TICO Manual e

Education Standards
TICO
Study Manual for Ontario Registrants: the Travel Industry Act, 2002 and Ontario Regulation 26/05
YOUR PASSPORT TO SUCCESS
TICO Education Standards for Ontario Travel Counsellors and Supervisor/Managers
Travel Industry Council of Ontario
20072009
(A program administered by the Canadian Institute of Travel Counsellors)
Table of ConTenTs
Preface . . . . . . . . . . . . Acknowledgements .
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Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . What Is CITCs Role in Managing the TICO Education Standards Program? . Who Is Obligated to Meet TICOs Educational Requirements? . . . . . . . . . . . . Who Is Not Obligated to Meet TICOs Educational Requirements? . . . . . . . . . Program Content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ways to Complete the Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Length of Time to Complete the Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . Testing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Travel Counsellor Section
vii viii viii . ix . ix . ix . . x . . x
Module 1: TICOs Role in the Travel Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 TICOs Mandate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Relationship Between TICO and the Ministry of Small Business and Consumer Services (MSBCS) (formerly the Ministry of Government and Consumer Services) . . . . . . . . . . . . . . . 1 TICOs Organizational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 TICOs Mission, Vision, and Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 TICOs Responsibilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Self-Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Module 2: Ontarios Travel Industry Act, 2002. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Why Travel Legislation Is Needed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Consumer Travel Protection in Ontario, Quebec, and British Columbia . . . . . . . . . . . . . . . . What Happens in Provinces Where There Is No Travel Legislation? . . . . . . . . . . . . . . . . . . . . The Main Components of the Ontario Travel Industry Act, 2002 . . . . . . . . . . . . . . . . . . . . . . Self-Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Module 3: Registrant Obligations Before the Sale . . . . . . . Representations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . False Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Self-Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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11 11 12 15 16 19 21 21 25 27 29 31 31 35 37 37 38 38 40 i
Module 4: Registrant Obligations After the Sale but Before Client Travels . . . . Invoicing Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Disclosure of Changes to the Travel Services Purchased . . . . . . . . . . . . . . . . . . Requirement to Provide and Verify Travel Documents . . . . . . . . . . . . . . . . . . . Travel Wholesalers Requirement to Provide Travel Services . . . . . . . . . . . . . . . Duty of Registrants Who Resell Travel Services . . . . . . . . . . . . . . . . . . . . . . . . . Invoicing Checklist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Self-Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS
Module 5: Ontario Travel Industry Compensation Fund . . . . Purpose of the Travel Industry Compensation Fund . . . . . Payments to Finance the Fund . . . . . . . . . . . . . . . . . . . . . Eligibility to Make a Claim . . . . . . . . . . . . . . . . . . . . . . . . Claims Limit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Consumer Claims Procedure . . . . . . . . . . . . . . . . . . . . . . . Appeals Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Administration of the Compensation Fund. . . . . . . . . . . . Self-Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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43 43 44 44 48 51 53 53 54
Supervisor/Manager Section Module 6: Registration Requirements . . . . . . . . . . . . . . . . . . . Who Must Be Registered? . . . . . . . . . . . . . . . . . . . . . . . . . Exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Requirements to Become Registered . . . . . . . . . . . . . . . . . Requirements for Renewals . . . . . . . . . . . . . . . . . . . . . . . . Forms and Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Security Deposit for New Applicants . . . . . . . . . . . . . . . . Requirements for Operating from an Office or Dwelling . Business Name Requirements . . . . . . . . . . . . . . . . . . . . . . Certificate of Registration . . . . . . . . . . . . . . . . . . . . . . . . . Requirements to Maintain Registered Status . . . . . . . . . . . Educational Requirements. . . . . . . . . . . . . . . . . . . . . . . . . Legal Responsibility for Deposits . . . . . . . . . . . . . . . . . . . Notification of Changes . . . . . . . . . . . . . . . . . . . . . . . . . . Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Refusal, Cancellation, and Suspension of a Registration . . Appeals to the Licence Appeal Tribunal. . . . . . . . . . . . . . . Offences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Confidentiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Self-Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Module 7: Financial and Record-Keeping Requirements . . . Financial Statement Reporting Requirements . . . . . . . . . . Working Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Trust Accounting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Security Instead of Trust Accounting. . . . . . . . . . . . . . . . . New Applicant Security. . . . . . . . . . . . . . . . . . . . . . . . . . . Record-Keeping. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Financial Inspection Program . . . . . . . . . . . . . . . . . . . . . . Self-Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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57 57 57 59 59 60 60 62 62 62 63 64 64 65 66 67 67 68 69 70 71 73 73 75 76 77 77 78 79 81
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Module 8: Complaints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . TICOs Role in Handling Consumer Complaints . . . . . . . . . . . . . . . . . . . . . . . TICOs Role in Handling Registrant-to-Registrant Complaints . . . . . . . . . . . . TICO Complaints Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Standard of Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Self-Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Module 9: Investigations and Offences . . . . . . . . . . . . . . . . . . Conduct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Investigations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conditions for Obtaining and Using a Search Warrant . . . Improper Conduct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Penalties for Offences . . . . . . . . . . . . . . . . . . . . . . . . . . . . Self-Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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83 83 86 87 88 89 91 91 91 92 93 93 95
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Additional Information and Sample Exam Section Answer Key to Module Self-Tests . Next Steps . Glossary .
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99 101 103 109 115 119
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Appendix 1: Sample Travel Counsellor Exam .
Appendix 2: Sample Supervisor/Manager Exam . A Walk Through the TICO Website
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PrefaCe
Every person in Ontario who is working for a retail travel agency and is selling travel services or providing travel advice to the public must, by law, meet the industrys Education Standards by July 1, 2009. The Education Standards program is administered by the Canadian Institute of Travel Counsellors (CITC) on behalf of the Travel Industry Council of Ontario (TICO). The program consists of two levels: 1) Travel Counsellor and 2) Supervisor/Manager. TICO has developed the Education Standards Study Manual to help individuals prepare for exams at both levels. The manual is therefore organized into two sections: The Travel Counsellor section (Modules 15) contains information that all travel counsellors must know. This includes agency supervisors/managers, owners of travel agencies, and anyone else who provides travel advice to the public on behalf of an Ontario-registered travel agency. All such individuals will be tested on their knowledge and understanding of these five modules. The Supervisor/Manager section (Modules 69) contains additional information that all agency supervisors/managers must know. It is highly recommended that all travel counsellors read through the entire Study Manual to get a better overview of their obligations under the Travel Industry Act, 2002 and Ontario Regulation 26/05. However, only supervisors/managers will be tested on the content of these four modules if they are required to write the Supervisor/Manager Exam. A glossary of terms and phrases used in the Study Manual is provided on page 103. Consult the glossary as needed while you work through the manual. Please note that you will not be permitted to take outside reference materials such as dictionaries into the exam room. When you have completed the Travel Counsellor section of the Study Manual, you are encouraged to take the Sample Travel Counsellor Exam (starting on page 109). If you are required to take the Supervisor/Manager Exam, the sample exam for that (see page 115) will help you prepare.
Complete the program! If you are engaged in selling travel services to the public in Ontario, it is essential that you become familiar with the rules governing both your conduct and the legal consequences of your actions (or failure to act). Successful completion of this program will allow you to continue selling travel products in Ontario and to do so with confidence and expertise.
Preface
Although it is not necessary, candidates preparing for the exam can also download copies of the Act and Regulation from the TICO website at www.tico.ca/downloadables.html.
Study tips Visit the CITC website at www.citc.ca/en/tico to see full details about the Education Standards exam, including a step-by-step overview of the exam process. Dedicate time to concentrating on the material in the Study Manual. Divide the Study Manual into sections or sub-sections and set a goal to study one area every day until you have reviewed all the required modules. Write down areas that you feel uncertain about, or areas where you feel you will need to spend time reviewing before the exam. Return to those areas at the end of your studies. Complete the self-test at the end of each module, as well as the sample exam at the back of the Study Manual. Check your answers at www.citc.ca/en/sampleexam-e.asp. Remember that the purpose of the exam is to ensure that you fully understand your obligations as a travel professional and can deal with the public competently and comfortably.
Acknowledgements The Study Manual was made possible by the hard work and dedication of the following people: David Wright, CTM, the author of the Study Manual Georgina Montgomery, general editor Paul Harris, design and layout Steve Gillick, CTM, President and COO, CITC Michael Pepper, President and CEO, TICO Tracey McKiernan, TICO Legal Counsel Education Standards Committee, TICO, chaired by Mike Foster TICO Board of Directors
Toronto, Ontario Fall 2007
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IntroductIon
InTroduCTIon
The Education Standards program is aimed at ensuring that working travel professionals in Ontario have the background and knowledge to conduct their daily business in keeping with provincial legal requirements. The program is designed to help sellers of travel services in Ontario comply with the Educational Requirements set out in the provinces Travel Industry Act, 2002 (referred to after this simply as the Act) and Ontario Regulation 26/05 (the Regulation). Students in travel programs who wish to have a career in the retail or wholesale sectors of the Ontario travel industry will also find the manual useful. The current Act and Regulation came into force on July 1, 2005. Ontario travel counsellors already in business have until July 1, 2009, to meet the Educational Requirements. All new travel counsellors and supervisor/managers entering the business after this date must already meet the requirements to enter the occupation.
Why were the Education Standards brought in? Several changes have taken place since Ontario introduced the Travel Industry Act in 1974: Ontarios travel industry has grown to be one of the largest in Canada, and the number of people who travel is increasing every year. Consumers have become better educated and informed and therefore more likely to take legal action if they are dissatisfied with the travel services or travel advice they receive. Rapidly changing technology has brought many issues to the forefront. Especially challenging has been the growth of the Internet as a sales and marketing tool. Regulating virtual versus bricks and mortar travel agencies was not a concern 30 years ago. The nature of competition in the industry is more complex than before. On the one hand, competition has increased. Consumers can now choose from more destinations, suppliers, and distributors than ever before. On the other hand, some aspects of competition have decreased because the consolidation of airlines, suppliers, and retailers has reduced consumer choice. Vertical integration in the industry has increased. Examples of vertical integration: when a tour operator buys a retail chain to gain more control over how and where the operators products are sold; and when an airline purchases tour companies and retailers. A number of high profile closures and bankruptcies over the last decade have led to legislative changes that go beyond the scope of the 1974 Act. In response to these changing conditions, the Ontario government approved selfmanagement for the travel industry. In 1997, the Province gave the Travel Industry Council of Ontario (TICO) responsibility for the administration of the Act. Further changes to the Act were brought into effect in July 2005. As a result of consumer complaints received at TICO and compliance issues identified by TICO staff, it became apparent that many registrants were not familiar with their responsibilities under the Act and Regulation. If registrants are educated and understand their legal obligations, they will be better able to serve their clients and avoid problems with the regulator. Having a standard gives agencies a competitive advantage in the marketplace. Agencies that show they comply with the legislation will instill confidence in their clients. This can lead to greater revenues and return business. Having a standard in Ontario raises the profile of both the travel consultants and the industry itself. It emphasizes the professionalism of Ontario travel sellers, which may help to attract future candidates for employment.
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IntroductIon
What Is CITCs Role in Managing the Education Standards Program? The Travel Industry Council of Ontario (TICO) contracted the Canadian Institute of Travel Counsellors (CITC) to design and implement this program under TICOs supervision. CITC is the body responsible for administering the process for TICO.
Definitions Travel Industry Council of Ontario (TICO) is a not-forprofit corporation that regulates travel agents and travel wholesalers in the province. It is financed by the retail and wholesale travel community. Canadian Institute of Travel Counsellors (CITC) is a notfor-profit membership organization for individual travel professionals. As the educational trade association for Canadas travel industry, CITC manages the national certification programs leading to the professional designations CTC and CTM. As well, CITC conducts professional development seminars, conferences, distance-learning courses, and in-house training for travel counsellors.
A person passing the exam will receive a letter from CITC verifying that he or she has successfully met the requirements. The person should then submit a copy of the letter to his or her agency manager. On request, CITC will also provide TICO with verification that an individual has passed the exam. As well, CITC will provide TICO with statistics regarding pass rates and trends. CITC is bound by the Privacy Act to use records only for the purpose for which they were intended. Who Is Obligated to Meet the Educational Requirements?
The Travel Counsellor Exam
Every person who sells or offers to sell travel services or provides travel advice to the public on behalf of a registered Ontario travel agency must meet the Educational Requirements by July 1, 2009. Examples are front-line personnel who work as travel counsellors, reservations agents, and employees of web-based travel service companies and call centres, where the company is registered in Ontario. The following groups must therefore take and pass the Travel Counsellor Exam: Individuals working at out-of-province call centres and after-hours emergency centres who are providing travel advice and selling or offering to sell travel services on behalf of an Ontario registered travel agency. This would not include individuals who are only taking messages and not responding to the queries on behalf of the registrant. Further, it would not apply where the registrant has clearly informed the customer that it is a separate entity not regulated by TICO that will be dealing with the customer and taking payment in those situations and, as a result, the consumer protection provisions available in Ontario, such as the Compensation Fund, would not apply to any transactions between the customer and the unregistered entity.
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IntroductIon
Students from a travel program who are on work placement (either paid or voluntary) if they deal directly with the public. Where travel schools operate a travel agency in Ontario, both students and their supervisors in the agency.
The Supervisor/Manager Exam
All supervisors/managers of travel agents on record with TICO must meet the Educational Requirements. The individual who is on record with TICO as being a supervisor/manager before July 1, 2009, will be grandfathered as long as their responsibilities will not change after July 1, 2009. This means they are granted a temporary exemption and do not have to pass the Supervisor/Manager Exam by July 1, 2009. Those who are not on record as being a supervisor/manager with TICO on July 1, 2009, but who will act as the supervisor/manager of record on or after that date must take and pass the Supervisor/Manager Exam. Who Is Not Obligated to Meet the Educational Requirements? Travel program instructors are not obligated to meet the requirements, because educators do not normally deal directly with consumers in a travel sales situation. Nevertheless, TICO strongly recommends that educators complete the program as part of their regular professional development activities. Individuals employed by suppliers of travel services not covered by the Ontario legislation (such as airlines, cruise lines, or car rental companies) are not obligated to meet the requirements. Program Content As shown in the Table of Contents, the Study Manual is divided into nine modules: Modules 15 apply to all travel counsellors, including supervisors and managers. Modules 69 apply to those supervisors and managers who are required to write the Supervisor/Manager Exam.
If you are unsure about your status, contact TICO by phone at (905) 624-6241 or toll-free at 1-888-451-TICO (8426), or by email to tico@tico.ca.
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IntroductIon
Ways to Complete the Program The program is designed so that individuals anywhere in Ontario can access the training available. You may complete the program in any of the following ways: As a self-study program. Review the Study Manual at your own pace and then complete the sample questions and the sample exam. In your agency/organization under the direction of your inhouse trainer. In a classroom setting with an instructor. This can be facilitated in situations where 20 or more candidates request an instructor. Fee depends on the number of participants. For other study options, including tele-seminars, check www.citc.ca/en/tico for information. Length of Time to Complete the Program When offered as classroom-based training, the Travel Counsellor program can be completed over 12 hours of instruction (five modules of two hours each, plus a review module). However, the modules can be combined to create a more compressed training program, such as three 4-hour modules spread over a one-week period, two full-day training modules, or any other combination that suits a learners needs. Note: The 12-hour length is a guideline only. What is important is that candidates achieve the learning outcomes (confirmed by passing the exam). Testing There are three exam options: The Travel Counsellor Exam consists of 50 multiple-choice questions. Candidates have 90 minutes to complete the exam. The Supervisor/Manager Exam consists of 30 multiplechoice questions. Candidates have 60 minutes to complete the exam. A combined Travel Counsellor Exam and Supervisor/Manager Exam is also available. It consists of 80 multiple-choice questions. Candidates have 150 minutes to finish the exam.
IntroductIon
Candidates writing the exams may not use any reference materials. All exams are closed book and written in a supervised (or proctored) environment. Candidates can arrange a time, date, and location that are convenient for their work and study schedule. To be successful, candidates must achieve a pass. Exam marks are reported only as pass or fail. (Each exam has its own pass mark. Every exam is built from a random group of questions from a larger bank of questions. Each question is reviewed and rated by an expert industry committee to determine how difficult the question is and how likely it is that a candidate can select the correct answer. Pass marks are averaged to determine what is called the examination standard.) If your score is higher than or equal to the exam standard, you will receive a pass result. If your score is lower than the standard, you will receive a fail result. Some examples of types of exam questions are included as review questions in the program materials. A sample exam is also provided at the back of the Study Manual, the answers for which are posted at www.citc.ca/en/sampleexam-e.asp. Further details on the exam, group testing dates, proctored venues, or in-class instruction can be obtained from CITC online at www.citc.ca/en/TICO; by phone at (416) 484-4450 or toll free at 1-800-589-5776; or by email: ticotest@citc.ca. Information on testing will also be published on the TICO website at www.tico.ca.
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TRAVEL COUNSELLOR SECTION

The Travel Counsellor section (Modules 15) contains information that all travel counsellors must know. This includes agency supervisor/managers, owners of travel agencies, and anyone else who provides travel advice to the public on behalf of an Ontario-registered travel agency. All such individuals will be tested on their knowledge and understanding of these five modules.
TICos role In The Travel IndusTry

