TICO - Travel Industry Council of Ontario Travel Compensation Fund Questions and Answers 1 — Questions and Answers
Question 1: A consumer purchases a vacation package from a TICO-registered travel agency. The airline providing the flights for the package declares bankruptcy and ceases operations before the departure date. What is the maximum amount the consumer can claim per person from the Travel Industry Compensation Fund?
- $2,500
- $7,500
- $5,000 (Correct answer)
- The full cost of the trip
Correct answer: $5,000
The Travel Industry Compensation Fund provides reimbursement for travel services not received due to the failure of an Ontario registrant or an end supplier, like an airline or cruise line. The maximum payout is limited to $5,000 per person.
Question 2: Which of the following situations would NOT be eligible for a claim against the TICO Travel Industry Compensation Fund?
- A traveller is left stranded mid-trip because their TICO-registered tour operator went bankrupt.
- A customer paid for a cruise with a TICO-registered agency, but the cruise line became insolvent before the trip.
- A traveller is unhappy with the quality of the hotel accommodations provided in their vacation package. (Correct answer)
- A consumer paid a TICO-registered retailer for a flight, but the airline ceased operations.
Correct answer: A traveller is unhappy with the quality of the hotel accommodations provided in their vacation package.
The Compensation Fund covers the non-provision of travel services due to bankruptcy or insolvency. It does not cover issues related to the quality or value of the services that were provided.
Question 3: A client books a tour directly with a tour operator based outside of Ontario and pays them for the travel services. The tour operator subsequently goes bankrupt. The client contacts their Ontario-based travel agent for help. Can the client make a claim to the TICO Compensation Fund?
- Yes, because their travel agent is registered in Ontario.
- No, because the travel services were not purchased from a TICO-registered travel agency. (Correct answer)
- Yes, because the client is a resident of Ontario.
- No, because the Fund only covers airline and cruise line failures.
Correct answer: No, because the travel services were not purchased from a TICO-registered travel agency.
To be eligible for protection under the Compensation Fund, the consumer must have purchased their travel services from a TICO-registered travel agency in Ontario. Booking directly with an out-of-province supplier, even if you are an Ontario resident or have a relationship with an Ontario agent, makes the purchase ineligible.
Question 4: What is the mandatory deadline for a consumer to file a standard claim with the Travel Industry Compensation Fund after a TICO-registered travel retailer or end supplier becomes bankrupt or insolvent?
- 30 days
- 90 days
- 12 months
- 6 months (Correct answer)
Correct answer: 6 months
Standard claims must be filed within 6 months after the TICO registered travel retailer, wholesaler, airline, or cruise line becomes bankrupt, insolvent, or ceases to carry on business.
Question 5: A family of four paid a TICO-registered travel agency $24,000 in total for an all-inclusive vacation. The TICO-registered wholesaler that organized the package declared bankruptcy, and no services were provided. What is the maximum total amount this family could be eligible to claim from the Compensation Fund?
- $5,000
- $20,000 (Correct answer)
- $24,000
- $7,000,000
Correct answer: $20,000
The Compensation Fund's payout is limited to a maximum of $5,000 per person. For a family of four, the total maximum claim would be 4 x $5,000 = $20,000.
Question 6: The Travel Industry Compensation Fund is financed primarily by which source?
- Ontario government grants and subsidies.
- A mandatory fee added to every travel booking.
- Contributions made by registered travel agents and travel wholesalers in Ontario. (Correct answer)
- Interest generated from unclaimed consumer deposits.
Correct answer: Contributions made by registered travel agents and travel wholesalers in Ontario.
The Compensation Fund is entirely financed by registered travel agents and wholesalers in Ontario. It is an industry-funded protection program.
