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All about the Travel Business in
the Province of Alberta, Canada

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Travel Agency Regulations in Canada are a provincial jurisdiction. I have an extensive background in dealing with Alberta Travel Agency issues and requirements. Want to start a travel agency, want your own home based travel business, dealing with agencies other provinces? As well, there are some little know issues you should know about if you are doing business in Alberta. Why I believe I am qualified.

What Provincial Licences or Registration is required in Alberta? - None! There are no Provincial Registration, Licence or Seller of Travel requirements to be a travel agent or operate a travel agency in Alberta. Please note municipal requirements below.
Consumer Protection - there is no consumer protection or assurance fund in Alberta.
Province of Alberta:

AIC - Alberta Insurance CouncilTHIS AFFECTS YOU if you are selling Travel Insurance (medical, trip cancellation, baggage etc.), A licence is required - it is referred to as a  "Certificate of Authority. It is a "designated individual" that is licensed and they must be "recommended" by the insurance company. Each individual agent does not have to have a license, they are to be listed under the Certificate of Authority.
Restricted Certificate Holderpdf-1.gif (1192 bytes) for more information
AIC (780) 421-4148 (Edmonton) or (403) 233-2929 (Calgary).


Direct Selling Business 
Licence
A direct selling business is the business of soliciting, negotiating or concluding sales contracts in person at any place other than the sellers’ place of business. These contracts are for goods or services that will be bought by an individual for primarily personal, family or household use.
THIS AFFECTS YOU if you deal (sell travel, discuss prices, receive payments) with your clients in their office, their home, at a coffee shop or over dinner you are required to have this license.

Fair Trading Act Travel Clubs pdf-1.gif (1192 bytes)
THIS AFFECTS YOU if you charge clients an annual fee of more than $200, sell travel club memberships, "wholesale travel for life" or any other type of annual fee that is over two hundred dollars.
This regulation does not apply to: travel agencies booking vacations as long as they do not sell travel club memberships; and travel club contracts in which the total amount paid to enter into the contract, including any ongoing or periodic fees, is less than $200 where there is one adult member in the household, or $400 if there are two or more adult members in the household.

Internet Sales Contract Regulationpdf-1.gif (1192 bytes)
THIS AFFECTS YOU if you have a travel website providing real time travel bookings.
Operating a business from home:
Operating a business from home requires meeting the zoning by-laws controlling property uses in your municipality. In many jurisdictions zoning approval is required and then a business license is obtained.
Business License -
Calgary: not required for a travel agency in Calgary but if in doubt, call the City's Finance Department, License Division at 268-5521 (fax: 268-2291)  For full contact Information
Licenses for home-based businesses
There are two types of licenses for home-based businesses: home-based occupation, and a home-based business. Home-based business licenses are granted so long as the nature of the neighborhood is preserved, since your neighbors bought their homes without prior knowledge of your business.
A home-based occupation Calgary (Class 2) covers many small businesses. This is likely the appropriate licence if: you have a partner, want to have people visit your home, or have an employee work at your home. The Class 2 licence costs $158, and forces certain restrictions:

A home-based business Calgary (class 1) business licence is suitable for a small home business, such as consulting services or where you do most of your work outside the home. You can even use this licence if you are buying and selling goods using a post office box. The cost for this is $25.
More Information

If you have any questions about which licence class is appropriate, call Calgary city hall at (403) 268-5351
Business Licence -
Edmonton - . You need a City business license, your application can be taken over the phone. When you pay for the licence notice, your application will be processed. (phone 780-496-5233)

Licenses for home-based businesses
There are two types of licenses for home-based businesses. The fundamental issue with granting home-based business licenses is the preservation of the nature of the neighbourhood, since your neighbors bought their homes hot knowing about your business beforehand.
A "major home-based occupation" can cover many small businesses. If you have a partner, want to have people visit your home, or have an employee work at your home, then this is probably the licence class for you. The cost for a "major home-based occupation" licence is $80. You must also comply with certain rules:

