TICO Role and Mandate 4 — Questions and Answers
Question 1: Which of the following businesses is required to register with TICO?
- A hotel in Florida that accepts Canadian online bookings
- An Ontario-based business that sells travel services to the public (Correct answer)
- A US-based airline selling tickets directly to Ontario residents
- A travel blogger who earns affiliate commissions
Correct answer: An Ontario-based business that sells travel services to the public
Any Ontario-based business that sells or offers to sell travel services to the public must be registered with TICO under the Travel Industry Act, 2002.
Question 2: TICO has the authority to conduct unannounced audits of registered travel agencies primarily to:
- Benchmark their sales performance against competitors
- Ensure registrants are complying with the Travel Industry Act and TICO regulations (Correct answer)
- Verify that agents are offering competitive pricing
- Assess whether agencies should receive government tourism grants
Correct answer: Ensure registrants are complying with the Travel Industry Act and TICO regulations
TICO audits registrants to verify compliance with legislative and regulatory requirements, including proper handling of client funds and accurate advertising.
Question 3: Under what circumstances can TICO refuse to renew a travel agent's registration?
- If the agent books fewer than 100 trips per year
- If the agent's principal(s) have been convicted of certain offences or the registrant has not met conduct standards (Correct answer)
- If the agent specializes only in domestic Canadian travel
- If the agent's office is not located in a shopping mall
Correct answer: If the agent's principal(s) have been convicted of certain offences or the registrant has not met conduct standards
TICO may refuse renewal if a registrant or its principals have a criminal history, prior regulatory violations, or have otherwise failed to meet registration requirements.
Question 4: When TICO receives a consumer complaint against a registered travel agent, what is a possible enforcement outcome?
- TICO can cancel or suspend the registrant's registration (Correct answer)
- TICO can order the agent to refund all past customers for the last five years
- TICO can criminally prosecute the agent without involving police
- TICO can revoke the consumer's right to book travel in Ontario
Correct answer: TICO can cancel or suspend the registrant's registration
Following investigation, TICO can take enforcement action including suspending or cancelling a registrant's registration for non-compliance.
Question 5: An Ontario consumer books a vacation through an unregistered travel company. How does this affect their TICO protections?
- They receive the same protections as bookings through registered agents
- They have no protection from the TICO Compensation Fund and TICO cannot enforce on their behalf (Correct answer)
- They receive double compensation from the Compensation Fund
- TICO will investigate the complaint but cannot enforce
Correct answer: They have no protection from the TICO Compensation Fund and TICO cannot enforce on their behalf
TICO's protections, including the Compensation Fund, only apply to transactions with TICO-registered registrants; unregistered companies fall outside TICO's jurisdiction.
Question 6: Which of the following is a condition registrants must meet to maintain their TICO registration in good standing?
- Achieve a minimum annual revenue of $500,000
- Maintain required financial security and comply with TICO's Code of Ethics (Correct answer)
- Employ at least three full-time certified travel counsellors
- Operate a storefront location visible from a major street
Correct answer: Maintain required financial security and comply with TICO's Code of Ethics
Registrants must maintain financial security (trust accounts or bonds) and adhere to TICO's Code of Ethics and regulatory requirements to retain their registration.
Question 7: TICO's authority to investigate complaints is limited to:
- Complaints about any travel company operating worldwide
- Complaints involving TICO-registered Ontario travel agents and travel wholesalers (Correct answer)
- Complaints about airline pricing and scheduling delays
- Complaints about hotel star-rating misrepresentation globally
Correct answer: Complaints involving TICO-registered Ontario travel agents and travel wholesalers
TICO's jurisdiction covers only TICO-registered travel agents and travel wholesalers operating in Ontario; it has no authority over airlines, hotels, or unregistered entities.
TICO Role and Mandate 4
Which of the following businesses is required to register with TICO?