Travel arrangement services, 2023

Released: 2024-10-01

Travel arrangement and reservation service industry surpasses 2019 total operating revenue

The operating revenue of the travel arrangement and reservation services industry group surged 53.5% to a record high of $15.2 billion in 2023, up 3.8% from 2019, before the COVID-19 pandemic.

This industry group is composed of three industries: tour operators, travel agencies, and other travel arrangement and reservation services. Tour operators accounted for the largest share of revenue in 2023, at 59.7%.

It should be noted that travel arrangement and reservation services can be offered to Canadians, mostly digitally, by firms that operate legal entities from foreign countries. Purchases made by Canadian consumers from foreign companies are not included in these estimates.

Revenue of tour operators rises by over two-thirds

In 2023, for the second consecutive year, revenue of tour operators (+69.6% to $9.1 billion) rose at the fastest pace in this industry group, returning to pre-pandemic levels.

Operating expenses of tour operators increased by 58.6% to $8.8 billion in 2023. The cost of goods sold was the largest contributor (85.9%) to industry expenses.

The operating profit margin for tour operators turned positive, reaching 2.8% in 2023. This marks the first profitable year since 2019 and the most profitable year in more than a decade.

Revenue of travel agencies hits all-time high

Operating revenue at travel agencies rose 55.5% year over year to $2.8 billion in 2023, exceeding pre-pandemic levels by 11.6%, the strongest recovery of all three industries.

Operating expenses rose 46.6% year over year to $2.4 billion in 2023. Salaries, wages, commissions and benefits accounted for the largest share (51.3%) of industry expenses.

The profit margin for travel agencies reached 14.8%, the highest profit margin in more than a decade.

Travel agencies and tour operators faced large losses because of pandemic-related restrictions, with many firms going out of business, leaving only the more profitable firms standing.

Other travel arrangement and reservation services least impacted by the pandemic

The operating revenue for other travel arrangement and reservation services rose by 20.8% year over year to $3.3 billion in 2023, surpassing pre-pandemic levels by 9.0%. Businesses in this industry, such as automobile clubs, ticket service companies and travel wholesalers, are more geared toward the domestic market. As a result, their losses from 2019 to 2021, albeit high at 42.6%, were not as substantial as those of the two other industries, and the recovery has been slower.

In 2023, operating expenses rose by 21.0% to $3.2 billion, and the profit margin edged down to 4.5%.

Unlike tour operators and travel agencies, other travel arrangement and reservation services remained profitable throughout the pandemic.

Contact information

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