MODULE OUTCOMES
After successfully completing this module, you will be able to: Explain TICOs mandate in the travel industry Describe the ongoing relationship between TICO and the provincial government Identify TICOs organizational structure and board membership Describe TICOs mission, vision, and values Explain TICOs responsibilities TICOs Mandate On June 25, 1997, the Ontario government delegated the administration of the Travel Industry Act to the Travel Industry Council of Ontario (TICO). TICO is a not-for-profit corporation that regulates, and is financed by, the retail and wholesale travel community. TICO also assumed responsibility for the industry-financed Travel Industry Compensation Fund. The Act governs travel retailers and wholesalers registered in Ontario. TICO is financed entirely from the registration fees of travel agencies and travel wholesalers registered in Ontario. Those same agencies and wholesalers also finance the Travel Industry Compensation Fund. See Module 5 for information about the Compensation Fund. For more information on registration, see Module 6 in the Supervisor/Manager section of the manual. Relationship Between TICO and the Ministry of Small Business and Consumer Services (MSBCS) (formerly known as the Ministry of Government and Consumer Services) The provincial Ministry of Small Business and Consumer Services is currently responsible for consumer legislation in Ontario, including the Travel Industry Act, 2002. In meeting its administrative responsibilities, TICO works cooperatively with the government in several ways on behalf of the travel industry and consumers. For example, TICO:
Module 1
Module Summary TICO is a not-for-profit corporation that regulates, and is financed by, the retail and wholesale travel community.
Definitions The Travel Industry Compensation Fund (or, simply, Compensation Fund) refunds (fully or in part) eligible consumers who bought travel services from an Ontario-registered travel agency but did not receive them because of the bankruptcy or insolvency of a registrant or an airline or cruise line end supplier. An end supplier is a person that operates a travel service for which they have ownership. Examples of end suppliers include airlines, cruise lines, hotels and car rental companies. End suppliers do not need to be registered under the Travel Industry Act, 2002 provided that they do not otherwise act as a travel agent or travel wholesaler in Ontario. The Travel Industry Compensation Fund does not cover the non-provision of travel services by an end supplier except for airlines and cruise lines.
Module 1: tIcos role In the travel Industry
holds regular liaison meetings with the Ministry to maintain communications and address issues; consults with the Ministry on policy and legal issues to ensure that the legislation remains relevant to all three stakeholder groups government, the travel industry, and consumers; works with the Ministry to move recommendations forward through the legislative process. This was the process used to develop the changes that resulted in the Travel Industry Act, 2002; and works with the Ministry to finalize outstanding items on the Administrative Agreement, the document setting out the responsibilities of TICO as the administrative authority for the Ontario travel industry. TICO is required by the Ministry to submit an Annual Report and an annual Business Plan. These documents outline TICOs financial position, discuss issues that have arisen, describe the organizations achievements in the past year, and set objectives for the coming three years. Both documents are posted on the TICO website at www.tico.ca. TICOs Organizational Structure TICO is managed by a Board of Directors and a Chief Executive Officer (CEO). The Board is made up of 15 members: 11 representatives from the travel industry and 4 individuals appointed by the Ministry to represent consumers, business, and government. TICOs organizational structure is shown in Figure 1.1. The Board is responsible for overseeing the general operation of TICO (and not the day-to-day operations) and for hiring the CEO. The CEO manages the financial and operational affairs of TICO. The Board carries out its work through committees, which research, consult, and make recommendations to the Board. For example, committees make suggestions for industry improvement and legislative changes, and help form and oversee TICOs policies. Currently, there are 10 Board committees: Alternate Finance makes recommendations to the Board with respect to alternative methods of financing the Travel Industry Compensation Fund. Audit reviews internal controls, accounting and investment policies, investment reports, and financial statements of the organization and reports to the Board. 2
Business Strategy develops and monitors TICOs business policies and plans and works on TICOs consumer awareness campaign. Compensation Fund reviews and makes recommendations to the Board regarding the payment of claims against the fund. Complaints reviews, monitors, and addresses complaints against TICO and makes recommendations regarding TICOs complaints procedures and standards. E-Commerce reviews e-commerce issues to identify challenges and make recommendations regarding consumer protection and the delivery of TICOs services through the Internet. Executive reviews large closures, manages emergency issues, provides support to the CEO, and makes recommendations regarding the composition of Board committees. Governance reviews criteria, communication, and retention issues related to Board membership, and helps clarify the Boards role and responsibilities. Legislative and Regulatory Review works closely with stakeholders, including the Ministry, on issues where legislative or regulatory changes would be beneficial. Education Standards is involved in the development and implementation of the Education Standards program.
Board of Directors
In addition to the Board committees, TICO also has a Consumer Advisory Committee. This committee is made up of individuals representing various consumer interests. The purpose of this committee is to give TICO input and a consumer perspective on issues.
Board Committees Chief Executive Officer Registrar
Legal Counsel
Director of Operations & Chief Financial Officer
Manager, Administration & Claims
Legal Services
Registration
Compensation Fund Finances
Accounting
Inspections & Investigations
Consumer Complaints
Administrative Services
Claims Processing
Figure 1.1: Organizational structure of TICO.
TICOs Mission, Vision, and Values A mission statement expresses clearly an organizations purpose or reason for existing. TICOs mission is to promote a fair and informed marketplace where consumers can be confident in their travel purchases. This work is designed to support the Ministrys mission to maintain a fair, safe and informed marketplace as it relates to Ontarios Travel Industry Act. The goal of consumer protection is clear from both statements.
TICOs mission is to promote a fair and informed marketplace where consumers can be confident in their travel purchases.
MISSION STATEMENT
To promote a fair and informed marketplace where consumers can be confident in their travel purchases.
TICOs vision
A vision statement expresses the direction the organization wants to achieve. TICOs goals are to be: a leader in developing an improved system of consumer protection; a model for a progressive, fair, and firm administrator of industry regulations; and a developer, promoter, and advocate of good business ethics and harmonized standards in the travel industry.
TICOs values
Supporting a mission statement are values that set the performance standards and direct the implementation of the organizations mission. Examples of values include service excellence, innovation, diversity, creativity, honesty, and integrity. Values are beliefs that an organizations members share and try to put into practice. These values guide the organizations members in performing their work.
TICOs values are that it will be: ethical in everything it does; fair but firm in its dealing with registrants and consumers; responsive and open in communicating with consumers and registrants, while respecting the business confidentiality of registrants; and visionary in its approach to improving the industry and industry practices, while staying accountable to all stakeholders for the cost-effectiveness and practicality of solutions and initiatives. TICOs Responsibilities TICOs primary responsibilities are to: administer the Travel Industry Act, 2002; and ensure that registrants follow the rules so that consumers are protected and can be confident in their travel purchases. TICO works with three groups to carry out its mandate: consumers, the travel industry, and government. TICO seeks input from each of these stakeholder groups: Consumers TICOs goal is to increase consumers awareness of their rights and responsibilities under the Travel Industry Act, 2002. In support of this work, TICO launched a Consumer Awareness Campaign in 1999. The aim of the ongoing campaign is to educate consumers and promote awareness about TICO, the Compensation Fund, and the protection available to consumers when they purchase travel services from an Ontario-registered travel agency. Since then, TICO has continued to promote awareness through television, radio, and newspaper ad campaigns. Recent television advertisements can be viewed on TICOs website. Window displays and decals for the travel industry and informational material for consumers have also been distributed by the organization. TICOs services to consumers are explained in more detail in the rest of this section.
Definition A registrant is a travel agent or a travel wholesaler who is registered as a travel agent, travel wholesaler, or both under the Travel Industry Act, 2002.
Travel Industry TICO holds stakeholder meetings when required to ask for the industrys views and opinions. This was the method used to assess the industrys reaction to the changes that resulted in the Travel Industry Act, 2002. A similar forum is usually held each June during TICOs Annual General Meeting. Government The Ministry of Small Business and Consumer Services has delegated responsibility for administering the Travel Industry Act, 2002 to TICO, and holds TICO accountable for correctly performing this function.
TICOs delegated responsibilities
The Ministry has given TICO specific responsibility for the following:
registration
Processing new applications and ensuring that criteria and standards are met. Processing registration renewals and ensuring that criteria and standards continue to be met, such as financial viability, supervisor/manager qualifications, and advertising standards. Responding to registrant and consumer inquiries.
consumer protection
Administering the Travel Industry Compensation Fund. Conducting inspections, including: financial reviews of registrants to minimize risk to consumers; and checking compliance of registrants with advertising regulations, terms and conditions of registration, and disclosure to consumers (such as conditions of booking). Maintaining compliance with the Act and Regulation by ensuring that registrants correct deficiencies that have been identified. Investigating instances of suspected breaches of the Act that could result in prosecution. Enforcing the Act and Regulation through suspensions, proposals to revoke registrations, the laying of charges under provincial statutes, and referrals to criminal authorities. Dealing with consumer inquiries. Improving consumer education.
complaint resolution
Resolving complaints between: consumers and registrants consumers and TICO registrants and TICO Where complaints have not been resolved, providing information on other options.
government liaison
Working closely with the Ministry for purposes of issues management, regulatory reform, and matters of public interest.
TICOs additional responsibilities
In addition to the above responsibilities, TICO carries out several other services, including:
consumer awareness
Increasing consumer awareness of the benefits of purchasing travel services from Ontario registrants and of the risks in dealing with non-registrants. Working to increase consumer and registrant awareness of electronic commerce (e-commerce) as it relates to the travel industry. Working to create a climate of consumer confidence in purchasing travel services from registrants by: performing services and special projects aimed at monitoring and ensuring compliance with the Act and Regulation (for example, conducting inspections to ensure that companies meet advertising guidelines, comply with invoicing requirements, and do not operate without being registered); and reviewing all registrant financial statements to ensure compliance with the financial standards required by regulation. (The review helps identify registrants that may pose a financial risk to the Compensation Fund and should be targeted for site inspections.) Producing materials and marketing campaigns to make consumers aware of the benefits of dealing with Ontario registrants.
industry awareness
Maintaining an updated website that informs the industry of issues, travel advisories, and consumer
Consumer and registrant education The marketing and educational materials that TICO produces include booklets and flyers for consumers and window displays and decals for registrants. Advertisements have been placed in newspapers and on radio and television. The TICO website provides consumer travel tips and advisories, as well as information on legislation, complaints procedures, the Travel Industry Compensation Fund, and industry closures. Perhaps most important, TICO has increased public awareness of its logo so that consumers will be sure to look for it in travel agencies, brochures, and other advertising materials.
awareness programs. The site can also be used to look up whether a particular travel agency or travel wholesaler is registered with TICO. Conducting inspections to maintain professional and financial standards. Establishing education standards that will help extend TICOs goal of improving industry professionalism.
consumer compensation
Providing compensation to consumers who purchased travel services from an Ontario registered travel agency but did not receive them because of the bankruptcy or insolvency of a registrant or an airline or cruise line end supplier. Providing consumers with other options where circumstances warrant such action.
legislative and regulatory amendments
Working with the Ministry and travel industry to ensure the Act and Regulation remain relevant to emerging issues.
ethical conduct
Promoting fair and ethical competition in the industry. Supporting a Code of Ethics.
An example of TICOs role in amending legislation TICO worked hard to ensure that, where possible, consumers were compensated and Ontario-registered retailers were not held liable for the end supplier failure of Canada 3000 Airlines in 2001. As a result of the work of TICO and its industry allies, the Regulation was amended to allow for claims against the Compensation Fund in the event of the failure of an airline or cruise line end supplier where the customer booked their services through an Ontario registered travel agent.
Module 1: TICos Role In The TRavel IndusTRy
Guide to finding information in the Act and Regulation Both the Act and the Regulation begin with a table of contents to help you find particular information. The first section of an Act and Regulation usually begins with a list of definitions of the terms used in the legislation. The Travel Industry Act, 2002 contains the following sections: Sections 13 provide definitions of terms Sections 47 describe prohibitions against a person acting as a travel agent or travel wholesaler unless he or she is registered to do so Sections 7.115 give details of registration requirements Sections 1623 identify criteria for complaints, inspection, and discipline Sections 2434 explain conduct and offences Sections 3540 cover general matters, such as confidentiality, fees, and certificates Section 41 deals with the Travel Industry Compensation Fund Sections 4243 set out the authority of the Minister and Lieutenant Governor to make regulations
Ontario Regulation 26/05 follows a similar format: Sections 12 provide definitions and exemptions Sections 37 explain application and renewal procedures Sections 821 identify business requirements for registration Sections 2229 outline a registrants financial obligations and record-keeping requirements Sections 3035 explain requirements for representations Sections 3647 summarize disclosure requirements for registrants Section 48 deals with disclosure of information on registrants Section 49 identifies the prescribed period for pre-approval of advertising Sections 5055 describe the Compensation Fund in general Sections 5671 relate to claims made on the Fund Sections 7273 describe the Funds administration Section 74 notes that previous legislation is revoked Section 75 indicates when the current legislation comes into force The rest of the modules in this Study Manual provide details on how the Act and Regulation apply to your day-to-day business.
SELF-TEST
Test your knowledge by answering the following questions after completing Module 1. Check your answers in the Answer Key on page 99. Multiple Choice 1. TICO is funded by a. b. c. d. the Ontario government consumers Ontario registrants the Canadian travel industry
2. TICO works with consumers to ensure that a. they are aware of their rights under the Travel Industry Act, 2002 b. they take their vacations in Ontario c. the travel industry is promoted to consumers d. consumers receive the lowest price from travel agents 3. TICO enhances industry professionalism in many ways, including a. offering courses to travel counsellors to enhance their skill b. maintaining an informative and up-to-date website c. encouraging consumers to consider a career in travel d. working with end suppliers
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OntariOs Travel IndusTry acT, 2002

MODULE OUTCOMES
After successfully completing this module, you will be able to: Describe the developments that led to the introduction of specific travel legislation in Canada Recall which provinces have travel legislation and when it was introduced Describe the main components of Ontarios Travel Industry Act, 2002 List the individuals and organizations covered by theTravel Industry Act, 2002 and describe their roles Why Travel Legislation Is Needed The field of travel law is vast. It encompasses, for example, aviation crash law, international law, hotel law, maritime law, and the Warsaw Convention. While it is important for registrants to understand all laws affecting their business, the focus in the Education Standards program is on the Travel Industry Act, 2002 and Ontario Regulation 26/05. A number of common travel problems can result from the actions or arrangements that travel suppliers make. Such problems include: physical injuries delays and cancellations overbooking discrimination lost, damaged, or stolen baggage, and misrepresentation concerning transportation, accommodation, tours, and other travel services.
Module 2
Module Summary The Ontario Travel Industry Act, 2002 sets down the rules under which travel retailers and travel wholesalers must operate in Ontario. Although there are other laws that affect the operations of travel retailers and travel wholesalers, this Act is the focus of this manual.
The two components: The Act and regulations A law (or Act) describes a particular set of rules. A regulation in support of an Act describes how the rules will be enforced or applied. For example, the Ontario Travel Industry Act, 2002 states that a travel agent or travel wholesaler must be registered in Ontario. Ontario Regulation 26/05 sets out the procedural rules (requirements) for registration and outlines registration procedures. The Regulation gives the government the power to make a law without further legislation. This means that detailed requirements do not have to be debated in the legislature. So, for example, if there are exceptions to a law, they are described in the Regulation rather than in the Act. It is easier to make changes to a Regulation than to change the Act itself.
Travel agents even if they do not cause the above problems may have to deal with the fallout from them. However, suppliers are not the only source of potential problems. Some problems may be created by travel counsellors who fail to book travel products correctly, which results in travel arrangement errors or delays. For example, an air carrier may
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Module 2: ontarios Travel IndusTry acT, 2002
Travel agencies are responsible for the actions of their employees or outside sales representatives, and for ensuring that those individuals meet the educational requirements. This includes out-of-province employees or representatives who sell travel services and answer questions about travel services from customers who believe they are dealing with the Ontarioregistered agency.
refuse to board a passenger because he or she does not have a required visa. The travel counsellor may be responsible for failing to properly research the need for the visa. Some other examples of problems created by a travel agent are: failing to confirm reservations; providing misinformation; misrepresenting facts; failing to investigate destinations and suppliers before recommending them; failing to keep current on industry developments; and failing to warn clients of hazardous conditions. To avoid making any of these mistakes, it is essential that all travel counsellors educate themselves about the relevant rules and act appropriately to reduce or eliminate such problems. Note: While travel counsellors have to meet the Education Standards, TICO does not register individuals. Travel agencies are responsible for the actions of their employees or outside sales representatives, and for ensuring that those individuals meet the educational requirements. This includes out-of-province employees or representatives who sell travel services and answer questions about travel services from customers who believe they are dealing with the Ontario-registered agency. Consumer Travel Protection in Ontario, Quebec, and British Columbia The introduction of regularly scheduled jet airline service in the late 1950s marked the start of todays tourism industry. Technological developments in the 1960s brought larger and faster planes. Larger planes with more seating capacity, however, must be filled with paying passengers. Europeans were the first to realize the potential of bulk buying for the travel industry. Before long, low-cost charter flights and tour packages using bulk-buying techniques were introduced to the marketplace. These ideas quickly spread across the Atlantic. By the early 1970s, charters and packaged holidays were well established in Canada and modern mass tourism had begun. Such rapid growth and innovation often brings growing pains. When new business ideas are developed, few rules are initially in
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place to govern them. This was the case with mass travel. Each day brought more people and new companies into the industry. This unregulated growth became a crisis in 1973 and 1974. The media carried many reports of travellers who had purchased a vacation only to find, on arrival at their destination, no hotel room for them and no record of their booking. In other cases, the holiday went well until travellers arrived at the airport to head home and found that there was no flight. Still others paid for trips to travel agents who disappeared with their money. A rash of such problems, together with the collapse of several tour companies, prompted governments in three provinces to take action to protect consumers: Quebecs Travel Agents Act was enacted in 1974. Ontarios Travel Industry Act was enacted in 1974. British Columbias Travel Agents Registration Act was enacted in 1977. Each of these Acts was designed to protect consumers in various ways, but especially to compensate travellers who paid for services they did not receive. Such protection was necessary because of the bankruptcies and other problems noted above, and because of the special nature of travel purchases. Travel is one of the few products that a person buys before being able to inspect or try the merchandise. This removes one of the consumers most effective means of leverage: that of refusing to pay until he or she is satisfied with the product. Without such recourse, consumers are left with little protection if they are dissatisfied with the product. Today, Ontario, Quebec, and British Columbia use some or all of the following six mechanisms to protect consumers: a registration system posting of security a compensation fund trust accounting truth in advertising supervision/educational requirements
Ontario uses six mechanisms to protect consumers: a registration system posting of security a compensation fund trust accounting truth in advertising supervision/educational requirements
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Registration system
All three provinces have made it illegal for a travel agent or a travel wholesaler to carry on business unless that business is registered with the province. The definitions of travel agent and travel wholesaler may differ from one province to another, but the intent is the same. Companies must meet certain criteria in order to obtain a licence from the province concerned. For those interested in more information on registration requirements, see Module 6 in the Supervisor/Manager section of the manual.
Posting of security
Ontario requires new registrants to post a security deposit of $10,000. The Registrar retains these funds until after the registrant has filed two consecutive annual financial statements and the Registrar is satisfied with the registrants compliance. In theory, a registrant could provide a bond as security, but doing so tends to be more costly than posting a security deposit. For those interested in more information on posting of security, see Module 7 in the Supervisor/Manager section of the manual.
Compensation fund
All three provinces require every licensed travel company to contribute to the compensation fund in the province where it is licensed. The administration and coverage of the compensation fund varies from province to province. Ontarios Travel Industry Compensation Fund is discussed in Module 5.
Trust accounting
All three provinces impose trust accounting on travel companies. This means that monies collected from consumers must be placed in a trust account and used to pay for the consumers travel purchases. A trust account is separate from the general account, which is used to pay all business expenses. Commissions and other charges are transferred from the trust account to the general account only after the clients travel or all suppliers have been paid. Should a tour operator or travel agency go bankrupt, the clients funds can be returned. For those interested in more information on trust accounting, see Module 7 in the Supervisor/Manager section of the manual.
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Truth in advertising
All three provinces forbid a registrant from making false, misleading, or deceptive statements in any advertisement relating to travel services. Advertising in Ontario is discussed in Module 3, along with registrant obligations before the sale.
Supervision and Educational Requirements
As part of the registration process for travel agencies, all three provinces require agency personnel to have a certain level of expertise and experience. In Ontario, as of July 1, 2009, Educational Requirements will replace the vague sufficient experience requirement that prevailed in previous versions of the legislation. Travel counsellors will be required to meet education standards, as measured by the CITC-administered exam of this TICO program. Supervisor/managers must also show competence by passing an exam related to their duties and responsibilities under the Act and Regulation. These topics are discussed more fully in Module 6. What Happens in Provinces Where There Is No Travel Legislation? The British Columbia, Ontario, and Quebec laws operate only within those provinces. This means the laws protect only those consumers who purchase travel services from registered sellers. For example, if an Ontario tour operator goes bankrupt, those consumers who had purchased their vacation from a licensed Ontario retailer would be able to make a claim from the Travel Industry Compensation Fund. Consumers in other provinces who purchase travel from an agency in their province are not protected by the Ontario Compensation Fund. This applies even if consumers purchase the tour from a chain or franchised agency that has branches in both their home province and Ontario. However, if a consumer purchases travel from an Ontario-based agency even if he or she does not reside in Ontario he or she is covered by the Ontario Compensation Fund.
If consumers purchase travel from an Ontario agency, even if they do not reside in Ontario, they would be covered by the Ontario Compensation Fund.
If a customer purchases travel services from a registered Ontario travel agency, which include services provided by an out-of-province wholesaler, the customer will NOT be protected by the Compensation Fund in the event that the out-ofprovince wholesaler fails to provide the travel services. Please make sure that your clients understand this if they are booking such services through your travel agency. The customer would only be protected if the registered travel agency were to fail.
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The Main Components of the Ontario Travel Industry Act, 2002

A brief history of the Act
The Ontario Travel Industry Act was passed in 1974 and has been revised several times since then to reflect changes in the travel industry. It was set up to protect consumers by: requiring all travel agents and wholesalers operating in Ontario to be registered to conduct business; ensuring that minimum financial requirements are met by travel agents and wholesalers; providing compensation for consumers who do not receive the travel services for which they paid, because of the bankruptcy or insolvency of either a registrant or an airline or cruise line end supplier; making all travel agents and wholesalers responsible for truth in their advertising; and requiring travel agencies to be supervised by people who, in the Registrars opinion, have travel expertise and experience. Since 1997, the Act and Regulation have been administered by TICO. The authority to make legislative and regulatory changes remains with the Ontario government. The revised Travel Industry Act, 2002 and Ontario Regulation 26/05 came into effect on July 1, 2005. They include the following protections: Consumers must receive full disclosure of relevant information before purchasing travel services. They must also be notified of any changes after the travel services have been purchased. The Compensation Fund may assist consumers who book with an Ontario-registered travel agency and are stranded abroad. The Compensation Fund compensates those who have paid for but not received travel services purchased through registered Ontario travel agencies. Travel agencies must disclose the availability of both trip cancellation and out-of-province health insurance when making a sale. Registrants must either place consumers deposits into trust accounts or post security with TICO in lieu of trust accounting. 16
The players and their roles
The Act involves the following parties: Registrar The TICO Board of Directors appoints a Registrar to carry out its administrative and regulatory functions. The Registrars powers and functions are described in the Act. Essentially, the Registrar supervises the administration of the Act and Regulation, including registration procedures (such as changes and renewals), financial procedures, advertising and site inspections, complaints, discipline, and the Compensation Fund (including claims and appeals). According to the Act, the Registrar cannot be the Director because the Director supervises the duties of the Registrar. The Board of Directors may appoint up to a maximum of two Deputy Registrars. A Deputy Registrar shall perform such duties as are assigned by the Registrar and shall act as the Registrar in the Registrars absence Registrant A registrant is a travel agent or a travel wholesaler who is registered as a travel agent, travel wholesaler, or both under the Travel Industry Act, 2002. Non-registrant A non-registrant is an organization or individual that sells or supplies travel services but is not registered in Ontario. Examples include: wholesalers and retailers not located in Ontario; companies that sell to clients in Ontario by means of advertising, the Internet, or toll-free phone line, but whose home base or call centre is not located in Ontario; end suppliers (e.g., airlines, hotels, rail services, cruise lines) that may or may not be located in Ontario; and anyone who is operating in Ontario illegally. Travel agent A travel agent is a person who sells, to consumers, travel services provided by another person. Travel wholesaler A travel wholesaler is a person who acquires rights to travel services for the purpose of resale to a travel agent, or who carries on the business of dealing with travel agents or travel wholesalers for the sale of travel services provided by another person. Outside sales representative An outside sales representative is a travel counsellor who works from a location other than the registered office of a travel agency. However, all sales
Disclosure of information on registrants The Act empowers the Registrar to make information about registrants available to the public. The Regulation specifies the information that is to be made available and the manner in which it can be distributed. The Regulation makes the registration process transparent to the public. It states that the Registrar can make the following information available to the public by electronic or other means: the names of persons registered as travel agents or travel wholesalers, the status of registrations, and business contact details. A registrants status includes whether the registrant has been charged with an offence by TICO and what actions were taken by the Licence Appeal Tribunal as a result of a hearing.
Definitions Travel services, according to the Travel Industry Act, 2002, refers to transportation, sleeping accommodation, or other services for the use of a traveller, tourist, or sightseer. Accommodation, according to Ontario Regulation 26/05, is any room that is to be used for lodging by the customer or other person for whom the travel services were purchased, and includes any facilities and services related to the room. It does not include meals.
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must be processed through the registered office, either in person or by electronic means. In addition, the registrant must record the outside sales representative as either an employee or contractor for the company. An outside sales representative may also be an employee of a travel wholesaler who contacts travel agents, either in person or by mail, telephone, or email with the purpose of selling travel services. An outside sales representative is bound by the Act and Regulation in the same way as any other seller of travel products. He or she must have a written contract with a registrant. Statutory Director As defined by the Act, a Statutory Director (usually referred to simply as the Director) is appointed by the TICO Board of Directors to supervise the work of the Registrar. Since the Director supervises the duties of the Registrar, the Director cannot be the Registrar. The position of Statutory Director is an official position at TICO, distinct from a regular Board member position. The Board of Directors may appoint a maximum of two Deputy Directors. A Deputy Director shall perform such duties as are assigned by the Director and shall act as Director in his or her absence. Licence Appeal Tribunal The Tribunal is an independent body appointed by the Ontario government. It hears appeals of proposals to suspend, revoke, or refuse to grant or renew a travel businesss registration. It also hears appeals of decisions to deny claims against the Compensation Fund.
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SELF-TEST
Test your knowledge by answering the following questions after completing Module 2. Check your answers in the Answer Key on page 99. Multiple Choice 1. The registration and inspection of travel businesses in Ontario is conducted by a. b. c. d. the federal government International Air Transport Association (IATA) the Ministry of Small Business and Consumer Services the Travel Industry Council of Ontario (TICO)
2. The Travel Industry Act, 2002 defines travel agent as a. a person who owns and operates a travel service b. a person who sells travel services provided by another person c. a person who sells travel services to other travel agents and wholesalers d. a person who conducts sightseeing tours 3. The Travel Industry Compensation Fund applies to a. Ontario consumers who purchase travel from any travel agency in Canada b. Manitoba consumers who purchase travel from an Ontario travel agency c. Manitoba consumers who purchase from a local agency that has a branch agency in Ontario d. Ontario consumers who travel exclusively in Ontario
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RegistRant ObligatiOns befORe the sale

