Only once you pay 5,000 Japanese yen (NZD) and receive a mystery capsule will the destination be revealed. Players are then given a code that translates to 6,000 Japanese yen in milage points, which can only be used towards a certain destination.
All flights depart from Tokyo's Narita Airport.
One recipient, 19-year-old college student Mao Otani, told VICE he has received a trip to the remote city of Kushiro in Hokkaido.
"I've never been there and I have no idea what I'll do, but I'm excited anyway," he said. The young student planned to make it a week-long trip, since it had been over two years since his last holiday.
The capsules also come with a small pin badge and a 'mission' the flier can do when they visit their destination.
Otani's mission was to create a katte don, a popular dish made of seafood and rice which can be purchased at the Washo Market in Kushiro.
According to Peach Aviation's brand manager and director of the project Shuntaro Kosasa, the team had been surprised at just how popular the machine had become.
Since launching their first machine in Osaka this August they have sold over 3,000 capsules, far exceeding their expectation of selling one capsule per day.
The project isn't hugely profitable, however, Kosasa said the unexpected wave of social media support has been good for the airline.
As for why people choose the gachapon rather than simply buying a ticket, Kosasa said the thrill and anticipation was a prime draw.
"Not only is it new, there's stimulation from the excitement of not knowing which destination you'd get. It was time to do something fun," he told VICE.
Shibuya's vending machine will be active until December, with the possibility of launching in other locations around Japan.
