Distribution system

Canadian travel distribution channels are concentrated, with a few large wholesalers handling most of the outbound travel to Australia. Online channels and mobile platforms are primarily used for research, while bookings are generally made through traditional channels such as retail agencies.

Wholesalers

Commission level: 20% - 30%

• There are several major wholesalers that account for most of the leisure travel to Australia, being: Goway Travel, Downunder Travel, Anderson Vacations, Kensington Tours, Flight Centre and TravelBrands (Redtag.ca, Merit Travel and Exotik Journeys).
• There are several wholesalers in the market who are increasingly adding more Australian product, such as Anderson, Kensington Tours/TravelEdge (wholesaler/retailer), G Adventures and Downunder Travel. There are also several niche operators that play an important role such as Globus, and Collette, 5 Continents, and Contiki Holidays.
• Wholesalers in Canada are primarily focused on free independent travel (FIT), a shift from group travel which is being driven by consumer demand. Note, the French-Canadian market (largely based in the province of Quebec) do still like to travel as a group with a French-speaking tour guide as many are not fluent in English). There is also a move in the wholesale and retail industry to focus on more experiential and affluent, high-end clients.

Retail agents

Commission level: 10% - 20%

• It is estimated that through the pandemic Canada lost a third of their retail travel offices and there is no guesstimate on the number of agents who left the industry or retired early. The largest retail consortia are Ensemble, Travel Leaders Group and Transat Distribution.
• There are several large Virtuoso retail chains such as, Direct Travel (formerly Vision Travel), and Maritime Travel (the only wholly- corporately owned retail chain left in Canada). The Virtuoso brand has become increasingly popular in Canada, and the Signature Travel Network is now a strong alternative.
• Although consumers increasingly look to online channels for research and travel ideas, Canadian retail travel agencies have seen a resurgence post pandemic, particularly for niche, long haul luxury travel and for assurance when booking in case something happens when they are travelling and need someone to call for assistance. Overall, a higher percentage of Canadians use the services of a retail advisor over Americans.

Online

• Canadians favour using travel advisors more than other travellers globally, and 73 per cent of those surveyed typically research a trip two to eight months in advance. 
• To learn about destinations and conduct research, many Canadians visit Tripadvisor or Booking.com and for long haul itineraries, most will talk and book via a travel agent.
• The most popular online travel agencies (OTAs) in Canada for booking travel are Expedia, Tripcentral, Flight Network and Redtag.

Aussie Specialists

• The Aussie Specialist Program (ASP) is the primary platform for Tourism Australia to train and develop front line travel sellers to best sell Australia.
• There are over 1300 qualified Aussie Specialists in Canada. This includes 10 ‘Premier Aussie Specialists’, recognised with Premier status for their extensive knowledge of the destination, commitment to selling Australia and ongoing learning via the Aussie Specialist Program.

Inbound Tour Operators

Commission level: 10% - 30%

• Inbound tour operators (ITOs) are an important part of the distribution network in Canada. There are several ITOs which specialise in servicing the Australian market. These include Goway, ATS Pacific and Qantas Holidays.

Trends

Distribution

• A trend has emerged with some Canadian tour operators targeting consumers directly, rather than through an intermediary, and this trend is growing. The line is being blurred between a tour operator (traditionally selling B2B) and a retail network, selling B2C.
• The smartphone is an increasingly important source to research travel. In addition, video is increasingly important, as Canadians have some of the world’s highest consumption of online video content.

Planning and purchasing travel

• The total trip spend on leisure travel to Australia by Germans was AUD$792 million in 2023, growing by 115% compared to 2022, while the average trip spend was AUD$3,136, growing by 15% compared to 2022 (Source: IVS 2023).
  
• Canadian consumers prefer to prearrange many of the optional components of their Australian holiday. They are very independent and resourceful travellers, feeling they will get better value with a customised itinerary compared to a packaged trip.

Special Interest

• Canadian travellers show a willingness to pay a premium for experiential and eco-friendly travel products and services.

Planning a visit to market

Top tips for sales calls

• Building relationships with sales agents and management is critical to the sales process. It may take more than one meeting to see tangible results.
• Most agencies and tour operators will be more receptive to new promotions or product offerings that will benefit them. They are also eager to get reassurance that the service levels in destination are returning to pre-pandemic levels.
• Follow-up all sales visits with a summary of the meeting via email.
• The best time to visit is in the spring season, April to June. The summer months can be problematic as many Canadians take vacations during this time as their children are on summer recess. It is advisable to provide a minimum of one week notice prior to the visit because many tour operator and retail staff are still working at home (fully or partially) post pandemic.
• Dress is varied depending on the company however as a rule, business-casual attire is suggested for most meetings.
• The key major markets to visit are Toronto (where most major tour operators and retail head offices are located), Vancouver, Calgary and Montreal. Ottawa, Winnipeg and Halifax are considered secondary markets and you won’t find many tour operators.
• If you plan to conduct sales visits in the province of Quebec, it is advisable to bring French collateral and sales materials (or at least one flat sheet with key highlights of your product in French) if possible. For destinations in Quebec outside of Montreal, it is recommended to send a Francophone sales representative as you may encounter difficulties communicating in English.
• For more general information on sales calls and planning a visit to market, please see Tourism Australia’s 'Tourism Export Toolkit'.