Invoicing and Conditions Flashcards

A TICO-registered travel agent issues an invoice for a package tour. The invoice clearly states a $250 per-person amendment fee. Three weeks before departure, the client requests a name correction on one traveller's booking — the supplier charges $0 for this change. Can the registrant still charge the client the $250 amendment fee?

Answer: Yes, provided the fee was disclosed on the original invoice and the client agreed to those terms

Under TICO regulations, a registrant may charge fees — including amendment fees — that differ from or exceed supplier charges, provided those fees were clearly disclosed in writing on the invoice and the consumer agreed to them at the time of booking. The registrant's own administrative fees are permissible as long as they are pre-disclosed.

Under Ontario's Travel Industry Act, 2002, a registrant's invoice must include the registrant's TICO registration number. In which of the following scenarios is a registrant most likely in violation of this requirement?

Answer: A registrant's website displays the TICO registration number only on the 'About Us' page, while booking confirmations sent via email omit it

The TICO registration number must appear on all written contracts and invoices issued to consumers. A booking confirmation sent by email constitutes a written contract/invoice, so omitting the registration number from it — even if it appears elsewhere on the website — is a violation. Initial quotes and promotional materials have different standards than binding booking documents.

A consumer books a 10-night European tour. After payment in full, the registrant notifies the consumer that the hotel has been changed from a 4-star city-centre property to a 3-star property 12 km from the city centre, while all other tour elements remain unchanged. The consumer demands a full refund. Which of the following most accurately describes the registrant's obligation?

Answer: The registrant must offer the consumer the choice of accepting the change or receiving a full refund, because a hotel downgrade of this nature constitutes a material change

Under the Travel Industry Act, a 'material change' is one that significantly affects the consumer's travel experience. A downgrade from a 4-star to a 3-star hotel combined with a significant change in location (12 km from city centre) qualifies as a material change. When a material change occurs, the registrant must notify the consumer and offer them the choice of accepting the revised arrangements or receiving a full refund — regardless of when it occurs.

A registrant's invoice contains the following clause: 'All cancellations are non-refundable regardless of the reason, including medical emergencies.' A consumer cancels 90 days before departure due to a sudden serious illness and requests at least a partial refund. Under TICO's regulatory framework, which statement is most accurate?

Answer: The clause may be enforceable as written, but the registrant must have clearly disclosed it before the consumer entered into the contract, and travel insurance must have been offered

TICO does not prohibit strict no-refund cancellation policies per se, but it does require that such conditions be clearly disclosed in the written contract before the consumer commits. Critically, registrants are also required under TICO rules to offer consumers the opportunity to purchase travel insurance — if this was done and declined, the strict clause is more defensible. TICO does not create a statutory medical-emergency exception to cancellation terms.

A registrant books a flight-and-hotel package for a consumer. The airline subsequently imposes a fuel surcharge of $90 per person, increasing the total price after the invoice has been issued and full payment has been collected. The invoice contains a clause stating 'prices are subject to change due to fuel surcharges, taxes, or government fees.' What is the registrant's correct course of action under TICO regulations?

Answer: The registrant must notify the consumer of the surcharge in writing; the consumer may be required to pay it only if the invoice clearly disclosed that post-payment price increases were possible and specified the categories of charges that could increase

Under the Travel Industry Act, a registrant may pass on post-booking price increases (such as fuel surcharges and government-imposed fees) ONLY if the written contract explicitly disclosed that such increases were possible and identified the specific categories of charges subject to change. The consumer must be notified in writing of the increase. Even with a compliant clause, the consumer retains the right to cancel with a full refund if they choose not to pay the increased amount — automatic collection without consent is not permitted.

A registrant issues an invoice for a cruise package. The invoice omits any reference to the registrant's cancellation fees but does state the cruise line's own cancellation schedule. Sixty days before sailing, the consumer cancels. The registrant attempts to charge their own $200 administrative cancellation fee in addition to the supplier's penalty. Which outcome best reflects TICO's position?

Answer: The registrant cannot charge the $200 administrative fee because it was not disclosed on the original invoice, even if the registrant's standard fee schedule is posted in their office or website

TICO's disclosure requirements are strict: any fees a registrant intends to charge — including their own administrative or cancellation fees — must be disclosed in the written contract/invoice before the consumer enters into the agreement. A fee not disclosed on the invoice is unenforceable, regardless of whether it appears elsewhere (office signage, website terms). Retroactive consent or after-the-fact notification does not satisfy this requirement.