Travel arrangement and reservation service sector is growing
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When Canadian tourism spending by international visitors fell in 2009 to its lowest level in 15 years, the effects were felt by the travel arrangement services industry group. The industry experienced a decline of 1.7% in operating revenue in 2009, losing the momentum gained in 2008 that saw revenue rise by 1.8%. The industry's profit margin dropped from 1.6% in 2008 to 0.8% in 2009.
Tour operators continued to dominate this industry group, accounting for more than three-quarters of total operating revenue. Despite operating revenue increasing 0.6% to $7.7 billion, tour operators recorded a loss of 0.5%. Travel agencies recorded total operating revenue of $1.5 billion in 2009, down 6.5% from 2008. Operating expenses for travel agencies also declined to $1.4 billion, down 5.7%. In 2009, the top 20 travel arrangement firms accounted for 36% of the industry's total revenue. By contrast, the top 20 tour operating companies accounted for 81% of the industry's total revenue in 2009.
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