A Travel Agency’s Permit to Sell
By: Jonalyn Mesias
In Quebec, a Travel Agency, must have a Permit to Sell Travel. This permit is issued by the “Office de la protection du consommateur” (Consumer Protection Office) and imposes rules & regulations on Travel Agents, in order that there is the least financial risk possible when purchasing an airline ticket or vacation package. The owner of the agency and all agents who are employed by the Agency are governed by that Permit. Most Important and Rule No. 1 is that any payments received by a Travel Agency must be deposited in a “Trust Account” wherein the money deposited legally remains the property of the customer until such time as they have received the Travel Documents purchased and paid for. The Travel Agency is forbidden to pay any operating or other expenses from that account, or remove any commissions earned until such time as the customer has received their Valid Travel Documents. Accordingly, when you pay your hard earned money to a Travel Agency, always ensure that they have an “OPC Permit”, and don’t be shy to ask to see the permit. It is your right, and your protection.
Another Important Rule administered by the “OPC” via Permitted Travel Agents is the collection and registration of the “Fonds d’indemnisation des clients des agents de voyages” which in short, due to space limitations, is the mandatory collection and registration of your Travel purchase in a Government Fund amounting to 0.35% ($3.50 per $1000.00 Value) of all Travel Services sold in Quebec, which then is held by the Government to use for various travel related reasons, but for one example, – in the case of a failure to be able to provide the service purchased, i.e. bankruptcy by an Airline which would result in Quebec Residents abroad having to purchase a return ticket, you would be compensated for your additional expenses.
In many cases this mandatory contribution is already included in the price quoted for your Airline Ticket – But make sure it is illustrated on a separate line item on your Travel Invoice – In order that it is perfectly clear should you run into a problem, that the premium has been paid. Only a Travel Agency with a valid permit can register your Travel Purchase and ensure you are fully protected. You can see more information on this program at www.partezprotege.gouv.qc.ca. In addition to regular or part time employees, a Travel Agency sometimes has arrangements with independent sales agents, often referred to as “Outside Agents”. An outside agent can sell Travel on behalf of an Agency with whom they have made an arrangement, but then can only sell on behalf of that particular Agency. All the Trust Account and OPC rules are taken care of by the host agency on behalf of the outside agent. However, an outside agent working and selling on behalf of more than one Travel Agency would in fact make them technically a Travel Agency themselves – and this is not permitted.
Once again, always make sure your independent agent has a valid agreement with an Agency who holds a permit, that all money paid is deposited to that Agencies Trust Account, and that your purchase is reported and premium paid on the Gross Amount of the purchase to the OPC Indemnity Fund in order to avoid any difficulties should you need to file a claim. Airline Tickets to the Philippines are an expensive proposition. Always protect yourself by making sure the Agent of your Choice has a permit, and registers your purchase for the indemnity funds.
