Canadian travel agencies are reporting a healthy uptick in bookings and a cautiously optimistic outlook for the year ahead. That’s according to new research from our sister publication, PhocusWire, which outlines the current state and future outlook of Canada’s retail travel distribution sector.
The Canada Travel Agency Highlights 2025 report, published by Phocuswright Research, reveals a travel agency sector in transition—where traditional storefronts and home-based businesses coexist, leveraging a mix of marketing strategies, booking tools, and evolving technologies.
Trends and Tools
International travel continues to dominate revenue, with strong demand for all-inclusive resorts and cruise vacations. Most agencies are also embracing service fees, with traditional brick-and-mortar agencies more likely than home-based operations to charge them.
To book travel, advisors are using a combination of direct supplier channels, GDS interfaces, and consolidators.
When it comes to attracting new clients, most agencies rely on their websites and organic social media. To keep current clients engaged, email newsletters and personalized outreach remain vital tools.
“Some advisors use [generative AI] for marketing and itinerary creation, but many are still exploring its potential,” the report states.
Despite the pressure of increasing travel costs—particularly high airfares—most Canadian advisors remain upbeat about the future. Many agencies are responding to these challenges by diversifying revenue streams, updating their business models, and expanding their teams.
Canadian travel advisor GenAI awareness and usage (Photo Credit: PhocusWire)
Study Summary:
Canada Travel Agency Highlights 2025 is a research snapshot that focuses on the Canadian travel agency distribution landscape and the overall market size.
Based on a national survey of Canadian travel advisors, the report answers several questions:
- What factors do Canadian travel advisors view as most impactful for their business growth and client relationships?
- What are the primary revenue streams and booking channels for Canadian travel agencies
- How do agencies attract and retain clients, and what marketing strategies are most effective
- What challenges and opportunities are shaping the future of Canadian travel agencies
- What impact, if any, does generative AI have on the segment now—and looking ahead?
As the industry continues to evolve, Canadian travel agencies are striving to stay competitive by combining personalized service with selective tech adoption—and a steady focus on high-value travel.
For full insights, the complete report is available via PhocusWire.
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