To view the actual bylaw text: Major Home Occupation Bylaw #5996
To make an online application: Home Occupation Application.
Minor Home Occupations are those that are considered to have no impact on the neighbours, and are basically invisible (that is, nobody notices that a business is being run). Typical businesses would be consultants, computer programmers and other service oriented businesses where the proprietor goes to the customer rather than the customer coming to the home. The application fee for a Minor Home Occupation is $20.00. A Minor Home Occupation must follow these rules:

More Information

To view the actual bylaw text: Minor Home Occupation (Bylaw #5996).
To make an online application: Home Occupation Application.


All businesses in the City of Edmonton are required to pay business tax. Check with Business Assessment (City of Edmonton, Corporate Services) at 780-496-6388

Trade names are not registered with the city but with Alberta Municipal Affairs (780-427-4088).

If City Business Licensing advises you that a development permit is needed, please phone 780-496-3100 to find out what you need to apply

Business License -
Other Centres
For further information regarding municipal regulations and licenses, contact the clerk of the city, town, village or rural municipality where you plan to do business.  For links to doing business in all 15 Alberta Cities (Airdrie, Calgary, Camrose, Cold Lake, Edmonton, Fort Saskatchewan, Grande Prairie, Leduc, Lethbridge, Lloydminster, Medicine Hat, Red Deer, Spruce Grove, St. Albert, and Wetaskiwin) go to: http://businessgateway.ca/en/hi/prov/ab/communities.cfm

 

Other Provinces:
THIS AFFECTS YOU if you are a home based travel agent in Ontario or British Columbia
British Columbia - Buying Travel Services, Travel Assurance Fund  or the Travel Agents Act - You must be hosted with a BC registered agency. Out of province hosts not permitted.
Ontario - TICO - If you are a home based agent, you must be hosted with a registered Ontario agency (no out of province hosts)
Saskatchewan, Manitoba, Atlantic Provinces - similar to Alberta in that there is no licensing required except for insurance, in Sask it is mandatory to have E&O insurance if you are selling travel insurance
Quebec - is regulated by The Travel Agents Act

What is:
IATA, International Air Transport Association
AgentHome
Area 1 (Canada & Bermuda) Forms for Accreditation, Satellite Ticket, Notice of Change
The requirements for becoming an IATA Approved Agent are set out in detail in the Travel Agent's Handbook and Guide to Automation which is published by  IATA. The rules, or resolutions as they are known, have been developed by airlines and travel agents and approved by all of the  IATA member airlines. Anyone considering becoming an  IATA Approved Agent should obtain a copy of the handbook from IATA.
The handbook can be obtained from:
The Senior Passenger Agency Officer International Air Transport Association
2000 Peel St. Montreal, PQ, H3A 2R4
Tel: (514) 844-6311 Fax: (514) 844-8657

Travel Agents wishing to become IATA Approved Agents must apply to IATA using the prescribed forms and pay the required fee. The IATA application fee is currently $884.89 inclusive of taxes. ($920.29 in Quebec).
The application package can be obtained from:
The Senior Passenger Agency Officer International Air Transport Association
2000 Peel St. Montreal, PQ, H3A 2R4
Tel: (514) 844-6311 Fax: (514) 844-8657

ITSS,   Travel Settlement Services - administered by IATA

BSP, Billings and Settlement Plan - Industry Distribution and Financial Services (IDFS)

BSPlink, the global interface for travel agents and airlines to access the IATA Billing and Settlement Plan (BSP).

TIDS
,  Travel Industry Designator Service
(Non- IATA agents)  number
Application form pdf-1.gif (1192 bytes)

TRUE
, (USA) Travel Retailers Universal Enumeration number Available thru ARTA - Application formpdf-1.gif (1192 bytes)

Travelsellers.com (USA) - from NACTA

Travel Associations

ACTA (Association of Canadian Travel Agencies)
You are eligible for membership if you have a valid IATA or TIDS number. $150 to $750 depending on number of personnel. Membership is in the company name.
Retail Application form

CSTAR
(Canadian Standard Travel Agent Registry)
Retail agencies Application form $500

OSSN
(Outside Sales Support Network) - USA
application by mail or online with a credit card. $125 to $345 USD depending on individual, couple, agency, supplier, new or renewing.

