TICO - Travel Industry Council of Ontario Travel Compensation Fund Questions and Answers

Question 1

A consumer purchases a vacation package from a TICO-registered travel agency. The airline providing the flights for the package declares bankruptcy and ceases operations before the departure date. What is the maximum amount the consumer can claim per person from the Travel Industry Compensation Fund?

Accepted Answer

$5,000

Answer

The Travel Industry Compensation Fund provides reimbursement for travel services not received due to the failure of an Ontario registrant or an end supplier, like an airline or cruise line. The maximum payout is limited to $5,000 per person.

Question 2

Which of the following situations would NOT be eligible for a claim against the TICO Travel Industry Compensation Fund?

Accepted Answer

A traveller is unhappy with the quality of the hotel accommodations provided in their vacation package.

Answer

The Compensation Fund covers the non-provision of travel services due to bankruptcy or insolvency. It does not cover issues related to the quality or value of the services that were provided.

Question 3

A client books a tour directly with a tour operator based outside of Ontario and pays them for the travel services. The tour operator subsequently goes bankrupt. The client contacts their Ontario-based travel agent for help. Can the client make a claim to the TICO Compensation Fund?

Accepted Answer

No, because the travel services were not purchased from a TICO-registered travel agency.

Answer

To be eligible for protection under the Compensation Fund, the consumer must have purchased their travel services from a TICO-registered travel agency in Ontario. Booking directly with an out-of-province supplier, even if you are an Ontario resident or have a relationship with an Ontario agent, makes the purchase ineligible.

Question 4

What is the mandatory deadline for a consumer to file a standard claim with the Travel Industry Compensation Fund after a TICO-registered travel retailer or end supplier becomes bankrupt or insolvent?

Accepted Answer

6 months

Answer

Standard claims must be filed within 6 months after the TICO registered travel retailer, wholesaler, airline, or cruise line becomes bankrupt, insolvent, or ceases to carry on business.

Question 5

A family of four paid a TICO-registered travel agency $24,000 in total for an all-inclusive vacation. The TICO-registered wholesaler that organized the package declared bankruptcy, and no services were provided. What is the maximum total amount this family could be eligible to claim from the Compensation Fund?

Accepted Answer

$20,000

Answer

The Compensation Fund's payout is limited to a maximum of $5,000 per person. For a family of four, the total maximum claim would be 4 x $5,000 = $20,000.

TICO - Travel Industry Council of Ontario Practice Test

TICO - Travel Industry Council of Ontario Practice Test

TICO - Travel Industry Council of Ontario Travel Compensation Fund Questions and Answers