The Canada Travel Agency Services Industry is poised for substantial growth over the next decade. It is likely to increase from the projected USD 11 billion in 2025 to USD 23.2 billion by 2035 at a CAGR of 7.7% for the 2025 to 2035 forecast period. It is motivated largely by more enthusiasm for adventure travel, cross-border traveling boosting at large rates, and high demand for specialized and experience-focused holiday opportunities.
Market Overview
| Attribute | Value |
|---|---|
| Estimated Canadian Industry Size (2025E) | USD 11 billion |
| Projected Canadian Value (2035F) | USD 23.2 billion |
| Value-based CAGR (2025 to 2035) | 7.7% |
This growth is largely attributed to travelers seeking authentic Canadian experiences, such as exploring the vast national parks, visiting world-renowned cultural festivals, or enjoying local Indigenous experiences. The emergence of immersive travel experiences, like northern lights tours and eco-friendly excursions, also contributes to market growth.
As Canada's tourism infrastructure improves and online travel services continue to expand, both domestic and international demand for Canadian travel services is expected to increase.
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The chart below tracks changes in CAGR from the base year of 2024 to 2025, reflecting shifts in the market dynamics.
CAGR Values for Canada Travel Agency Services Industry (2024 to 2025)
It is expected that the Canada Travel Agency Services Industry will experience a CAGR of 6.4% in the first half of 2024, with a slight increase to 6.5% in the second half. By 2025, the growth rate is projected to reach 6.6% in the first half and up to 6.7% in the second half as demand for personalized travel experiences and cross-border adventure tours continues to rise.
| Category | Details |
|---|---|
| Market Value | The Canada Travel Agency Services Industry is estimated to generate USD 9.8 billion in 2024, contributing 25% of North America’s total travel services market. |
| Domestic Market Share | Domestic tourists make up 60% of the market, with top destinations including Vancouver, Quebec City, and Banff National Park. |
| International Market Share | International tourists account for 40%, with key markets including travelers from the USA, the UK, and China, flocking to places like Toronto, Montreal, and Niagara Falls. |
| Key Destinations | Popular Canadian destinations include Banff National Park, Niagara Falls, and the historic Old Quebec. |
| Economic Impact | The travel services industry significantly contributes to the economy, generating billions through services like eco-tours, winter sports packages, and corporate retreat planning. |
| Key Trends | Growth in adventure tourism, cultural experiences, wellness retreats, and sustainable tourism. Customizable travel options are also in demand. |
| Top Travel Seasons | Winter and summer seasons are dominant, with a spike in winter tourism to ski resorts in Whistler and Banff and summer travel to outdoor destinations like Vancouver Island. |
The Canadian travel agency services sector continues to thrive, with both domestic and international tourists drawn to Canada's unique mix of natural beauty and rich cultural history. While domestic travel remains robust, international tourism-especially from the USA and Europe-remains significant, with travelers flocking to iconic Canadian landmarks like Niagara Falls and Banff. Popular trends include a focus on eco-friendly travel, guided Indigenous cultural tours, and wellness tourism.
| Date | Development & Details |
|---|---|
| Jan 2025 | Launch of Arctic Expeditions: Leading agency Transat introduced new Arctic cruise packages offering travelers the chance to explore Canada’s remote northern regions, including wildlife safaris and Indigenous cultural experiences. |
| Dec 2024 | Expansion of Wellness Retreats: Air Canada Vacations expanded its wellness offerings by partnering with remote resorts in British Columbia for relaxation-focused travel packages centered around yoga and outdoor spa experiences. |
| Nov 2024 | Family Travel Growth: Flight Centre Canada introduced new family-friendly packages that include customized itineraries with Canadian theme parks, outdoor adventures, and multi-generational vacation planning. |
| Oct 2024 | Cultural and Culinary Tours: G Adventures expanded its offerings with exclusive cultural and culinary tours of Quebec City, emphasizing local food and art experiences, as well as visits to renowned historical sites. |
| Sept 2024 | Sustainable Travel Partnerships: The Canadian Tourism Commission partnered with various travel agencies to promote sustainable travel packages, focusing on eco-friendly transportation, green accommodations, and low-impact activities. |
Full-Service Travel Arrangements Lead the Market
By 2025, full-service travel arrangements are projected to hold 58% of the Canadian travel market as consumers seek convenience and end-to-end solutions. Full-service travel arrangements offer customers a hassle-free experience, complete with flights, accommodations, transportation, guided tours, and occasionally meals and activities, all rolled into one.
