Travel Agencies NAICS 561510

Mar 11, 2025 - Canadian Travel to the US Plummets

• Sinking Canadian public opinion of the US and a lengthy trade war could cost the American travel industry an estimated $4 billion, according to a Forbes analysis of US Travel Association (USTA) data. Statistics Canada reported that Canadians visiting the US by car - the majority method - dropped a hefty 23% in February 2025 compared to the same period in 2024. Air travel from Canada to the US was also down 2.4%. Canadian travel agency giant Flight Centre reports a 40% drop in bookings to the US over the last three months (year over year), and a 20% cancellation rate on pre-booked trips. The USTA in February already warned that a 10% dip in travel from Canada could cost the US $2.1 billion in consumer spending and 140,000 hospitality jobs. With that rate already more than double the USTA estimate, losses could balloon to a potential $4 billion.
• Average wages for non-supervisory travel agency employees grew significantly throughout 2024, per the most recent US Bureau Labor Statistics data. By October, wages in the industry had increased by 13% year-over-year. The boost in wages can be traced to a glut of well-paid hiring when the travel industry rebounded from Covid, and a Department of Labor mid-year regulation change that lowered industry employees’ income threshold for overtime eligibility. The overtime rule was short-lived when an appeals court overturned it in late 2024. The new Trump administration will likely not defend the change any further.

• High-end cruising, solo travel, and trips to far-flung destinations are among the top travel trends for 2025, according to travel agency Fora. A fleet of new luxury ships is attracting cruise enthusiasts and even luring “never-cruisers” to test the waters with Aqua Expeditions, Explora Journeys, Four Seasons Yachts, The Ritz Carlton Yacht Collection among cruise lines to watch, per the report. For domestic solo travelers, Santa Monica, New Orleans, and Seattle top the list of cities, while London, Rome, Nice, Barcelona, and Mexico City are top international destinations. For more adventurous travelers, Kenya, Bhutan, and Chilean Patagonia and among the top far flung destinations in 2025. Fora’s “2025 Hot List” was created with input from the company’s leadership team, industry partners and thousands of travel advisors.
• A new survey of owners and managers of independently owned travel agencies found that the two greatest competitive challenges facing the industry today are suppliers of direct bookings and online travel agencies (OTA). Direct bookings, where consumers bypass agencies to book directly with providers, were named by nearly half (46%) of those polled, while 35% named OTA competition. The survey also examined the current economic moods in the US and its impact on the travel industry. The rising cost of travel, broader inflation, and economic uncertainty in a presidential election year are causes of concern for some agency owners. Almost a third (30%) of those surveyed say the rising cost of travel is a challenge, and 19% are apprehensive about a drop in customer spending. “In spite of the economic headwinds, we’re seeing growth in bookings for 2024 and into 2025,” said American Marketing Group’s (aka Travelsavers) Chief Sales Officer Kathryn Mazza-Burney.