The Canadian travel agency landscape is characterized by a combination of traditional and home-based businesses, mixed attitudes and usage regarding emerging technologies and significant cost challenges, according to Phocuswright's recent Canada Travel Agency Highlights 2025. Service fees and international travel dominate revenue streams, and many agencies are optimistic about the future.
Key Findings:
- Many agencies have seen an increase in bookings over the past year. Advisors use a mix of direct supplier channels, GDS interfaces and consolidators to book travel, though there is still a lack of familiarity with new air distribution capabilities.
- Travel advisors rely heavily on their websites and free social media to attract new clients, while email and newsletters are key tools for maintaining existing relationships.
- Most agencies charge service fees, with traditional agencies more likely to do so than home-based businesses. International travel continues to dominate revenue, particularly from all-inclusive resorts and cruises.
- While awareness of generative artificial intelligence (AI) is growing, adoption remains limited. Some advisors use it for marketing and itinerary creation, but many are still exploring its potential.
- Most advisors remain optimistic about the future. Key challenges include increasing travel expenses and high airfares, which are prompting agencies to explore new revenue strategies, adjust their business models and expand their teams.
Canada Travel Agency Highlights 2025
This report offers a curated research snapshot focusing on the Canadian travel agency distribution landscape and overall market size. The results are based on a comprehensive market sizing exercise, along with a survey of Canadian travel advisors.