TravelWorld stock price skyrocketing / surge 9%: The hidden costs and investment opportunities behind Japan travel credit card spending

With the peak travel season approaching, the influx of tourists heading to Japan continues to grow. The concept stocks related to tourism, such as LvTianXia (6961-TW), have recently risen by 9%. The driving forces behind this increase are not only the rising number of orders but also the micro-decisions made by consumers during their journeys. Among these, an easily overlooked decision—how to choose the settlement currency when using a credit card in Japan—is becoming a micro-factor influencing both the travel experience and the performance of related listed companies.

The Hidden Trap of Card Payments in Japan: The True Cost of Currency Selection

Many tourists encounter a dilemma when checking out at Japanese department stores or electronics chains: a prompt suddenly appears asking, “Would you like to settle in TWD?” This seemingly considerate option actually conceals hidden costs.

According to data from travel experts’ tests, when consumers choose to settle in TWD instead of JPY locally, the Dynamic Currency Conversion (DCC) service can incur fees of up to 4%-5%. For example: purchasing a 50,000 JPY item (approximately 10,000 TWD), if the TWD settlement option is mistakenly selected, the additional fee can amount to as much as 500 TWD per transaction.

The issue is further complicated by the fact that transactions settled in TWD are often not recognized as “overseas spending” by banks, resulting in the loss of the usual 3%-5% credit card rewards. The combined effect of these two losses can lead to a total loss of 800 to 1,000 TWD on a 50,000 JPY purchase.

Smart Consumer Strategies

To avoid unnecessary expenses, tourists should adopt the following strategies:

When paying by card, proactively select “JPY settlement,” even if the clerk recommends the TWD option. Contactless payments (such as Apple Pay) or specific card types (JCB, AE) can more effectively avoid the DCC mechanism. Most importantly, when inserting the card, carefully check the screen prompts and immediately decline any TWD settlement inquiries.

LvTianXia’s Performance Highlights: Direct Beneficiary of the Japanese Travel Boom

Driven by the surge in travel demand to Japan, LvTianXia performed remarkably in the first half of the year. Its after-tax net profit reached NT$79 million, with an EPS of NT$3.35, setting a new record for the same period. The 9% stock price increase directly reflects the market’s recognition of the company’s operational prospects.

The core of this rally lies in the exchange rate movements: the appreciation of the New Taiwan Dollar and the depreciation of the Japanese Yen make traveling to Japan more cost-effective. LvTianXia benefits from both increased order volume and expanded gross profit margins, creating a dual effect that drives revenue growth.

Strategic Deployment: Future Investment Logic from Current Consumer Trends

The company further strengthens its competitive edge through strategic initiatives. These include launching exclusive new routes with Japan’s third-largest airline, Tenza Airlines, and precisely targeting the Mid-Autumn Festival holiday and Double Tenth Golden Week, reserving 222 premium seats in the Kobe area. This not only demonstrates a keen understanding of consumer demand but also indicates the company’s forward-looking layout for future travel consumption trends.

At the same time, the company is expanding high-end travel routes to destinations such as the Maldives and Switzerland, preparing for the expansion of the island tourism market by 2026. These measures show that the company is positioning itself through differentiation, transforming Japanese travel credit card consumers into potential high-end travel product customers.

From Micro Consumption to Macro Investment Logic

For investors, every spending decision during a trip to Japan reflects broader industry trends. The savings consumers make by choosing the right currency are not only personal gains but also a microcosm of the overall upgrade in travel consumption. It is precisely these wise choices made by millions of tourists using credit cards in Japan that drive order growth and profit increases across the tourism industry chain. This aggregation of micro-behaviors ultimately manifests in the financial reports and stock prices of related listed companies.