MODULE OUTCOMES
After successfully completing this module, you will be able to: Define the terms representation and disclosure Describe registrant obligations with respect to representations and disclosures Explain requirements regarding the availability of trip cancellation insurance and out-of-province health insurance Correctly apply the requirements of the Act before a sale is made Correctly apply the Act and Regulation to all advertising Discuss the requirement for truth in advertising Recognize advertisements that do or do not meet the requirements of the Act and Regulation Describe the Registrars powers under the Act and Regulation with respect to advertising The Travel Industry Act, 2002 places particular obligations on registrants with respect to their dealings with clients. The requirements vary depending on when the interaction between seller and client takes place. This module covers registrant obligations before a sale has been made. Module 4 deals with registrant obligations after the sale has been made but before the client travels. Representations A representation is a presentation of fact made in person, electronically, or in print in order to induce someone to act or enter into a contract. Examples of representations include oral presentations, advertisements, brochures, and websites. Registrants must ensure that any representations made on their behalf comply with the Act and Regulation. Therefore, all registrants must understand what is acceptable under the legislation. The main obligations of a registrant in making representations include the following: Written representations All written representations, such as newspaper advertisements, brochures, or websites, must contain the registrants business name, address, and
Module 3
Module Summary The Travel Industry Act, 2002 and Ontario Regulation 26/05 set out clear obligations that registrants must meet when advertising travel services and conducting activities related to making a sale. The intent of the legislation is to ensure that clients are given all the facts they need to make an informed purchase.
Section 31 of the Regulation
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Module 3: RegistRant obligations befoRe the sale
registration number. Residential phone numbers should not be included in written representations. Oral representations Oral representations (for example, a sales presentation) do not have to include the registrants business name, address, and registration number.
Time and space limitations
A representation displayed on a billboard or bus board or made through any other medium with similar time or space limitations is not required to include a registrants business name, address, and registration number. An example of a time and space limitation can be found on a billboard that you might see on a highway or on a bus board (which is usually an advertisement on a bus or at a bus shelter). In these cases, consumers are driving or walking by the sign, often in a matter of seconds, so they need to be able to read and absorb the information quickly. The wording on the sign should therefore be quite large and only key phrases can be mentioned. Note: Registrants should not assume that something is a limited medium unless TICO has specifically stated that the medium has time or space limitations.
Section 33 of the Regulation Price in representations
For all forms of representation, any statement made about price must be clear, comprehensible, and prominent. The intent is that consumers should know exactly what their travel services would cost. Prices must reflect the total amount to be paid for the travel services. This amount can be shown in any of three ways: as a total price, including all fees, levies, service charges, and surcharges; as a base price plus a total for all fees, levies, service charges, and surcharges; or as a base price plus an itemized list of all fees, levies, service charges, and surcharges. The only items that need not be included are provincial retail sales tax (PST) and federal Goods and Services Tax (GST). Where a base price plus tax option is used in a representation, the total amount of these charges must be printed adjacent or 22
near the base price. The total cannot be put in the fine print. If the additional fees and charges are shown only in the fine print, the representation will not meet the legal requirements. Representations must also include a comment about any conditions that affect or limit the price offered, regardless of the time or space limitations of the medium used. If the conditions are very detailed, the representation can refer consumers to where they can find more detailed information. The important point is that the representation must still identify the condition. For example, the price of a cruise may vary by the standard of accommodation the client chooses. The representation must indicate this, but could refer the client to a website for more information on the standards of accommodation available. An example of a correct written representation is shown in Figure 3.1. Additional guidelines for registrants who wish to advertise travel services: Because the goal of this part of the Regulation is to give consumers a clear idea of what their costs will be, it is not acceptable to show a price as open-ended, without an upper limit, because doing so could be misleading. TICO suggests that such advertisements show a price range (for example, from $X to $Y), as long as both prices are available; and that the representation list the conditions that could cause the price to vary. Such a listing would give consumers a realistic idea of the potential cost of the services being advertised. Figure 3.2 shows an example of an advertisement that meets these requirements. There should be a reasonable description of the travel services being discussed and a statement that further information is available from a travel agent. The price of travel services referred to in a representation must be applicable at the time; must be in Canadian currency unless clearly indicated that it is otherwise; and must not refer to a previous price. When the names of air carriers, hotels and travel wholesalers, where applicable, are not disclosed in the representation that refers to a price and are not known and disclosed by the travel agent at the time of the sale, the registrant shall disclose the names to all customers who have entered into an agreement with the registrant for those travel services when the information becomes available.
Examples of conditions affecting a travel service price: The price of a cabin on a cruise ship varies according to location, room type, and inclusions. The price of a tour package varies according to departure date, room type, and inclusions. The price shown is per person based on double occupancy, but different prices apply to singles, triples, quads, and children.
Figure 3.1: An example of a correct advertisement.
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Figure 3.2: An example of an advertisement that meets the requirements in showing from to prices.
Information to be included in written representations
Written representations for example, brochures and websites relating to specific travel services, must include the following information: Deposit and final payment requirements. This means amounts and due dates. Total price, including all taxes and service charges as described above. Cancellation terms and charges. This means the conditions under which a client may cancel, the details of any charges, and the dates to which the charges apply. Availability and cost of trip cancellation insurance and outof-province health insurance, if applicable. (This is covered in more detail below under Disclosure.) Refund policy, including any penalty provisions. Accommodation and transportation details, including the name of the principal carrier, class of service, and all departure and arrival points. This description must be fair and accurate to confirm the truthfulness and content of the representations. (Truth in advertising is discussed below.) Details of any construction or renovation that is likely to interfere with the clients use and enjoyment of the accommodation. This includes the anticipated start date and duration of any work.
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Period to which the representation applies. This means that clients should be informed if the price of travel services refers to specific dates or duration. Another example is the validity period usually printed in a tour operators brochure.
Time and space limitations
Representations made through a medium with time or space limitations, such as a billboard or bus board, do not need to include all the information required in Section 34 of the Regulation. For the purpose of Section 34, TICO also considers newspaper advertising to be a medium with time or space limitations. As such, not all the detailed information listed above needs to be in a newspaper advertisement. Still, as discussed earlier in this module, newspaper advertisements must include the following information: registrants business name, address, and TICO registration number; and if the representation refers to a price, all the information required in Section 33 of the Regulation (see pages 2223). Note: Where a medium does not allow for full disclosure, registrants are encouraged to advise customers where to obtain more detailed information.
Photographs and other pictures used in representations Section 35 of the Regulation
Photographs used in any representation must accurately show what is being represented. If a picture that is not a photograph is used in a representation, the picture must accurately show what is being represented and state that it is not a photograph. Disclosure Disclosure refers to the need in business transactions to give complete information that is, to tell the whole truth about any matter that the other party should know in deciding to buy or contract. In addition to providing complete information in written materials such as brochures and advertisements, registrants must also provide complete information in their sales presentations (whether they make those in person or by telephone).
Disclosure in business means giving complete information about any matter that the other party should know in deciding to buy or contract.
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Travel agents must disclose the following information before entering into an agreement or taking payment or credit card information from a client: If a travel agent considers that there are any conditions that may affect a clients decision to purchase particular travel services, then the agent must inform the client. For example, if a client is a looking for a golf vacation and the proposed golf course is closed during the dates being considered, then the travel agent is obligated to inform the client of this fact. As with written representations, the travel agent must disclose the total price and travel dates and give a fair and accurate description of the travel services to be provided. Similarly, the agent must provide details of cancellation and refund policies, as well as any limitations to the transfer or cancellation of the travel services. Such limitations include the range of penalties or costs associated with the transfer or cancellation, and details of any non-refundable payments. Travel agents must inform customers of the terms and conditions related to the purchase of the travel services, and advise where customers can find these details. Travel agents must inform customers that trip cancellation insurance is available and what cancellation policies are related to the travel services being purchased. For example, it is important for clients to know that travel bookings are usually subject to cancellation penalties should an emergency arise and they need to change their travel plans. Travel agents must also indicate on the invoice whether or not the customer has purchased trip cancellation insurance. Travel agents must advise clients about the availability of out-of-province health insurance. Many customers automatically purchase travel insurance for trips outside of Canada, but they may not always think of it when travelling to other provinces in Canada outside of Ontario. Travel agents must also indicate on the invoice whether or not the customer has purchased out-of-province health insurance. When a client is proposing to travel outside of Canada, the travel agent must inform the client of the typical information and travel documents required for each person travelling. What is considered typical information and travel documents may vary depending on the specific destination, but examples of typical kinds of information that consumers should be advised about include:
What circumstances or situations should a travel agent tell a client about? Examples: If a country celebrates the Sabbath on a Saturday such that banks and moneychanging facilities are closed on that day, then the customer should be informed of the fact. Similarly, clients should be told whether it is acceptable to wear shorts when shopping, and whether there are likely to be power disruptions.
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whether a passport is required and whether the passport must be valid for a certain period of time after the date of departure; whether a visa is required; and whether an affidavit or letter from the second parent is needed if one parent is travelling alone with a child. (This advice need not be made in writing before the booking, but must appear in writing on the invoice.) Travel agents should also advise clients that entry to another country may be refused even if the required information and documentation are complete. This advice must also be in writing on the invoice. Invoicing requirements are discussed in Module 4. Travel agents must tell clients about standards of accommodation, utilities, and services at the destination that may be different from those of Canada, as well as about differences in living standards and practices. It is impossible to list here all the situations that warrant explanation. Travel agents must advise a client that they must answer any of the clients questions arising from the information provided in any related representation. Travel agents must inform clients if they charge a counselling fee or service charge. They must also tell clients whether or not such charges are refundable, and must describe the conditions that apply to any refunds.
Definition An affidavit is a formal legal statement written and sworn or affirmed to before someone authorized to administer an oath (such as a notary public). Affidavit requirements are discussed in more detail in Module 5.
False Advertising Ontarios revised Consumer Protection Act, 2002 (enacted July 30, 2005) incorporated and consolidated a number of consumer protection measures previously governed by several other laws. This Act safeguards consumers against unfair business practices, including false advertising. Section 28 of the Travel Industry Act, 2002 further protects travellers by specifically forbidding a registrant from making false, misleading, or deceptive statements relating to the provision of travel services in any advertisement, circular, pamphlet, or material published by any means. Section 32 of the Regulation extends this prohibition to any representation.
Section 28 of the Act
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If the Registrar considers that a registrants advertising violates the Act, the Registrar has the power to order that the advertising be: immediately stopped; retracted, or that the registrant publish a correction as equally prominent as the original publication; or stopped and that a retraction or correction be issued. False advertising orders take effect immediately.
Definitions An appeal is a legal term that refers to a request for a decision to be reconsidered by a higher authority. A stay is a legal term that refers to a short-term delay ordered by a judge or tribunal.
Registrants may appeal such an order and are entitled to a hearing on it by the Licence Appeal Tribunal. Should a registrant appeal a false advertising order, the Tribunal may grant a stay until the Registrars order becomes final. If a registrant does not appeal the order or if the Tribunal upholds the order, the Registrar can direct the registrant to submit any proposed future advertising for approval before publication. The requirement applies to all statements in any advertisement, circular, pamphlet, or material to be published by any means. The Registrar can determine the duration for a registrant to submit advertising for preapproval, but this period of time cannot be longer than 90 days.
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SELF-TEST
Test your knowledge by answering the following questions after completing Module 3. Check your answers in the Answer Key on page 99. Multiple Choice 1. In cases where the Registrar issues a false advertising order because a registrants advertising violates the Act, when does the order take effect? a. b. c. d. on the date the advertisement would next have appeared immediately one week after the order is issued one month after the order is issued
2. ABC agency is promoting a resort on its website. It has included an artists drawing of the resort as part of the representation. Would TICO approve of this? a. no, because only photographs may be used in a representation b. yes, as long as the representation states that the drawing is fairly accurate c. no, unless the date on which the drawing was made is included d. yes, as long as the drawing is accurate and the representation states that the drawing is not a photograph 3. When a travel agent publishes a price in a tour brochure or similar representation, Ontario Regulation 26/05 demands that he or she show a. b. c. d. Provincial Sales Tax (PST) Goods and Services Tax (GST) all taxes except PST and GST only PST and GST
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Extra Question: Identify at least five problems with the following advertisement:
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RegistRant ObligatiOns afteR the sale but befORe Client tRavels

MODULE OUTCOMES
After successfully completing this module, you will be able to: Correctly apply the Act and Regulation after a sale is made, but before the client has travelled Describe the invoicing requirements imposed by the Act and Regulation Explain what changes to travel arrangements must be disclosed to a client Verify the condition of accommodation as required by the Regulation List situations that require notice, refund, or replacement Identify travel agent and travel wholesaler requirements regarding documentation List the circumstances under which a travel wholesaler must provide travel services Explain the duty of a registrant who resells travel services Module 3 explained what information must be given to a potential customer in an advertisement or other type of representation before a travel agent makes a sale. Module 4 explains the obligations that a registrant must meet after a sale but before the client departs on the trip. These fall into four main areas: invoicing requirements; requirements to inform customers of any changes that might affect their purchase; requirements to verify travel wholesaler documents; and requirements for a travel wholesaler to provide travel services. Invoicing Requirements After making a sale, a travel agent must promptly issue the customer a statement, invoice, or receipt. By law, this document must meet the requirements listed below. As you read through the list, refer to Figure 4.1 as an example of a correct invoice.
Module 4
Module Summary The Travel Industry Act, 2002 and Regulation require registrants to meet a number of obligations in following through with a client between the time he or she purchases a travel service and the time he or she actually travels. Registrants must be meticulous in notifying customers of changes to travel arrangements, verifying accommodations and travel documents, and generally ensuring that customers get the travel services they purchased.
Section 38(1) of the Regulation
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Module 4: RegistRant obligations afteR the sale but befoRe Client tRavels
Note: A statement, invoice, or receipt can be more than one page, as long as the first page shows that more pages follow. If the document is prepared by hand, it must be pre-numbered (in consecutive numbers, such as 101, 102, 103, etc.). If the document is prepared on a computer, it must be assigned a unique identifier (also known as a locator number). Whichever way the document is prepared, it must include the following details:
Agencys and counsellors identification
the name under which the travel agent carries on business the travel agents business address, telephone, and registration numbers contact information such as the travel agents fax number and email address the name of the travel counsellor who made the booking and accepted the first payment
Customer identification
the name and address of the person who purchased the travel services the name and, if known, address of each person on whose behalf the payment is made (that is, those people travelling)
Travel services details
the date of the booking a fair and accurate description of the travel services contracted for, including destination, departure date, and names of the persons who will provide the travel services whether or not the person has purchased trip cancellation insurance and, if applicable, out-of-province health insurance the advice given to the customer regarding the typical information and travel documents (passport, visas, etc.) needed for each person for whom travel services were purchased a statement that entry to a country may be refused even if the required information and travel documents are complete a statement that living standards and practices at the destination may differ from those in Canada, and that the standards and conditions concerning the provision of utilities, services, or accommodation may differ
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Payment details
the date of the first payment the amount of the payment and whether it is full or partial payment the amount of any balance owing, if known, and the date when it is to be paid any fees, levies, service charges, surcharges, taxes and other charges, and whether these amounts are refundable or nonrefundable Note: TICO does not expect registrants to separate out every individual fee if they do not have the information. It is acceptable to combine charges on an invoice, but those that are non-refundable must be identified. the total price of the travel services purchased whether or not the contract permits price increases. If it does permit price increases, then the following statements must be added: a statement that no price increases are permitted after the customer has paid in full; and a statement that if the total price of the travel services is increased and the cumulative increase is more than 7%, then the customer has the right to cancel the contract and obtain a full refund. Note: This does not apply if the increase is the result of an increase in PST or GST. For any travel service that a travel agent sells on behalf of a travel wholesaler, the wholesaler must promptly issue the agent a statement, invoice, or receipt. If the document is prepared by hand, it must be pre-numbered (in consecutive numbers, such as 101, 102, 103, etc.). If the document is prepared on a computer, it must be assigned a unique identifier (also known as a locator number). Whichever way the document is prepared, it must include the following details: the name and address of the travel agent through whom the wholesaler is selling the travel service the terms of payment and amount paid the name of each customer and, if known, each other person for whom the travel service is being purchased the destination of each customer and other person and, if relevant, the departure date
Section 38(2) of the Regulation
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ABC TRAVEL 123 ANY STREET ANYWHERE, ONTARIO X0X 0X0 Telephone: (555) 555-5555 Fax: (555) 555-5557 Email: bookings@abctravel.ca TICO Registration #: 1234567 DATE: INVOICE #: PAGE #: BOOKING #: AGENT: CUSTOMER: January 12, 2008 A123 1 of 2 A11111111 Booka Trip Iwanna Travel 456 Home Avenue, Here, Ontario X1X 1X1 Telephone: (555) 555-0005 GST #: R123456789
INVOICE
SERVICES PURCHASED: DESCRIPTION
QTY 1
PRICE $1,891.95
TAXES $247.00
GST $1.05
PST -
TOTAL $2,140.00
VACATION PACKAGE TO ACAPULCO, MEXICO
NOTES: Services provided by: ABC Air, ABC Tour Operator and the Acapulco Grand Resort. Travel dates: March 12-19, 2008 Includes return airfare Toronto Acapulco, deluxe ocean view room with golf daily. Package is non-refundable. No changes permitted. Further terms and conditions may be found in the tour operators brochure. Trip cancellation insurance and out-of-province health insurance were offered and declined. Your flight from Toronto to Acapulco departs from Toronto International Airport. Please review your itinerary to ensure that all information is correct. Check in 23 hours prior to departure. Please note that flight times are subject to change. Please re-confirm flight times prior to departure. This contract permits price increases. No price increases are permitted after the customer has paid in full. If the price increase is more than 7% (except for increases resulting from an increase in retail sales tax or federal Goods and Services Tax), the customer has the right to cancel the contract and obtain a full refund. Documentation requirements: You have indicated that you are a Canadian citizen. Proof of Canadian citizenship supported by government-issued photo I.D. is required for entry into Mexico. Canadian passports preferred as I.D. by Mexican immigration. Mexican tourist cards will be provided by ABC Tour Operator at airport check-in. Please note that entry to another country may be refused even if the required information and travel documents are complete. Living standards and practices at the destination and standards and conditions there with respect to the provision of utilities, services and accommodation may differ from those found in Canada. Deposit of $1,000.00 paid in cash on January 12, 2008. BALANCE of $1,140.00 DUE on FEBRUARY 17, 2008. Thank you for booking with ABC Travel. We wish you a safe and enjoyable trip. If you have any questions, please do not hesitate to call.
Figure 4.1: An example of a correct invoice.
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Disclosure of Changes to the Travel Services Purchased The above invoicing requirements describe a registrants obligations after making a sale. However, the registrants legal obligations to the customer do not end there. Situations can still arise before the customers departure that may force a change in the travel arrangements made for him or her. Some changes may be minor, but others can be serious enough to disrupt a clients travel plans. As discussed below, the legislation identifies several situations in which a registrant must inform a client or travel agent of any changes to the travel services purchased.
When to inform a customer of a change Section 37 of the Regulation
Customers must be informed promptly of any changes to travel services they have purchased.
The disclosure requirement applies specifically to representations (most commonly advertisements) in which changes to the details are made after a customer has purchased the travel services. If a travel agent or travel wholesaler becomes aware of such a change, then he or she must inform the customer promptly. Any change such as a change in price, carrier, dates, or quality of accommodation could affect the customers decision to travel.
Notice and offer of refund or replacement
If a registrant becomes aware that one of the following situations or events has occurred, he or she must promptly inform the customer or travel agent and offer the customer the choice of a full refund immediately or comparable alternative travel services acceptable to the customer. This action must be taken if the registrant becomes aware of any of the following: a different cruise ship has been substituted; the accommodation or standard of accommodation has been changed; where the contract permits a price increase, the cumulative increase is more than 7% of the total price (excluding increases caused by an increase in PST or GST); where the contract does not permit a price increase and the total price of the travel services is increased, whatever the amount or reason;
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Definition Force majeure refers to natural disasters (such as floods, hurricanes, and other acts of God) or acts of people (such as riots, strikes, and war) that prevent suppliers and subcontractors from meeting their obligations. In the legislation, the term is used to remove liability if some unexpected or unavoidable event prevents registrants or suppliers from meeting their obligations to a client or travel agent.
the documents needed for the trip change because the transportation routing has changed and there is not enough time for the person to obtain the documents before the departure date; or the scheduled departure of any transportation is delayed or advanced by 24 hours or more unless the change is the result of: a strike or lock-out mechanical problems a force majeure safety considerations weather conditions Registrants must create a file, documenting their actions, if a change or situation arises that might affect a clients decision to purchase the original travel service. The file must include details, in writing, of the: information communicated to the customer; date on which the information was communicated to the customer; communication method used; and choice the customer made.
Verifying condition of accommodation
Often, the most important factor in determining whether a consumer enjoys a travel experience is the quality of accommodation. The legislation therefore aims to ensure (as far as it is reasonable to do so) that clients receive the accommodation they paid for. Registrants who acquire rights to accommodation for the purpose of selling it to a customer are required to take reasonable measures to ensure that the accommodation the customer finds on arrival is in the same condition as described or presented before being purchased. Registrants have several obligations if they learn that the accommodation is not in the same condition as described during the sales process: The customer or customers travel agent must be notified of the fact and offered a full and immediate refund (including all fees, levies, service charges, surcharges, taxes, and other charges) or comparable alternative travel services that are acceptable to the customer.
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If the customer purchased the accommodation as part of a package, the refund or alternative services applies to the whole package. If the purchased accommodation is not part of a package, the refund or alternative service applies to the accommodation only. As for any of the other changes, registrants must document situations where they offer customers a choice of a refund or alternative services. Registrants must create a file and include in writing details of the: information communicated to the customer; date on which the information was communicated to the customer; communication method used; and choice the customer made. Requirement to Provide and Verify Travel Documents If a travel agent sells travel services and pays the travel wholesaler 21 days or more before the day of departure, the wholesaler must forward all tickets, vouchers, the itinerary, and other related documents to the travel agent at least 14 days before the customers departure date (unless the agent or customer direct otherwise). After receiving these documents from the wholesaler or other person, the travel agent must ensure that all the information is correct before giving the ticket, voucher, itinerary, or other documents to the customer who purchased the travel services. Travel Wholesalers Requirement to Provide Travel Services A travel wholesaler cannot refuse to provide travel services already purchased if: the customer has paid a travel agent for the travel services; and the travel wholesaler has given tickets (or other documents related to the travel services) to the travel agent for distribution to the customer. This provision applies even if the travel agent has not yet paid the travel wholesaler for the travel services.
Definition Accommodation is defined in Ontario Regulation 26/05 as being any room that is to be used for lodging by the customer or other person for whom the travel services were purchased and includes other facilities and services related to the room that are for the use of the customer or other person, but does not include meals.
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Duty of Registrants Who Resell Travel Services

