ACTA’s “State of Industry” report outlines agency stats, trends & challenges

Canada’s retail travel industry saw an impressive 12 per cent revenue growth to $2.8 billion in 2023 versus 2019, according to ACTA’s latest State of the Industry report, which was released Tuesday (Dec. 16).

That amount surpasses pre-pandemic levels, showcasing the sector’s vital role in Canada’s economic recovery.

“These numbers tell a powerful story of adaptation and resilience in our industry,” said Wendy Paradis, ACTA’s president, in a press release. “The retail travel industry has not just survived; they’ve emerged stronger, more innovative, and better equipped to serve Canadian travellers.”

The report, which can be viewed here, draws from Statistics Canada, other key government sources and ACTA research, revealing an evolving industry landscape.

READ MORE: Canadian travel agencies broke sales records in 2023: StatCan

The data shows travel agencies and independent travel advisors are adapting to changing consumer needs while maintaining their essential role in the travel ecosystem.

The data serves as a powerful advocacy tool in ACTA’s ongoing dialogue with government stakeholders and industry partners.

“Understanding our industry’s economic impact through verified metrics strengthens our position in policy discussions and supplier discussions,” said Avery Campbell, ACTA’s director of advocacy and industry relations, who led the research and development of the report.

21,400 agency employees & 5,400 ITAs

The employment narrative is particularly compelling, with 21,400 travel agency employees now serving Canadian travellers.

Official government sources estimate there are at least 5,400 countable independent travel advisors (ITAs) in Canada.

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.

While the confirmed number by Statistics Canada is 5,400, the actual total is “likely significantly higher” due to the number of part time ITAs, ACTA says.

This reflects an industry embracing new work models, including remote arrangements and independent travel advisors, adapting to modern workforce expectations.

“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,” said Paradis.

Other findings

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, the study says.

This represents a 15 per cent decrease from January 2020, when there were 6,134 total agencies.

The regional distribution of travel agencies has remained relatively stable since 2020, with a slight increase in Quebec’s share:

• Ontario: 41%
• Quebec: 23%
• British Columbia: 19%
• Alberta: 9%
• Other provinces and territories: 8%

The vast majority (94%) of travel agencies employ fewer than 20 individuals, with 63% having fewer than five employees, the study shows.

Compensation breakdown

The national median hourly wage for travel advisors is $19.75, the study found.

The data also shows a clear correlation between experience and compensation.

Advisors with less than two years of experience earn $40,000 median; two to five years experience, $41,400 median (a 3.5% increase); and more than five years experience, $48,975 median (a 18.3% increase from two to five years).

Challenges & areas for improvement

While the travel industry is recovering, several challenges persist, such as rapidly changing consumer preferences and travel patterns and new technologies and digital platforms.

Narrowing sectoral pay gaps, promoting diversity for a more resilient industry, and managing the shift towards independent and remote work models are also listed as issues.

Other barriers include ongoing global uncertainties affecting travel demand, as well as attracting and retaining skilled professionals in a competitive job market

To review ACTA’s State of the Industry Report, click here.

Don’t miss a single travel story: subscribe to PAX today!  Click here to follow PAX on Facebook.