TORONTO — Neither direct booking, nor online booking, nor OTAs, nor a global pandemic – that halted travel for more than two years – can keep the Canadian retail travel industry from surviving, and by many metrics, thriving.
The latest State of the Industry Report from ACTA, drawing from Statistics Canada data, other key government sources and ACTA research, shows that Canada’s 5,351 travel agencies, with 21,400 employees, generated $2.8 billion in revenues last year.
That 2023 stat is up 12% versus 2019, “showcasing the sector’s vital role in Canada’s economic recovery,” according to ACTA.
“These numbers tell a powerful story of adaptation and resilience in our industry,” says ACTA President, Wendy Paradis. “The retail travel industry has not just survived; they’ve emerged stronger, more innovative, and better equipped to serve Canadian travellers.”
MEDIAN HOURLY WAGE DATA AND MORE
Paradis adds that the report’s data shows travel agencies and independent travel advisors are adapting to changing consumer needs while maintaining their essential role in the travel ecosystem. ACTA uses data from the State of the Industry Report in its advocacy work with government stakeholders and industry partners.
ACTA’s Director of Advocacy and Industry Relations, Avery Campbell, led the research and development of the report. “Understanding our industry’s economic impact through verified metrics strengthens our position in policy discussions and supplier discussions,” said Campbell.
As of January 2024, there were 5,351 travel agency business entities in Canada, comprising 2,102 agencies with employees and 3,249 without employees.
While the 5,341 figure was down 15% from January 2020, when there were 6,134 total agencies, the fact that a majority of agencies are operating with no employees points to the explosive growth of independent / home-based / hosted travel agencies in Canada, following similar trajectories in the U.S. and the UK.
According to ACTA, official government sources estimate there are at least 5,400 countable independent travel advisors – ITAs – in Canada, and in reality the number is probably much higher. “This figure represents the absolute minimum, as many ITAs are not captured in government data due to inclusion criteria such as minimum earnings, dominant income source, etc.,” says ACTA.
“These findings arm our members with valuable insights for strategic planning and demonstrate to stakeholders the vital role travel advisors play in Canada’s travel and tourism ecosystem,” says Paradis.
Key takeaways from the report include …
- Retail travel industry revenue reached $2.8 billion in 2023, up 12% from 2019
- Operating profit margin improved to 14.8% in 2023
- Operating revenue reached 98% of 2019 levels
- Operating expenses reached 94% of 2019 levels
- Employment in the sector is recovering, with 21,400 employees as of Q2 2024, compared to 32,000 in Q2 2019
- The national median hourly wage for travel advisors is $19.75, with a 15.8% female / male gender pay gap (full-time advisors), and a 3.3% immigrant pay gap
- Outbound travel demand is showing strong signs of recovery
- The vast majority (94%) of travel agencies employ fewer than 20 individuals, with 63% having fewer than five employees. The decline in agency numbers has affected businesses of all sizes compared to 2020.
The report is available at www.acta.ca/state-of-industry.php