A travel wholesaler or travel agent who has acquired the rights to travel services for resale must have a written agreement with any supplier whose travel services the wholesaler or agent is reselling. What if the supplier fails to provide the travel services bought and paid for by the customer? The answer is that a registrant who acquired the rights to travel services for resale must reimburse the customer or provide comparable alternative travel services acceptable to the customer.
The message is clear for all registrants: Know what travel services you sold your clients, be aware of any changes that affect those travel services, communicate these changes to your clients, and advise the clients of their rights under the Act and Regulation.
Invoicing Checklist The invoice shown in Figure 4.1 is just one example of an acceptable invoice. Not all invoices must be in the format presented. Registrants may use whatever format they wish. What is important is that invoices contain all the information specified in Section 38 of the Regulation. Do the invoices provided by your office to consumers contain all of the following information? _____ name and address of the customer who purchased the travel services _____ name and address (if known) of each person on whose behalf the payment is made _____ date of the booking _____ date of the first payment
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_____ amount of the payment, indicating whether it is a full or partial payment _____ amount of any balance owing _____ due date when any balance owing must be paid _____ any fees, levies, service charges, surcharges, taxes, or other charges, and whether these amounts are refundable or not _____ total price of the travel services _____ name under which the travel agent carries on business _____ travel agents address, telephone number, and any other _____ _____ _____ _____ _____ _____ _____
_____ _____ _____
_____
relevant contact information (such as a fax number or email address) TICO registration number a fair and accurate description of the travel services, including the destination, departure date, and the name of persons who will provide the travel services an indication of whether the customer has purchased trip cancellation insurance an indication of whether the customer has purchased out-ofprovince health insurance, if applicable an indication of whether the contract permits price increases if the contract permits price increases, a statement that no price increases are permitted after the customer has paid in full if the contract permits price increases, a statement that if the total price of the travel services increases more than 7% (and is not the result of an increase in retail sales tax or federal Goods and Services Tax), the customer has the right to cancel the contract and obtain a full refund a description of the typical information and travel documents that will be needed by each person for whom travel services were purchased that entry to another country may be refused even if the required information and travel documents are complete that living standards and practices at the destination may differ from those in Canada and the standards and conditions at the destination with respect to the provision of utilities, services, and accommodation may differ the name of the travel counsellor who made the booking and accepted the first payment
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SELF-TEST Test your knowledge by answering the following questions after completing Module 4. Check your answers in the Answer Key on page 99. Multiple Choice 1. The statement included on the customers invoice says that price increases are permitted. The customer will have to pay more if the price is increased by a. b. c. d. 7% after the customer has paid in full 5% before the customer has paid in full 10% before the customer has paid in full 8% before the customer has paid in full
2. Joe Smith purchases travel services from ABC agency, which includes a scheduled flight. Joe may be entitled to a full immediate refund or comparable alternative travel services if the scheduled flight is delayed by a. b. c. d. 12 hours 25 hours because of a severe snow storm 25 hours 12 hours because of safety considerations
3. Whose responsibility is it to check that a clients accommodation is going to be in the same condition as when it was described to the client at the time of purchase? a. b. c. d. client Registrar registrant hotel supplying the accommodation
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Extra Question: Identify three problems with the following invoice:

INVOICE ABC Travel TICO Registration #: 1234567 DATE: PAGE #: PASSENGER: January 12, 2009 1 of 1 World Traveller 456 Main Street Somewhere, Ontario X1X 1X1 Telephone: (555) 555-5555
QTY 1 PRICE $1,891.95 TAXES $247.00 GST $1.05 PST TOTAL $2,140.00
GST #: R123456789 INVOICE #: A123 BOOKING #: A11111111
DESCRIPTION VACATION PACKAGE TO ACAPULCO, MEXICO Includes return airfare Toronto Acapulco and accommodations. Travel Dates: March 1219, 2009. Services provided by: ABC Air, ABC Tour Operator and the Acapulco Grand Resort. Package is non-refundable. No changes permitted. Further terms and conditions may be found in the tour operators brochure. Trip cancellation insurance and outof-province health insurance were offered and declined.
Paid in full by VISA on January 12, 2009.

This contract permits price increases. No price increases are permitted after the customer has paid in full. If the price increase is more than 7%, except increases resulting from an increase in retail sales tax or federal goods and services tax, the customer has the right to cancel the contract and obtain a full refund. Living standards and practices at the destination and standards and conditions there with respect to the provision of utilities, services and accommodation may differ from those found in Canada.
Thank you for booking with ABC Travel.
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OntariO travel industry COmpensatiOn Fund

MODULE OUTCOMES
After successfully completing this module, you will be able to: Explain the purpose of the Travel Industry Compensation Fund Describe how the Compensation Fund is financed Explain who is allowed to make a claim on the Compensation Fund Explain claim limits Explain the claims procedure Explain the appeals process and who may appeal Describe how the Compensation Fund is administered Purpose of the Travel Industry Compensation Fund
Module 5
Module Summary The Travel Industry Compensation Fund protects consumers who book through an Ontario registered travel agency and who do not receive their travel services as a result of the failure of an Ontario registered travel agency, an Ontario registered travel wholesaler or an end supplier airline or cruise line. TICOs Board of Directors determines whether a claim meets the requirements for compensation.
The purpose of the Travel Industry Compensation Fund (usually referred to simply as the Compensation Fund, or the Fund) is to protect consumers who purchase travel services from Ontario-registered retailers. If travel services cannot be provided because of the financial failure of a registrant or an airline or cruise line end supplier, then a consumer may be eligible to receive compensation from the Fund. Note: Consumers do not have to live in Ontario to be covered by the Fund. As long as consumers purchase travel services from an Ontario registered travel agency, they are protected by the Compensation Fund in the event that they do not receive their travel services as a result of the failure of an Ontario registered travel retailer, an Ontario registered travel wholesaler or an airline or cruise line. The Fund is made up of: contributions made by registrants (discussed below); any money borrowed under this or an earlier Regulation; recoveries of money paid from the Fund; and income earned on the money in the Fund.
Section 72 of the Regulation Section 70 of the Regulation
TICO has the legal right to borrow money to supplement the Fund. A registrant is required to reimburse the Fund for any claims paid to the registrants customers under the following circumstances:
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Module 5: ontario travel industry CoMpensation Fund
the registrant is bankrupt or insolvent or has ceased to carry on business; or the registrant purchased travel services on the customers behalf, extending credit to the customer, and the customer paid the registrant for the travel services after the supplier of the travel services had become bankrupt or insolvent or ceased to carry on business. Payments to Finance the Fund
Definition A claimant is someone who officially makes a claim to a benefit or right. In the case of the Travel Industry Compensation Fund, a claimant is someone who wishes to be paid back (reimbursed) for what he or she spent on a travel service but did not receive.
A travel agent or travel wholesaler must contribute to the Travel Industry Compensation Fund. Contributions must be made twice a year (at a six-month interval), with each payment based on the companys gross sales in Ontario. The payment schedule approved by TICOs Board of Directors is shown in Figure 5.1. When registrants make payments to the Fund, each payment must be accompanied by a completed return that shows the registrants sales in Ontario for the preceding fiscal half-year and the amount owing to TICO. This return must be certified for accuracy by the registrant or an authorized officer or partner of the registrant. Eligibility to Make a Claim Consumers (members of the travelling public), travel agents, and travel wholesalers are all entitled to make a claim on the Compensation Fund, as long as they meet the requirements outlined below.
The TICO Board of Directors is responsible for determining whether all or part of a claim is eligible for reimbursement. The Board is also responsible for deciding on the eligible amount of a claim.
Consumers
Consumers who have booked and paid for travel services through a registered travel agent may make a claim against the Fund. A consumer whose booking was not made through a registered travel agent is not eligible to make a claim. Claims can only be made against the Fund for the non-provision of travel services for two reasons: the bankruptcy or insolvency of a registrant; or the failure of an airline or cruise line end supplier.
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Compensation Fund Contribution Rates Clause 12 (1) (c) of the Safety and Consumer Statutes Administration Act, 1996 allows TICO to set the payments that persons are required to make to the Compensation Fund. It is the TICO Board of Directors that approves the Payment Schedule and any changes to the contribution rates. is Payment Schedule sets out TICO Compensation Fund Contribution Rates for travel agents and travel wholesalers. is Payment Schedule was approved by the TICO Board of Directors and comes into force on January 30, 2007. is Schedule replaces all previous Compensation Fund Contribution Rate Payment Schedules and the regulations made under the Travel Industry Act, 2002 as they relate to Compensation Fund payments. All payments received under this Schedule will be deposited into the Ontario Travel Industry Compensation Fund. Travel Agents: A travel agent shall, twice a year, make payments in the amount that is the greater of the following: 1. $25 plus the applicable taxes. 2. e amount of, (a) $0.25 plus the applicable taxes for every $1,000 or part of $1,000 of sales in Ontario made before April 1, 2006, and (b) $0.05 plus the applicable taxes for every $1,000 or part of $1,000 of sales in Ontario made on or after April 1, 2006. Travel Wholesalers: A travel wholesaler shall, twice a year, make payments in the amount that is the greater of the following: 1. $25 plus the applicable taxes. 2. e amount of, (a) $0.50 plus the applicable taxes for every $1,000 or part of $1,000 of sales in Ontario made before April 1, 2006, and (b) $0.05 plus the applicable taxes for every $1,000 or part of $1,000 of sales in Ontario made on or after April 1, 2006. Due Date: Contributions required under this Payment Schedule shall be made to TICO, (a) within 90 days after the end of the rst half of the registrants scal year; and (b) within 90 days after the end of the second half of the registrants scal year. Format: Payments shall be accompanied by a completed return in a form approved by the Registrar indicating the registrants sales in Ontario for the preceding scal half-year and the amount of payments owing to the administrative authority. e return shall be certied, as to the accuracy of the information contained in it, by the registrant or an authorized ocer or partner of the registrant. Outstanding Payments: Any required registrant payments that were owed under a previous Payment Schedule or the regulations and which have not been paid prior to the eective date of this Payment Schedule continue to remain due and owing to TICO.
Figure 5.1: TICO Compensation Fund Contribution Rate Payment Schedule.
PAYMENT SCHEDULE
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Before allowing a claim, TICO may ask claimants to provide proof that they have not been reimbursed by other parties. The intent here is to ensure that consumers do not double dip that is, receive compensation twice for the same claim.
Before making a claim against the Fund, a consumer must first seek payment from any other person or company that may be legally obligated to reimburse or compensate them (for example, an insurance company or a credit card company). In other words, consumers are eligible to make a claim only if no other party has reimbursed them.
Remember that claims against the Compensation Fund for the non-provision of travel services can only be made for two reasons: the bankruptcy or insolvency of a registrant; or the failure of an airline or cruise line end supplier. The Fund will not reimburse consumers for any of the following claims: Any alternative or replacement travel purchased. Travel services that were not provided because an end supplier (other than an airline or cruise line) declared bankruptcy or became insolvent or ceased to carry on business. This could include an out-of-province wholesaler. Travel services or alternative services that were provided. Travel services that were available but were not received because of an act or failure to act on the part of the customer or another person for whom the travel services were purchased. For example, the person decided not to stay in the hotel that was booked, or the person chose to cancel the reservation, which was 100% non-refundable. Counselling fees paid to a travel agent. Travel services that were to be received as a prize, award, or goodwill gesture. Travel services that the customer obtained with a voucher, certificate, coupon, or similar document that the customer did not pay for. Travel services that the customer did not pay for with cash or by a cheque, credit card, or other similar payment method. Insurance premiums. A claim that is based on the cost, value, or quality of the travel services or alternative travel services. A claim in connection with travel services provided to enable immediate departure or trip completion. Consequential or indirect damages incurred as a result of the failure to provide the travel services. Travel agents
Claims are based on the cost of the original travel services purchased, not on the cost of alternate or replacement travel services.
The Fund will not reimburse consumers for travel services that were not provided because an end supplier (other than an airline or cruise line) declared bankruptcy or became insolvent or ceased to carry on business. This could include an out-of-province wholesaler.
A travel agent can make a claim on the Compensation Fund if the following requirements are met: The customer must have booked and paid for the travel services through an Ontario-registered travel agency. The travel agent must have dealt with a registered travel wholesaler, an airline or cruise line in good faith and at arms length. 46
The travel agent must have passed all or part of the customers money to the travel wholesaler, airline, or cruise line. The travel agent has either: refunded the customer (Note: If the travel agent is still holding any of the customers money, the travel agency is responsible for refunding that money to the customer); or provided alternative travel services for the customer because the original services were not provided because of a registrant or airline or cruise line failure. (Note: This condition does not apply if the travel agent has acquired the rights to the travel services for resale.) It is clear that the customer would have an eligible claim against the Compensation Fund.
Travel wholesalers
The Fund will not reimburse travel agents for any of the following claims: any commission; and any remuneration, such as a service charge, owing on the travel services purchased by the customer.
A travel wholesaler can make a claim on the Compensation Fund for money it has paid out to: reimburse a customer for travel services paid for but not provided; or provide the customer with travel services for which the travel wholesaler has not been paid by the travel agent. However, such a claim applies only if: the travel agent is a registrant; the travel wholesaler dealt with the travel agent in good faith and at arms length; the travel agent failed to pass all or part of the customers money to the travel wholesaler; the travel wholesaler has had no previous dealings with the travel agent in which the travel agent failed to pass the customers money to the travel wholesaler (or defaulted in another way); the travel wholesaler has taken reasonable measures to ensure that the travel agent is reliable and financially responsible; and the travel agent received the customers money and it is clear that the customer would otherwise have had a claim against the Fund. The amount of any reimbursement can apply only to the portion of the customers money that the travel agent received but failed to pass on to the travel wholesaler.
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The Fund will not reimburse travel wholesalers for any of the following claims: Any amount owing from a travel agent that represents a commission or other remuneration (including a travel service charge). A payment made by credit card if the registrant who processed the payment did not first receive approval for the payment from the customer and from the card issuer (in keeping with the agreement between the cardholder and the registrant). A cheque received from a travel agent unless the cheque is: received by the travel wholesaler within seven days of the start of the travel services; promptly deposited in a properly maintained account by the wholesaler; and returned to the travel wholesaler by the financial institution because of insufficient funds. Any portion of the claim that is greater than the travel wholesalers volume of business with the travel agent for a normal week, based on typical selling patterns over the 12 months, right before the customers departure. Section 66 of the Regulation
Claims Limit Claims on the Compensation Fund are limited. The maximum refund is $5,000 per person. The maximum payable for claims for reimbursement or immediate departure in response to any single event or major event is $5 million, plus any money TICO can recover from third parties. If all claims for an event exceed $5 million, TICO will prorate the claims it receives. (Prorate means to assess and divide the claims proportionately.) An additional $2 million may be paid from the Fund for trip completion to assist travellers who are stranded in a destination. If $2 million is not enough to cover this cost, the Director may, with the Boards approval, call for additional funds to be used for trip completion (see page 50). However, these additional funds cannot exceed $5 million. As well, these additional funds will be deducted from the $5 million available to reimburse consumers for claims or to pay for immediate departures (see page 49) because of the event in question. Payments for trip completion take precedence (meaning, are the first paid out) over other claims on the Fund.
Definition Any action that leads to claims being made on the Travel Industry Compensation Fund is called an event. An example is the failure of a registrant. However, an action that has particularly serious consequences is called a major event.
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Major event
Sections 1 and 65 of the Regulation
Claims that are the result of a major event may be treated differently from the way other claims are treated. The Director has the power to decide whether or not an event is a major one. In making that decision, he or she must consider the: nature of the events; number of claims arising or potentially arising from the event; and need to protect the Fund. When a major event occurs, the Board may wait to pay any claims until it is satisfied that it has received all claims likely to be made in response to the event. Alternatively, the Board may decide to reimburse the claims in instalments or to reimburse the claims only partially.
Immediate departure Section 68 of the Regulation
Failures often occur with little advance notice. This can affect consumers who are about to travel, as well as those who have already reached their destination. The legislation is designed to help consumers whether they are just about to leave for a destination or are stranded at one. The Fund will pay for the immediate departure of passengers under certain conditions. The Director is responsible for deciding whether or not TICO will authorize such payments. In making that decision, he or she must consider the: the welfare of the customer or other person; how practical it is to arrange immediate departure; and the need to protect the Fund. Several criteria must be met before payment for an immediate departure will be considered: The customer must have been preparing for immediate departure and been prevented from doing so through no fault of his or her own. Immediate payment from the Fund is needed to lessen the customers or other persons suffering. It is likely that the customer would be eligible for reimbursement from the Fund.
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A maximum of $5,000 per person may be paid for immediate departure. The maximum amount that may be paid from the Fund to reimburse consumers or to enable immediate departure for an event or major event is $5 million.
Section 69 of the Regulation Trip completion
Funding for trip completion is intended to assist people who are unable to get home or continue their trip because travel services have not been provided. The Fund is most commonly used for trip completion when a travel wholesale registrant fails, leaving a group of people stranded in a destination. As noted above, payments for trip completion take precedence over other claims on the Fund. Depending on the circumstances, the Director may instruct TICO to use money from the Fund to pay, or assist in paying, for the cost of: trip completion; and accommodation and meals needed by the affected customers before their trip can be completed. Trip completion can be achieved by taking customers either to their final destination or home (as long as the cost of taking them home does not exceed the cost of taking them to the final destination). Consumers may be stranded in countless locations when an airline end supplier fails. At such times, TICO may not have complete information on the whereabouts of all travellers caught in diverse and numerous locations. In these situations, it is up to travellers to make their own arrangements to return home. They can then make a claim on the Compensation Fund for the portion of travel services they did not receive. Note: Under these circumstances, the claim can be made on the unused portion of the original ticket only, and not on new services purchased. No matter how customers complete their trips whether it is coordinated by TICO or they make their own way home the same limits apply as for other types of claims: The maximum payable for trip completion is $5,000 per person. 50
The maximum payable for trip completion for all claims arising from an event is $2 million. If $2 million is not enough to pay for this, the Director may (with the Boards approval) allow for additional funds to be used for trip completion, as long as the additional funds do not exceed $5 million. However, these additional funds will be deducted from the $5 million available to reimburse consumers or pay for immediate departures in response to the event in question. Consumer Claims Procedure To make a claim on the Compensation Fund, consumers must meet the following requirements:
Seeking reimbursement from other parties
Consumers must first try to recover their money from other parties that might be legally obligated to reimburse or compensate the customer. This means they must ask for payment from the registered travel agent or wholesaler they dealt with. They must also approach any other party who received their money, such as a credit card company or an insurance company. If a consumer is making a claim as the result of an airline or cruise line failure, he or she can apply to the Fund directly: it is not necessary to ask the travel agent or wholesaler first. However, consumers must still contact any other party (such as a credit card company or insurance company) that received their money and may be required by law to reimburse or compensate them.
Filing deadline Section 60 of the Regulation
Anyone making a claim to TICOs Board must do so within six months of the registrant or end supplier failure. Consumers and registrants are responsible for ensuring that their claims are submitted in a timely manner. To ensure that claimants meet the filing deadline, TICO recommends that they submit their claim forms as soon as possible, even if they do not have all the required information or documentation. These items can be submitted after the claim has been filed. The TICO Board has no power to approve claims received after the six-month period has passed.
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Basic documentation requirements
Claimants must complete a TICO claim form and provide supporting documents to show that payment was made to an Ontario-registered travel agent. This could include a copy of the claimants cancelled cheque or credit card statement and the receipt for the travel services. TICO registrants must also provide proof that a refund or alternative travel services were provided in support of their claims.
Affidavit requirement
Claimants are required to complete an affidavit in support of their claim. An affidavit is a legal written document that a claimant must swear or affirm is true, in front of a commissioner of oaths, a notary public, or a lawyer.
Additional information requirement
If a claim is received incomplete, the TICO Board may ask the claimant to provide additional information or documentation to prove his or her claim. In such cases, the claimant has 12 months from receiving the request to provide the details. If a claimant does not do so, TICO will consider the claim abandoned. Depending on the circumstances, TICO may give a claimant additional time to provide the requested details.
Subrogation section of the claim form Subrogation is a legal term. It describes a situation in which one claimant is substituted by another claimant who takes on the legal rights and claims of the original person. For example, imagine that Amy is owed $100 by John. If Duncan steps in and pays Amy the $100 on Johns behalf, then John now owes Duncan the money and Duncan has the legal right to collect it from John. If the TICO Board determines that all or part of a claim is eligible, the Board can require a claimant to transfer to TICO his or her interest in a claim against a third party (for example, a registrant who has defaulted). To put this subrogation into effect, the claimant must sign any documents necessary to make the transfer legal. TICO may then reimburse the claimant from the Compensation Fund and try to recover the funds from the third party.
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Appeals Process The TICO Board must immediately notify the claimant in writing if it decides that a claim or any part of it is not eligible for reimbursement. The Board must also tell the claimant that he or she has the right to a hearing before the Licence Appeal Tribunal, and how and when to request a hearing. Claimants who wish to appeal a Board decision are entitled to a hearing before the Tribunal as long as they mail or deliver a written request to the Registrar and the Tribunal within 15 days after being informed that their claim was denied. If a claimant does not request a hearing, then the decision of the TICO Board becomes final. If a claimant does request a hearing, then the Tribunal will select a date and hold the hearing. The parties required to be involved at the hearing are the claimant, TICO, and any other person specified by the Tribunal. The Tribunal has the power to either: allow the claim in whole or in part and direct TICO to pay the amount allowed from the Fund; or deny the claim in whole or in part. Administration of the Compensation Fund TICO may borrow money to supplement the Compensation Fund. If the Fund has more money than what it needs to meet TICOs immediate needs, TICO can invest funds in authorized investments. TICOs Board of Directors may retain the services of experts or advisors, such as legal counsel, accountants, staff, or trade associations, to: administer and manage the Fund; investigate claims; and maintain and protect the Fund. The Fund may be used to pay these individuals for their services. To ensure that the Fund is properly managed, the Director can request from the Fund administrators any information, books, records, or documents related to the Fund. The Director can also request an audit of the affairs of the Fund. If that happens, the TICO Board must assist the auditors and provide any information they require.
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SELF-TEST
Test your knowledge by answering the following questions after completing Module 5. Check your answers in the Answer Key on page 100. Multiple Choice 1. Which item takes precedence over other claims on the Travel Industry Compensation Fund? Payments for a. b. c. d. immediate departure trip interruption trip completion a major event
2. Joe Smith purchases a package tour from ABC agency that includes a return economy flight. The airline end supplier becomes bankrupt during Joes trip and he is stranded at the destination. He purchases a business class flight home and then makes a claim on the Compensation Fund. Will his claim for reimbursement of the flight home be successful? a. yes, because he was forced to make his own arrangements to get home b. no, because the Fund will cover only the value of the unused portion of the original ticket c. yes, because the Fund is primarily concerned with trip completion d. no, because airline end suppliers are not covered under the Fund 3. A consumer who wishes to make a claim on the Compensation Fund must do so a. any time; there is no limitation b. immediately c. within three months of the registrants or end suppliers failure d. within six months of the registrants or end suppliers failure
Now that you have completed the Travel Counsellor section, read Next Steps (page 101) and take the Travel Counsellor Sample Exam (which starts on page 109).
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SUPERVISOR/MANAGER SECTION
The Supervisor/Manager section (Modules 69) contains additional information that all agency supervisor/managers must know. It is highly recommended that all travel counsellors read through the entire Study Manual to get a better overview of their obligations under the Travel Industry Act, 2002 and Ontario Regulation 26/05. However, only supervisor/managers will be tested on the content of these four modules if they are required to write the supervisor/ manager exam.
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RegistRation RequiRements
MODULE OUTCOMES
After successfully completing this module, you will be able to: Identify who must be registered and who is exempt under the Ontario Travel Industry Act, 2002 Describe the requirements for registration, renewals, and changes under the Act Explain the conditions related to registration Explain appeals procedures Explain procedures for inspections and investigations Identify offences and disciplinary actions under the Act Explain the confidentiality requirements of the Act Who Must Be Registered Every travel retailer or wholesaler whether a company or an individual intending to conduct business in Ontario must register with TICO. An agency or wholesaler in Ontario not registered with TICO is forbidden by law from selling travel services in the province. Any travel company or individual legally registered in the province is called a registrant. A registrant who is an individual must be a resident of Canada. Registration is not transferable. Exemptions Several groups and individuals are exempt from the registration requirement. The following table summarizes the main examples. Note: Because the groups listed are not required to register with TICO, the Travel Industry Compensation Fund does not cover consumers who book with them.
Module 6
Module Summary The Travel Industry Act, 2002 and Regulation require that all travel agents and travel wholesalers in Ontario be registered. With few exceptions, no one may sell travel services in the province without receiving a Registration Certificate. TICO administers the registration requirements. Companies not required to be registered The legislation does not require the following companies to be registered: wholesalers and retailers not located in Ontario; companies that sell to clients in Ontario by means of advertising, the Internet, or a tollfree phone line, but whose home base or call centre is not located in Ontario; and end suppliers (for example: airlines, cruise lines, hotels and car rental companies).
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Module 6: RegistRation RequiReMents

