From an Idea, to Japan’s Game-changing Travel Fintech Company

Japanese travel startup Kabuk Style, based in Nagasaki, has gained a reputation as a pioneer in subscription-based travel with its unique offering, HafH (Home away from Home). Through an innovative model combining fintech and blockchain technologies, Kabuk Style aims to revolutionize the travel industry by providing travelers with predictable pricing and unique access to accommodations across Japan and beyond. 

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HafH aims to redefine travel as a purposeful experience that enriches lives and broadens perspectives. Driven by a mission to build infrastructure for a more inclusive society, Kabuk Style approaches travel as a means for personal growth rather than just leisure. Their service enables subscribers to explore diverse accommodations with flexible payment options, leveraging partnerships and tech innovations to make travel more accessible.

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Guided by core principles of diversity, continuous improvement, and collaboration, Kabuk Style encourages its team to celebrate differences and prioritize incremental innovation. This commitment shapes both their internal culture and their customer-focused strategies, ensuring that HafH serves as a platform for meaningful exploration and connection.

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Growth through Strategic Partnerships and Investment 

Kabuk Style has seen rapid growth since its launch, thanks to strategic alliances with major industry players such as Japan Airlines (JAL) and JR West, part of the Japan Railways Group. These partnerships not only provided visibility and credibility but also aligned Kabuk Style with respected brands in Japan's travel ecosystem, which expanded the appeal of HafH.

One notable collaboration with JAL began as a trial in 2021, where a three-month promotion allowed HafH subscribers to book discounted flights alongside accommodations. This initiative attracted over 500 travelers, with around 80% venturing to destinations they had not previously considered. Following this success, Kabuk Style announced a direct system integration with JAL, setting the stage for the launch of a full-fledged airline subscription service in May 2023. This subscription service covers 148 domestic routes, with plans to expand internationally, further diversifying HafH’s offerings. In addition to JAL, Kabuk Style collaborated with JR West to offer rail ticket benefits to its members. This type of “Mobility as a Service” (MaaS) approach reflects the company’s commitment to integrating multiple travel modes, making it easier for customers to explore diverse destinations.

‍Kabuk Style’s growth has also been fueled by strategic financial backing. The company has raised a substantial sum of $30 million, with investors such as Headline and NEC Capital Solutions lending their support. This capital has allowed Kabuk Style to expand its reach and capabilities, as well as fund technological developments crucial to the company’s vision of changing how people experience travel. 

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CEO Kenji Sunada’s Vision and Strategy 

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Kenji Sunada, Kabuk Style’s founder and CEO, envisioned HafH as a platform that could protect travelers from the volatility of travel costs. Drawing from his experience in financial markets at Deutsche Securities, Sunada designed HafH’s pricing model using principles similar to financial derivatives. By offering travelers the chance to pay a fixed monthly subscription, HafH locks in the value of accommodations and flights, shielding subscribers from market price fluctuations.

At the heart of this model is the “HafH Coin,” a tokenized form of currency that Sunada and his team introduced to create a stable, opaque pricing system for hotels and travelers alike. Users pay for stays with a mix of HafH coins and cash, allowing Kabuk Style to manage demand while incentivizing users to renew subscriptions with bonus coins.

This innovative pricing mechanism allows Kabuk Style to offer rooms at wholesale rates, a unique feature that has made the platform popular among users and hotel partners alike. For hotels, the coin-based model creates an “opaque market” where rates are not easily comparable to other booking platforms. This makes HafH an attractive distribution channel for hotels that want to avoid rate competition with other online travel agencies (OTAs). Sunada’s goal for HafH goes beyond simple travel accommodation; he aspires to redefine travel as an accessible experience that fosters a sense of purpose and community. Inspired by John F. Kennedy’s famous “man on the moon” speech, Sunada sees travel as a transformative experience that can connect people to something larger than themselves. By creating a platform where users can embark on “workcations” and remote working travels, HafH fosters a community of individuals who see travel as more than just leisure. 

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Kabuk Style was founded with a bold vision to make travel more accessible and to foster a more diverse cultural exchange through innovative financial technology. Inspired by the stability of fixed pricing models in financial markets, founder Kenji Sunada sought to create a subscription service that would shield travelers from fluctuating travel costs. His team, including co-founder Ryo Osera, brought a mix of financial acumen and a deep passion for travel, forming a team dedicated to reimagining travel for a changing world. Initially, the solution focused on providing predictable, flexible lodging options, allowing subscribers to pay a monthly fee in exchange for “coins” used to book accommodations.

This model resonated particularly well with Japan’s growing demographic of remote workers and young professionals who value flexibility and cost efficiency. HafH’s main customer base is primarily individual travelers, especially those interested in "workations," but businesses have also started to recognize its potential for employee travel solutions. Kabuk Style’s revenue model is subscription-based, allowing users to lock in accommodation and airfare rates through a fixed monthly payment, while its partnerships with JR West, Japan Airlines, and more recently Hotelbeds expand its inventory and solidify its standing in the travel industry.

