TICO - Travel Industry Council of Ontario Ontario Regulation 26/05 Questions and Answers 1

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?

Accepted Answer

The total price, including all taxes, fees, levies, and service charges.

Answer

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?

Accepted Answer

They must provide the Registrar with advance notice of the change in their place of business.

Answer

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?

Accepted Answer

No price increases are permitted after the customer has paid in full.

Answer

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?

Accepted Answer

Any conditions related to the purchase that the agent believes may affect the customer's decision to buy.

Answer

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?

Accepted Answer

A designated trust account for customer payments.

Answer

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.

TICO - Travel Industry Council of Ontario Practice Test

TICO - Travel Industry Council of Ontario Practice Test

TICO - Travel Industry Council of Ontario Ontario Regulation 26/05 Questions and Answers 1