Canadian Regulations for Travel Agencies in a Nutshell
We have a 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:
For simplicity's sake, all currency amounts in this article refer to Canadian dollars (CAD)! So if you see $50, that would be CAD50.
⭐️ HAR ARTICLE HIGHLIGHTS: ⭐️
- Canadian Licensing in a Nutshell
- Quebec
- Ontario
- British Columbia
- 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 must comply with each province's regulations.
There are no extraterritorial laws, so agencies that want to operate in or sell to clients in multiple provinces must register for licensing in EACH of those provinces. There's no reciprocity, my friend.
We'll dive into regulations for each province, so buckle up!
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 solo counsellors. This line between solo advisors and agencies 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.
OPC defines an external agent verbatim: "travel agents 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 only need certification (and must operate under a licensed agency).
Here's how to embark on that process!
HERE'S WHAT YOU NEED AS A HOSTED/EXTERNAL AGENT in Quebec
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 for $69, and optional study guides and exam simulations (not required) are also available. The exam consists of True/False questions; applicants must 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: You must hold a Travel Agency Steward Certificate before applying. 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 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 selling under the umbrella of a different brand or do not have the flexibility to take on your 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 and have a bit of 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:
- 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.)
- 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 :)
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 solo counsellors. This line between solo advisors and agencies 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.
OPC defines an external agent verbatim: "travel agents 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 only need certification (and must operate under a licensed agency).
Here's how to embark on that process!
HERE'S WHAT YOU NEED AS A HOSTED/EXTERNAL AGENT in Quebec
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 for $69, and optional study guides and exam simulations (not required) are also available. The exam consists of True/False questions; applicants must 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: You must hold a Travel Agency Steward Certificate before applying. 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 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 selling under the umbrella of a different brand or do not have the flexibility to take on your 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 and have a bit of extra bureaucratic fun. Here's the deets:
How to Get a General Permit in Quebec
First things first, Quebec's Travel Counsellor General Permit has two categories:
- A General Permit is required for 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.)
- Restricted License: Three types of restricted licenses 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. (Probably not you.)
For 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 90 min. 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 must pass the exam before your license renewal date.
2. Permit Application: To qualify for a permit, agents must fill out this application, pay fees, and pass the Travel Agency Manager Exam. (Here's a guide on filling out the application.)
3. Permit Costs: A general permit costs $92/mo for the main establishment and $58/mo per branch office. 1
4. Financial Requirements:
- Proof of $5,000 in working capital: Assuming this is your first rodeo, you must 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.
- $25,000 Bond: The bond, if needed, compensates 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 must also submit a Merchant's commitment form (so you can't go all anonymous superhero and sell travel under cover of night). However, there are four different options for submitting your security bond, each with its flavor! Like the financial requirements, your bond amount will increase as you renew your license annually, depending on your agency's earnings.
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 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
more straightforward process for hosted advisors, who only need to a.) align with a TICO-certified agency and b.) have a "pass certificate" (proof they passed the TICO exam).
If becoming an advisor under the umbrella of a host agency doesn't suit you to the full glory of a Canadian Tuxedo, then the process is more rigorous.
What does this mean? In addition to passing the TICO exam, you'll need to undergo some fun bureaucratic procedures to get your travel agency up and down with Ontario.
Lucky for you, dear Ontarian, we outline both processes below!
Licensing for hosted advisors in Ontario
In addition to the regular rigamarole of becoming a travel agent, Ontarians have a few things to consider to keep them on the up and up. The good thing is that it's relatively simple. All you need to do is:
- find a TICO-registered host agency, and
- pass (TICO) Education Standards Exam
Here's how to check those boxes for the steps to become a travel advisor in Ontario.
How to find a TICO-registered agency:
There's two options for finding a TICO-registered agency.
- Go straight to the source: TICO Travel Agency/Website Search Directory
- Use HAR's Host Agency Filter: You can also use HAR's filter to see who accepts Ontarian advisors.
- Go to HAR's complete host list
- Click more filters
- Select "Ontario" under "Seller of Travel State"
Voila! Now you've got options. Tons and tons of options. Want to narrow them down further? No stress. You can download our Host Comparison Chart below.
Exam Costs:
So, here's the info that will help ensure 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. If you take the test and don't pass, it's $24 every time you retest.
The good news is that the study guide and sample tests are free! Yes, they really are! All you have to do is start a free myTICO account.
Want more info? Check out TICO's site on the exam process.
To start your travel agency, your business with Ontario on the provincial and federal levels (Go here for the provincial and federal applications).
Registering as a TICO agency will require much more moola and legwork (beyond registering your business in Ontario). You can find more specifics on the requirements of the TICO agency registration on their site, but we've summarized the requirements below.
Please note that if you're starting your agency in Ontario, someone (maybe you!) must be your location's dedicated supervisor/manager. If this is you, you must fulfill those requirements or appoint someone else in your agency!
