Industry Advisory - Amendment to Definition of "Travel Services"
The provincial government has amended the definition of travel services in the Travel Industry Act, 2002. The change is one of approximately 70 legislative changes to various statutes contained in the Good Government Act, 2010, which received Royal Assent on March 30, 2011. Section 1 of the Act now defines “travel services” to mean “transportation or sleeping accommodation for the use of a traveller, tourist or sightseer or other services combined with that transportation or sleeping accommodation”. The change to the definition was made to clarify who needs to be registered under the legislation.
Prior to the change, “travel services” meant “transportation, sleeping accommodation or other services for the use of a traveller, tourist or sightseer”. That definition was very broad. As a result, there was some ambiguity regarding whether a person selling services other than transportation or accommodation needed to be registered as a travel agent or travel wholesaler. For example, did someone selling only concert or theatre tickets need to be registered? While such services could be for the use of a traveller, tourist or sightseer, they are also routinely purchased by the general public. If those services are being packaged and sold with transportation and/or sleeping accommodations, they clearly should be covered by the legislation. However, if only concert tickets or theatre tickets are being sold and no other services, that is not really what the Travel Industry Act was intended to regulate. In practice, TICO has always interpreted the legislation in this way. The revised definition expresses more clearly the intent of the legislation.
The change to the definition of travel services is consistent with changes that were made to the definition of travel service in British Columbia. The definition of travel service in the Travel Industry Regulation in British Columbia was changed in 2009 to read as follows: “travel service means (a) transportation, (b) accommodation, or (c) another service combined with transportation or accommodation that is for the use or benefit of a traveller, tourist or sightseer”.
For those currently registered with TICO, the change means that where you are selling “other services” that are NOT combined with transportation or accommodation, those services are no longer considered to be “travel services”. As a result, you would not be required to include them in your sales. Some registrants have expressed concern that it would be time consuming and costly to break out the sales of any “other services” that they sell, which are not combined with transportation or sleeping accommodation when they are reporting sales and making Compensation Fund contributions. If registrants want to continue reporting their sales as they currently do, that is acceptable. However, registrants should be aware that other services, which are not combined with transportation or accommodation, are no longer travel services and would not be covered by the Compensation Fund in the event of a failure. As a result, registrants should advise consumers who purchase such services that they will not be covered by the Compensation Fund. It is important that registrants clearly invoice what the consumer has purchased, for example, a theatre ticket vs. a theatre package with transportation and accommodation as it will impact fund coverage.
Subsection 24(3) of the Travel Industry Act, 2002 was also amended. The registrar is no longer required to get the approval of the director to require a registered travel agent or registered travel wholesaler to file a financial statement under section 24 of the Act.
If you have any questions or require further clarification, please contact TICO at 1-888-451-8426 or (905) 624-6241 or e-mail us at
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