In the age of AI, why Canadian travel agencies just saw revenues rise

Despite the rise of artificial intelligence and the internet, making it simpler to locate and compare travel options, many Canadians are still opting for the traditional method of consulting a travel agent to plan their vacations. According to a report from Statistics Canada, the operating revenue of the travel arrangement and reservation services industry surged by 8.8 per cent in 2025, reaching $18.3 billion.

This follows an even larger increase of 9.3 per cent in 2024, despite a significant 25.4 per cent drop in Canadian travel to and from the United States compared to 2024.

Suzanne Acton-Gervais, president of the Association of Canadian Travel Agencies and Travel Advisors, attributes this trend to the unique value that human judgment brings to the table. Unlike search engines that provide a plethora of answers, a skilled travel agency and travel advisor can ask the right questions to tailor a vacation experience to the individual's needs. Acton-Gervais emphasizes that their business is fundamentally about people, human connection, judgment, and care.

Booking airline seats accounts for 35 per cent of travel agencies' operating revenue, while packaged tours make up another quarter of their income. Acton-Gervais notes that this reflects a broader trend towards travel that is curated, seamless, and personalized around the individual. Even younger customers, who are often digitally savvy, are turning to travel agencies for their expertise, personalization, and support.

The Canadian travel industry is, however, facing challenges due to the decline in U.S. travel. Since the imposition of a trade war against Canada by U.S. President Donald Trump in 2025, Canadians have been wary of traveling south of the border. With 60 per cent of the industry's operating revenue coming from U.S. travel, the industry's growth in 2026 is projected to be constrained.

Nonetheless, the report suggests that non-U.S. travel could offer an opportunity for growth. From January to June 2026, Canadian-resident return trips from the United States decreased by 4.6 per cent compared to the same period in the previous year, while return trips from other countries increased by 4.8 per cent.