TICO Travel Industry Act, 2002 5 — Questions and Answers
Question 1: Under the Travel Industry Act, 2002, which scenario would result in an automatic revocation of a travel agent's registration?
- Filing a complaint with TICO
- Being convicted of fraud related to travel services (Correct answer)
- Temporarily closing their office
- Failing to renew registration on time
Correct answer: Being convicted of fraud related to travel services
A conviction for fraud related to travel services can lead to automatic revocation of registration under the Act.
Question 2: What is the purpose of the Travel Industry Compensation Fund administered under the Travel Industry Act, 2002?
- To pay TICO staff salaries
- To compensate consumers who suffer financial loss due to a registrant's bankruptcy or fraud (Correct answer)
- To fund marketing campaigns for Ontario travel agents
- To reimburse travel agents for business losses
Correct answer: To compensate consumers who suffer financial loss due to a registrant's bankruptcy or fraud
The Compensation Fund protects consumers by reimbursing them for financial losses caused by a registered travel agent's insolvency or fraudulent conduct.
Question 3: A consumer cancels a trip 48 hours before departure. The travel agent says no refund is available. Under the Travel Industry Act, 2002, what must the agent provide?
- A full refund regardless of timing
- A written explanation of why no refund is available under the contract terms (Correct answer)
- A future travel credit of equal value
- Nothing — verbal communication is sufficient
Correct answer: A written explanation of why no refund is available under the contract terms
Even when a refund is not owed, the agent must provide a written explanation citing the specific contract terms that apply.
Question 4: Under the Travel Industry Act, 2002, how long must a registrant retain consumer transaction records?
- 1 year
- 3 years (Correct answer)
- 5 years
- 7 years
Correct answer: 3 years
Registrants are required to keep consumer transaction records for a minimum of 3 years.
Question 5: Which of the following individuals is exempt from registration under the Travel Industry Act, 2002?
- A freelance travel consultant selling cruises from home
- An airline selling only its own flights directly to consumers (Correct answer)
- A hotel booking agent reselling third-party tours
- A home-based travel agent affiliated with a host agency
Correct answer: An airline selling only its own flights directly to consumers
Airlines and other carriers selling only their own transportation services directly are exempt from registration under the Act.
Question 6: What must a travel agent disclose to a consumer before finalizing the sale of travel services under the Travel Industry Act, 2002?
- Their personal commission rate
- All known material facts that could affect the consumer's decision to purchase (Correct answer)
- The names of all airlines involved in the itinerary
- The agent's years of experience in the industry
Correct answer: All known material facts that could affect the consumer's decision to purchase
Agents have a duty to disclose all material facts — such as known risks, restrictions, or issues — before a consumer commits to a purchase.
Question 7: Under the Travel Industry Act, 2002, a TICO inspector arrives at a travel agency to conduct an inspection. What is the registrant's obligation?
- Request the inspection be rescheduled with 48 hours' notice
- Cooperate fully and provide access to records and premises (Correct answer)
- Provide access only if the inspector has a court order
- Notify their lawyer before allowing entry
Correct answer: Cooperate fully and provide access to records and premises
Registrants must cooperate with TICO inspectors and provide full access to their business records and premises upon request.
TICO Travel Industry Act, 2002 5
Under the Travel Industry Act, 2002, which scenario would result in an automatic revocation of a travel agent's registration?