Canadian Travel Agencies Embrace Change Amid Rising Costs

Canada’s travel agency sector is evolving as it navigates growing operational costs, emerging technologies, and a shifting distribution landscape, according to Phocuswright’s Canada Travel Agency Highlights 2025 report. Despite economic pressures, many agencies report increased bookings and a generally optimistic outlook for the future.

Traditional and home-based agencies continue to co-exist, with traditional agencies more likely to charge service fees. Most advisors book travel using a mix of direct supplier platforms, GDS systems and consolidators. However, awareness and adoption of New Distribution Capability (NDC) channels and other advanced air distribution technologies remain limited.

Revenue is largely driven by international travel, particularly all-inclusive resorts and cruises. While advisors use websites and free social media to attract new clients, email marketing and newsletters remain central to maintaining client relationships.

Though generative AI is gaining awareness, its adoption is still in the early stages. A growing number of advisors are experimenting with AI for marketing content and itinerary building, but many are still unsure how to leverage it fully.

Rising travel costs—especially airfare—are prompting agencies to seek new revenue models and expand their teams. Advisors are rethinking business strategies to stay competitive, signaling an industry in transition but not without confidence.

The report is based on market sizing and survey data from Canadian travel advisors, providing a snapshot of the current landscape and its outlook through 2025.

Tags: phocuswire, SyndicEx250629B

Canadian Travel Agencies Embrace Change Amid Rising Costs

Related Posts