A prime example is Flight Centre, where customers can simply book every detail of their holiday, from accommodations to flights, airport transfers, and even special experiences, such as a guided tour of Vancouver's trendy neighborhoods or an Ontario wine country adventure.
The attraction of full-service packages is their ease and the convenience of having all travel elements planned by experts. Most travelers, especially those who are not familiar with Canada's extensive and varied geography, like to have everything planned for them so that nothing is left out.
These packages not only save the hassle of coordinating multiple facets of a trip, but they also make it easier for travelers to obtain special offers and unique experiences that they might otherwise not have discovered on their own.
In addition, growth in personalized itineraries within the full-service segment has further boosted its popularity. Operators like Rocky Mountaineer offer personalized luxury train vacations through the Canadian Rockies, where travelers have warm accommodations, beautiful scenery, and well-organized excursions.
These vacations come with premium experiences, as luxury and convenience are wedded. National park excursions, such as those in Banff and Jasper, where visitors can venture through breathtaking scenery with expert guides, also appeal to travelers who want relaxation as well as adventure without the stress of organizing every detail of their trip.
Package Travelers at the Forefront
Package tourists account for significant top-line revenue of approximately 45% in the Canadian travel agency business because they want hassle-free, all-inclusive holiday experiences. Package tourists are seeking convenience, and travel agencies capitalize on the fact by offering packaged packages that combine fundamental activities like transportation, hotel accommodation, activities, and food under a single price tag.
This model is attractive to clients who would like everything pre-arranged for them so that the journey is simpler and more enjoyable. One of the best examples is G Adventures, which has packages for tours of Canada's national parks, such as Banff and Jasper, where visitors pay a set price for transportation, accommodation, park admission fees, and guided tours. The convenience of these packages reduces the trouble of planning a trip and is attractive to a broad range of visitors, from families to couples.
The money-making capacity of package travel comes in its potential to serve diverse audiences, from budget families to luxury-seeking travelers. High-margin products, including high-end rail vacations through the Rocky Mountaineer, also translate into large profit margins.
These premium experiences tend to cost more, catering to upscale consumers who desire luxury without effort. With the all-inclusive model, agencies are able to charge more per booking since clients feel they are getting excellent value with everything covered.
Furthermore, packaged travel commands strong revenues as there is potential for upselling complementary services like luxurious accommodations, personalized excursions, or extended length of stay. Agencies usually include customized upgrades that increase total profit.
Group travel, which is a very popular type of packaged travel, also guarantees bulk booking, whereby many clients are served at the same time, generating economies of scale. This combination of high price flexibility, potential to upsell, and sheer numbers of bookings makes package travelers a high-grossing clientele for Canadian travel agencies.
The Canadian travel agency services market is very competitive, with both global players and local players fighting for market share. Market share leaders like Expedia Canada, Air Canada Vacations, and Flight Centre Canada lead with a wide product portfolio that varies from customized vacation packages to business travel solutions.
On the other hand, niche agencies like G Adventures and Canada Travel Specialists remain afloat by focusing on individualized, in-depth Canadian experiences. These agencies cater to tourists seeking unique outdoor adventures or Aboriginal cultural tours, offering personalized services that emphasize experience and authenticity with Canada's diverse landscapes and heritage. Niche agencies, despite the dominance of the big players, continue to grow.
2025 Market Share of Canada Travel Agency Services Players
Leading players with significant market share include Expedia Canada, Air Canada Vacations, and Flight Centre Canada, and smaller regional agencies focusing on unique travel experiences and specialized tours.
The Canada Travel Agency Services Industry is expected to grow at a CAGR of 7.7% from 2025 to 2035.
The market is projected to reach USD 23.2 billion by 2035.
Key drivers include a rising interest in unique Canadian experiences, growing demand for eco-tourism, and an increasing shift to online travel bookings.
Key players include Expedia Canada, Air Canada Vacations, Flight Centre Canada, and smaller niche agencies specializing in immersive Canadian travel experiences.
The industry is segmented into Full-service Travel Arrangements and Partial Travel Services.
The market is analyzed by Phone Booking, Online Booking, and In-Person Booking.
Segmentation includes Domestic and International tourists.
The industry includes Independent Travelers, Package Travelers, and Tour Groups.
The market is analyzed by Men, Women, and Children.
The industry includes the following segments based on age: Less than 15 years, 15 to 25 years, 26 to 35 years, 36 to 45 years, 46 to 55 years, 56 to 65 years, Over 75 years.
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Canada Travel Agency Services Market
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