Agent and Wholesaler Disclosures Flashcards
6 cards from real TICO practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Agent and Wholesaler Disclosures flashcards as text
Under TICO's standards, when must a travel agent disclose to a client that a travel supplier is not registered with TICO?
Answer: Before the client makes any payment for travel services provided by that supplier
Agents must disclose when a supplier is not TICO-registered before the client makes payment, so the client understands the reduced consumer protection available.
A travel wholesaler in Ontario sells travel packages exclusively to registered travel agents, not directly to the public. Under the Travel Industry Act, 2002, the wholesaler must:
Answer: Be registered with TICO as a travel wholesaler
Travel wholesalers in Ontario must register with TICO regardless of whether they sell to consumers or only to registered travel agents.
When a client purchases a package tour through a TICO-registered agent from a TICO-registered wholesaler, which entity bears disclosure obligations?
Answer: Both the agent and the wholesaler share responsibility for their respective components of the disclosure
Both the agent and the wholesaler have distinct but complementary disclosure obligations under TICO's standards.
Which of the following must a TICO-registered travel agent disclose to a client when there is a conflict of interest in recommending a particular supplier?
Answer: The nature of the conflict of interest, such as a financial incentive, preferred supplier relationship, or ownership interest
Agents must disclose the nature of any conflict of interest that could influence their recommendations, including financial incentives, preferred supplier arrangements, or ownership interests.
A travel agent is also the owner of a resort property in Mexico. When recommending this resort to clients, the agent must:
Answer: Disclose their ownership interest in the property before making any booking
An agent who owns a property they are recommending has a clear conflict of interest that must be disclosed to clients before any booking is made.
TICO's disclosure requirements are primarily designed to achieve which consumer protection goal?
Answer: To ensure clients have the information they need to make informed purchasing decisions
Disclosure requirements are designed to ensure consumers receive the material information they need to make informed decisions about travel purchases.