How much does it cost to set up a travel (group tour) company?

Starting a travel business or group tour company in Canada can vary widely in cost depending on the business model you choose (e.g., host travel agent, independent travel agency, tour operator with guides, physical office, etc.). Below is a clear breakdown of typical costs you should expect as of early 2026:

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1. Regulatory and Licensing Costs (Canada-specific)

Ontario (TICO registration)

If you want to operate a travel agency or wholesaler in Ontario (includes selling group tours):

• TICO registration fee (head office): $3,000 CAD (non-refundable).

• Branch office registration (if you open more offices): $800 CAD each.

• Security deposit/bond: $10,000 CAD held by regulator until compliance is proven.

• Trust & operating accounts setup + accountant costs: Additional but required.  

British Columbia

If you plan to operate in BC instead of (or in addition to) Ontario:

• Licence application fee: around $400–$550 CAD (varies by regulation updates).

• Licence per location: same range annually.

• Working capital & proof of financial security: Required and varies.  

Note: Provincial requirements differ. Ontario has TICO (Travel Industry Council of Ontario) rules; BC and some other provinces have separate regulatory bodies. Always check the local travel regulatory body where you plan to operate.

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2. Business Startup Costs

These are the typical initial setup costs you’ll need beyond licensing:

Business Registration

• Federal or provincial incorporation/registration: ~ $200–$500+ depending on structure.

Travel Agent / Tour Operator Training

• Professional certification / training costs: $35–$500+, or new consolidated certification can be ~$150 CAD.

Training is required for staff that sell travel services under a registered travel agency.  

Trust / Compliance Banking

• Setting up trust accounts (required for consumer money) and general accounts with a bank can include service or setup fees.

Insurance

• Errors & omissions insurance, liability insurance: typically $500–$2,000+ annually depending on coverage.

Technology & Website

• Professional site + booking system + CRM: often $1,000–$5,000+ initially.

Marketing & Branding

• Digital marketing, logos, social media ads: $1,000–$3,000+ in the first year.

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3. Operational Costs (Ongoing)

• Office space (optional): If you lease, set aside monthly rent and utilities.

Small office spaces can cost $1,000–$3,000+ per month in larger cities.

• Staff salaries: If hiring employees (guides, sales, admin), factor payroll.

• Renewal fees: Annual regulatory renewal fees vary by province.

• Working capital: Regulators may expect minimum working capital, sometimes $5,000–$20,000+.  

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4. Typical Total Budget Estimates

These vary widely depending on your chosen model:

Lean / Home-Based Travel Agent via Host Agency

This is the lowest-barrier model where you operate under an existing travel agency’s credentials:

• Setup costs: Often ~$200–$1,000 CAD.

• Monthly fees: Typically ~$30–$100+ per month.

• No major regulatory fees on your own.  

Independent Travel Agency (small scale)

If you actually register your own agency:

• Initial investment: $10,000–$30,000+ CAD typical for modest operations.

• Regulatory costs (TICO, security deposit)

• Insurance

• Website/marketing

• Initial working capital

• Many entrepreneurs report needing at least $5,000–$15,000 CAD to operate professionally in the first year.  

Full-Scale Tour Operator / Group Travel Company

If you sell group tour packages that you design and manage (not just booking travel tickets):

• Budget: Often $50,000–$150,000+ CAD or more.

This includes:

• Supplier deposits and inventory

• Tour manager/guides

• Vehicle/transporting arrangements

• Contracts with hotels, attractions

• Insurance and compliance

• Marketing and advanced booking systems

• Larger working capital reserve  

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5. Practical Business Decisions

Here are scenarios to consider:

• Start as a host-affiliated agent to learn the market and generate revenue before investing heavily.

• Build a niche (e.g., student tours, adventure tours, cultural tours) and scale gradually.

• Budget for compliance and consumer trust funds — these are mandatory especially in Ontario and major provinces.

• Plan cash flow for at least the first 6–12 months without profit.