With the drastic increase in tourism, the lack of lodging in the nation's biggest cities, particularly Tokyo and Osaka, is providing a major opportunity for those running two types of accommodations: "business hotels" and hostels.
Japan's so-called business hotels are known for offering simpler rooms at more affordable prices than typical hotels. While they were traditionally patronized by budget-minded Japanese businessmen, frugal international travelers have caught on and are now among their major patrons in bustling Tokyo.
Hostels, on the other hand, are not familiar to many Japanese but are frequented by foreigners on shoe-string budgets searching for something beyond the ordinary hotel experience.