TICO - Travel Industry Council of Ontario Consumer Protection Rules Questions and Answers 1 — Questions and Answers
Question 1: A consumer purchases an all-inclusive vacation package from a TICO-registered travel agency. The airline providing the flights for the package declares bankruptcy before the departure date. According to TICO's rules, what is the consumer entitled to claim from the Travel Industry Compensation Fund?
- A full refund of the entire vacation package from the Compensation Fund.
- Reimbursement for the non-provisioned travel services, up to a maximum of $5,000 per person. (Correct answer)
- A travel voucher for a future trip of equivalent value from the travel agency.
- Compensation for the quality and value difference between the original and any replacement flights.
Correct answer: Reimbursement for the non-provisioned travel services, up to a maximum of $5,000 per person.
The Travel Industry Compensation Fund provides reimbursement for travel services paid for but not received due to the bankruptcy or insolvency of an end supplier, such as an airline or cruise line. The maximum claim is $5,000 per person and covers the non-provision of services, not issues of quality or value.
Question 2: Under Ontario Regulation 26/05, when must a travel agent disclose any counselling fees or service charges to a customer?
- At the time the final payment is due.
- Within 24 hours of making the booking.
- Prior to providing any advice or selling travel services. (Correct answer)
- Only if the customer specifically asks about additional fees.
Correct answer: Prior to providing any advice or selling travel services.
Section 44 of Ontario Regulation 26/05 requires that if a travel agent charges a counselling fee or service charge, it must be disclosed to the client *before* counselling or selling the travel service. The agent must also state whether the fee is refundable and under what circumstances.
Question 3: A TICO registrant is creating a newspaper advertisement for a resort package. According to the regulations for representations, which of the following is a mandatory requirement for this type of advertisement?
- The ad must feature the TICO logo prominently in the top corner.
- The price shown must be 'all-in,' including all taxes, fees, and service charges. (Correct answer)
- The ad must include testimonials from previous customers.
- The price can be shown as a base price, with taxes and fees listed separately in fine print.
Correct answer: The price shown must be 'all-in,' including all taxes, fees, and service charges.
Section 33 of Ontario Regulation 26/05 requires that any representation referring to a price must state the total amount a customer will pay, including all fees, levies, service charges, and taxes. This is known as 'all-in pricing'. While using the TICO logo is encouraged, it's the registrant's name, address, and TICO number that are required, not the logo itself in a specific location.
Question 4: A client books a trip and pays the full amount to their TICO-registered travel agent. The agent then pays the supplier. Three weeks before departure, the price of the trip increases by 10% due to a fuel surcharge. The client's invoice states that price increases are permitted. What are the client's rights in this situation?
- The client must pay the full 10% increase as per the invoice terms.
- The client can refuse the increase, and the agent must absorb the cost.
- The client has the right to cancel the contract and receive a full refund.
- No price increases are permitted after the customer has paid in full. (Correct answer)
Correct answer: No price increases are permitted after the customer has paid in full.
According to TICO's invoicing rules, even if the contract permits price increases, no increase is allowed after the customer has paid in full. Furthermore, if the price increases by more than 7% (excluding tax increases) before full payment, the customer has the right to cancel and get a full refund.
Question 5: Which of the following situations would likely NOT be an eligible claim for the Ontario Travel Industry Compensation Fund?
- A consumer is stranded mid-trip because their TICO-registered tour operator went bankrupt.
- A consumer paid for a cruise, but the cruise line became insolvent before the departure date.
- A consumer is unhappy with the quality of the hotel accommodations, which were not as luxurious as described in the brochure. (Correct answer)
- A consumer paid a TICO-registered travel agency for a flight, but the agency went out of business before paying the airline.
Correct answer: A consumer is unhappy with the quality of the hotel accommodations, which were not as luxurious as described in the brochure.
The Compensation Fund is designed to protect consumers against financial loss due to the failure of a registrant or end supplier (airline/cruise line), resulting in the non-provision of services. It does not cover claims related to the quality, value, or misrepresentation of travel services; those issues are handled through TICO's complaint resolution process.
Question 6: After a consumer makes a payment for travel services, a TICO-registered travel agent must promptly provide a receipt or invoice. Which of the following details is NOT a mandatory item to be included on this invoice?
- The travel agent's home phone number for after-hours emergencies. (Correct answer)
- The registrant's business name, address, and TICO registration number.
- A description of the travel services, including dates and supplier names.
- A statement indicating whether trip cancellation and out-of-province health insurance were offered.
Correct answer: The travel agent's home phone number for after-hours emergencies.
Section 38 of the Regulation requires the agent's business contact information, including address, phone number, and TICO registration number, but not personal contact details like a home phone number. The invoice must also include key details like service descriptions, supplier names, and confirmation that travel insurance was advised.
TICO - Travel Industry Council of Ontario Consumer Protection Rules Questions and Answers 1
A consumer purchases an all-inclusive vacation package from a TICO-registered travel agency.
The airline providing the flights for the package declares bankruptcy before the departure date.
According to TICO's rules, what is the consumer entitled to claim from the Travel Industry Compensation Fund?