TICO - Travel Industry Council of Ontario Ontario Regulation 26/05 Questions and Answers 1 — Questions and Answers
Question 1: According to Ontario Regulation 26/05, when a travel agent advertises a price for travel services, what must be included in the advertised price?
- Only the base fare and a statement that taxes and fees are extra.
- The total price, including all taxes, fees, levies, and service charges. (Correct answer)
- The price excluding HST, which is to be added at the time of booking.
- The price of the travel services plus any applicable supplier surcharges only.
Correct answer: The total price, including all taxes, fees, levies, and service charges.
Section 33 of Ontario Regulation 26/05 requires that any representation referring to a price must state the total amount the customer will be required to pay. This is known as 'all-in pricing' and includes all taxes, fees, levies, service charges, and any other charges.
Question 2: A travel agency in Ontario is moving its retail location to a new address across the street. Under Ontario Regulation 26/05, what is the agency's obligation regarding this change?
- No notification is required as it is a minor change of address.
- They must publish the new address in a local newspaper within 30 days.
- They must receive pre-approval from TICO before they are permitted to move.
- They must provide the Registrar with advance notice of the change in their place of business. (Correct answer)
Correct answer: They must provide the Registrar with advance notice of the change in their place of business.
Section 17 of Ontario Regulation 26/05 stipulates that a registrant must give the Registrar advance notice of any change in the address of its place of business in Ontario. This ensures TICO's records are always current.
Question 3: A customer books a vacation package and pays in full. Two weeks before departure, the wholesaler increases the price by 10% due to a fuel surcharge. According to Ontario Regulation 26/05, which of the following is true if the contract permits price increases?
- The customer must pay the additional 10% as fuel surcharges are always permissible.
- No price increases are permitted after the customer has paid in full. (Correct answer)
- The travel agent is responsible for absorbing the 10% price increase.
- The customer can cancel but will forfeit their original payment.
Correct answer: No price increases are permitted after the customer has paid in full.
Section 38 of Ontario Regulation 26/05 specifies that even if a contract permits price increases, no increase is allowed after the customer has paid in full. If the price increase is more than 7% (and not due to an increase in provincial or federal sales tax) before full payment, the customer has the right to cancel the contract and receive a full refund.
Question 4: Which of the following pieces of information MUST a travel agent disclose to a customer *before* completing a sale, as required by Section 36 of Ontario Regulation 26/05?
- The agent's personal opinion of the destination's political climate.
- The total number of rooms at the selected hotel.
- Any conditions related to the purchase that the agent believes may affect the customer's decision to buy. (Correct answer)
- A list of all other customers currently booked on the same tour.
Correct answer: Any conditions related to the purchase that the agent believes may affect the customer's decision to buy.
Section 36 of the Regulation requires travel agents to bring to the customer's attention any conditions related to the purchase of travel services that they have reason to believe may affect the customer's decision to purchase. This includes important information like construction at a resort or travel advisories.
Question 5: A new travel agency is applying for TICO registration. As per Ontario Regulation 26/05, what must the applicant maintain to meet the financial requirements for registration?
- A minimum of $1 million in sales in the first year.
- A designated trust account for customer payments. (Correct answer)
- A letter of credit from a major tour operator.
- Proof of membership in an international travel association.
Correct answer: A designated trust account for customer payments.
Section 27 of Ontario Regulation 26/05 requires registrants to maintain a trust account in a financial institution in Ontario. All money received from customers for travel services must be deposited into this account to protect consumer funds.
Question 6: An Ontario travel agent prepares an invoice for a customer's flight booking. Under Section 38 of Ontario Regulation 26/05, which of the following is a mandatory component of the invoice?
- The airline's on-time performance statistics.
- The name of the specific travel counsellor who made the booking.
- The registrant's TICO registration number. (Correct answer)
- The seat number assigned to the customer.
Correct answer: The registrant's TICO registration number.
Section 38 of Ontario Regulation 26/05 requires that a statement, invoice, or receipt provided to a customer must include the registrant's business name, address, and registration number.
TICO - Travel Industry Council of Ontario Ontario Regulation 26/05 Questions and Answers 1
According to Ontario Regulation 26/05, when a travel agent advertises a price for travel services, what must be included in the advertised price?