TICO Agent and Wholesaler Disclosures 4

Question 1

Under TICO regulations, when must a travel agent disclose that a trip component is non-refundable to the consumer?

Accepted Answer

Before the consumer makes any payment

Answer

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?

Accepted Answer

The wholesaler must ensure agents have all required disclosure information to pass on

Answer

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?

Accepted Answer

The agent must disclose the elevated commission if it could influence their recommendation

Answer

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?

Accepted Answer

The retail travel agent

Answer

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?

Accepted Answer

A hotel downgrade from 4-star to 2-star

Answer

A significant downgrade in accommodation quality is a material change because it substantially affects the consumer's travel experience and value.

TICO - Travel Industry Council of Ontario Practice Test

TICO - Travel Industry Council of Ontario Practice Test

TICO Agent and Wholesaler Disclosures 4