Competition Bureau probing travel tour industry

The federal Competition Bureau has launched an investigation of the Canadiantravel tour industry following a complaintfromGo Travel Direct of possible anti-competitive actionsby some of its rivals.

"The information suggests there had been possible illegal practices conducted by tour operators unfairly putting pressure on Go Travel Direct, which is in direct contravention of the Competition Act,"Go Travel Direct said in a statement.

Travel company Transat A.T. — the operator of Air Transat — issued a brief announcement Thursday morning sayingithas been contactedby competition authorities.

"Transat A.T. Inc. confirms that the Competition Bureau is currently investigating members of the travel industry, including Transat," the travel company said. "The company is co-operating fully with the authorities concerned."

The Competition Bureau confirmed it was looking into "alleged anti-competitive practices by certain companies in the tour operator industry," a spokesperson told CBC News Online.

Diane L'Ecuyersaid the bureau began searches at several tour companies in Toronto and Montreal this week, with warrants obtained from the Quebec Superior Court. But she declined to say how many companies are being targeted or identify them.

She said the investigation is looking at alleged violations of the Competition Act.

Go Travel Direct said its competitors don't like its business model, which cuts travel agents out of the picture by sellingflights directly to the public.

The online travel publication, TRAVELHotNews.com, reported thatthecaseinvolves the contracting of hotels in sun destinations dating back as far as the 2001-02 season.

Go Travel Direct was launched in 2000. It operates winter flightsfrom Canada to several southern destinations.