Canadian consumers must beware of too-cheap vacation deals from travel companies that dodge rules and regulations. This warning comes from David McCaig, President and COO of the Association of Canadian Travel Agencies (ACTA) as consumers look for bargain deals in a tight economy.

McCaig points to several infamous closures of tour suppliers, saying "Their customers can tell you about the supposedly cheap vacations that turned into expensive nightmares."

The head of the national trade association said today ACTA is asking federal Transport Minister John Baird to develop a tougher approach for travel companies that mislead consumers. ACTA wants safeguards such as bond programs for tour operator start-up companies. The association with 2,600 member companies also demands a national consumer compensation fund to help repatriate Canadians stranded around the globe by the closure of travel suppliers.

In his alert, McCaig says some travel companies may have ‘colorful business histories’ but resurface, sometimes repeatedly, under different names after leaving travelers in the lurch.

According to McCaig, a travel company might move to or set up in a province without regulation to avoid an unsavory past and to avoid the rules in the provinces that do regulate travel agencies. "Federal action is needed to protect consumers in every province and territory."

The President of ATCA, representing 18,000 retail travel professionals across Canada, asks consumers to ‘do the math’. "Learn to compare prices on travel destinations and services you want; it’s unlikely you’ll be able to stay at a five-star hotel for $19 a night," he says.

"Travel agencies provide trained travel councillors who can verify a bargain offer from a supplier and provide great guidance for travellers," says McCaig.

"ACTA works hard to educate the public and ensure that consumers have a right to protection," adds McCaig, "and the federal government should work with us on clamping down on rogue travel companies."