I was doing a separate research on that recently).

Plenty of middle-aged folks who can afford this trip, if that's their passion.

While WSJ's mention of "population decline" is true in Japan, I have doubts that's a major factor in starting the 3 luxury trains currently running, the Seven Stars, Train Suite Shikishima, and Twilight Express Mizukaze, listed in order of start of service. Keep in mind that the railroad's refusal to replace aging equipment, and the rise of budget-priced business hotels (which I'm a frequent user) are bigger factors in replacing of the sleeper trains, some of which were very basic and not necessarily luxurious, so WSJ might have confused these markets. The Sunrise Limited Express Sleeper EMUs are usually sold out, so on certain travel corridors, that market is still thriving.

I only saw WSJ's excerpts visible to non-subscribers, so maybe the rest of the article analyzes what I'm stating here.

The root of these luxury trains, the Joyful Trains started in the late 1980s, at the height of the now-distant economic boom. So the idea of indulgence by train is not new in Japan, but an outside observer wouldn't know that. The audience has matured, and they want finer things in life beyond the Joyful Trains and the now charter-only Cassiopeia. The current luxury trains visit historic sites, well-known and "hidden" tourist sites, and indulge the passengers with 5 star experience onboard the train, especially the meals.

Perfect bait for a country obsessed with gourmet food - food tourism has continued to thrive despite the recession.

Anyway, Twilight Express Mizukaze is priced more "affordably" where the most expensive room is priced at 780,000 yen per person (about $7100) and go as low as 250,000 yen per person (~$2300), but that's for a one way, two day one night trip from Osaka to Shimonoseki. Double that if people want to ride the same train on the return trip, but they have the option of hopping on a Shinkansen home for "only" 14,000 yen ($127), at a distance of 570 km (~350 miles).

I don't think there's an option to "maroon" the train mid-trip to save money on Train Suite Shikishima or the Seven Stars, so the minimum costs are higher on those trains, hence my use of quotes for "affordably." It seems the "value" of all 3 trains are about the same, in terms of cost per accommodations and meals.