*Workations : Workations combine remote work with travel, allowing individuals to work from leisure destinations while maintaining their professional duties.

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Technological Innovation and Blockchain 

At the core of Kabuk Style’s growth strategy is its use of cutting-edge technology, including blockchain, to streamline and secure its platform. Sunada believes blockchain has the potential to lower barriers for new entrants in the travel industry by decentralizing access to inventory and lowering connection costs. By tokenizing reservations and creating an internal economy with HafH Coins, Kabuk Style has effectively introduced a fintech-based solution to the travel sector that optimizes pricing and increases transparency for travelers. As Sunada explains, “Technology will change the travel industry,” and Kabuk Style is committed to investing in these advancements to fulfill its mission of making travel accessible and enriching.

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The HafH platform is also working toward API (Application Programming Interface) integration, which would allow hotels to sign up automatically rather than through a manual process. This API development is expected to accelerate the onboarding of new accommodations, allowing Kabuk Style to rapidly expand its inventory and provide more diverse choices to subscribers. In 2023, Kabuk Style acquired HEROWORKS, a South Korean-based revenue management startup, to enhance its price comparison capabilities and to optimize the supply side of its platform with real-time data analytics. 

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Global Expansion and Demographic Reach 

Since its inception, Kabuk Style has expanded HafH’s reach to approximately 2,000 hotels in over 30 countries, with more than half located in Japan. The recent partnership with Hotelbeds, a global distributor with over 200,000 properties in 170 countries, has further increased the platform’s range of accommodations. Through this collaboration, Kabuk Style gains exclusive access to a vast array of accommodations, connecting HafH users to new and unique travel experiences worldwide. This partnership not only boosts Kabuk Style’s growth potential but also enhances its users' experience by providing a broader selection of destinations. 

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HafH’s subscription model appeals primarily to younger travelers in their 20s and 30s, who tend to value flexibility and affordability over traditional hotel booking options. However, Kabuk Style has recently observed a growing interest among older demographics in their 40s and 50s, further expanding its customer base. The subscription-based model resonates with a variety of users, including those who see HafH as a type of “savings plan” where they accumulate coins that can be used for future travel. About 30% of subscribers do not book travel within their first month, viewing the platform as a source of inspiration and a means of saving for future adventures. 

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Impact on Japan’s Regional Tourism 

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Kabuk Style’s partnerships with JAL and JR West have also had positive implications for regional tourism in Japan. HafH has played a role in promoting lesser-known destinations by incentivizing subscribers to explore places they hadn’t previously considered. This shift in travel patterns contributes to regional revitalization, as it directs tourism traffic to areas outside of major urban centers, supporting local economies. The flexibility of HafH’s travel packages enables users to take spontaneous trips and discover hidden gems throughout Japan.

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Kabuk Style’s expansion into South Korea and Taiwan marks a strategic move into key regional markets. Building on its domestic success, the company has tailored its unique subscription model for these new audiences. In South Korea, Kabuk Style acquired the hotel revenue management company HEROWORKS in Busan and set up a local office in February 2023, quickly launching its service two months later. This acquisition allowed Kabuk Style to strengthen its understanding of local pricing dynamics and adapt the HafH platform for the South Korean market, making it easier to collaborate with regional hotel partners. Taiwan, a popular destination with growing interest in subscription-based travel, represents the next step in Kabuk Style's broader Asia-focused expansion strategy. Targeting these markets aligns with the company's mission to make travel more accessible and to stimulate cross-border travel among young professionals and remote workers, two demographics driving the popularity of subscription travel in Asia. 

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Future Prospects and CEO’s Long-term Vision 

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Looking forward, Kabuk Style has ambitious plans to continue scaling its operations and expanding its offerings. The Head of Hotelbeds’ Sales MEAPAC said that “The progress that they have made in a short time is very impressive and we look forward to showcasing our exceptional accommodation, but also our mobility and experiences products to the clients on the unique Kabuk Style platform.”

The company is actively expanding in international markets, with South Korea serving as the first target for its global expansion. Kabuk Style recently acquired a local hotel revenue management system in Busan and established a South Korean office, marking a significant step toward expanding its footprint across Asia.

With future plans to target markets such as Taiwan, Malaysia, and potentially Singapore and Thailand, Kabuk Style is positioning itself as a major player in the Asia-Pacific travel market. Sunada envisions a world where travel is not only accessible but also deeply integrated into daily life, enabling people to see travel as a pathway to personal growth and connection. With the growing adoption of remote work and changing attitudes toward travel, Sunada sees HafH as a platform that meets the evolving needs of modern travelers. His philosophy emphasizes “emotional performance,” where increased travel frequency correlates with greater happiness, and “time performance,” which prioritizes ease of booking and seamless experiences.

By redefining travel with technology and community-driven experiences, Kabuk Style and its HafH platform are reshaping the travel landscape in Japan and beyond. Through a unique subscription model, partnerships with industry giants, and a commitment to blockchain innovation, Kabuk Style is well-positioned to influence the future of travel and to inspire a new generation of travelers.

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