Group or individual exempted End supplier of accommodation who also provides local travel services purchased from another person End supplier (excluding airline, cruise line, or bus line) who also provides local travel services purchased from another person Public carrier that sells scheduled transportation (such as a bus line) Agent appointed by licensed public carriers to sell their bus travel services Public carrier that sells oneday tours Person selling guide or sightseeing services in Ontario Educational institution
Exemption details This exemption allows a hotel, for example, to create a package of accommodation, theatre tickets, and local transport to the theatre without the need to register. TICO interprets local to be within 25 kilometres of the accommodation. This applies only if the local supplier does not request more than 25% of payment in advance or payment more than 30 days in advance. The purpose of this exemption is to assist local tourism businesses. For example, the exemption would allow a white-water rafting company to create a package with accommodation and meals provided by another company that does not need to be registered. The Compensation Fund would not protect consumers in this case. The limit on the amount of funds that such businesses may collect in advance (up to 25% of the travel services) is intended to reduce the potential loss to consumers should a business fail to deliver the services.
Religious organization, amateur sports team, or unincorporated association
Not-for-profit corporations operating as clubs
There are several limits to this exemption. The person arranging the trip must be employed to teach in the institution, and the institutions board, principal, or governing body must approve the trip. The teacher must receive no gain or profit for arranging the travel services other than participating in the trip. The exemption applies to one-day tours for students as part of the curriculum (for example, a field trip to the Royal Ontario Museum). This exemption covers only overland travel services, as long as all of the following conditions are satisfied: The travel services must be provided only to members of the organization, team, or association. The group must exist primarily for educational, cultural, religious, or athletic purposes and the travel services be provided for those purposes. Any funds received for the travel services must be deposited into a trust account and disbursed only to pay suppliers of the travel services or a travel agent. Neither the organization, team, or association nor its members or employees may receive any gain or profit from providing the travel services, other than participating in the travel services. The travel services must not include a destination located more than 2,000 kilometres from the departure point. The vehicle used for transportation must remain at the destination to ensure that return transportation is available. This exemption applies only to overland travel services, as long as the following conditions are satisfied: The travel services must be provided only to members of the club. The corporation must exist primarily for educational, cultural, religious, or athletic purposes and the travel services be provided for those purposes. Any funds received for the travel services must be deposited into a trust account and only disbursed to pay suppliers of the travel services or a travel agent. Neither the corporation nor any of its members, officers, directors, or employees may receive any profit or gain from the provision of the travel services other than participating in the travel services. The travel services must not include a destination located more than 2,000 kilometres from the departure point. The vehicle used for transportation must remain at the destination to ensure that return transportation is available.
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Requirements to Become Registered To become registered, an applicant must meet several requirements: If the applicant is an individual, he or she must be at least 18 years old and a resident of Canada. The applicant must not owe TICO any Travel Industry Compensation Fund payments or, if the applicant does owe such contributions, he or she must have made arrangements acceptable to the Registrar to pay the amount. TICO must not have an outstanding judgement against the applicant or, if TICO does have such a judgement, the applicant must have made arrangements acceptable to the Registrar to satisfy the judgement. TICO must not have paid any claims from the Compensation Fund in relation to the applicants bankruptcy, insolvency, or ceasing business or, if TICO has paid such claims, the applicant must have reimbursed TICO for both the claims and TICOs costs, or made arrangements acceptable to the Registrar to do so. If required to provide security, the applicant must have done so. Anyone else associated with the applicants business (considered an interested person, as defined in section 8 of the Act; see Glossary, page 104) must also satisfy all of the above conditions. Requirements for Renewals To continue being registered through a renewal, a registrant must meet several requirements: If the registrant is an individual, he or she must be a resident of Canada. The registrant must not owe TICO any Travel Industry Compensation Fund payments or, if the registrant does owe such contributions, he or she must have made arrangements acceptable to the Registrar to pay the amount. TICO must not have an outstanding judgement against the registrant or, if TICO does have such a judgement, the registrant must have made arrangements acceptable to the Registrar to satisfy the judgement. TICO must not have paid any claims from the Compensation Fund in relation to the registrants bankruptcy,
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insolvency, or ceasing business or, if TICO has paid such claims, the registrant must have reimbursed TICO for both the claims and TICOs costs, or made arrangements acceptable to the Registrar to do so. If required to provide security, the registrant must have done so. Forms and Fees To register, a travel agency or wholesaler must: 1. complete a registration form; 2. submit the form to TICO with the required fee; 3. make renewal payments every year to maintain the registration; 4. register branch offices separately from head offices; and 5. pay registration and renewal fees for branch offices.
Registration and renewal fees are set by TICO and published in a Fee Schedule, as shown on page 61. TICO will consult with the travel industry before making any changes to the fee structure. The TICO Board must approve changes to the fee structure. Applications and renewals must: be submitted on the forms provided by TICO; contain all the required information; and be accompanied by the appropriate fee. Any applications that do not meet these requirements will be considered incomplete and TICO will not process them.
Security Deposit for New Applicants In addition to the fees noted above, any company that was not registered in the previous 12 months must provide $10,000 in security to TICO. The security deposit will not be returned until at least two consecutive annual financial statements are filed and then only at the discretion of the Registrar, depending on whether or not the registrant is in good standing and in compliance with the Act and Regulation.
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Registration and Renewal Fees

Section 3(1) of Ontario Regulation 26/05 provides that an application for registration or for renewal of registration as a travel agent or a travel wholesaler shall be accompanied by the relevant fee set by the administrative authority under clause 12 (1) (b) of the Safety and Consumer Statutes Administration Act, 1996. This Fee Schedule sets out TICO registration and renewal fees. This Fee Schedule comes into force on September 1, 2006. The applicable fees are for a one-year period.
FEE SCHEDULE
Registration
The following fees are payable at the time of registration: Entity Travel Agent or Travel Wholesaler Head Office Travel Agent or Travel Wholesaler Branch Office Registration fees are not refundable. Required Fee $2,750 $750
Renewal
A renewal fee is payable for each retail and wholesale registration held. The renewal fees are based on reported sales in Ontario during the last fiscal year as follows: Sales Volume $2,000,000 or less More than $2,000,000 but not more than $5,000,000 More than $5,000,000 but not more than $10,000,000 More than $10,000,000 but not more than $50,000,000 Over $50,000,000 Renewal Fee $250 $500 $750 $1,000 $1,500
An additional fee of $250 is required for each branch office. Annual renewal fees are payable 90 days after the registrants year-end. Branch renewal dates will be aligned with the renewal date of their head office. Thus, registrants with branches will renew all of their entities simultaneously (head office and all branches). Entities that renewed under the old rates will have to pay renewal fees based on the new rates for the period after September 1, 2006. Registrants will be given credit for the unused portion of their previous renewal fee against their new fee on a pro-rata basis.
Figure 6.1: TICO Registration and Renewal Fee Schedule.
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Section 6 of the Act and Sections 10 and 11 of the Regulation
Requirements for Operating from an Office or Dwelling All registrants must conduct their business only from the place that is named as the office in their registration. If the business has multiple locations, one must be registered as the head office and the others as branch offices. All branch offices must be registered. All registrants must operate from a permanent place of business in Ontario. The place can be a home as long as the following conditions are met: The registrant provides proof that the dwelling meets local zoning requirements for conducting business. The registrant has a business telephone number for the company name and the number is different from any residential phone number. The Registrar has access to the registrants business records.
Business Name Requirements A registrant must have a legally registered business name and must conduct business under that name. The business name cannot specify a sponsorship or affiliation that the registrant does not have. For example, a registrant may not name a travel agency Disney Travel (unless the company has the legal right to use this name or is owned or sponsored by the Disney Corporation).
Certificate of Registration Once the registration procedure is completed, TICO issues the registrant a Registration Certificate. This certificate must be kept at the office or branch for which it is issued and the registrant must show the certificate to anyone who asks to see it.
As a best practice, it is recommended that the Registration Certificate be clearly displayed in the registrants office.
As a best practice, it is recommended that the Registration Certificate be clearly displayed in the registrants office. TICO urges consumers to look for this certificate when dealing with a travel agent or wholesaler. Every Registration Certificate has an expiry date. If a registered company closes down or has its registration revoked or suspended, the registrant must immediately return the Registration Certificate to the Registrar by registered mail or personal delivery.
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Requirements to Maintain Registered Status

Sale of travel services by travel agent Section 12 of the Regulation
Travel agents have certain obligations when they sell travel services: Customers must be informed of the business name, address, and telephone number of the registrant. This requirement is to ensure that consumers know who they are dealing with. Travel agents must inform the customer of any connection between the travel agency and any other registrant that might influence the transaction. For example, if a wholesaler owns a travel agency, then the consumer should be told this in dealings with either the wholesaler or the travel agent. Travel services can be sold or offered only by a registrant or by an individual who is employed by, or has a written contract with, the registrant. Starting July 1, 2009, every person who sells (or offers to sell) travel services or provides travel advice to the public on behalf of a registered Ontario travel agency must have passed the Travel Counsellor Exam. With respect to supervisor/managers, the individual who is on record with TICO as supervisor/manager on June 30, 2008 will be grandfathered. All other supervisor/managers must have passed the Supervisor/Manager Exam.
Restrictions on resale of travel services
Barriers to registration Under section 8 of the Act, any applicant who meets the requirements is entitled to register (or renew). However, the Registrar can refuse to register a company or individual for lack of financial responsibility and for dishonesty. The Registrar can also reject applications from anyone who is acting in a way that breaks the law or any of the registration requirements, or who fails to provide the information requested.
Sections 4547 of the Regulations
Before travel wholesalers and travel agents can resell travel services, they must have a written agreement with the supplier of the services, setting out all terms and conditions. This requirement confirms that the registrant has the legal right to sell the travel service. Registrants who have acquired such resale rights must also reimburse the customer, or provide alternative travel services acceptable to the customer, should the supplier fail to provide the services paid for by the customer. Registrants cannot sell air transportation unless the air carrier is properly licensed, has the approvals needed (or has filed to obtain any approvals needed), and has complied with the regulatory requirements in all relevant jurisdictions. In Canada, this means that the air carrier must have met all safety and other requirements to be licensed by the federal government.
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Sections 1416 of the Regulation
Educational Requirements Each travel agency office must be managed and supervised by an individual who, in the Registrars opinion, has sufficient experience with and knowledge of the business of selling travel services to ensure that the requirements of the Act and Regulation are met. In practice, the term sufficient experience has usually been interpreted to mean three years of travel selling experience. This will change on July 1, 2009, when all new supervisors/managers will be required to take the Supervisor/ Manager Exam. This will replace the sufficient experience requirement for supervisors/managers. There will also be a new requirement for all individuals selling travel services directly to the public on behalf of a registered Ontario travel agency to pass a Travel Counsellor Exam. Travel counsellors must be employees of, or have a contract with, the registrant. Registrants must keep accurate and upto-date records of these individuals. After July 1, 2009, these records must include copies of the relevant certificates issued by CITC that show the individual has complied with the Education Standards.
Legal Responsibility for Deposits Registrants are jointly and severally liable (responsible) for any money they receive from a client. As such, there may be situations where they are responsible for repaying or refunding a client. However, they are not liable to do so if all of the following conditions are met: The registrant has properly disbursed the money received. This means that the registrant has paid the appropriate party (either another registrant or the supplier) for the travel services. The registrant acted in good faith and at arms length with anyone with whom the registrant would be jointly and severally liable. The person with whom the registrant would be jointly and severally liable is not in breach of a requirement to be registered under the Act. A registrant could not benefit by dealing with an illegal operator (that is, someone who should be registered in Ontario but is not).
Definitions Jointly and severally liable is a legal term meaning that someone has legal responsibility both as an individual and as part of a group. Good faith (as in, acting in good faith) means acting honestly, with no intent to defraud or take advantage of someone, observing reasonable business standards. Arms length refers to a relationship in which the two parties are not related and do not have close ties.
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Notification of Changes A registrant must notify the Registrar if there are any changes to the registrants ownership, share distribution, address, bank account, or supervisor/manager. Some of these changes require the Registrars approval, and each must be reported within a specific time frame. Some changes require advance notice; others do not. Changes to a corporations officers or directors require the Registrars consent. Any change to a partnership is treated as a new partnership for registration purposes. This means that any new partners would have to meet the same financial, moral, and other requirements for registration. A change in address for service or any change in officers or directors of a corporation or partnership must be made in writing to the Registrar within five days of the change occurring. If the notification is made by mail, then the mailing date is considered to be the notification date. Otherwise, the day on which the Registrar is actually notified is considered to be the notification date. If anyone acquires or accumulates 10% or more of the total shares, the Registrar must be informed within 30 days. This requirement extends to anyone already holding at least 10% of the total shares who increases his or her ownership in the corporation. For any of the following, the Registrar requires at least five days advance notice: a change of address for the office or branch office of a registrant; a change of the person identified to manage and supervise an office; or a change in the name or number of an account or in the financial institution in which the account is maintained. If the registrant is not aware of a change to the supervisor/ manager at least five days before the change takes place, the registrant shall notify the Registrar immediately upon becoming aware of the change. For any changes to the required information in a registrants application for registration or renewal, other than a change described in section 17, the Registrar must be notified within five days after the change takes place. Registrants must promptly advise the Registrar in writing if they cease to trade with another registrant because of the other registrants apparent lack of financial responsibility.
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By conducting business with an Ontario-registered travel agent, consumers ensure that they can make a claim against the Travel Industry Compensation Fund in the event of the bankruptcy or insolvency of a TICO registrant or end supplier airline or cruise line. As well, TICO registrants must comply with the consumer protection provisions set out in the Act and Regulation.
Compliance It is TICOs responsibility to ensure that registrants comply with the Act and Regulation. TICO has separate departments that deal with financial compliance and non-financial compliance issues: Financial compliance issues concern the filing of financial statements and managing of working capital and trust accounting. Non-financial compliance issues concern disclosure and representations. Monitoring non-financial compliance includes reviewing newspaper, website, and brochure advertising, as well as looking at disclosure and invoicing matters. The non-financial compliance department also deals with people who are selling travel services without registration a violation of the Act. TICO receives information about people operating without registration through consumer complaints and complaints from other industry members. TICO also becomes aware of people operating without registration through its own review of advertising. Registrants who do not comply with any part of the Act or Regulation are contacted by TICO. TICO staff then follow up to ensure that any problems are corrected. If a registrant fails to correct the problems, the Registrar may take further administrative action, including issuing a proposal to revoke the registrants registration. A registrant receiving a letter from TICO about apparent non-compliance must respond as soon as possible. A prompt resolution of the problem will ensure that the matter does not escalate and put the registrants licence in jeopardy. Failure to respond is itself an act of non-compliance. Where a person or company is selling travel services without being registered with TICO, the non-registrant may be charged with an offence under the Act. One of the ways in which TICO ensures that registrants are complying with the Act and Regulation is by conducting inspections.
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Inspections The Registrar may conduct inspections in person or designate an inspector. An inspector can enter a registrants premises at any reasonable time to check that all legal requirements are being complied with, to deal with a complaint, or to ensure that the registrant is meeting all registration requirements. The person or company being inspected can ask the inspector to produce proof of his or her authority. The inspector, by law, has free and open access to any materials that are relevant to the inspection, such as money, valuables, documents, and print or electronic records. The inspector may remove, examine, and copy these items as long as he or she first gives the person being inspected an itemized list of the materials removed. All materials must be promptly returned to the person or company after the inspection is complete. Refusal, Suspension or Revocation of a Registration If a registrant fails to comply with the legislation, the Registrar has the power to propose to: refuse to register an applicant; suspend or revoke a registration; refuse to renew a registration if the applicant does not meet the registration requirements; and apply conditions to an existing registration. If the Registrar proposes to take any of the above actions, the applicant or registrant must be notified in writing and told the reasons. He or she must also be advised of the right to appeal to the Licence Appeal Tribunal.
Refusal