NACTA
(National Association of Commissioned Travel Agents)- USA
Retail Application $85 to $175 USD depending on new, renewal, two agents

ARTA
(Association of Retail Travel Agents) - USA

ASTA
(American Society of Travel Agents) - USA

CLIA
(Cruise Lines International Association) - USA



For a listing of travel associations and acronyms.

Commercial Location:
Should I be IATA appointed / BSP
Should I Have a TIDS number / ITSS

Home Based Business:
Host Agencies
Should I have a TIDS number / ITSS
Travel Industry ID Card - administered by ACTA
Info and qualifications for the card
$85.00 for two years
$60.00 for two years for ACTA members; CSTAR will refund $25 of the $85 to their members

ID Card Application Form pdf-1.gif (1192 bytes)
Business Operations
What form of business entity: Proprietorship, Partners or Incorporation?  Advantages & Disatvantages - Corporation, Sole Proprietor, Partnership, Limited Partnership
Trade Names

Employee or Self Employed?

Business Number (BN)
You should also get a Business Identification Number (BIN) from CCRA (Canada Customs and Revenue Agency) , which is also your GST number (no expenses qualify for a GST refund until you have a number!!). If you expect gross revenues over $30,000 you are required to collect and remit GST, and need a BIN number. Contact CCRA, Taxation, GST at 403-221-7900 (Calgary).

E&O Coverage

Taxation
CCRA (Canada Customs and Revenue Agency)
Business Enquiries line 1-800-959-5525
Other Resources

GST and Travel GST/HST information for the convention and travel industry. Zero rated travel, when GST is not collected.

Employee or Self Employed? CCRA (Canada Customs and Revenue Agency) guidelines
THIS AFFECTS YOU if you are an independent contractor or commissioned sales agent
http://www.ccra-adrc.gc.ca/E/pub/tg/rc4110/rc4110ed.html

Revenue
What will the airlines pay?
http://www.exclusivevacations.com/acta/commission.htm

Getting Started:
Travelfacs - Link Resouces for Sales, advertising, marketing , buyer's guides, forums, publications, events, calendars - all for the travel industry

Business Names - Registering Trade Names, Partnerships and Limited Partnerships in Alberta
Corporate Registry Service Delivery
Basic Services

Corporations - Incorporating an Alberta Corporation, List of Corporate Forms
Corporate Registry Service Delivery
Level 1 Services


Spend a week with a professional:
An introduction to the business by spending a week "job shadowing" an independent consultant who has started and is running their own travel business as an independent contractor. Get the facts and "how do I's ?" This individual has over 25 years in the industry and can help you avoid the pitfalls.
$500, the best investment you can make before you invest. Contact me for details and available weeks

Business Resources Links:

Calgary Business Information Centre

Alberta Economic Development - Starting your business

Canada Business Service Centres - Network of Business Information and Services

The Business Link - Gateway to business information for Alberta, Information about starting or expanding a business including government programs available

Alberta First - Small Business Guides

Library of Business Articles is part of CONTACT! The Canadian Management Network . It is an online library containing hundreds of electronically-retrieved articles and self-help guides by business experts, including Your Guide to Government of Canadian Services and Support for Small Business 1998-1999 by Industry Canada. Articles are divided into themes: accounting, business plans, competitive intelligence, electronic commerce, finance, home business, human resources, innovation, internet, legal, marketing, media, networking, newsletters, operations, product development, research SME statistics, sales, starting a business, taxation, and trade.

barlowb@shaw.ca
403-244-9368 (Calgary)

March 10, 2003
Travelfacs