TICO Advertising and Pricing Standards 4 — Questions and Answers
Question 1: Under TICO regulations, if an advertised travel price changes between the time of booking and the time of departure, what must the registrant do?
- Notify the customer in writing and offer a full refund if the increase exceeds 7% (Correct answer)
- Absorb the price difference without passing any increase to the customer
- Cancel the booking automatically and rebook at the new price
- Notify the customer verbally within 24 hours of learning of the change
Correct answer: Notify the customer in writing and offer a full refund if the increase exceeds 7%
TICO requires registrants to notify customers in writing of price increases and offer a refund if the increase surpasses the allowable threshold.
Question 2: A travel agency advertises a 'limited-time' cruise deal but has only one cabin available at that price. What must be clearly disclosed?
- The availability of the limited quantity so consumers are not misled (Correct answer)
- The name of the cruise ship and its registration country
- The full itinerary of the cruise in the advertisement
- The agency's TICO registration number only
Correct answer: The availability of the limited quantity so consumers are not misled
Advertising limited availability deals requires clear disclosure of quantity limitations to prevent misleading consumers.
Question 3: Which of the following would constitute misleading advertising under TICO standards?
- Advertising a hotel as '4-star' when it has only been rated 3-star by an official body (Correct answer)
- Listing the full price including taxes and fees upfront
- Disclosing that photos are for illustrative purposes only
- Stating that limited seats are available at the advertised price
Correct answer: Advertising a hotel as '4-star' when it has only been rated 3-star by an official body
Misrepresenting a hotel's star rating is a clear form of misleading advertising prohibited under TICO regulations.
Question 4: When must a travel registrant provide a consumer with a written contract or invoice?
- At the time of booking or as soon as reasonably practical thereafter (Correct answer)
- Only after the consumer has paid the full balance
- At least 30 days before the scheduled departure date
- Only if the travel package costs more than $1,000
Correct answer: At the time of booking or as soon as reasonably practical thereafter
TICO requires registrants to provide written confirmation promptly at or after booking, regardless of price.
Question 5: A Toronto-based travel agency posts a social media ad for a vacation package without including its TICO registration number. This is:
- A violation of TICO advertising requirements (Correct answer)
- Acceptable if the agency's website displays the number
- Permitted for social media platforms only
- Acceptable if the ad targets only existing clients
Correct answer: A violation of TICO advertising requirements
All advertising by TICO registrants, including social media, must display the TICO registration number.
Question 6: Under TICO pricing standards, which fees MUST be included in the total advertised price of a travel package?
- All mandatory fees and surcharges that are known at time of advertising (Correct answer)
- Only the base airfare and hotel costs
- Optional travel insurance premiums
- Gratuities that are customarily paid on board
Correct answer: All mandatory fees and surcharges that are known at time of advertising
All known mandatory fees and surcharges must be incorporated into the advertised total price to avoid misleading consumers.
Question 7: A travel agent offers a 'free upgrade' promotion but fails to mention that the upgrade is subject to availability at check-in. This omission is:
- Misleading because material conditions are not disclosed (Correct answer)
- Acceptable since upgrades are always subject to availability
- Permitted as long as the base price is accurate
- Not a violation if the upgrade is genuinely complimentary
Correct answer: Misleading because material conditions are not disclosed
Failing to disclose material conditions like availability restrictions constitutes misleading advertising under TICO standards.
TICO Advertising and Pricing Standards 4
Under TICO regulations, if an advertised travel price changes between the time of booking and the time of departure, what must the registrant do?