TICO - Travel Industry Council of Ontario Travel Industry Act, 2002 Questions and Answers 1 — Questions and Answers
Question 1: A travel agent's advertisement for an all-inclusive vacation package displays a price of '$999 + taxes'. According to the Travel Industry Act, 2002 (Ontario Regulation 26/05), what is wrong with this representation?
- The advertisement does not specify the travel dates.
- The price must be displayed as 'all-in', including all taxes, fees, and levies. (Correct answer)
- The TICO registration number is not prominently displayed.
- The name of the airline and resort are not mentioned.
Correct answer: The price must be displayed as 'all-in', including all taxes, fees, and levies.
Ontario Regulation 26/05, specifically Section 33, requires that any price advertised for travel services must be the total 'all-in' price, including all taxes, fees, levies, and other charges. Advertising a price plus taxes is not compliant.
Question 2: A consumer purchases a cruise from a TICO-registered travel agency. The cruise line unexpectedly declares bankruptcy and ceases operations before the trip. Under the Ontario Travel Industry Compensation Fund, what is the maximum amount the consumer can typically claim?
- The full cost of the trip, regardless of the amount.
- Up to $10,000 per person.
- Up to $5,000 per person. (Correct answer)
- Nothing, because the failure was by an end supplier (the cruise line).
Correct answer: Up to $5,000 per person.
The Ontario Travel Industry Compensation Fund provides reimbursement for travel services not received due to the failure of a registered travel agency, wholesaler, or an end supplier like a cruise line or airline. The maximum claim is up to $5,000 per person.
Question 3: Which of the following is a key requirement for a TICO registrant regarding customer funds under the Travel Industry Act, 2002?
- Depositing customer funds into a general business account within 5 business days.
- Using customer deposits to pay for general operating expenses like rent and salaries.
- Maintaining a separate trust account for all customer funds received for travel services. (Correct answer)
- Transferring funds to suppliers only after the travel services have been provided.
Correct answer: Maintaining a separate trust account for all customer funds received for travel services.
Section 27 of Ontario Regulation 26/05 mandates that all registrants must maintain a designated Travel Industry Act trust bank account. All funds received from consumers for travel services must be deposited into this account and can only be used to pay suppliers for those specific services, not for general business expenses.
Question 4: A new travel agency in Ontario is creating its first website. According to Section 31 of Ontario Regulation 26/05, which of the following pieces of information MUST be included on the main page of the website?
- The personal home phone numbers of the travel counsellors.
- A list of the top 10 vacation packages sold.
- The agency's business name, address, and TICO registration number. (Correct answer)
- The date the agency was first established.
Correct answer: The agency's business name, address, and TICO registration number.
Section 31 of the regulation requires that any representation, which includes a website, must clearly state the registrant's business name, address, and registration number. This ensures consumers can identify and verify the legitimacy of the agency.
Question 5: A client books a trip to a tropical destination through a TICO-registered agent. A week before departure, the agent learns of significant construction at the client's chosen resort that was not previously disclosed. According to the Travel Industry Act, 2002, what is the agent's primary obligation?
- To offer the client a full refund immediately.
- To promptly inform the client of any changes that may affect their decision to travel. (Correct answer)
- To wait for the client to complain before taking any action.
- To find a different resort without consulting the client.
Correct answer: To promptly inform the client of any changes that may affect their decision to travel.
Section 36 of Ontario Regulation 26/05 requires travel agents to bring to the customer's attention any conditions that they have reason to believe may affect the customer's decision to purchase or travel. This includes significant issues like construction at a resort.
Question 6: A consumer is seeking reimbursement from the Travel Industry Compensation Fund after the TICO-registered tour operator they booked with went bankrupt. What is the deadline for filing a claim with TICO?
- Within 30 days of the tour operator's failure.
- Within 6 months of the tour operator's failure. (Correct answer)
- Within one year of the scheduled departure date.
- There is no deadline for filing a claim.
Correct answer: Within 6 months of the tour operator's failure.
To be eligible for reimbursement from the Compensation Fund, a consumer must file a claim with TICO within 6 months from the date of the failure or closure of the registered travel agency or wholesaler.
TICO - Travel Industry Council of Ontario Travel Industry Act, 2002 Questions and Answers 1
A travel agent's advertisement for an all-inclusive vacation package displays a price of '$999 + taxes'.
According to the Travel Industry Act, 2002 (Ontario Regulation 26/05), what is wrong with this representation?