I am writing as your constituent and as a member of the Association of Canadian Travel Agencies (ACTA) to draw urgent attention to the state of Canada’s travel agencies and propose critical support measures that will help our industry to survive and recover from the COVID-19 health and economic crisis.

 

As 2021 approaches, our business will continue to be in a dire financial situation, and without further government support, our industry will face devastating and widespread bankruptcies. ACTA has outlined and provided extensive reasoning for a 6-point plan to the federal government, to support travel agencies, of which 90% are small businesses, and travel agents, of which 75% of the workforce and self-employed entrepreneurs are women, through the continued COVID-19 pandemic into 2021.

 

In summary, this plan includes:

1. An increase to CEWS to the 85% level which was the rate for July and August.
2. Amendments to CERS to 90%, as there is no business for travel agencies to book due to government imposed travel restrictions.
3. An extension to CRB to June 30, 2021.
4. Inclusion in an airline aid package.
5. A proposed travel industry subsidy to assist with fixed expenses, and amendments to the BCAP as most of our businesses, by simply being in the travel industry, were deemed too “high risk” to access the BDC/EDC loan facility.
6. A plan for the government to work with industry to develop clear criteria for re-opening borders and future travel advisories when it is safe to do so, including a travel incentive program.

 

The recent announcement by the Minister of Transport that the government is working on an airline aid package, contingent on passenger refunds, has put travel agencies in a precarious situation. We understand the need for this aid as airlines have also been significantly impacted by the pandemic. Some airlines and tour operators have also recently announced the option of refunds for flights versus future travel vouchers. While we understand this action taken as the responsible step to compensate passengers who do not want a future travel voucher, we need the government to understand the unintended consequence of refunds on travel agencies and travel agents. Our businesses are unique in that we are subject to a recall of travel supplier commissions. These actions make it is impossible for travel agencies and travel agents to pay back commissions on COVID-19 affected bookings as we have already completed the work, and have used or earmarked these commissions to pay mandatory expenses including wages, rent and other fixed expenses.

 

Furthermore, the situation is more challenging as the airlines have direct access to remove funds from a travel agency’s bank account. If a travel agency disputes the recall of commissions, we have the potential of losing their ability to book with not only the airline in question, but also any airline in the world in the future.

 

I urge the government to consider the devastating impact that the recall of commissions will have on my business, and all Canadian travel agencies and travel agents. The estimate for commission recall of all Canadian Travel Agencies will be $200 Million and if collected would result in the bankruptcies of most travel agencies. We need the government to step in, and provide travel agencies with a grant to cover recall of commission, or include travel agency recall commission in airline aid packages with a condition that travel agency commissions on airline and tour packages cannot be recalled.

 

Travel agencies and travel agents play an incredibly important role in the Canadian travel industry ecosystem. We are located in every province, town and Main Street in Canada, and we strongly enhance the overall competition of the Canadian Travel Industry. With your support, we will be able to recover from the COVID-19 pandemic and continue to provide a valuable service to Canadians.

 

To send the letter, please visit acta.ca

 

 

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