Canadian Regulations for Travel Agencies in a Nutshell

We have a pretty comprehensive article on US Seller of Travel Laws (SOT), but we don’t want to leave out our neighboring Canadian travel agents.

In our 2024 Travel Advisor Survey, more Canadian advisors completed Host Agency Reviews' Travel Advisor survey than ever before. During Host Week, we have a day centered around the host agencies that cater specifically to Canadian advisors. Plus, from a design standpoint, the Canadian flag is pretty awesome.

Want to fast-forward to a specific province? Here you go:

⭐️ HAR ARTICLE HIGHLIGHTS: ⭐️

1. Canadian Licensing in a Nutshell [+infographic]
2. Quebec
3. Ontario
4. British Columbia
5. A List of Canadian Host Agencies, by Province

Canadian Travel Agency Licensing Regulations in a Nutshell:

Three provinces have specific regulations for selling travel—Quebec, Ontario, and British Columbia. In short, this means that if you are a travel agent that operates your business in any of these provinces OR if you sell to any residents of those provinces, you need to comply with each province’s regulations.

There are no extraterritorial laws, so agencies that want to operate in or sell to clients in multiple of these provinces will need to register for licensing in EACH of those provinces. There’s no reciprocity, my friend.

Here it is, simplified into a nifty infographic:

Of course, that's just the beginning. Read on for more details on each province's regulations.

Quebec Travel Agency Licensing Regulations

Quebec is a bit complex, and not only because my French is veeeeeeeery rusty. But, in the spirit of licensing, there are oodles and oodles of bureaucratic hoops to jump through.

Like most licensing requirements, the Quebec Office of Consumer Protection (OPC) differentiates between travel agencies and travel counsellors. This is a line that can be pretty blurry for hosted agents, but I’ll bring it into focus below. There are two primary pathways for licensing and certification in Quebec:

1. An agency owner/manager: Requires license and certification

2. An "external agent" (we refer to this as a hosted agent) that operates under the umbrella of a licensed agency and deals directly with clients. Requires certification only. For hosted agents, I don’t want to mince words.

Here’s OPC’s definition of an external agent, verbatim, “travel agents who are contractually bound to a single travel agency. Most of the time, they do not work in the office. These counselors may not receive clients at home unless a duplicate of the travel agency's permit has been issued for an establishment located at their address.”

To become an agency manager, you need a general permit (or restricted permit) and certification. To become an external or hosted agent, you need only certification (and you must operate under a licensed agency).

Here's how to embark on that process!

HERE’S WHAT YOU NEED AS A HOSTED/EXTERNAL AGENT

To be licensed as a hosted agent in Quebec, you must have a Travel Counsellor Certificate. 

The process for receiving the certificate is relatively straightforward. Here’s how to do it:

1. Create an account: To get the ball rolling, create an account through ClicSÉQUR

2. Pass the Travel Counsellors Exam: You can register for your exam through the Institute of Tourism and Hotels of Quebec (ITHQ). The exam runs $69 and there are optional study guides and exam simulations (not required) also available for purchase. The exam consists of True/False questions and applicants need to score 65% to pass.

3. Align with a licensed agency: While you can start researching licensed host agencies earlier in the process, you have two years from taking your exam to align with a licensed agency. Any longer than that, you will need to retake the exam.

4. Request your certificate: Before you even apply, you must hold a Travel Agency Steward Certificate. This runs $69 and you must renew it annually (the renewal is now $35).

The caveat here is that everything you do and sell must be under the umbrella of your host agency (including service fees). This means that, while you can have your own travel agency brand, you will still need to disclose to clients the name of the host agency you sell under, and you cannot accept money from your clients (only commissions from your host).

If you curdle at the thought of selling under the umbrella of a different brand or not having the flexibility to take on your own external agents (aka, independent contractors “ICs”) to grow your agency, don’t fret. You can apply for a Travel Counsellor General Permit. 

To apply for the General Permit, you must do all the above to get your Travel Agency Certificate, plus you get to have a little extra bureaucratic fun. Here’s the deets:

HOW TO GET A TRAVEL COUNSELLOR GENERAL PERMIT IN QUEBEC

First things first, Quebec’s Travel Counsellor General Permit has two categories:

1. General Permit: Required by any agent that organizes trips and makes accommodations or transportation reservations for clients. If you’re a travel advisor or travel company that offers packages that include transportation OR if you provide activities outside Quebec, you need this. (Probably you.)
2. Restricted License: There are three types of restricted licenses that cater to different travel businesses outside travel agencies. These include outfitters, adventure-focused tour operators, and tourist associations that sell accommodation or access to attractions. Restricted licenses are for activities that do not include transport beyond offering a transfer directly between the airport and the outfitter itself. (Probably not you.) 

