AirBNB, Uber and Lyft are all part of the new 'sharing economy' and have all been on the wrong end of regulators. And peer-to-peer travel website, TRVL.com, is no different.
TRVL.com is a website whose aim is to turn everyday people into travel agents. But they were no match for the Travel Industry Council of Ontario (TICO) and the company has announced that it will discontinue operations in Ontario, and not allow Ontario consumers access to the site.
The peer-to-peer website which allows consumers to recommend hotel chains, airlines and car rental companies, and earn a commission for doing so, started operating in Ontario in June of this year and it wasn't' long before they were on TICO's radar. Shortly after launching, TICO contacted Jochem Wijnands, the founder of TRVL, stating that his company was not registered with TICO yet had staff consulting on travel, which contravenes Ontario's Travel Industry Act.
"Anybody who is selling travel in the province... must be employed by or otherwise aligned with a registered travel agency in the province of Ontario," Richard Smart, TICO's president told the CBC.
"We see this type of thing happening everywhere." said Wijnands, comparing his company's struggles to others in the sharing economy who hit at so-called legacy industries. "The legacy professions hide behind certain rules that they think will give them protection."
So how does it work, you ask? TRVL is essentially running a referral service, sending business to Hotels.com or Booking.com, who in turn, pay a commission to TRVL for the referral.
"Take a peek behind the curtain of the travel world. You'll get access to the best hotel prices and become part of the fastest growing community of global travelers." and "TRVL is breaking down the traditional barriers of the travel industry and putting you in control.". Those are the just two of the enticing quotes from the TRVL website.
Users sign up on the TRVL website and when they refer friends, family, co-workers, or anyone frankly, to book a hotel, flight or car rental, they send that person a unique, shareable link. If the person books, then TRVL is able to track the booking and will split the commission with the TRVL Agent.
And that's where TICO has a problem. The Travel Industry Act of Ontario, 2002, states that "No person shall act or hold himself, herself or itself out as being available to act, as a travel agent unless the person is registered as a travel agent under this Act…"
Wijnands disagrees, saying that the platform's users aren't travel agents and says that TICO is protecting registered travel agents and not consumers. However the site's users are referred to a TRVL Agents on their website.
"TRVL is a peer-to-peer booking platform that breaks down the traditional barriers of the travel industry and puts travelers in the driver's seat." the website states. "For the first time, you can earn a commission on every booking, for your travel group and others. For the first time, you can recommend and share trips and earn a commission. For the first time, you can own a travel booking website, for free, and set up shop like a TRVL Agent. We're changing how millions of people book their holidays."
Hmmmmmm, sounds like a travel agent to me.
TICO eventually offered a solution, which was to register with them and set up an office in Ontario, or stop providing access to the service to Ontario, which TRVL eventually did. For how long, we'll have to see.
The TRVL website uses location technology to determine which visitors are in Ontario and blocks access, simply displaying a notice that reads "Due to restrictions set by the Travel Industry Council of Ontario, TRVL is currently not available in Ontario. We are working to resolve this issue soon."
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