Travel arrangement services, 2024

Released: 2025-10-06

Travel arrangement service industries continue post-COVID-19 pandemic growth, albeit at a slower pace in 2024

The operating revenue of the travel arrangement and reservation services industry group rose 7.1% to a record high of $16.5 billion in 2024. This was the first single-digit rate of change since 2019, suggesting a return to more typical conditions and the end of the phase of recovery from the COVID-19 pandemic.

Operating revenue was 12.7% higher in 2024 compared with 2019. Nevertheless, the Consumer Price Index—which represents changes in prices as experienced by Canadian consumers—rose at a faster pace, increasing 18.3% over the same period.

Canada welcomed 29.8 million foreign tourists in 2024, and Canadians made 52.0 million international trips. However, foreign visits to Canada (-2.6 million) and Canadian trips abroad (-4.4 million) remained below their pre-pandemic levels.

The travel arrangement and reservation services industry group is composed of three industries: travel agencies, tour operators and other travel arrangement and reservation services. Tour operators accounted for the largest share of revenue in 2024, at 58.4%.

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

Over four-fifths of tour operator revenue comes from packaged and group tours

The operating revenue of tour operators rose 6.3% year over year to $9.6 billion in 2024. Operating expenses increased 6.5% to $9.4 billion. The cost of goods sold (85.0%) was the largest contributor to industry expenses.

Most sales revenue in 2024 came from packaged (62.8%) and group (22.0%) tours, with foreign destinations besides the United States accounting for just over four-fifths (82.0%) of all destinations.

With operating expenses rising more than operating revenue, the operating profit margin edged down from 2.8% in 2023 to 2.6% in 2024.

Over three-fifths of travel agency revenue comes from airline seats and packaged tours

The operating revenue of travel agencies rose 3.9% in 2024 to $2.9 billion. Operating expenses rose 4.5% to $2.5 billion, with salaries, wages, commissions and benefits (51.4%) accounting for the largest share of industry expenses.

In 2024, the leading sources of sales revenue were airline seats (35.1%) and packaged tours (25.4%). Foreign destinations besides the United States accounted for most of the revenue, at 57.7%.

The operating profit margin of travel agencies fell from 14.5% in 2023 to 14.0% in 2024.

Revenue of other travel arrangement and reservation services rises at the fastest pace

Among the three industries that comprise the industry group, other travel arrangement and reservation services saw the fastest revenue growth in 2024, up 11.7% year over year to $3.9 billion.

There are a range of businesses in this industry, but automobile clubs, ticket service companies and travel wholesalers are the most notable in terms of sales contribution.

Operating expenses of other travel arrangement and reservation services rose 11.0% to $3.7 billion in 2024, with salaries, wages, commissions and benefits accounting for one-fifth (19.6%) of the total. The faster-growing revenue led to a higher operating profit margin, up 0.7 percentage points year over year to 7.1% in 2024.

Looking ahead to 2025

Political tensions have caused tourist trips by foreign visitors to Canada and by Canadian residents abroad to decline again in 2025. This is expected to negatively impact this industry group to an unknown degree.

The 3.2% decrease in foreign visitors and 14.3% decline in Canadians returning from abroad in the first half of 2025 provide some insight into the severity of the impact at this time.

Financial estimates for the 2025 reference year, to be published next year, will confirm the degree of the impact on this industry group.

Contact information

For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).