TICO Invoicing and Conditions 4 — Questions and Answers
Question 1: Under TICO regulations, when a travel agent collects a deposit from a consumer, what must the invoice clearly indicate?
- The remaining balance due and the final payment deadline (Correct answer)
- Only the deposit amount received
- The agent's commission amount
- The supplier's internal booking reference only
Correct answer: The remaining balance due and the final payment deadline
TICO requires invoices to show the balance owing and the date by which the final payment must be made.
Question 2: A TICO-registered agent books a package tour for a client. Which condition related to fuel surcharges must be disclosed on the invoice or accompanying documentation?
- That fuel surcharges may be added up to departure and the consumer bears that cost (Correct answer)
- That fuel surcharges are always included in the quoted price
- That fuel surcharges only apply to international flights
- That fuel surcharges are capped at 10% of the package price
Correct answer: That fuel surcharges may be added up to departure and the consumer bears that cost
TICO regulations require registrants to disclose that fuel surcharges or other government-imposed fees may be applied after booking.
Question 3: According to TICO standards, what must an invoice specify regarding a travel supplier's cancellation penalties?
- The specific penalty schedule or a reference directing the consumer to where those terms can be found (Correct answer)
- Only that penalties may apply without further detail
- Cancellation penalties set by the Ontario government
- The agent's own refund policy, not the supplier's
Correct answer: The specific penalty schedule or a reference directing the consumer to where those terms can be found
Invoices must either state the supplier's cancellation penalty schedule or clearly direct the consumer to the document containing those terms.
Question 4: If a travel agent issues an invoice and later discovers a pricing error, what is the registrant's obligation under TICO guidelines?
- Notify the consumer promptly and provide a corrected invoice before the consumer pays the balance (Correct answer)
- Honor the incorrect price without notifying the consumer
- Cancel the booking automatically without offering alternatives
- Absorb the difference only if the error exceeds 5% of the total price
Correct answer: Notify the consumer promptly and provide a corrected invoice before the consumer pays the balance
Registrants must notify consumers of errors as soon as discovered and issue a corrected invoice, giving the consumer the option to accept or cancel.
Question 5: Under TICO's consumer protection framework, which statement about supplier-imposed terms and conditions on an invoice is accurate?
- The registrant must ensure the consumer receives and acknowledges the supplier's terms before or at the time of booking (Correct answer)
- Supplier terms only need to be disclosed after full payment is received
- Supplier terms apply automatically and do not need to appear on any documentation
- Registrants are exempt from disclosing terms set by international suppliers
Correct answer: The registrant must ensure the consumer receives and acknowledges the supplier's terms before or at the time of booking
TICO requires that supplier terms and conditions be communicated to the consumer and acknowledged before the contract is finalized.
Question 6: A consumer's invoice shows a package price in US dollars, but the consumer lives in Ontario. What is the TICO-registered agent's obligation?
- Clearly disclose the currency on the invoice and advise the consumer of the applicable exchange rate or method of conversion (Correct answer)
- Always convert the price to Canadian dollars before issuing any invoice
- No disclosure is needed because consumers are expected to know currency differences
- Only disclose currency if the consumer specifically asks
Correct answer: Clearly disclose the currency on the invoice and advise the consumer of the applicable exchange rate or method of conversion
TICO requires clear currency identification on invoices so consumers understand their actual financial obligations.
Question 7: Which of the following is a TICO requirement concerning the name of the supplier on a travel invoice?
- The full legal name of the travel supplier must appear on the invoice (Correct answer)
- A trade name or abbreviation is sufficient without the full legal name
- Only the booking code is required to identify the supplier
- Supplier name is optional if the destination is clearly stated
Correct answer: The full legal name of the travel supplier must appear on the invoice
TICO mandates that the supplier's full legal name be included on the invoice so consumers can identify who is providing their travel services.
TICO Invoicing and Conditions 4
Under TICO regulations, when a travel agent collects a deposit from a consumer, what must the invoice clearly indicate?