An inspector can enter a registrants premises at any reasonable time to check that all legal requirements are being complied with, to deal with a complaint, or to ensure that the registrant is meeting all registration requirements.
Sections 1012 of the Act
Common reasons why TICO would propose to refuse to register an applicant include: the applicant has a serious criminal record; financial concerns suggest that the applicant cannot be reasonably expected to be financially responsible in conducting its business; and the applicant has made false statements on the application form.
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Suspension
In extreme cases, the Registrar may propose to suspend a registration. Generally, suspensions involve serious financial issues where the Registrar is concerned that the travelling public would be at risk if the registrant was to continue to operate. All suspensions take effect immediately once the Registrar issues the order. However, it must be in the public interest to suspend a registration. The order expires 15 days after the written request for a hearing is received by the Licence Appeal Tribunal, unless the time is extended by the Tribunal.
Revocation
Common reasons why TICO would issue a proposal to revoke an applicants registration include: the applicant fails to file financial statements; the applicant demonstrates: financial statement deficiencies; working capital deficiencies; and/or trust account deficiencies; the applicant fails to file Travel Industry Compensation Fund contributions; the applicant uses false, misleading, or deceptive advertising; the applicant has invoicing issues; there are outstanding consumer complaints lodged against the applicant; and the applicant fails to respond to the Registrar. Appeals to the Licence Appeal Tribunal Any applicant who has a registration or renewal refused or any registrant who receives a proposal to revoke or suspend a registration may appeal to the Licence Appeal Tribunal. The Licence Appeal Tribunal is an independent, quasi-judicial administrative tribunal. Its process is designed to be simple, timely, and less formal and expensive than a court process. The Tribunal members are appointed on a part-time basis by Order-inCouncil signed by the Lieutenant Governor of Ontario. They are drawn from across the province and represent different backgrounds and expertise related to law, industry, and consumer interests. 68
To appeal a decision, an applicant or registrant must file a notice of appeal with the Tribunal within 15 days of being served with the proposal. There is a filing fee to have an appeal heard by the Tribunal, and this amount is non-refundable. Registrants have the option of representing themselves, using a representative, or hiring an agent or lawyer to present their case at the Tribunal. If registrants choose to hire a lawyer, it is at their expense. If no hearing is requested, the Registrar may carry out the proposal. A Tribunal hearing includes the Registrar, the person making the appeal, and any other parties the Tribunal considers necessary for the proceedings. Tribunal members listen to the evidence presented by the parties and issue a written decision. The Tribunal has the authority to confirm the Registrars decision or set aside the decision and substitute another opinion. Like the Registrar, the Tribunal may apply conditions to a registration. TICO will continue to work with registrants to try to resolve the matter even after an appeal has been filed. In many cases, TICO and the registrant may be able to resolve the matter on consent. For example, the registrant may agree to additional terms and conditions of registration to satisfy the Registrar that the problem leading to the proposal is being addressed.
Re-applying Section 14 of the Act and Section 7 of the Regulation
When a registration or renewal is refused or revoked, a person must wait at least 30 days before re-applying for registration. That means that the individual cannot conduct business for at least 30 days. Upon re-applying, the applicant must demonstrate that his or her circumstances have changed and that the requirements are now fully met. Offences Once a company has successfully completed the registration process, it is free to carry on business as long as it continues to meet the registration requirements. Giving false information or failing to comply with any part of the legislation is an offence. Responsibility for an offence extends to the officers of a corporation, who must show that they have taken reasonable care to prevent an offence being committed.
Definition The term reasonable is used in law to mean behaviour that is logical, appropriate, or usual in the circumstances.
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Any person convicted of an offence under the Act may have to pay a fine of not more than $50,000, face imprisonment for not more than two years less a day, or both. The maximum fine for a corporation convicted of an offence under the Act is $250,000. Proceedings must begin within two years of the Director being made aware of the facts of the offence.
The court may also order a person or company convicted of an offence to pay restitution in addition to the penalties described above. If an insurer or the Compensation Fund has already paid the individual harmed, the court can order the payment to be made to the insurer or to the Fund. Confidentiality All information that TICO obtains in the course of fulfilling its duties is confidential and cannot be communicated to others except under certain conditions. The exceptions are as follows: Information can be revealed when it is required as part of administering the Act or it is related to a proceeding under the Act. Information can be disclosed to an organization or government agency that administers consumer protection legislation. Information can be released to a law enforcement agency. Information can be released to the individuals legal counsel. Information can be released with the consent of the individual concerned. No TICO staff can be required to give testimony in a civil proceeding with regard to information obtained in the course of administering the Act, except in a proceeding under the Act.
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SELF-TEST
Test your knowledge by answering the following questions after completing Module 6. Check your answers in the Answer Key on page 100. Multiple Choice 1. It is July 15, 2009. According to the Travel Industry Act, 2002, which of the following must be compliant with the Education Standards in a travel agency? a. all staff no matter what their role is in the agency b. all staff providing information about travel services to the public c. only the owner of the agency d. only the owner and the supervisor/manager of the agency 2. What is the maximum penalty for a corporation that commits an offence under the Travel Industry Act, 2002? a. b. c. d. $250,000 $50,000 two years less a day in prison $50,000 and two years less a day in prison
3. Which of the following must register under the Travel Industry Act, 2002? a. b. c. d. an end supplier a travel agency in North Bay a travel agency in Saskatoon an educational institution in Ottawa
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Financial and RecoRd-Keeping RequiRements

MODULE OUTCOMES
After successfully completing this module, you will be able to: Identify the financial and other records required under the Act and Regulation Distinguish between trust and general accounts and describe each Describe the working capital and security requirements of the Regulation
Module 7
Module Summary The Travel Industry Act, 2002 and Regulation place a number of financial requirements on registrants. The intent is to ensure that registered travel companies in Ontario are set up and maintained in a sound fiscal manner. The requirements set criteria that relate to business records, financial statements, working capital, trust accounting, and security deposits.
Financial Statement Reporting Requirements Every registrant must file a financial statement with TICO at least once a year. The financial statement must be prepared by a Licensed Public Accountant and accompanied by either a review engagement or audit, depending on the registrants sales volume. A review engagement or audit provides various levels of assurance to the reader of the financial statement that the statement fairly represents the financial position of the registrant. The financial statement must be filed with TICO within 90 days of the registrants year end. Registrants with sales of more than $10 million annually must file financial statements more frequently, either semi-annually or quarterly. These financial statements can be the registrants internal financial statement they do not have to be prepared by a Licensed Public Accountant or accompanied by a review engagement or an audit report. The financial statement reporting requirements, summarized in Table 7.1, vary depending on the type of registrant and the sales volume.
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Module 7: Financial and RecoRd-Keeping RequiReMents Table 7.1: Financial statement reporting requirements
Type of registrant Travel agent or Travel wholesaler
Sales volume ($) in Ontario in the previous Less thanfiscalmillion $10 year
Reporting requirements Must file financial statements annually with either: a review engagement report by a Licensed Public Accountant; or an auditors report from a Licensed Public Accountant if the registrant is required to obtain such statements under the Business Corporations Act. All documents must be submitted within 3 months of the end of the fiscal year. Must file: annual financial statements, with an audit opinion from a Licensed Public Accountant, within 3 months of the end of the fiscal year; and unaudited financial statements twice yearly within 45 days after the end of each fiscal half-year. Must file: annual financial statements, with an audit opinion from a Licensed Public Accountant, within 3 months after the end of the fiscal year; and unaudited financial statements quarterly within 45 days after the end of each fiscal quarter.
Travel agent
$10 million $20 million
Travel wholesaler
$10 million or more
Travel agent
$20 million or more
Definitions As defined in the Regulation, the registrants financial statement must include: a statement of sales in Ontario made during the period to which the financial statements refer; a balance sheet; an income statement; and a reconciliation of the trust account with customer deposits. Licensed Public Accountant means a public accountant licensed under the Public Accounting Act, 2004. Sales in Ontario, when used in reference to a period of time, means: in the case of a registered travel agent, the amount paid or to be paid to or through the travel agent for all travel services sold in Ontario during the relevant period; or in the case of a registered travel wholesaler, the amount paid or to be paid to or through the travel wholesaler for all travel services sold in Ontario during the relevant period.
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Module 7: Financial and RecoRd-Keeping RequiReMents
Working Capital Working capital is defined as a companys ability to meet its liabilities as they come due. It is generally calculated by subtracting current liabilities from current assets. working capital = current assets minus current liabilities Working capital can be positive or negative, depending on how much debt the company is carrying. In general, companies that have a lot of working capital are more successful because they are better equipped to withstand market changes, financial downturns, or unexpected events. Registrants are required to maintain minimum working capital levels at all times. These minimums are based on the registrants sales. Working capital, as defined in the Regulation, excludes certain amounts. The following items must not be included in the calculation of working capital: the $10,000 deposit that all new registrants must provide to TICO; and the value of capital belonging to any person who is an interested person in relation to the registrant.
Table 7.2: Working capital requirements for registrants
Definitions Working capital is defined as a companys ability to meet its liabilities as they come due. It is generally calculated by subtracting current liabilities from current assets. Current liabilities are those liabilities that are due within one year, such as operating bank loans, accounts payable, and taxes payable. Current assets are assets that can be converted to cash within one year. They include cash and cash equivalents, accounts receivable, inventory, and marketable securities.
Sales volume $500,000 or less More than $500,000 but not more than $750,000 More than $750,000 but not more than $1,000,000 More than $1,000,000 but not more than $2,000,000 More than $2,000,000 but not more than $5, 000,000 More than $5,000,000 but not more than $10,000,000 More than $10,000,000 but not more than $20,000,000 More than $20,000,000
Minimum working capital $5,000 $10,000 $15,000 $20,000 $25,000 $35,000 $50,000 $100,000
Definition Under the legislation, an interested person is one who is associated with the registrant or who, in the opinion of the Registrar: has or may have a beneficial interest in the registrants business; exercises or may exercise control either directly or indirectly over the registrant; or has provided, or may have provided, financing either directly or indirectly to the registrants business.
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Sections 26 and 27 of the Regulation
Trust Accounting In keeping with the goal of the Travel Industry Act, 2002 namely, consumer protection the legislation places conditions on the handling of consumers money. Trust accounting is one way of ensuring that consumers payments for travel services are protected. At the same time, trust accounting helps TICO staff monitor the financial situation of registrants. The following requirements must be met by registrants setting up trust accounts: All accounts must be maintained in an acceptable financial institution in Ontario. Such an institution includes a bank listed in Schedule I or II of the Bank Act (Canada), a loan or trust corporation, or a credit union as defined in the Credit Unions and Caisses Populaires Act, 1994. All accounts must be in the name under which the registrant is permitted to carry on business. For example, accounts must be in the name of Joe Smith Travel Agency and not simply Joe Smith. A trust account must be designated as a Travel Industry Act trust account. When a registrant receives funds from customers as payment for travel services, he or she must deposit those funds in a trust account within two banking days.
Definition Trust accounting is a system in which a consumers money is held in a separate bank account (the trust account). The registrant is not legally permitted to use the funds in the trust account, other than to pay the supplier or refund the customer. This way, if a registrant becomes bankrupt or insolvent, the clients money can be returned.
All funds that a registrant receives from customers for travel services must be deposited into a trust account. With a system of trust accounting in place, a registrant must operate two separate business accounts: a trust account and a general account. Trust account The trust account is where all monies received from consumers are deposited. These funds must remain in the trust account until the suppliers of the travel service have been paid in full. Only after that does the agency or wholesaler become eligible to collect the commission or mark-up earned on the sale of the travel service. At that point, the commission is transferred to the general account. The money in a trust account may not be used to pay a registrants operating expenses. It can be used only to:
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pay the suppliers of the travel services for which the money was received; issue refunds to customers; and transfer the registrants commission or mark-up to the general account, after the supplier of the travel services has been paid in full. General account The general account is the account used for operating expenses. Funds from the general account are used to pay salaries, rent, utilities, and similar operating expenses. After the suppliers have been paid in full from the trust account, commission and mark-up may be transferred to the general account. Security Instead of Trust Accounting Registrants who have been in business continuously for at least one fiscal year have the option of filing a security deposit with TICO as an alternative to keeping a trust account. The following requirements apply: The security deposit provided must be equal to or greater than one-sixth of the registrants sales in Ontario for the 12-month period ending on the last day accounted for in the most recent annual, semi-annual, or quarterly financial statements. The registrant is responsible for ensuring that TICO receives the required deposit amount within 30 days after the registrant is required to file any financial statements. Registrants must continue to maintain a trust account until they have received a letter from the Registrar confirming that TICO has received the security amount. New Applicant Security A person who has not been registered at any time during the previous 12 months must provide security to TICO when applying for registration. The security amount is $10,000. TICO will return the $10,000 security deposit after the registrant has filed two consecutive annual financial statements (to show financial stability), and as long as the Registrar has no concerns about the registrants compliance with the Act or Regulation. However, if the Registrar does have concerns regarding the registrants compliance, TICO can hold the
Section 25 of the Regulation Section 28 of the Regulation
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$10,000 security until these concerns are resolved. New registrants must also operate both a trust account and a general account. If a registrant who has provided security to TICO becomes bankrupt or insolvent or closes down business for any other reason, TICO will, after at least six months have passed, return the security minus the amount for any claims paid out to customers because of the registrants closure.
Record-Keeping All businesses must keep records for accounting, tax, and other purposes. All business records must be maintained at the registrants principal place of business or at another location that has been approved by the Registrar in writing. All records must be kept for at least six years after the date of the relevant transaction. Registrants must maintain the following types of business records: Accounting records that set out in detail the registrants income and expenses. These records should include supporting documentary evidence, including copies of statements, invoices, and customer receipts that have unique identifiers or serial numbers. Banking records that identify all transactions made in connection with the registrants business. Written records of all payments to or from the registrant in relation to the purchase or sale of travel services. The records must be in a format that allows for easy identification of the transaction to which the payments relate (based on unique identifiers or serial numbers). Records regarding the option of refund or alternative travel services. Registrants must create a file to document what actions they took in responding to changes in the travel services purchased by a client (as those changes relate to offers of a refund or the provision of alternative travel services acceptable to the client). All registrant records must be open for inspection by the Registrar.
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Financial Inspection Program TICO staff ensure that all registrants file their financial statements on time, maintain the appropriate level of working capital, and set up and use their trust accounts. Failure by a registrant to file financial statements as required, maintain the appropriate level of working capital, or use the trust account will be reported to the Registrar. This could result in administrative action against the registrant, such as warning letters and even a proposal to revoke the registration. The Financial Inspection Program involves two main parts: financial statement bench reviews, and site inspections. Financial statement bench review Once a registrants financial statements are received, they are reviewed by one of TICOs financial inspectors. TICOs financial inspectors all have an accounting designation, such as CA (Chartered Accountant), CMA (Certified Management Accountant), or CGA (Certified General Accountant). The financial inspector conducts a bench review, which is an assessment of the registrants financial position. The inspector reviews the registrants financial statements and records the sales, working capital, and profit or losses. The bench reviews are used to determine whether a registrant is in compliance with the working capital and trust accounting requirements of the Regulation. Site inspection If the bench review indicates a potential problem with a registrants financial position, a site inspection may be initiated. A financial inspector visits the registrants office to look more closely at the registrants records, to assess whether a problem exists and, if it does, how severe it is. A site inspection may be scheduled to review working capital issues, trust accounting issues, or a history of financial losses. At the end, the financial inspector prepares an Inspection Report for the Registrar.
Failure to file financial statements as required, maintain the appropriate level of working capital, or use the trust account will be reported to the Registrar and could result in administrative action such as warning letters and, in some cases, a proposal to revoke the registration.
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Other triggers for site inspections
Site inspections may also be initiated as a result of complaints from consumers, other registrants, or industry members. Financial inspectors visit all new registrants in the first year of operation to ensure they are complying with the Act and Regulation. Monitoring of all travel agencies takes place on a regular basis and any non-compliance issues are followed up.
Requests for further information
After receiving the Inspection Report, the Registrar may ask for further information: If the Registrar thinks that a registrant is in financial difficulty, the Registrar may require the registrant to provide a written statement of current net working capital and may require that the statement be verified by affidavit. If the Registrar thinks that additional information is necessary to provide an accurate and complete review of the registrants financial position, the Registrar may require the registrant to file audited financial statements that consolidate the registrants financial statements with those of another registrant or of another person who is a shareholder associated with the registrant.
The importance of registrant compliance
The objective of TICOs staff when doing an inspection is to ensure that registrants comply with the Act and Regulation. TICO staff will work with registrants, wherever possible, to achieve compliance. For example, if a registrant does not meet the working capital requirements, he or she will be asked to correct the problem within a reasonable period of time. Failure to do so may result in revocation of registration. For this reason, registrants are encouraged to resolve any issues as quickly and effectively as possible so that those issues do not escalate into major problems.
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SELF-TEST
Test your knowledge by answering the following questions after completing Module 7. Check your answers in the Answer Key on page 100. Multiple Choice 1. Sales in Ontario refers to a. the amount paid to or through a travel agent or travel wholesaler for services sold in Ontario during a given period of time b. the amount paid to travel agents only, for services sold to Ontario consumers during a given period of time c. the amount paid to travel wholesalers only, for all travel bookings originating in Ontario during a given period of time d. an annual list of travellers who booked through an Ontario-registered travel agent or wholesaler 2. When registrants provide a security deposit, how many annual financial statements must they file before being eligible to have the security deposit returned? a. b. c. d. none one annual financial statement two annual financial statements two consecutive annual financial statements
3. ABC agency has been in business for six months. The advertising bill must be paid. Can ABC take money from the company trust account to pay the bill? a. yes, but only after money is transferred from the general account to the trust account b. yes, because the trust account can be used for operating expenses such as advertising c. no, because only the general account can be used for operating expenses d. no, because ABC does not have to maintain a trust account after being in business for six months
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Complaints
MODULE OUTCOMES
After successfully completing this module, you will be able to: Explain the TICO complaints process for disputes between consumers and registrants Discuss how disputes between registrants are handled Discuss how complaints against TICO are handled TICOs Role in Handling Consumer Complaints As part of its mandate to promote a fair and informed marketplace, the Travel Industry Council of Ontario (TICO) attempts to resolve disputes between consumers and registrants. TICO also examines each complaint against the requirements of the Travel Industry Act, 2002 and Ontario Regulation 26/05 to determine if regulatory action is required. TICO does not have the authority or mandate to settle a dispute, impose a settlement, or act as an arbitrator in any complaint matter.
The complaint-handling procedure
Module 8
Module Summary TICO has a complaints process that attempts to resolve disputes between consumers and registrants. It also has a Complaints Committee that deals with any complaints made against TICO.
Figure 8.1 shows TICOs process for handling complaints made by consumers. The main steps are outlined below. 1. Before accepting a complaint from the consumer, TICO first requires that he or she contact the travel agent or travel wholesaler to try to resolve the matter directly. Consumers are asked to put their complaint in writing to the registrant, explaining why they are not satisfied and how the matter could be resolved to their satisfaction. The complaint must be against an Ontario-registered travel retailer or travel wholesaler or someone acting as an unregistered travel agent in Ontario. 2. If the consumer is unable to get the complaint resolved to his or her satisfaction by dealing directly with the registrant, he or she may then contact TICO to submit a formal complaint.
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Module 8: CoMplaints
TICO will send a complaint form to the consumer, which must be completed and returned to TICO with all supporting documentation. By signing the complaint form, the complainant gives TICO permission to share the information in it with the registrant and with other government and non-government sources, if necessary. Supporting documentation such as receipts, tickets, photos, and any other information to support the complaint must be submitted with the completed form. 3. Next, TICO sends the registrant a copy of the complaint and asks for the registrants position on the matter, in writing. TICO also outlines any sections of the Act or Regulation that are applicable to the complaint. If it has concerns that provisions of the Act or Regulation may have been breached, TICO may ask the registrant to address specific issues.
Consumer has a complaint. Consumer takes complaint to the travel company (registrant) involved. Consumer remains dissatised with the outcome of the complaint lodged with the registrant. Registrant resolves complaint to consumers satisfaction.
END
Consumer approaches TICO to le a complaint. TICO refers consumer to the travel company (registrant) involved to give the registrant opportunity to resolve the complaint.
Consumer les a complaint with TICO against the registrant. TICO writes to the registrant regarding the complaint, referring to any applicable legislation, and requests a written reply detailing their position. Registrant describes its position, in writing, to TICO.
Complaints sta assess the complaint le to determine if issues have been addressed and sucient information received. TICO will assess whether there have been any apparent breaches of the Travel Industry Act, 2002 or Ontario Regulation 26/05, and whether the le should be referred to the Compliance Department for further review. TICO writes to the consumer to explain the outcome and TICOs position on the matter and relays any oer of a refund or compensation (if applicable) and whether the complaint le will be referred to TICOs Compliance Department for further review separately from the complaint matter led.
END
Figure 8.1: Summary of the TICO consumer complaints process.
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All registrants who receive a written request for information about a complaint from the Registrar must provide the information, in writing, as soon as possible. 4. After receiving a written response from the registrant, TICO reviews the information to determine the following: Has the registrant adequately identified and addressed all the issues contained within the complaint? If further information is required, TICO staff will contact the registrant. Has the registrant adequately addressed any possible infractions that TICO identified in correspondence? Is further investigation required, such as obtaining information from a third party? From the information provided, can it be determined whether the Act or Regulation has been contravened? Has the registrant made an offer of compensation to the complainant? Complaints that involve possible compliance issues are referred to the Registrar, TICOs Compliance Department, or both. In some cases, a review by the Registrar or Compliance Department may result in the registrant offering the complainant compensation. However, compliance activity is completely separate from the complaints process. TICO does not advise complainants regarding the outcome of compliance related activity. 5. When the complaint has been reviewed and processed in its entirety, TICO sends the complainant a letter with the following information: a statement that a response has been received from the registrant; a summary of the registrants position on the matter; details of any compensation or goodwill gesture offered by the registrant, if applicable; an explanation as to whether examination of the complaint did or did not reveal any contravention of the Act or Regulation; reference to the sections of the Act or Regulation that apply to the complaint (and to possible contravention, if applicable); if there is a possible contravention, notice that the complaint file has been referred to the Compliance Department for further review;
If resolution of a complaint cannot be reached, TICO will provide the consumer with information regarding options to pursue matters further, if applicable.
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an explanation that referrals are directed not at obtaining further compensation for the complaint, but at initiating the compliance process with the registrant to address any breach of the Act; a brief explanation of TICOs role and authority in complaint handling (that TICO cannot compel the registrant to provide compensation and cannot impose a settlement); and a statement that if the complainant is not satisfied by the outcome, he or she may pursue the matter through the legal system and that they may wish to consider discussing the matter with legal counsel. TICOs Role in Handling Registrant-to-Registrant Complaints Registrant-to-registrant disputes are not traditionally handled by TICO. The exception is if allegations of financial or other non-compliance issues with the Act are involved. TICO will make reasonable efforts to refer the complainant to other organizations that may be of assistance.
Example of a registrant-to-registrant complaint that TICO would address
Imagine that Registrant A decides to stop doing business with Registrant B because the latter has given Registrant A several bad cheques for travel services purchased. In such a case, Registrant A must notify the Registrar, in writing, explaining the reason for stopping the work association. In a situation like this, TICO would investigate the complaint and may conduct a financial inspection on Registrant B. The purpose of TICOs review of this matter would not be to act as a collections agency for the complainant. Rather, it is to ensure that Registrant B is not putting consumer funds at risk, and that it meets the financial requirements under the Regulation, such as maintaining trust accounting and having sufficient working capital.
A registrant who stops dealing with another registrant because of the latters apparent lack of financial responsibility must notify the Registrar, in writing, of this fact and outline the reasons for ceasing to do business with the registrant.
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TICO Complaints Committee

