TICO Role and Mandate 3 — Questions and Answers
Question 1: The TICO Travel Industry Compensation Fund is designed to protect consumers in which scenario?
- When a consumer misses their flight due to personal reasons
- When a registered travel agent or wholesaler becomes insolvent or fails to provide services paid for (Correct answer)
- When a consumer is dissatisfied with the quality of a resort
- When airline fares increase after booking
Correct answer: When a registered travel agent or wholesaler becomes insolvent or fails to provide services paid for
The Compensation Fund provides financial relief to Ontario consumers when a TICO-registered registrant becomes bankrupt or ceases to carry on business and fails to deliver paid travel services.
Question 2: Who contributes to the TICO Travel Industry Compensation Fund?
- Ontario consumers who purchase travel insurance
- TICO-registered travel agents and wholesalers through levies (Correct answer)
- The Ontario government from general tax revenue
- International airlines operating in Ontario
Correct answer: TICO-registered travel agents and wholesalers through levies
Registered travel agents and wholesalers pay levies into the Compensation Fund, creating a pool of money to compensate consumers if a registrant fails.
Question 3: When a consumer files a claim with the TICO Compensation Fund, what is a key eligibility requirement?
- The travel services must have been purchased from a TICO-registered agent or wholesaler (Correct answer)
- The consumer must hold a valid Ontario driver's licence
- The claim must be filed within one week of the travel date
- The trip must have been international travel
Correct answer: The travel services must have been purchased from a TICO-registered agent or wholesaler
Only consumers who purchased travel services through a TICO-registered travel agent or wholesaler are eligible to claim from the Compensation Fund.
Question 4: Which consumer protection mechanism does TICO use to publicly verify a travel agency's registration status?
- The Ontario Business Registry
- The TICO Ontario Registrar's search tool on the TICO website (Correct answer)
- The Canada Revenue Agency business directory
- The Better Business Bureau database
Correct answer: The TICO Ontario Registrar's search tool on the TICO website
TICO maintains a public online search tool that allows consumers to verify whether a travel business is currently registered with TICO.
Question 5: What does the TICO Consumer Awareness program primarily aim to achieve?
- Train travel agents to sell more vacation packages
- Educate consumers about their rights and how to protect themselves when buying travel (Correct answer)
- Advertise Ontario travel destinations to potential tourists
- Recruit new travel professionals into the industry
Correct answer: Educate consumers about their rights and how to protect themselves when buying travel
TICO's Consumer Awareness program focuses on informing the public about their rights, the importance of booking with registered travel agents, and how to travel safely.
Question 6: If an Ontario travel agent ceases operations without completing client travel arrangements, TICO's FIRST step is typically to:
- Issue a press release condemning the agency
- Attempt to have another registered agent fulfill the travel arrangements where possible (Correct answer)
- Immediately deposit compensation into all affected clients' bank accounts
- Refer all affected consumers to federal courts
Correct answer: Attempt to have another registered agent fulfill the travel arrangements where possible
TICO's preferred approach is first to facilitate transfer of bookings to another registrant so consumers can still travel, with compensation claims as a secondary remedy.
Question 7: Which of the following best explains why TICO requires travel agencies to display their TICO registration number?
- To help airlines identify preferred distribution partners
- So consumers can verify the agency is legally registered and covered by TICO protections (Correct answer)
- To allow TICO to track commissions earned by agents
- To comply with federal customs and border requirements
Correct answer: So consumers can verify the agency is legally registered and covered by TICO protections
Displaying the registration number allows consumers to verify the agency's standing with TICO and confirms they are entitled to consumer protections under the Travel Industry Act.
TICO Role and Mandate 3
The TICO Travel Industry Compensation Fund is designed to protect consumers in which scenario?