TICO - Travel Industry Council of Ontario Agent and Wholesaler Disclosures Questions and Answers 1 — Questions and Answers
Question 1: An Ontario travel agent is booking a client on a specialized tour operated by a company based outside of Ontario that is not registered with TICO. What specific disclosure MUST the agent provide to the client in writing before finalizing the booking?
- That the tour operator is highly rated on international travel websites.
- That the client's travel insurance will cover any potential operator failure.
- That the travel services are not protected by the Ontario Travel Industry Compensation Fund. (Correct answer)
- That consumer protection laws from the operator's home country will automatically apply.
Correct answer: That the travel services are not protected by the Ontario Travel Industry Compensation Fund.
Section 37 of Ontario Regulation 26/05 requires a travel agent to inform the customer in writing, before accepting payment, if travel services are to be provided by a person or company not registered with TICO. The disclosure must explicitly state that the customer will not be protected by the Travel Industry Compensation Fund.
Question 2: A client is purchasing a complex vacation package from a travel agent. The package was created by a TICO-registered wholesaler. According to Section 36 of Ontario Regulation 26/05, what information about the wholesaler must the agent disclose to the client before accepting payment?
- The wholesaler's business name, address, and TICO registration number. (Correct answer)
- The number of years the wholesaler has been in business.
- The names of the wholesaler's senior management team.
- The wholesaler's preferred airline and hotel chain partners.
Correct answer: The wholesaler's business name, address, and TICO registration number.
Section 36(1)(e) of the Regulation requires the travel agent to disclose the business name, address, and registration number of any other registrant (in this case, the wholesaler) who will be supplying the travel services purchased by the customer.
Question 3: A wholesaler provides a travel agent with marketing material that incorrectly describes a resort as having an 'exclusive private beach'. The agent relays this information to a client, who then books the trip. Upon arrival, the client finds the beach is public and crowded. Under the Travel Industry Act, 2002, who is potentially responsible for this misrepresentation?
- Only the resort, as they are responsible for their own amenities.
- Only the travel agent, because they made the final representation to the client.
- Only the wholesaler, because they created the inaccurate marketing material.
- Both the travel agent and the wholesaler. (Correct answer)
Correct answer: Both the travel agent and the wholesaler.
Both travel agents and wholesalers are responsible for the representations they make, whether verbal or written. The wholesaler is responsible for creating and distributing the misleading information, and the travel agent is responsible for repeating that misrepresentation to the consumer. TICO holds all registrants accountable for the accuracy of their advertising and disclosures.
Question 4: What is a travel agent's specific disclosure obligation regarding a client's travel documents, such as passports and visas, before a booking is finalized?
- To guarantee the client's entry into the destination country.
- To inform the customer of typical requirements and advise them to contact the relevant authorities for definitive information. (Correct answer)
- To apply for all necessary visas on the client's behalf.
- To state that all documentation is the client's sole responsibility and provide no further details.
Correct answer: To inform the customer of typical requirements and advise them to contact the relevant authorities for definitive information.
Section 36(1)(b) of Ontario Regulation 26/05 requires the agent to inform the customer about the typical documentation (like passports, visas, and health requirements) needed for their trip. The agent must also advise the customer to inquire with the appropriate authorities (e.g., consulates) for specific details relevant to their personal situation, as the agent cannot guarantee entry.
Question 5: A travel wholesaler needs to make a significant change to a booked vacation package, such as altering the departure date by 24 hours. Which of the following best describes the wholesaler's primary disclosure duty?
- The wholesaler must promptly notify the travel agent of the change in writing. (Correct answer)
- The wholesaler must contact the client directly to explain the change.
- The wholesaler only needs to update the booking in their internal system.
- The wholesaler can wait until final documents are issued to disclose the change to the agent.
Correct answer: The wholesaler must promptly notify the travel agent of the change in writing.
Under Section 37 of the Regulation, if a registrant (like a wholesaler) becomes aware of a change to a matter that might have affected the customer's decision to purchase, they must promptly advise the customer. In a typical agent/wholesaler relationship, this means the wholesaler must promptly inform the travel agent in writing, who then has the duty to inform the end customer.
Question 6: A client pays a deposit for a cruise package to a TICO-registered travel agency. The cruise is provided by 'Global Cruises,' a TICO-registered wholesaler. The invoice provided by the agency must clearly state its own details and which specific information about 'Global Cruises'?
- The profit margin the agency made from the sale.
- A copy of the wholesaler's liability insurance policy.
- The name and TICO registration number of 'Global Cruises'. (Correct answer)
- The name of the trust account bank used by 'Global Cruises'.
Correct answer: The name and TICO registration number of 'Global Cruises'.
Section 38 of Ontario Regulation 26/05 specifies the required contents for an invoice. It must include the name, address, and registration number of the travel agent, as well as the name and registration number of any other registrant (the wholesaler) supplying the travel services.
TICO - Travel Industry Council of Ontario Agent and Wholesaler Disclosures Questions and Answers 1
An Ontario travel agent is booking a client on a specialized tour operated by a company based outside of Ontario that is not registered with TICO.
What specific disclosure MUST the agent provide to the client in writing before finalizing the booking?