Mandate
The Complaints Committee is a committee of the TICO Board that provides a fair, transparent, and accountable procedure for handling registrant and consumer complaints against TICO. The committees terms of reference include: reviewing and resolving, as appropriate, complaints against TICO that are based on dissatisfaction with the quality and fairness of its services to registrants and consumers; making any recommendations about TICOs complainthandling procedures that may arise from reviews of particular complaints; developing standards for handling complaints; and reviewing, on an ongoing basis, trends of complaints to determine whether recommendations can be made to address the cause of the complaints.
Composition and conduct of the Complaints Committee
The committee is made up of a minimum of: one retail board member one wholesale board member one non-industry board member (the Chair) one industry non-board member TICOs Chief Executive Officer (ex officio)
Other members may be assigned to the committee at the discretion of the Chair and the TICO Board of Directors. Committee members are expected to act scrupulously to avoid any actual, perceived, or potential conflicts of interest arising. If a member believes that he or she may be in a conflict of interest (real or potential), the member must disclose the conflict and withdraw from any discussion on the issue giving rise to the conflict.
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Types of complaints referred to the Complaints Committee
The following are examples of the types of complaints that the Complaints Committee handles. An alleged abuse of process (for example, if a registrant feels unfairly targeted for inspections, or if others perceive a registrant receiving favouritism). A consumer concern of inadequate action by TICO against a registrant. A consumer or registrants dissatisfaction with service from TICO staff. An alleged breach of TICOs access to information policy. The following are examples of the types of complaints that the Complaints Committee does not handle: A dispute over Travel Industry Compensation Fund decisions. A dispute over Notices of Proposal to Revoke Registration. A claim that the Act, regulations, or by-laws are unfair or ineffective unless the claim pertains to a specific complaint. Standard of Review The Complaints Committee evaluates any complaint according to a set of standards. The application of these standards may vary depending on the nature of the complaint. Each complaint is reviewed with an eye to resolving it, as well as to determine whether there are broader issues that need addressing. The Complaints Committee recognizes that some complaints may indirectly involve regulatory changes and decision-making by the Registrar. The committee may not interfere with the Registrars independent exercise of these statutory duties. Nevertheless, the committee may review how those duties are carried out, consistent with its mandate to supervise the management of the business affairs of TICO.
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SELF-TEST
Test your knowledge by answering the following questions after completing Module 8. Check your answers in the Answer Key on page 100. Multiple Choice 1. A consumer is dissatisfied with a vacation tour package purchased from a travel agent at ABC Travel in Ontario. Who should the consumer approach first to make a complaint? a. b. c. d. TICO Ministry of Small Business and Consumer Services ABC Travel a lawyer
2. Which of the following statements is NOT TRUE, when it comes to describing TICOs role in attempting to resolve disputes between consumers and registrants? a. TICO has the authority to impose a settlement in a dispute. b. TICO will hear complaints between a consumer and an unregistered travel agent. c. TICO staff will review the complaint against the requirements of the Act and Regulation to determine if the registrant met their obligations. d. A complainant must fill out a complaint form and include information and supporting documents. 3. Which one of the following complaints would NOT be heard by the Complaints Committee of TICO? a. a registrant feels that he is being unfairly targeted for TICO inspections b. a registrant wishes to dispute a Notice of Proposal to Revoke Registration c. a consumer is unhappy with the action that TICO took against a registrant d. a registrant is dissatisfied with the services provided by TICO staff
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InvestIgatIons and offences

MODULE OUTCOMES
After successfully completing this module, you will be able to: Understand the role and power of investigators in matters where compliance with the Act has come into question Describe actions that are considered to be offences under the Act and Regulation Identify penalties that can be imposed if a registrant is found guilty of an offence Conduct As emphasized throughout this Study Manual, the main purpose of the Travel Industry Act, 2002 and Ontario Regulation 26/05 is to protect consumers who purchase travel services from registered travel sellers in Ontario. The legislation specifically requires honesty and integrity by registrants in all aspects of their conduct. Acceptable and proper conduct is essentially defined by all of the requirements of the legislation all the points explained in this Study Manual. Those who comply with the provisions of the legislation are acting in a legally correct manner. Where the Director sees the need, he or she may apply to the Superior Court of Justice for an order that directs a person to comply with the Act, the Regulation, or a specific order made under the Act. The individual can appeal such an order to the Divisional Court. TICO has inspectors who are authorized to conduct inspections to ensure that registrants are complying with the Act and Regulation. In the event that TICO has reason to believe that the Act or Regulation has been contravened or that an offence has been committed, the file may be referred to an investigator who is authorized to make an official inquiry into the matter, which could lead to charges being laid under the statute. This Module will focus on investigations and offences. Investigations The Director has the authority to appoint investigators. These individuals are given a certificate of appointment that verifies
Module 9
Module Summary The Travel Industry Act, 2002 and Regulation provide the financial, moral, and professional criteria that define the conduct expected of travel agents and travel wholesalers. Improper conduct may lead to administrative action or charges being laid under the Act.
Statutory Director (commonly referred to as the Director) as defined by the Travel Industry Act, 2002, the person appointed by the TICO Board to supervise the work of the Registrar. Since the Director supervises the duties of the Registrar, the Director cannot be the Registrar. The position of Statutory Director is an official position at TICO, distinct from a regular Board member position.
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Module 9: InvestIgatIons and offences
their position as an investigator. All investigators must show this certificate upon request by those being investigated.
Before entering any premises involved in an investigation, investigators must obtain a search warrant from a Justice of the Peace. Such a warrant may authorize an investigator to undertake some or all of the following actions: to enter or access a location specified in the warrant and to examine or seize anything described in the warrant; to operate any data storage, process, or retrieval device or system of the business to produce information or evidence described in the warrant in any form (for example, the warrant may authorize the investigator to access computer records of the business); and to use any investigative techniques or procedures specified in the warrant. Conditions for Obtaining and Using a Search Warrant To obtain a search warrant, an investigator must have reason to believe that a person has contravened the Act or Regulation, has committed an offence under the law, or may be otherwise unfit for registration. The investigator must also believe that information or evidence related to the registrants contravention exists in a building or other place and should be obtained. An investigator must obtain special authority to enter a dwelling (such as a private home). Key points about the use of a search warrant: A warrant may authorize people with special, expert, or professional knowledge to accompany and assist an investigator in carrying out the warrant. Entry or access under a warrant must occur between 6 a.m. and 9 p.m. unless the warrant specifies otherwise. A warrant expires 30 days after it is issued, unless the Justice of the Peace extends the expiry date. An investigator may call on the assistance of police officers in carrying out a warrant, who in turn may use whatever force is reasonably necessary for that purpose. No one may obstruct an investigator in carrying out a warrant or withhold, alter, conceal, or destroy anything relevant to the investigation.
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While carrying out a search warrant or otherwise conducting an investigation, the investigator has the power to seize items not specified in the warrant if he or she believes that the items will provide evidence relating to the contravention of the Act or Regulation. Any items seized by an investigator must be returned to the registrant within a reasonable time. As well, an investigator may search without a warrant in exigent circumstances that is, if the conditions for obtaining the warrant exist, but circumstances make it impractical to obtain the warrant. Note: This power does not apply to searches of buildings where someone lives. An investigator may call on police and use whatever force is reasonably necessary to conduct the search. Improper Conduct In addition to identifying the requirements for proper conduct, the legislation also specifies what TICO considers to be improper conduct. This has also been discussed throughout the Study Manual. Actions that are considered to be improper fall into three main areas. Registrants must not: falsify information or documents related to the provision of travel services or encourage another person to falsify such information; provide false or deceptive information related to the provision of travel services or encourage another person to provide such information; and make false, misleading, or deceptive statements in any advertisement or published material. Penalties for Offences A registrant can be found guilty of an offence for: providing false information in any application, financial statement, or return; failing to comply with any order (other than an order of the Discipline Committee), direction, or other requirement under the Act; or contravening or failing to comply with any section of the legislation.
Definition An exigent circumstance refers to an emergency, a pressing necessity, or a set of circumstances requiring immediate attention or swift action. Because the legislation does not define what an exigent circumstance is, TICO typically assesses these situations on a case-by-case basis.
Section 26 of the Act Section 27 of the Act
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Penalties imposed for offences are set out in the legislation. Penalties differ for individuals and corporations convicted of an offence: Individuals convicted of an offence may be fined up to a maximum of $50,000, imprisoned for a term of up to two years less a day, or both. A corporation convicted of an offence may be fined up to a maximum of $250,000. Officers and directors of a corporation may be found guilty of an offence if they fail to take reasonable care to prevent the corporation from committing an offence. There is a time limit on prosecuting offences under the Act. No proceeding may be started more than two years after TICOs Director first became aware of the facts on which the proceeding is based. Note: TICOs Code of Ethics violations are not considered to be an offence under the Act.
Definition Restitution means compensation or reparation made by one party for the loss suffered by another.
Orders for compensation or restitution
A person convicted of an offence may be ordered to pay compensation or restitution in addition to other penalties imposed. If an insurer or the Travel Industry Compensation Fund has already compensated the individual harmed, the registrant may be ordered to pay the compensation or restitution to the insurer or the Fund.
Defaulting on fine payment
Sections 33 and 34 of the Act
If a fine payable for an offence is in default (that is, not paid) for at least 60 days, the Director may take either of the following actions: Disclose to a consumer reporting agency (such as Equifax) the name of the defaulter, the amount of the fine, and the date the fine went into default. If the Director subsequently receives notice that the fine has been paid in full, he or she must advise the consumer reporting agency of that within 10 days. Place a lien on real estate or personal property of the person in default. Within 10 days after the Director has been notified that the fine has been paid in full, he or she must discharge (withdraw) the lien.
Definition A lien is a legal right or interest that a creditor has over another partys property.
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SELF-TEST
Test your knowledge by answering the following questions after completing Module 9. Check your answers in the Answer Key on page 100. Multiple Choice 1. If a person refuses to comply with the Travel Industry Act, 2002 or Ontario Regulation 26/05, TICO can take a number of actions to correct the situation. Which of the following would TICO NOT be able to do? a. apply to the Superior Court of Justice for an order directing the person to comply b. begin an investigation c. obtain and execute a search warrant d. conduct a surprise raid on the persons home between 10:00 p.m. and 2:00 a.m. 2. Individuals convicted of an offence may face a. a fine of up to $50,000 b. imprisonment for a term of up to two years less a day c. both a fine of up to $50,000 and imprisonment for a term of up to two years less a day d. both a fine of up to $250,000 and imprisonment for a term of up to two years less a day 3. Restitution refers to a. b. c. d. a duty a tax compensation court fines
Now that you have completed the Supervisor/Manager section, read Next Steps (page 101) and take the Supervisor/Manager Sample Exam (which starts on page 115).
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ADDITIONAL INFORMATION AND SAMPLE EXAM SECTION
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Answer Key to Module self-tests