Eligibility requirements:
- Bare basics: You need to be 18 years old and a resident of Canada
- Prove you're you: with a photo ID, background check, a Stakeholder Declaration Form (and more if you're a corporation or holding company).
- Background check
Financial requirements:
- There's a $3,000 application fee for new agencies.
- You need to show financial statements proving you have $5,000 in capital to work with
- A $10,000 security deposit via a letter of credit or a registered cheque. (This is returned to you after two years of showing you won't rip anyone off.)
- Financial statements
Proof of two bank accounts designated as "General Account" and "Travel Industry Act Trust Account." (Here's more info on a trust account.)
Paperwork:
- Business information (You can use HAR's Travel Agency Business Plan Template if you need to put one together)
- Proof of business name and registration (You can register your business on the provincial and federal levels.)
- Key Stakeholder Declaration Form
- A corporate organization chart shows if your structure includes multiple companies.
Extra fun for managers/supervisors:
- Minimum of three years of industry experience
- TICO education certificates for counsellor and supervisor/manager exam
- Supporting documentation such as a CV alongside letters of reference, tax/income/employment records
Extra fun for corporations/holding companies:
The big extra for corporations holding companies is that they must also submit a Key Stakeholder Declaration Form in addition to all the above requirements.
Another key thing to know if you're a corporation or holding company is that your application must include information for every stakeholder—each partner, officer, or agency director.
This means each stakeholder needs to provide an ID and background check, disclose bankruptcies, be a Canadian resident (which does not apply to corporate or partnership applicants), and fill out the Corporation Shareholder Information Form. If you forget something, they've provided a handy-dandy checklist here: Registration Checklist for Travel Sellers.
A few final notes for once you get up and running:
- Renewal Fees: Annual renewal fees will depend on your sales volume and whether you're a main or branch office. Check this out for details.
- The TICO agency registration is NOT transferable. So, if you want to buy an agency, know that re-registering costs will be significant.
- Branch offices have lower application fees ($800) and a simplified application process. Go here for those details.
Ontario Licensing Documents, at a glance
Woof. That's a lot. Below is a list of resource documents to help you get Ontarian licensing for your agency. (All you need, and maybe more!)
If you get tangled up, your best bet is to go directly to the source. Here's how to contact TICO with any questions about your travel agency licensing registration.
TICO Contact for Registration:
- Phone: TICO's registration department at 905-624-6241 ext. 291 or 1-888-451-8426 ext. 291
- Email: registration@tico.ca.
British Columbia Travel Agency Licensing Regulations
In BC, you'll need licensing regardless of whether you plan to be a hosted travel advisor or want to get your travel accreditation. Big picture, if you want to get licensed in BC, here's what you need to do:
- 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)
- 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 an extensive whopping checklist of steps needed to get licensed in BC:
However, the process will differ for hosted advisors compared to independently accredited advisors. Below is a bit more detail:
Four 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 is that branch offices can operate under their travel agency business name and branding!
The other good news for all y'all hosted advisors is that this route is lighter on the paperwork.
Here are the steps to get licensed:
- Provide your municipal business license.
- Set up a business phone number (it must be public, searchable, and clearly listed on your website, invoices, and other public documents.)
- Fill out a branch location license form.
- [For home-based advisors only] Fill out this form if you want to operate your business from home (regardless of whether or not you'll be receiving clients there).
- Get knowledgeable about lots and lots of rules and regulations.
Get more details about licensing your travel agency in BC!
Nine steps to get licensed as an independently accredited advisor in British Columbia, Canada
It's fun for you; you get to fill out a lot more paperwork than your hosted peers! Here are the nine steps to get licensed as a "head office" in BC.
- Provide proof of registration or incorporation. (Go here to register your sole proprietorship or general partnership.)
- Provide your municipal business license.
- Get a criminal record check (for Canadian residents).
- 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.)
- Set up a business phone number (it must be public, searchable, and listed on your website, invoices, and other public documents.)
- Provide financial information. (This ensures you have enough working capital to operate.)
- Fill out a branch location license form.
- [For home-based advisors only] Fill out this form to operate your business from home.
- Get knowledgeable about lots and lots of rules and regulations.
Get more details about licensing your travel agency in BC!
List of Canadian Hosts by Province
Great news! It's easy to find Canadian hosts by province on our host list! Here's how to do it.
- Go to our full Host Agency Listing
- Select the "More Filters" gray box for a drop-down to help narrow your choices.
- Under "Seller of Travel," select which province you want your host to support!
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 this (but you're dang smart!).
Canadian + Fees.
This last part doesn't necessarily have to do with regulations, but since you've read the entire way through this, 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 special thank you to a few experts who weighed in! Thank you to Marcela Guzman, Marketing Coordinator for Travel Masters, who offered insights into the most recent iteration of this blog update!
Mike Foster and James Shearer weighed in on the original publication of this article back in 2020. Do you have thoughts, comments, ideas, or experiences you'd like to share? We want to hear from you!
Editor's Note: This blog was originally published in Feb. 2020 and was updated and republished at the date listed on the article.
Footnotes