For the purposes of this resource, I am referring to the General Permit. The Restricted License applies more to on-site guides, accommodations, tour operators, or DMCs (Destination Management Companies). While we dabble in all things travel on this site, our bread and butter is travel agencies :) 

How to Apply for a Travel Agency General Permit in Quebec

1. Another exam! Joy! Instead of the Travel Counsellors Exam, agency managers get to take the Travel Agency Managers Exam. It runs $77 and lasts 90min. If you’re taking the exam for the first time, you must pass it before you apply. But if you’re renewing (which you will do annually), you just need to make sure you pass the exam before the renewal date of your license. 

2. Permit Application: To qualify for a permit, agents must fill out this application in addition to paying fees and pass the Travel Agency Manager Exam. (Here’s a guide on how to fill out the application.)

3. Permit Costs: The cost of a general permit is $92/mo for the main establishment and $58/mo for per branch office.¹

4. Financial Requirements: 

1. Proof of $5,000 in working capital: Assuming this is your first rodeo, you need to prove you have $5,000 in working capital. This amount increases with renewal as your agency brings in the moolah. So be sure to refer to the most current numbers based on your agency income if you’re a seasoned rodeo hand.
2. $25,000 Bond: This is used to compensate customers in the event the agency fails, closes, or needs to provide compensation for services promised then not rendered. None of this will apply to you, but it’s a safety net that will help you as much as it will help your clients. 🙂 If the bond is a bearer bond or cash (CHA-CHING!), you will need to also submit a Merchant’s commitment form (so you can’t go all anonymous superhero, and sell travel under the cover of night). However, there are four different options to submit your security bond and they each have their own flavor! Like the financial requirements, your bond amount will increase as you renew your license annually depending on how much your agency earns.

5. Copy of the agency's opening documents and signature from each trust account signed by its financial institution.

6. Register Your Business: Registraire des entreprises du Québec. If your company is registered outside of Quebec, you need a certificate of compliance from Registraire des Entreprises du Québec.

The licenses are issued 15 days after the completed application is received but can be rushed in 3 days if you’re really in a pinch. ² 

Did I mention my French is horrible? If I missed anything, let me know.

Ontario Travel Agency Licensing Regulations—TICO Registration

Travel agents in Ontario, Canada, you’re the most highly restricted. The first thing you need to know is the difference between the Travel Industry Council of Ontario (TICO) Education Standards Exam (or the TICO exam) and being a TICO-registered travel agency.

Every employee working at an Ontario agency that is selling travel/providing advice (and yes, this includes you, supervisors, and managers!) must take and pass the TICO exam. But get this. Even if everyone in your office has taken and passed this test, you aren't legal unless your travel agency is registered as a TICO agency.  

That's right Ontario travel agencies, you need two parts to be compliant:

1. TICO agency registration
2. all employees to pass the TICO exam

Or, on the flip side, if you're a hosted travel agent in Ontario, you need:

1. a TICO registered host agency (search for TICO registered travel agencies)
2. to take (and pass) the TICO exam

So, here's the info that will help make sure you're legal! The (TICO) exam currently rings up at $35 for travel counsellors, $35 for managers/supervisors, and $50 for the combined travel counsellor/manager-supervisor test. Here's a great resource if you're looking for in-depth information on the TICO exam process.

Getting registered as a TICO agency is going to require quite a bit more moola. You can find more specifics on the requirements of the TICO agency registration on their site but we've shortened the list for you. Here's the things that will jump out to you and have you gawking at your screen:

1. There's a $3,000 application fee for new agencies
2. You need to show financial statements proving you have $5,000 in capital to work with
3. You'll need letters of reference
4. A $10,000 security deposit (returned to you after 2 years of showing you're not going to rip anyone off)
5. You need to set up a trust account

If you're already a TICO registered agency, the renewal fee is based on your travel sales:

One last thing to note, the TICO agency registration is NOT transferable. So if you were looking to buy an agency, know that the costs to re-register will be significant. And after all that, if you're still ready to make the leap, here's the registration forms to become a TICO-registered travel agency!

