FINANCIAL PROTECTION
Travellers have never been so well protected

Are you planning a trip within Canada, to the South or to distant shores? Did you know that if you deal with a licensed travel agent in Quebec, you will now enjoy even better financial protection?

Since the new Regulation respecting travel agents came into force on November 11, 2004, you can receive compensation faster thanks to the Fonds d’indemnisation des clients des agents de voyages [compensation fund for customers of travel agents]. If a carrier is not able to meet its obligations, you can now receive reimbursement of up to $3,000 per person per trip directly from the Fund. However, total claims may not exceed $3,000,000 per incident. Instead of reimbursing you, the Fund may provide the money needed for you to leave immediately on your trip or to be repatriated.

Besides the financial protection provided by the Fund, you are also better protected by the individual security offered by travel agents, which has been reviewed and, in most cases, increased.

Simpler and faster compensation

With the creation of the new Fund, your remedies have been simplified in the event that a supplier of services such as a carrier or cruise-ship operator defaults. Thus, you no longer have to seek relief by bringing a court action for compensation against your travel agent. For this to apply, however, you must deal with a travel agent offering retail services in Quebec. If you deal directly with the supplier, you are not protected by the compensation fund.

Note also that if your travel agent has failed to meet its obligations towards you, you can still receive compensation or reimbursement from the travel agent’s individual security. If that is insufficient, the Fund will step in and make up the difference.

A single compensation fund for Quebec travellers

The amount of your contribution is set by regulation at $3.50 for each $1,000 of tourism services purchased from a retail travel agent in Quebec. The receipt for the transaction issued to you informs you, as a consumer, of exactly how much you pay to ensure that you are protected financially if problems occur. For example, your contribution is $1.40 if the cost of the tourism services purchased is $400 and $4.20 if the total cost is $1,200. When these tourism services are taxable, the amount of your contribution is also taxable.

Protection provided by your travel agent

The compensation fund for customers of travel agents provides protection in certain circumstances. Furthermore, each licensed retail or wholesale travel agent must also provide the OPC at all times with individual security. Since November 11, 2004, new individual security tscales, increased in some cases, are in effect for all licensed retail or wholesale travel agents.

Conditions of reimbursement if a trip is cancelled

When you purchase your trip, your travel agent must give you a document such as a brochure stating the conditions under which reimbursement will or will not be made in the event of cancellation. However, these conditions may be indicated to you by word of mouth if the services are purchased less than seven days before your trip begins and otherwise than in the presence of the travel agent (for example, when you reserve by telephone).