Module 1: TICOs Role in the Travel Industry 1. c 2. a 3. b Module 2: Ontarios Travel Industry Act, 2002 1. d 2. b 3. b Module 3: Registrant Obligations Before the Sale 1. b 2. d 3. c
Extra Question
The following problems appear on the advertisement: Prices are misleading. The advertisement does not state what is available for the price, if prices could vary, what the prices include, or if the offer is for a package or air only or is round trip or one-way. No travel agency address is included. Taxes are said to be extra, but what this means is not specified. Also, this information should not be shown in the fine print. No terms or conditions are listed. No statement is made that information is available from the agency. No description is given of the travel services provided. No TICO registration number appears. Module 4: Registrant Obligations After the Sale but Before Client Travels 1. b 2. c 3. c
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Answer Key to Module self-tests
Extra Question
The following problems appear in the invoice: No travel agent address, phone number, or other contact information such as fax number or email address. No name of travel counsellor. No information about typical information and travel documents that will be needed by the client. Module 5: Ontario Travel Compensation Fund 1. c 2. b 3. d Module 6: Registration Requirements 1. b 2. a 3. b Module 7: Financial and Record-Keeping Requirements 1. a 2. d 3. c Module 8: Complaints 1. c 2. a 3. b Module 9: Investigations and Offences 1. d 2. c 3. c
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Next StepS
Now that you have finished reviewing the material in the Study Manual, re-read the study tips on page vi, or visit the CITC website (www.citc.ca/en/train-tico-examprep-e.asp) to obtain more tips on writing the multiple choice exam. Take the Sample Travel Counsellor Exam in Appendix 1. Then visit the CITC website to check your answers (www.citc.ca/en/ train-tico-sampleTCexam-e.asp). If you would like to (or are required to), take the Sample Supervisor/Manager Exam in Appendix 2. Then visit the CITC website to check your answers (www.citc.ca/en/train-ticosampleSMexam-e.asp). If you have not already registered to write the exam or you have registered but still need to add your exam date or your proctor information, go to www.citc.ca/en/train-ticoregsiter-e.asp. If you have successfully registered to write the exam, go to the appointed exam location with your proctor on the appointed date. Arrive at least 15 minutes early to allow time to present your photo identification and to sign in online using your TICO Exam Registration Number. Please remember that no outside materials are allowed into the examination room. Candidates should ensure that they understand the terminology used in the Study Manual (and summarized in the Glossary). No dictionaries or electronic devices may be taken into the exam. Results will be mailed to the person who actually wrote the exam, usually within 10 business days of writing. Exam candidates may instruct CITC to mail the results to a third party (for example, a supervisor, manager, or trainer) if they provide written permission to CITC.
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Glossary
Accommodation any room that is to be used for lodging by the customer or other person for whom the travel services were purchased and includes other facilities and services related to the room that are for the use of the customer or other person, but does not include meals. See also Travel services. Affidavit a formal legal statement written and sworn to or affirmed before someone authorized to administer an oath (such as a commissioner of oaths, a notary public, or a lawyer). Appeal a legal term that refers to a request for a decision to be reconsidered by a higher authority. Arms length a relationship in which the two parties are not related and do not have close ties. Canadian Institute of Travel Counsellors (CITC) a not-for-profit membership organization for individual travel professionals. As the educational trade association for Canadas travel industry, CITC manages the national certification programs leading to the professional designations CTC and CTM. As well, the CITC conducts professional development seminars, conferences, distance-learning courses, and in-house training for travel counsellors. Claimant someone who officially makes a claim to a benefit or right. In the case of the Travel Industry Compensation Fund, a claimant is someone who wishes to be paid back (reimbursed) for what he or she spent on a travel service but did not receive. Compensation Fund see Travel Industry Compensation Fund. Current assets the assets of a company that can be converted to cash within one year. They include the sum of cash and cash equivalents, accounts receivable, inventory, marketable securities, and prepaid expenses. Current assets are important to most companies as a source of funds for dayto-day operations. Current liabilities the short-term debts that a company owes to its suppliers and creditors. These are all bills such as operating bank loans, accounts payable, and taxes payable that are due in less than a year. A company normally pays off its current liabilities by converting some of its current assets into cash. Director see Statutory Director. End supplier a person that operates a travel service for which they have ownership. Examples of end suppliers include airlines, cruise lines, hotels and car rental companies. End suppliers do not need to be registered under the Travel Industry Act, 2002 provided that they do not otherwise act as a travel agent or travel wholesaler in Ontario. The Travel Industry Compensation Fund does not cover the non-provision of travel services by an end supplier except for airlines and cruise lines.
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Glossary
Event any action that leads to claims being made on the Travel Industry Compensation Fund. An example is the failure of a registrant. An action that has particularly serious consequences is called a major event. Exigent circumstances an emergency, a pressing necessity, or a set of circumstances requiring immediate attention or swift action. (Exigent describes something that requires immediate aid or action.) Because the legislation does not define what an exigent circumstance is, TICO typically assesses these situations on a case-by-case basis. Financial statement as defined in the Regulation, financial statements must include the registrants: statement of sales in Ontario made during the period to which the financial statements refer; balance sheet; income statement; and reconciliation of the trust account with customer deposits
Force majeure a legal term (from the French for greater force) that refers to natural disasters (such as floods, hurricanes, and other so-called acts of God) or acts of people (such as riots, strikes, and war) that prevent suppliers and subcontractors from meeting their obligations in a contract. In the legislation, the term is used to remove liability if some unexpected or unavoidable event prevents registrants or suppliers from meeting their obligations to a client or travel agent. General account the account used for operating expenses. Funds from the general account are used to pay salaries, rent, utilities, and similar operating expenses. After the suppliers have been paid in full from the trust account, commission and mark-up may be transferred to the general account. Good faith (as in acting in good faith) means acting honestly, with no intent to defraud or take advantage of someone, observing reasonable business standards. Home-based agent see Outside sales representative. Interested person as defined under the legislation, one who is associated with the registrant or who, in the opinion of the Registrar: has or may have a beneficial interest in the registrants business; exercises or may exercise control either directly or indirectly over the registrant; or has provided, or may have provided, financing either directly or indirectly to the registrants business. Jointly and severally liable a legal term meaning that someone has legal responsibility both as an individual and as part of a group. Liability a financial obligation, debt, claim, or potential loss.
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Glossary
Liable having a financial obligation, debt, claim, or potential loss. Licence Appeal Tribunal an independent body appointed by the Ontario government. It hears appeals of proposals to suspend, revoke, or refuse to grant or renew a travel businesss registration. It also hears appeals of decisions to deny claims against the Travel Industry Compensation Fund. Licensed Public Accountant a public accountant licensed under the Public Accounting Act, 2004. Licensed accounting professionals (called certified public accountants or public accountants) prepare, evaluate, and attest to the accuracy and completeness of financial statements and related information. Lien a legal right or interest that a creditor has over another partys property. Manager a person who administers or supervises the affairs of a business or office. Non-registrant an organization or individual that sells or supplies travel services but is not registered in Ontario. Examples include: wholesalers and retailers not located in Ontario; companies that sell to clients in Ontario by means of advertising, the Internet, or toll-free phone line, but whose home base or call centre is not located in Ontario; end suppliers (e.g., airlines, hotels, rail services, cruise lines) that may or may not be located in Ontario; and anyone who is operating in Ontario illegally. Outside sales representative a travel counsellor who works from a location other than the registered office of a travel agency. However, all sales must be processed through the registered office, either in person or by electronic means. In addition, the registrant must record the outside sales representative as either an employee or contractor for the company. An outside sales representative may also be an employee of a travel wholesaler who contacts travel agents, in person or by mail, telephone, or email with the purpose of selling travel services. An outside sales representative is bound by the Travel Industry Act, 2002 and Ontario Regulation 26/05 in the same way as any other seller of travel products. He or she must have a written contract with a registrant. Overland travel services services for travel by, on, or across land. They do not include travel by air or by sea. Person a human being or an entity (such as a corporation) that is recognized by law as having the rights and duties of a human being. Reasonable a term used in law to mean behaviour that is logical, appropriate, or usual in the circumstances.
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Glossary
Registrant a travel agent or a travel wholesaler who is registered as a travel agent, travel wholesaler, or both under the Travel Industry Act, 2002. Representation a presentation of fact made in person, electronically, or in print in order to induce someone to act or enter into a contract. Examples of representations include oral presentations, advertisements, brochures, and websites. Restitution compensation or reparation made by one party for the loss suffered by another. Revocation the act by which a person having authority calls back or annuls a power, gift or benefit, which had been bestowed upon another. Sales in Ontario when used in reference to a period of time, means: in the case of a registered travel agent, the amount paid or to be paid to or through the travel agent for all travel services sold in Ontario during the relevant period; or in the case of a registered travel wholesaler, the amount paid or to be paid to or through the travel wholesaler for all travel services sold in Ontario during the relevant period. Statutory Director (commonly referred to as the Director) the person appointed by the TICO Board to supervise the work of the Registrar. Since the Director supervises the duties of the Registrar, the Director cannot be the Registrar. The position of Statutory Director is an official position at TICO, distinct from a regular Board member position. Stay a legal term that refers to a short-term delay ordered by a judge or tribunal. Supervisor one having authority over others such as a manager. (See Manager) Travel agent a person who sells, to consumers, travel services provided by another person. Travel Industry Compensation Fund (commonly referred to as the Compensation Fund, or the Fund) a fund that refunds, fully or in part, eligible consumers who bought travel services from an Ontario-registered travel agency, but did not receive them because of the bankruptcy or insolvency of a registrant or an airline or cruise line end supplier. Travel Industry Council of Ontario (TICO) a not-for-profit corporation that regulates travel agents and travel wholesalers in the province. It is financed by the retail and wholesale travel community. Travel services transportation, sleeping accommodation, or other services for the use of a traveller, tourist, or sightseer. See also Accommodation.
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Glossary
Travel wholesaler a person who acquires rights to travel services for the purpose of resale to a travel agent, or who carries on the business of dealing with travel agents or travel wholesalers for the sale of travel services provided by another person. Trust account the account where all monies received from consumers are deposited. These funds must remain in the trust account until the suppliers of the travel service have been paid in full. Trust accounting a system in which a consumers money is held in a separate bank account (the trust account). The registrant is not legally permitted to use the funds in the trust account, other than to pay the supplier or refund the customer. This way, if a registrant becomes bankrupt or insolvent, the clients money can be returned. Only after the travel service has been paid in full does the agency or wholesaler become eligible to collect the commission or mark-up earned on the sale of the travel service. At that point, the commission is transferred to the general account. Working capital a companys ability to meet its liabilities as they come due. It is generally calculated by subtracting current liabilities from current assets. working capital = current assets minus current liabilities Working capital can be positive or negative, depending on how much debt the company is carrying. In general, companies that have a lot of working capital are more successful because they are better equipped to withstand any market changes, financial downturns, or unexpected events. See also Current assets and Current liabilities.
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Sample Travel CounSellor exam
Appendix 1
1. The phrase to promote a fair and informed marketplace where consumers can be confident in their travel purchases is the a. b. c. d. mission statement of the Ministry of Small Business and Consumer Services mission statement of TICO vision statement of TICO purpose of the Travel Industry Act, 2002
2. The administration of the Travel Industry Act, 2002 was delegated to TICO by the a. b. c. d. federal government travel industry Ministry of Consumer and Corporate Affairs Ontario provincial government
3. TICO works with which three groups to carry out its mandate? a. b. c. d. consumers, travel retailers, the federal government travel retailers, travel wholesalers, consumers the travel industry, the provincial government, consumers suppliers, travel agents, consumers
4. The best description of Ontarios Travel Industry Act, 2002 is that it a. outlines the rights of consumers b. sets down the rules under which travel retailers and travel wholesalers must operate in Ontario c. goes into detail to explain the content of the related regulations d. provides guidelines to travel retailers and travel wholesalers about what must be included in vacation packages 5. TICO lays charges after discovering that a man has been selling travel services without being a registrant or an employee in a registrants agency or office. When the man sees his name in the newspaper, he threatens to take legal action against TICO for violating his privacy. He will lose the case because a. Ontario Regulation 26/05 provides that TICOs Registrar must make these details available to the public b. the Ministry of Small Business and Consumer Services lays charges against illegal sellers of travel, not TICO c. no law says a person has to be registered to sell travel services in Ontario d. Ontario Regulation 26/05 specifically states that no one can take legal action against TICO
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Appendix 1: SAmple TrAvel CounSellor exAm
6. Can the Registrar act as Director? a. b. c. d. yes, because the Registrar must be responsible for all decisions made yes, because the Registrar is also the Chair of the Board of Directors no, because the Director supervises the duties of the Registrar no, because the Registrar supervises the duties of the Director
7. Before counselling or advising a client, a travel agent must a. b. c. d. inform the client of any counselling fee charged show a picture of the travel service being sold advise the client of the need for a passport or visa ask to make an imprint of the customers credit card
8. In the Travel Industry Act, 2002, the term representation refers to a. b. c. d. print advertisements only print advertisements except for billboards presentations of any type, including oral, print, and electronic oral presentations only
9. According to the Travel Industry Act, 2002, a travel agent does NOT have to inform a client before booking a. b. c. d. that conditions at the destination may be different from those in Canada the total price of the travel services, including all taxes and service charges that a counselling fee is applied by the agent that some days can be cloudy, even in a sun destination
10. ABC Travel puts an advertisement in the newspaper that announces a package holiday From $999 and up. TICO would not consider this acceptable because a. the price should have been shown as $999.00 to prevent any confusion b. registrants are required to include PST and GST in the advertised price c. the Regulation states that consumers must know the exact cost of all the travel services provided d. the advertisement did not specifically state whether the price is in Canadian or U.S. dollars
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11. A consumer selects a package tour from a travel wholesalers brochure. The hotel included in the package is some distance from town, which appeals to the consumer who wants a quiet location for her holiday. When she arrives at the hotel, she is upset by the non-stop noise outside her room as the hotel starts construction of a new swimming pool. Who is to blame for this consumers dissatisfaction? a. the hotel, which should have cancelled all bookings during construction b. the travel wholesaler, which should have disclosed in its brochure information about construction or renovation of the property c. the woman, who should have more thoroughly researched the hotel before booking d. the construction company, which should have offered all the guests a set of ear plugs 12. ABC, a wholesaler, has been selling XYZ Resort since the resort opened in 1965. ABC still puts a photograph of the resort from 1965 in the brochure to show off the locations beauty. In fact, the resort has NOT been upgraded or renovated since 1965 and has become run-down and outdated. Has ABC done anything wrong in its brochure? a. no, as long as the company states in the brochure that the photograph was taken in 1965 b. yes, because the photograph does not accurately depict the current condition of the resort c. no, because the Regulation requires that a photograph be used in advertising, but leaves content to the discretion of the registrant d. yes, because photographs should not be used in representations 13. A couple gives their travel agent a deposit for a package tour. They obtain a receipt from her that says, Balance of $500.00 due on September 27, 2008. The agent has also added the comment, As discussed, some charges are non-refundable. TICO would view this receipt as a. adequate because the receipt includes the amount due, the date on which it is due, and the fact that some charges are non-refundable b. adequate because the travel agent has reminded the clients that the non-refundable charges were discussed during the sale of the package tour c. inadequate because, by law, the travel agent should have said, As discussed on August 27, 2008, some charges are not refundable. d. inadequate because, by law, the travel agent must identify charges that are non-refundable
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14. Betsy, the travel agent, concludes the sale with the clients and tells them to go to the Canadian Foreign Affairs website to find out what documents they need. She thinks that Canadians may need a visa for the chosen destination, but she does not have the website on hand. Betsys advice is a. sufficient because a travel agent need only advise clients where to find information on travel documentation b. insufficient because a travel agent must advise clients about the specific travel documents needed c. sufficient because the clients chose the destination, so it is up to them to research the details d. insufficient because the travel agent must provide the clients with a website address if she does not have specific information about travel documentation on hand 15. A client buys a vacation package from ABC Tours on May 1. The departure date is June 15. ABC Tours pays the travel wholesaler on May 8. On which date must the travel wholesaler produce the tickets, vouchers, itinerary, and other related documents for the travel agent? a. b. c. d. June 1 (14 days before departure) May 24 (21 days before departure) June 8 (7 days before departure) May 22 (14 days after payment is received)
16. Which one of the following circumstances would NOT result in the travel agent having to offer the client a full refund or comparable alternative travel services? a. where a contract permits a price increase, the cumulative increase is more than 7% of the total price (excluding increases caused by an increase in the GST or PST) b. where the scheduled departure of any transportation is delayed or advanced by 12 hours or less c. where the contract does not permit a price increase and the total price of the travel services is increased, whatever the amount or reason d. where a different cruise ship has been substituted 17. When a client is offered the choice of a refund or comparable alternative travel services, the registrant is NOT required to a. b. c. d. write to the Travel Industry Compensation Fund stating that no claim is pending note the date on which the information was communicated to the client note the method of communication used note the choice the client made
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18. Which of the following is NOT part of the Travel Industry Compensation Fund? a. b. c. d. contributions from registrants contributions from consumers recoveries of money paid from the Compensation Fund income earned on the money in the Compensation Fund
19. Which of the following could a client claim from the Travel Industry Compensation Fund? a. b. c. d. counselling fees paid to a travel agent taxes paid on the travel services insurance premiums the cost of alternative travel services that were provided
20. If a consumer makes a claim against the Travel Industry Compensation Fund and the TICO Board accepts the claim. What is the maximum amount payable? a. b. c. d. $5,000 per person $5,000 per claim depends on the cost, value, or quality of the travel services purchased a calculation of $5 million evenly divided by the number of claims
21. Joe and Sally are originally from Sudbury, but now live in Windsor. They depart from Toronto for a round-trip vacation package to Europe. When the supplier declares bankruptcy, Joe and Sally are stranded overseas. Under the trip completion provision in Ontario Regulation 26/05, where can Joe and Sally be returned, assuming that costs for each destination are approximately the same? a. Toronto b. Toronto or Windsor c. Windsor d. Sudbury 22. Joe Smith is a travel agent with ABC Travel. He went out of his way to ensure that all the travel arrangements for Dorothy and David Black were perfect. The couple paid ABC Travel and then ABC Travel forwarded the funds to the travel wholesaler. When the travel wholesaler declared bankruptcy and the Blacks trip was ruined, Joe Smith made a claim on the Travel Industry Compensation Fund for the $75.00 service fee he charged as a destination specialist. What will TICO do? a. accept the claim because Joe dealt with the suppliers in good faith and the service fee was part of the travel service package b. refuse the claim because the Compensation Fund does not cover service fees c. accept the claim because the Compensation Fund covers service fees d. refuse the claim because it was illegal for Joe to charge a service fee in the first place
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23. Sally Smith belongs to a travel program. She saves up her points for two years until she has enough for a vacation package at a sun destination. The travel wholesaler noted in the brochure that the trip was valued at $2,500.00. After Sally transfers the points to the travel wholesaler, the wholesaler declares bankruptcy. Sally files a claim on the Travel Industry Compensation Fund for $2,500.00. Would her claim be eligible for reimbursement? a. b. c. d. yes, because it is based on the stated value of the trip no, because Sally did not actually pay money for the trip yes, because air points are commonly used and have a monetary value no, because travel wholesalers are not covered by the Compensation Fund
24. Read the invoice below and explain how it needs to be corrected to comply with representation requirements in the legislation.
INVO ICE ABC T RAV EL 123 ANY STREE T ANYW HER E, ON TAR IO
X0X 0X0 Telephon e: (555 ) 555- 5555 Fax : (5 55) 555 -555 7 E-mail: book ing s@ abctrav el.ca
DATE: INVOICE #: PAGE #: BOOKING #: AGENT: CUSTOMER:
Augu st 12, 2007 A123 1 of 1 A11111111 Boo ka Tri p Iwanna Travel Telephone: (555 ) 555 -0005
DES CR IPT IO N
QTY
PRICE
TAXE S
GST
PST
TOTAL
VACATION PACKAGE TO ACAPULCO , M EXICO
$1 ,89 1.95
$2 47.00
$1 .05
$2 ,14 0.00
Deposit of $1,000.00 paid in cash on August 12, 2007. BALANCE OF $1,140.00 DUE ON SEPTEMBER 17, 2007.
Documentation Requirements: Proof of Canadian citizenship supported by government issued photo I.D. required for entry into Mexico. Canadian passports preferred as I.D. by Mexican immigration. Mexican tourist cards will be provided by ABC Tour Operator at airport check-in. Please note that entry to another country may be refused even if the required information and travel documents are complete. Living standards and practices at the destination and standards and conditions there with respect to the provision of utilities, services and accommodation may dier from those found in Canada.
Check your answers to see how well you did. Visit: www.citc.ca/en/train-tico-sampleexam-e.asp
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Sample SuperviSor/manager exam
Appendix 2
1. John is a student who has decided to create his own company to provide walking tours in his hometown of Thunder Bay. Some tourists book a tour, but because John has the flu, he does not show up. The tourists complain to TICO that their afternoon was ruined. Why is TICO unable to assist these consumers? a. a tour guide is considered to be an end supplier and is therefore exempt from registering with TICO b. John should have registered with TICO because he is providing a type of travel service c. having the flu is considered to be a force majeure, so the tourists have no grounds for complaint d. anyone selling guide services or sightseeing services in Ontario is exempt from having to register with TICO 2. Ontario Regulation 26/05 states that a person who has not registered with TICO in the previous 12 months must provide a a. b. c. d. refundable security deposit of $10,000.00 non-refundable security deposit of $10,000.00 promissory note, authorized by a lawyer, in the amount of $10,000.00 refundable security deposit of $25,000.00
3. A man has violated the Travel Industry Act, 2002 by providing services as a travel agent without actually being registered. As a result of his conviction, the penalty could be a. b. c. d. a fine of not more than $50,000 imprisonment for a term of not more than two years less a day a fine of not more than $250,000 both a fine of not more than $50,000 and imprisonment for a term of not more than two years less a day
4. The time limit for prosecuting offences under the Travel Industry Act, 2002 is no more than ___________ after the Director first becomes aware of the facts on which the proceeding is based. Fill in the blank with the correct answer from the following: a. b. c. d. six months one year two years five years
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Appendix 2: SAmple SuperviSor/mAnAger exAm
5. The landlord of the building where ABC Travel is located is planning a major renovation. ABC Travel is forced to find another location until the renovation is completed. What is ABC Travels duty as far as TICO is concerned? a. the agency must inform TICO at least five days before the move b. the agency need not inform TICO, because the move is only a temporary one c. the agency need not inform TICO as long as the agency changes its phone message and puts a note on the door of its main premises to alert customers of the temporary relocation d. the agency must inform TICO within a reasonable time of the move, even though it is only a temporary relocation 6. As defined in Ontario Regulation 26/05, a financial statement does NOT need to include a. b. c. d. a statement of sales in Ontario made during a specific period a balance sheet or income statement the individual invoices sent to customers during a specific period a reconciliation of the trust account with customer deposits
7. A trust account may NOT be used to a. borrow funds to keep the travel agency profitable if a customer is late in paying for a package tour b. pay a wholesaler for the package tour for which the travel agency has received money c. issue refunds to customers d. transfer a registrants commission to the general account after the travel wholesaler has been paid 8. The amount of working capital required by a travel agency is based on which of the following? a. b. c. d. the length of time the agency has been in business the number of employees the agency has the agencys sales in Ontario during the previous fiscal year the number of bookings the agency made during the previous fiscal year
9. All agencies are required to maintain business records. Which of the following does NOT fall under the category of business records? a. b. c. d. accounting and banking files brochures that identify destinations and accommodations payment records files containing client options regarding refund or alternative travel services
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Appendix 2: SAmple SuperviSor/mAnAger exAm
10. ABC Travel Agency has been in business for two years. The owner informs TICO that he plans to stop maintaining a trust account. Under Ontario Regulation 26/05, can he do this? a. no, he must operate a trust account b. yes, as long as the general account contains the equivalent of sales from the past 12 months he can close the business trust account c. no, he must be in business for three fiscal years before he can choose not to operate a trust account d. yes, if he provides security in lieu of trust accounting 11. When a consumer makes a complaint about a registrant to TICO, what will the Registrar do? a. b. c. d. attempt to mediate or resolve the complaint call the police to investigate close the agency until the matter is resolved seize the registrants documents and records
12. The manager of ABC Travel is on holiday. At 10:00 a.m., a TICO inspector arrives to inspect the financial records. While the agencys staff know where the records are kept, they refuse to open the files, telling the inspector that the manager will be back in two weeks and the inspector will have to wait. According to Ontario Regulation 26/05, this is a. a reasonable request and the inspector will have to return in two weeks b. an unreasonable request because the staff are required to assist the inspector c. a reasonable request because the inspector is supposed to provide 30 days notice of his intent to inspect the agency records d. an unreasonable request because an inspector can only enter the agency between 11:00 a.m. and 3:00 p.m. 13. A TICO investigator arrives at ABC Travel Agency and sees someone inside taking files from the cabinets and burning them in a pail. The investigator enters the agency and searches the premises, without a search warrant. Is the investigator allowed to do this? a. b. c. d. yes, as long as it is between 6:00 a.m. and 9:00 p.m. no, the investigator cannot enter the premises without the warrant yes, exigent circumstances permit the investigator to enter and search the premises no, the investigator can enter only if accompanied by the police
14. If a person has defaulted on paying a fine for an offence, TICO can do which of the following? a. b. c. d. impose an additional fine of $25,000 and a sentence of up to two years in jail place a lien on real estate or personal property of the person in default borrow the money from the Travel Industry Compensation Fund until the person pays ban the person from ever working in a travel agency again Check your answers to see how well you did. Visit: www.citc.ca/en/train-tico-sampleexam-e.asp
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A WALK THROUGH THE TICO WEBSITE www.tico.ca

HOME
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CONSUMERS - Introduction
Travel Tips Complaints Compensation Fund Legislation Downloads Links Find a TICO Travel Agency TICO Site Search
CONSUMERS News Advisories (Closure Advisories) Press Releases Revocation List Suspension List Closure List TICO Talk Newsletter Live on Air Trade Shows and Upcoming Events CONSUMERS FAQs
General FAQs Complaints FAQs Compensation Fund FAQs
CONSUMERS About TICO

Mission and Mandate Code of Ethics Organizational Chart Board of Directors Committees Business Plans Annual Reports By-laws Privacy Policy
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CONSUMERS Contact Us
TICO Contact Information Departments and Personnel Location and Hours
TICO REGISTRANTS Introduction

Registrar Bulletins Registration Tool Kit Education Standards Compensation Fund Logo Download & Consumer Awareness Tool Kit New Registrant Listing Find a TICO Travel Agency TICO Site Search
TICO REGISTRANTS News

Advisories (Closure Advisories) Press Releases Revocation List Suspension List Closure List TICO Talk Newsletter Legislation Trade Shows and Upcoming Events
TICO REGISTRANTS FAQs

General Registration Financial Compliance Non-Financial Compliance Financial Requirements
TICO REGISTRANTS About TICO

Mission and Mandate Code of Ethics Organizational Chart Board of Directors Committees Business Plans Annual Reports By-laws Privacy Policy
TICO REGISTRANTS Contact Us

TICO Contact Information Departments and Personnel Location and Hours
For all details relating to the exam process, please visit www.citc.ca/en/tico.
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Education Standards

YOUR PASSPORT TO SUCCESS

TICO Education Standards for Ontario Travel Counsellors and Supervisor/Managers

Travel Industry Council of Ontario

(A program administered by the Canadian Institute of Travel Counsellors)

vii viii viii . ix . ix . ix . . x . . x

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

99 101 103 109 115 119

Appendix 1: Sample Travel Counsellor Exam .

Appendix 2: Sample Supervisor/Manager Exam . A Walk Through the TICO Website

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

Toronto, Ontario Fall 2007

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

TRAVEL COUNSELLOR SECTION

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

TICos role In The Travel IndusTry

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

Module 1: tIcos role In the travel Industry

Module 1: tIcos role In the travel Industry

Board Committees Chief Executive Officer Registrar

Director of Operations & Chief Financial Officer

Manager, Administration & Claims

Compensation Fund Finances

Inspections & Investigations

Figure 1.1: Organizational structure of TICO.

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

Module 1: tIcos role In the travel Industry

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

Module 1: tIcos role In the travel Industry

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

Module 1: tIcos role In the travel Industry

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

Module 1: tIcos role In the travel Industry

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

Module 1: tIcos role In the travel Industry

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

Module 1: TICos Role In The TRavel IndusTRy

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

Module 1: tIcos role In the travel Industry

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

OntariOs Travel IndusTry acT, 2002

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

Module 2: ontarios Travel IndusTry acT, 2002

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

Module 2: ontarios Travel IndusTry acT, 2002

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

Module 2: ontarios Travel IndusTry acT, 2002

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

Module 2: ontarios Travel IndusTry acT, 2002

TICO EduCaTIOn STandardS fOr OnTarIO TravEl COunSEllOrS and SupErvISOr/ManagErS

Module 2: ontarios Travel IndusTry acT, 2002

The Main Components of the Ontario Travel Industry Act, 2002

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