Market insights snapshot - Canada

Market trends

• Arrivals for the 12 months to Nov 2024 were 165,786 or 86.9 per cent of 2019 levels. Arrivals are up 7.8 per cent the 12 months to Nov 2023
• Holiday arrivals were 39 per cent of total and were 77.4 per cent of 2019 levels. Arrivals for holiday are up 15.8 per cent on the 12 months to Nov 2023
• Spend levels for the 12 months to September 2024 are 120per cent of 2019 levels at $1.07bn
• Canada’s recovery has been consistent however has plateaued over the last several months with typical month on month recovery at the 85-90per cent levels
• VFR remains the strongest segment from Canada currently, with visitation at 103per cent of 2019 levels and +3.8per cent on 2023. VFR accounts for 53.5 per cent of leisure visitation and 45 per cent of total visitation.
• After raising interest rates in 2022 and 2023 to claw back against inflation. The Bank of Canada changed direction in 2024 and began lowering rates from their peak of 5.0 per cent. We expect rate cuts will continue in 2025, with the bulk coming into the year's first half.

Buyer snapshot

This year we have eight buyer organisations attending from Canada – this includes seven regular delegates and one as part of our ATE Luxe Program. All are returning buyers however we would like to highlight the following:

• Air Canada Vacations (ACV): Air Canada are returning for their second year. Having launched their Australia program in July last year, they continued to grow their product offering. Having previously focused on just hotel only offering, they now offer 11 fully inclusive tours. Rose Gonzalez is the Product Manager and will be joined by Nino Montagnese – VP of Air Canada Vacation as part of the ATE Platinum Club.

Consumer trends

Canadians continue to spend big on travel. In 2024, there was a 28 per cent increase on vacation spend by Canadians compared to 2019.

Culture is a growing driver for destination choice (representing an opportunity for Australia). 84 per cent of customer also say they plan to travel as much or more than they did in 2024.

Data from Statistics Canada indicates that the travel industry has bounced back to the pre-pandemic norm:

• Operating revenue for the industry group increased 53.5 per cent year-over-year and 3.8 per cent above pre-pandemic levels.
• Agency profit levels reached 14.8 per cent, which is the highest margin in more than a decade.

This supports the other evidence that Canadians continue to prioritise booking discretionary travel.