British Columbia Travel Agency Licensing Regulations

In BC, you'll need licensing regardless if you plan to be a hosted travel advisor or want to get your own travel accreditation. Big picture, if you want to get licensed in BC, here's what you need to do:

1. Register your business with the BC Corporate Registry (Tele: 1-877-526-1526, $40 registration fee and $30 name approval fee for Sole Proprietors, or $305 for LLCs)
2. Apply for your license to sell travel through the Consumer Protection BC (Tele: 1-888-777-4393, $1,293 fee for travel agencies/wholesalers and $839 for branch offices).

Here's a big whopping checklist of steps needed to get licensed in BC:

Here's a look at BC's license application checklist:

However, the process is going to be different for hosted advisors compared to independently-accredited advisors. Below is a bit more detail:

4 steps to get licensed as a Hosted advisor in British Columbia, Canada

Hosted advisors are considered a branch office in the eyes of BC. The good news for all y'all hosted advisors is that this route is lighter on the paperwork.

Here's the steps to get licensed:

1. Provide your municipal business license
2. Set up a business phone number (must be public, searchable, and clearly listed on your website, invoices, and other public documents.)
3. Fill out a branch location license form.
4. [For home-based advisors only] Fill out this form if you want to operate your business from home.
5. Get knowledgeable about lots and lots of rules and regulations.

9 steps to get licensed as an independently-accredited advisor in British Columbia, Canada

Fun for you, you get to fill out a lot more paperwork than your hosted peers! Here are the nine steps you need to get licensed as a "head office" in BC.

1. Provide proof of registration or incorporation. (Go here to register your sole proprietorship or general partnership.)
2. Provide your municipal business license
3. Get a criminal record check (for Canadian residents).
4. Obtain and provide financial security. (Cash, Letter of Credit, Surety Bond, or Safekeeping agreement are all acceptable forms. Go to this link for more details.)
5. Set up a business phone number (must be public, searchable, and clearly listed on your website, invoices, and other public documents.)
6. Provide financial information. (This ensures you have enough working capital to operate.)
7. Fill out a branch location license form.
8. [For home-based advisors only] Fill out this form if you want to operate your business from home.
9. Get knowledgeable about lots and lots of rules and regulations.

List of Canadian Hosts by Province

Here's a handy dandy guide to see which Canadian-based host agencies are licensed to operate in the provinces mentioned in this article:

Quebec:

1. Nexion Travel Group-Canada
2. Fareconnect.com
3. Independent by Flight Centre/ Envoyage
4. The Travel Agent Next Door
5. Travel Edge
6. Travel Masters

Ontario:

1. Expedia CruiseShipCenters
2. KVI Travel
3. Newwest Travel & Cruises
4. Nexion Canada
5. Prestige Agent Network
6. The Travel Agent Next Door
7. Travel Edge
8. TravelOnly 
9. Travel Masters
10. Travel Professionals International

British Columbia:

1. Expedia CruiseShipCenters 
2. Independent by Flight Centre/ Envoyage
3. KVI Travel
4. Newwest Travel & Cruises 
5. Nexion Canada
6. Prestige Agent Network
7. The Travel Agent Next Door
8. Travel Edge
9. Travel Masters
10. TravelOnly 
11. Travel Professionals International

If you want to operate your agency in any province outside of QC, ON, and BC, AND you don't plan on selling to residents in any of those provinces, you're in the clear and don't need to worry about of this (but you're dang smart!). 

Canadian + Fees.

This last part doesn't necessarily have to do with regulations but I figure since you've read the entire way through this, that you deserve a little pick me up. And I have just the thing for you.

Take some time to listen to a fellow Canadian who only sells air tickets (no he's not a corporate agent) and has come up with a way to charge a $60-500 ticketing fee for every ticket. 85% of his income comes from fees. Feeling inspired and curious? Have a seat and plug into an episode of our Travel Agent Chatter podcast!

Thank You!

But I'd like to extend a very special thank you to two excellent resources who shared their expertise for this article: Mike Foster, President of Nexion Canada, ULC, and James Shearer, Chief Operating Officer of Travel Masters who offered a ton of great insights and information for this article. 

Do you have thoughts, comments, ideas, or experiences you’d like to share? We want to hear from you!

Footnotes

1. Source: https://www.opc.gouv.qc.ca/en/commercant/permis-certificat/agentsdevoyages/permis/demande/#c20986 ↩
2. If you want to rush your application, you will need to pay 50% of your entire permit. ↩