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In Japan there are four writing styles used:
For example the word "ryokou", would be "旅行" in Kanji, "りょこう" in Hiragana and in Katakana "リョコウ"
If you sell a product, software or a physical product it is highly recommended to use latin characters in the domain, meta data and titles.
Google doesn't care about if your URL looks like this (http://test.com/services) or like this (http://test.ch/パッケージ/). Both ways are gonna work for Google.
But if you copy the link and want to share it, the link can get messed up like this (http://test.ch/%E3%82%B5%E3%83%BC%E3%83%93%E3%82%B9/).
In most cases we recommend to use letters to avoid encoding issues when copying and sharing URLs containing Japanese characters.