TICO Registration Requirements 1 — Questions and Answers
Question 1: Under the Travel Industry Act, 2002, who is required to be registered with TICO to sell travel services in Ontario?
- Only travel wholesalers with annual revenues above $500,000
- Only travel agents operating physical storefront locations
- Any person or business that sells travel services to Ontario consumers (Correct answer)
- Only businesses incorporated in Ontario
Correct answer: Any person or business that sells travel services to Ontario consumers
The Travel Industry Act, 2002 requires any person or entity selling travel services to Ontario consumers to be registered with TICO, regardless of business size or type.
Question 2: Which of the following is a category of registrant recognized under TICO?
- Travel insurer
- Travel wholesaler (Correct answer)
- Travel technology provider
- Travel bank
Correct answer: Travel wholesaler
TICO registers travel agents and travel wholesalers under the Travel Industry Act, 2002; travel insurers are regulated under separate legislation.
Question 3: What education requirement must individuals working as travel agents in Ontario fulfil under TICO standards?
- A university degree in hospitality or tourism
- Completion of the TICO Education Standards exam (Correct answer)
- A recognized college diploma in travel and tourism
- Five years of documented experience in the travel industry
Correct answer: Completion of the TICO Education Standards exam
TICO requires individuals selling travel services to complete the TICO Education Standards exam, ensuring baseline knowledge of consumer protection obligations.
Question 4: If a travel agency operates three branch locations in Ontario, how must those locations be registered with TICO?
- Only the head office needs to be registered on behalf of all branches
- A single registration automatically covers all branch locations
- Each branch location must hold its own separate TICO registration (Correct answer)
- Branches require registration only if they employ more than three agents
Correct answer: Each branch location must hold its own separate TICO registration
Each branch location of a travel agency must be separately registered with TICO, as registration is location-specific.
Question 5: Can a travel agent based in another Canadian province sell travel services to Ontario consumers without registering with TICO?
- Yes, provincial registrations are mutually recognized across Canada
- No, they must register with TICO if selling to Ontario consumers (Correct answer)
- Yes, provided they are registered in their home province
- Only if they complete fewer than 10 Ontario transactions per year
Correct answer: No, they must register with TICO if selling to Ontario consumers
TICO's jurisdiction is based on where the consumer is located, not where the seller operates, so out-of-province agents serving Ontario consumers must register with TICO.
Question 6: What type of insurance are travel agents registered with TICO required to carry?
- General liability insurance
- Errors and omissions (E&O) insurance (Correct answer)
- Business interruption insurance
- Directors and officers (D&O) insurance
Correct answer: Errors and omissions (E&O) insurance
TICO requires registered travel agents to carry errors and omissions (E&O) insurance to protect consumers in the event of professional errors or omissions.
Question 7: What financial requirement must a travel agent applicant demonstrate to obtain TICO registration?
- Annual revenue of at least $500,000
- A minimum bank balance of $50,000 in a trust account
- Adequate financial resources to operate as a travel agent (Correct answer)
- Personal net worth exceeding $100,000
Correct answer: Adequate financial resources to operate as a travel agent
Applicants must demonstrate they have adequate financial resources to carry on business as a travel agent, supporting consumer protection obligations.
TICO Registration Requirements 1
Under the Travel Industry Act, 2002, who is required to be registered with TICO to sell travel services in Ontario?