TICO Agent and Wholesaler Disclosures 4 — Questions and Answers
Question 1: Under TICO regulations, when must a travel agent disclose that a trip component is non-refundable to the consumer?
- Only if the consumer specifically asks
- Before the consumer makes any payment (Correct answer)
- After the booking is confirmed
- Within 24 hours of booking
Correct answer: Before the consumer makes any payment
TICO requires agents to disclose non-refundable terms before the consumer makes any payment so they can make an informed decision.
Question 2: A wholesaler in Ontario sells travel packages exclusively through retail travel agents. Which disclosure obligation applies to the wholesaler regarding consumers?
- The wholesaler has no disclosure obligations to consumers
- The wholesaler must ensure agents have all required disclosure information to pass on (Correct answer)
- The wholesaler must contact consumers directly with disclosures
- Only verbal disclosure by the wholesaler is required
Correct answer: The wholesaler must ensure agents have all required disclosure information to pass on
Wholesalers must ensure retail agents possess the complete, accurate information necessary to make required disclosures to end consumers.
Question 3: If a travel agent receives a commission from a hotel that is significantly higher than usual, what is the agent's disclosure obligation under TICO?
- No disclosure is required as commission is standard practice
- The agent must disclose the elevated commission if it could influence their recommendation (Correct answer)
- The agent must refuse the elevated commission
- The agent must report it only to their agency manager
Correct answer: The agent must disclose the elevated commission if it could influence their recommendation
TICO's consumer protection framework requires agents to disclose conflicts of interest, including unusually high commissions that may bias their recommendations.
Question 4: A consumer books a vacation package through a TICO-registered agent. The wholesaler later changes the hotel to a lower-rated property. Who is responsible for disclosing this material change?
- The hotel directly
- The wholesaler only
- The retail travel agent (Correct answer)
- The airline carrier
Correct answer: The retail travel agent
The retail travel agent is the registrant with a direct consumer relationship and bears the responsibility to disclose material changes to the consumer.
Question 5: Under Ontario's Travel Industry Act, which of the following is considered a 'material change' requiring mandatory disclosure?
- A minor gate change at the airport
- A change in the departure time by 15 minutes
- A hotel downgrade from 4-star to 2-star (Correct answer)
- A slight variation in meal options
Correct answer: A hotel downgrade from 4-star to 2-star
A significant downgrade in accommodation quality is a material change because it substantially affects the consumer's travel experience and value.
Question 6: A travel agent is booking a cruise for a client and earns an override commission for meeting a sales quota. What must the agent disclose?
- Nothing, as override commissions are confidential business arrangements
- The existence of any incentive that could reasonably affect the objectivity of their advice (Correct answer)
- The exact dollar amount of the commission
- Only the cruise line's standard commission rate
Correct answer: The existence of any incentive that could reasonably affect the objectivity of their advice
TICO requires agents to disclose incentives or benefits that could reasonably affect their objectivity when recommending travel products.
Question 7: When a travel agency advertises an 'all-inclusive' package price, what disclosure must accompany the advertised price?
- No additional disclosure is needed if the price is accurate
- All taxes, fees, and surcharges must be clearly disclosed or included in the advertised price (Correct answer)
- Only the government taxes need to be separately disclosed
- A general disclaimer that prices may vary
Correct answer: All taxes, fees, and surcharges must be clearly disclosed or included in the advertised price
TICO advertising standards require that all mandatory fees, taxes, and surcharges be disclosed upfront so consumers understand the true total cost.
TICO Agent and Wholesaler Disclosures 4
Under TICO regulations, when must a travel agent disclose that a trip component is non-refundable to the consumer?