Canada’s Travel Agencies Hit Record Profits

Canadians are booking travel more than ever before.

According to a recent report published by Statistics Canada, travel agencies’ profits hit an all-time high in 2023. The operating revenue of $2.8 billion – a 55.5% increase year-over-year – exceeded pre-pandemic levels by 11.6%. 

The shift is part of a larger boom in the travel sector. The travel arrangement and reservation services industry group, which includes tour operators, travel agencies, and other travel arrangement and reservation services,  

The industry group’s 2023 revenue was a record high of $15.2 billion, which is a 53.5% increase year-over-year, and a 3.8% increase over 2019 levels.

The StatsCan travel arrangement services 2023 report also found that operating expenses for travel rose 46.6% to $2.4 billion. More than half (51.3%) of these expenses are attributed to salaries, wages, commissions and benefits. 

Even with the increased expenses, Canadian travel agencies in 2023 had increased profit margins of 14.8%. Although not record-setting, this is the highest profit margin of the last decade.

Avery Campbell, JD, the director, advocacy and industry relations for The Association of Canadian Travel Agencies and Travel Advisors, told TMR that ACTA welcomes the report.

“With revenues reaching $2.791 billion and margins of 14.8% in 2023, our industry has achieved its strongest results since reporting began in 2012.

The data reveals important trends: e-commerce now represents 32.3% of sales, the highest since tracking began; individual consumer sales have grown to 63.8% of total revenue; and agencies have optimized their cost structures through reduced marketing spend and lease costs while increasing operational flexibility. 

These results demonstrate our industry’s successful adaptation to evolving market conditions and consumer preferences, positioning Canadian travel agencies and travel advisors for continued growth in the years ahead.”