TICO Advertising and Pricing Standards 2 — Questions and Answers
Question 1: Under TICO's advertising standards, when a travel agent advertises a 'from' price for a destination, what must be true of that price?
- It must be a genuinely available price at the time of advertising and must include all mandatory charges (Correct answer)
- It can be an estimated price that excludes taxes and fees
- It is valid only for group bookings of 10 or more travellers
- It applies only to last-minute inventory released within 72 hours of departure
Correct answer: It must be a genuinely available price at the time of advertising and must include all mandatory charges
Any 'from' price advertised must be genuinely available and must include all mandatory taxes, fees, and surcharges. Advertising a price that is not actually available is misleading.
Ontario Regulation 26/05 requires that advertised travel prices, including 'from' prices, must be available at the time of advertising and must include all known mandatory fees, taxes, and surcharges. Advertising a price that requires additional undisclosed mandatory charges to be added at checkout is a prohibited misleading trade practice under TICO's standards.
Question 2: A travel agency wants to advertise a 'seat sale' for flights to Europe. According to TICO's advertising rules, the advertisement must include:
- A disclosure that the sale price applies to a limited number of seats (Correct answer)
- The personal names of all passengers who have already purchased at the sale price
- A mandatory comparison with the previous full fare price
- Approval from the airline's marketing department
Correct answer: A disclosure that the sale price applies to a limited number of seats
Advertising limited-availability prices without disclosing the limitation is misleading. The ad must note that the sale price applies to limited seats.
When advertising special prices available only on a limited number of seats, TICO's standards and Ontario Regulation 26/05 require that the advertisement clearly disclose the limited availability. This may be done by stating the number of available seats or by clearly noting that seats are limited. This prevents consumers from being misled into believing a cheap fare is widely available when it may already be sold out.
Question 3: Which of the following is a requirement under TICO's standards when a registrant publishes a printed brochure or price list?
- The brochure must clearly display the effective date and indicate that prices are subject to change (Correct answer)
- The brochure must be approved by TICO before distribution
- The brochure must include the personal registration number of every agent at the agency
- Brochures are exempt from TICO's advertising standards
Correct answer: The brochure must clearly display the effective date and indicate that prices are subject to change
Printed materials must display effective dates and note that prices are subject to change, as print materials may become outdated before they are discarded.
Because printed brochures and price lists may circulate for extended periods, TICO's advertising standards require them to clearly display the date from which they are effective and to include a notice that prices are subject to change without notice. This protects consumers from relying on outdated pricing information and protects agents from disputes over stale prices.
Question 4: Under TICO advertising rules, which of the following must appear in all consumer-facing advertisements by a registered agency?
- The agency's TICO registration number (Correct answer)
- The personal TICO registration numbers of all agents employed at the agency
- The TICO Registrar's direct contact information
- The Ombudsman for Banking Services and Investments contact number
Correct answer: The agency's TICO registration number
TICO-registered agencies must display their TICO registration number in all advertising so consumers can verify the agency's registration status.
Ontario Regulation 26/05 requires all TICO-registered travel agents and wholesalers to include their registration number in all advertising directed at consumers. This allows consumers to verify the agency's registration on TICO's public registry and confirms the agency's accountability under Ontario's travel legislation. Failure to include a registration number is a violation of the Regulation.
Question 5: A travel agent promotes a resort package where the advertised price assumes double occupancy. A solo traveller will pay more. How should this be handled according to TICO standards?
- The advertisement must clearly disclose that the price is based on double occupancy and that a single supplement applies (Correct answer)
- The agent can advertise the double occupancy rate without any disclosure since it is industry standard
- The agent must advertise only the single occupancy rate to avoid confusion
- The agent must offer the double occupancy rate to all solo travellers as a courtesy
Correct answer: The advertisement must clearly disclose that the price is based on double occupancy and that a single supplement applies
If a price is based on double occupancy and a single supplement applies, this must be clearly disclosed in the advertisement to avoid misleading single travellers.
TICO's advertising standards require that all material conditions affecting the advertised price be disclosed clearly. When a price is based on double occupancy, the advertisement must state this and note that a single supplement will apply for solo travellers. Advertising only the per-person double rate without this disclosure can mislead consumers who are travelling alone.
Question 6: If a price quoted to a client increases before the booking is finalized, what is the registrant's obligation under TICO's standards?
- Inform the client of the price increase before completing the booking and obtain the client's agreement to the new price (Correct answer)
- Absorb the price increase so the client pays the originally quoted price
- Complete the booking at the original price and recover the difference from the supplier
- Cancel the booking automatically and offer the client a full credit
Correct answer: Inform the client of the price increase before completing the booking and obtain the client's agreement to the new price
If a price changes before a booking is confirmed, the registrant must notify the client and obtain their agreement to the new price before proceeding.
TICO's standards of practice require transparency in all pricing matters. If a price increases between the initial quote and the booking confirmation, the agent must promptly notify the client of the new price and seek their agreement before finalizing the booking. The agent cannot simply complete the booking at a higher price without the client's informed consent.
TICO Advertising and Pricing Standards 2
Under TICO's advertising standards, when a travel agent advertises a 'from' price for a destination, what must be true of that price?