by Debbie Olsen
Last updated: 7:00 AM ET, Mon February 24, 2025
Because it’s affected by so many external factors —
natural disasters, health crises, political instability and economic
fluctuations — the travel industry is notoriously unpredictable. Sudden shifts
in consumer demand can happen overnight.
So wouldn’t it be great to be able to predict the
future? Although it’s nearly impossible to know for certain what the future
holds, a deep dive into the present can provide a good indication of where the
travel industry is headed, offering opportunities for travel advisors and
agencies to plan ahead.
From July 11 to Aug. 16, 2024, Travel Weekly and Phocuswright (sister brands of TravelPulse
Canada), along with sponsors Ensemble and Princess Cruises, conducted
an exclusive online survey of 444 Canadian travel advisors and travel agency
owners. A similar study was conducted in the U.S. (with 1,571 responses), and
both studies offer insight into the differences and similarities between the
two markets.
In this
article — the final installment of a three-part series — we are looking at key
takeaways from the 2024 Canadian Travel Advisor Study and how they foretell the
future of the travel industry.
Travel
Advisors and Generative AI
According to
the Canadian Travel Advisor Study, most agents (83%) are aware of generative AI
(GenAI), but only 35% have used GenAI platforms or tools. Those statistics are
similar in the U.S. survey, where 86% of advisors report being aware of GenAI
and 41% say they have used GenAI platforms or tools. Agents age 55 or younger
are more likely to have used these tools; only 33% of advisors ages 56 to 65
have used GenAI, and just 22% of advisors over 65 have used it.
2024 Canadian Travel Advisor Study. (Photo Credit: Deborah Dimond)
How are
Travel Advisors Using GenAI?
Agents are
primarily interested in using AI to create marketing and website content (45%)
and to generate custom itineraries for clients based on travel history and
preferences (44%). Other ways advisors are interested in using GenAI include
real-time language translation to communicate with clients (29%); automating
tasks such as booking, scheduling and messaging clients (27%); and giving
clients access to an AI chatbot for immediate customer support (15%).
2024 Canadian Travel Advisor Study. (Photo Credit: Deborah Dimond)
Travel Agency
Owners/Managers and GenAI
Nearly
one-quarter (24%) of travel agency owners/managers have used GenAI to create
marketing or website content, and another 12% have used AI to generate custom
itineraries. While 11% of respondents say they have used AI to curate packages
to cater to travelers with specific interests, 44% say they plan to use it for
this purpose in the coming year.
2024 Canadian Travel Advisor Study. (Photo Credit: Deborah Dimond)
How is IATA’s
New Distribution Capability Affecting Travel Agencies?
Among
Canadian advisors who book air, nearly seven in 10 (69%) are unfamiliar with
IATA’s New Distribution Capability (NDC). Only 20% of Canadian agents are
familiar with NDC and say their agency has access to NDC content. Meanwhile,
U.S. advisors are utilizing NDC content more than Canadian advisors: 43% say
they are unfamiliar with NDC, but the share of advisors who say their agency
has access to NDC content is 42% — more than double that of Canadian agencies,
and a jump from 2023 numbers of 22% in the U.S..
It is interesting to note that Canadian advisors
familiar with NDC mostly have a neutral attitude about the technology. Most U.S. agents familiar with NDC do not find the technology
necessary, helpful or positive.
Which Factors
had the Greatest Impact on Travel Agencies in 2024?
In the last
12 months, agencies were most impacted by the increased cost of travel (82%)
and high airfares/fees (75%). Some of the other top factors included airport
hassles/delays (51%), the value of the Canadian dollar (50%), economic
conditions (40%), internet-based competition (31%) and global economic
instability (27%). Aside from the Canadian dollar, the factors affecting U.S.
travel agencies were almost the same.
2024 Canadian Travel Advisor Study. (Photo Credit: Deborah Dimond)
Predicting
What Will Have the Greatest Impact in 2025
Travel
advisors and agency owners on both sides of the border are predicting that high
travel costs and air travel disruptions will continue this year. Canadian
travel advisors forecast that the top five factors that will impact agencies in
the next 12 months will be the increased cost of travel (78%), high
airfares/fees (64%), the value of the Canadian dollar (39%), economic
conditions (38%) and airport hassles/delays (35%). U.S. travel advisors and
agency owners, meanwhile, predict the top five factors that will affect them
will be the increased cost of travel (72%), high airfares/fees (61%), airport
hassles/delays (46%), U.S. economic conditions (43%) and internet-based
competition (36%).
The Future is
Bright
Despite all
the challenges the travel industry has faced in the last few years — and will
continue to face — nearly two-thirds of Canadian agencies report growth in
year-over-year bookings, and 75% of Canadian advisors have positive
expectations for the future of the travel agency landscape. Canadians surveyed
were slightly more optimistic than their U.S. counterparts, but the future
looks bright there, too: 72% of U.S. agents report positive expectations for
the future.
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