TICO Post-Sale Obligations Before Departure — Questions and Answers
Question 1: Under the Travel Industry Act, 2002, what constitutes a 'material change' to a travel booking?
- Any change to the booking, including minor seat reassignments on a flight
- A significant change to a major element of the trip, such as a change in departure city or a substantial date change (Correct answer)
- Only changes that the travel agent initiates unilaterally
- A change in the exchange rate that affects the trip price by more than 1%
Correct answer: A significant change to a major element of the trip, such as a change in departure city or a substantial date change
A material change is a significant alteration to a core element of the travel arrangement — such as departure city, destination, dates, or type of accommodation. Minor adjustments like seat assignments or small schedule tweaks do not typically rise to the level of a material change.
Question 2: When a supplier notifies a travel registrant of a material change to a client's booking, what must the registrant do?
- Wait until 72 hours before departure to inform the client
- Promptly notify the client of the change and their options (Correct answer)
- Automatically rebook the client on the nearest available alternative without consulting them
- Cancel the booking and issue store credit without informing the client
Correct answer: Promptly notify the client of the change and their options
Upon receiving notice of a material change from a supplier, the registrant must promptly communicate the change to the client and inform them of their available options. Prompt notification is required so the client can make an informed decision before their departure.
Question 3: A client's airline changes their departure time by 8 hours, which the registrant deems a material change. What option must the registrant offer the client?
- A credit toward a future booking only
- An upgrade to business class as compensation
- The right to accept the change or receive a full refund (Correct answer)
- Rebooking on an equivalent flight at no cost, with no refund option
Correct answer: The right to accept the change or receive a full refund
When a material change occurs, the client must be given the option to either accept the change or cancel and receive a full refund. Offering only credits or requiring the client to accept an alternative without a refund option does not comply with TICO standards.
Question 4: Under TICO's post-sale obligations, which of the following documents must a registrant provide to the client before departure?
- A printed copy of the registrant's insurance policy
- All relevant travel documents and a complete itinerary (Correct answer)
- A list of all competing travel agencies in the destination city
- A TICO-issued certificate of registration for the agency
Correct answer: All relevant travel documents and a complete itinerary
Registrants are obligated to provide clients with all relevant travel documents — such as tickets, hotel vouchers, and a complete itinerary — in sufficient time before departure. This ensures clients have everything needed for their trip.
Question 5: A tour operator cancels a package 10 days before departure due to insufficient bookings. The travel agent has already collected full payment from the client. What is the registrant's obligation?
- Retain the funds until the supplier processes the refund directly to the client
- Offer the client only a credit toward a future booking
- Promptly refund the client the full amount paid (Correct answer)
- Advise the client to file a claim with their credit card company
Correct answer: Promptly refund the client the full amount paid
When a tour operator cancels a trip, the registrant is obligated to promptly refund the client the full amount paid, regardless of the supplier's own refund timeline. The registrant holds the client's money in trust and cannot delay its return once travel is cancelled.
Question 6: A registrant receives a price increase notice from the supplier after the client has made full payment. Under what general condition does the client have the right to cancel without penalty?
- Any price increase, regardless of amount, gives the client the right to cancel
- Only if the price increase is announced less than 24 hours before departure
- When the price increase exceeds the threshold set out in the Travel Industry Act (generally a significant percentage of the original price) (Correct answer)
- Price increases after full payment are never permitted, so the client automatically receives a refund
Correct answer: When the price increase exceeds the threshold set out in the Travel Industry Act (generally a significant percentage of the original price)
The Travel Industry Act sets limits on post-payment price increases. When a price increase exceeds the permitted threshold (a significant percentage of the original price), the client is entitled to cancel and receive a full refund. Minor increases within the allowed range do not trigger this right.
TICO Post-Sale Obligations Before Departure
Under the Travel Industry Act, 2002, what constitutes a 'material change' to a travel booking?