TICO TICO's Role and Mandate 4 — Questions and Answers
Question 1: Which body has the authority to set the standards and requirements for the TICO Education Standards Program?
- The Ontario Ministry of Education
- TICO's Board of Directors (Correct answer)
- The Association of Canadian Travel Agencies
- Transport Canada
Correct answer: TICO's Board of Directors
TICO's Board of Directors establishes and oversees the education standards that travel agents and wholesalers must meet to maintain registration.
Question 2: If a consumer has a complaint about an Ontario-registered travel agent, what is the correct first step?
- File a complaint directly with the Ontario Small Claims Court
- Contact the travel agent or agency to resolve the matter first (Correct answer)
- Immediately report the agent to the RCMP
- Notify Transport Canada of the dispute
Correct answer: Contact the travel agent or agency to resolve the matter first
TICO's complaint process typically requires consumers to first attempt to resolve the issue directly with the registrant before escalating to TICO.
Question 3: What is the significance of the TICO logo displayed in a travel agency window or website?
- It certifies that the agency has won a tourism industry award
- It indicates the agency is registered with TICO and consumers have certain protections (Correct answer)
- It shows the agency is a member of ACTA
- It confirms the agency is licensed to sell all types of insurance
Correct answer: It indicates the agency is registered with TICO and consumers have certain protections
The TICO logo signals to consumers that the agency is a registered Ontario travel seller subject to TICO's regulations and consumer protections.
Question 4: TICO's mandate includes protecting consumers AND ensuring a fair marketplace. Which of the following reflects the 'fair marketplace' aspect?
- Setting minimum pricing rules for all vacation packages
- Ensuring all registrants meet consistent professional and financial standards (Correct answer)
- Negotiating contracts between airlines and travel agents
- Setting commission rates paid to travel agents by tour operators
Correct answer: Ensuring all registrants meet consistent professional and financial standards
By requiring all travel sellers to meet the same registration, financial, and professional standards, TICO creates a level playing field across the industry.
Question 5: Which financial requirement must Ontario travel registrants maintain as part of their registration conditions?
- A minimum annual revenue of $500,000
- Adequate trust accounting and financial security (Correct answer)
- A line of credit from a Canadian chartered bank
- Liability insurance of at least $2 million
Correct answer: Adequate trust accounting and financial security
Registrants must maintain trust accounts for client funds and provide financial security (such as a bond) as required under the Travel Industry Act, 2002.
Question 6: In what year was TICO established as a delegated administrative authority in Ontario?
- 1990
- 1997 (Correct answer)
- 2002
- 2010
Correct answer: 1997
TICO was established in 1997 when the Ontario government delegated administration of the travel industry to this new self-regulatory body.
Question 7: A travel wholesaler based in Ontario sells packages exclusively to other travel agents, not directly to consumers. Does this business need to register with TICO?
- No, because it does not sell directly to the public
- Yes, wholesalers selling to registered agents in Ontario must also be registered with TICO (Correct answer)
- Only if the wholesaler's annual revenue exceeds $1 million
- Only if the wholesaler also sells airline tickets
Correct answer: Yes, wholesalers selling to registered agents in Ontario must also be registered with TICO
Ontario travel wholesalers must register with TICO regardless of whether they sell to the public directly or only through retail travel agents.
TICO TICO's Role and Mandate 4
Which body has the authority to set the standards and requirements for the TICO Education Standards Program?