TICO Certification Practice Exam
Ontario Travel Industry Council –
Comprehensive Review .
Section 1: TICO Regulatory Framework & Registration (Q1–Q15)
Q1: Which of the following entities is legally required to register with TICO under the Travel
Industry Act, 2002?
A. A hotel located in Ontario selling rooms directly to consumers
B. An airline based in Ontario selling tickets directly to consumers
C. A travel agent located in Ontario arranging travel services for consumers
D. A tour operator located outside of Ontario selling packages to Ontarians without an
Ontario office
Correct Answer: C [CORRECT]
Rationale: Under the Travel Industry Act, 2002, any person or entity acting as a travel agent or
travel wholesaler in Ontario must be registered. Hotels and airlines are generally exempt from
registration when selling their own inventory directly.
Q2: What is the minimum working capital requirement for a travel agent applying for initial
registration with TICO?
A. $5,000
B. $10,000
C. $25,000
D. $50,000
Correct Answer: B [CORRECT]
Rationale: Ontario Regulation 26/05 specifies that a travel agent must maintain minimum
working capital of $10,000 to ensure financial stability and protect consumer interests.
Q3: A registered travel agency opens a new branch office in a different city within Ontario.
What is the regulatory requirement regarding this new location?
A. No action is required if it is under the same ownership
,B. The branch must be registered separately with TICO before conducting business
C. The branch only needs to display the main office’s registration certificate
D. The branch must register only if it has its own trust account
Correct Answer: B [CORRECT]
Rationale: Each place of business where travel services are sold or arranged must be
registered. A branch office is considered a separate place of business and requires its own
registration under the Travel Industry Act, 2002.
Q4: How often must a TICO registrant renew their registration?
A. Every 6 months
B. Annually
C. Every 2 years
D. Every 5 years
Correct Answer: B [CORRECT]
Rationale: Registrations with TICO are valid for one year and must be renewed annually by
the deadline specified by the Registrar to maintain legal status.
Q5: Which of the following is NOT a valid reason for the Registrar to refuse an application for
registration?
A. The applicant has been convicted of a crime relevant to the travel industry
B. The applicant fails to meet the financial security requirements
C. The applicant has previously had their license revoked for cause
D. The applicant plans to offer discounted rates below market value
Correct Answer: D [CORRECT]
Rationale: Offering competitive or discounted pricing is a legitimate business practice. Refusal
grounds relate to fitness, propriety, financial stability, or past regulatory violations, not pricing
strategies.
Q6: What must a registered travel agency prominently display at each of its places of
business?
A. The owner’s personal photo ID
,B. The current TICO registration certificate
C. A list of all employee commissions
D. The full text of the Travel Industry Act, 2002
Correct Answer: B [CORRECT]
Rationale: Regulation 26/05 requires that the current registration certificate issued by TICO be
prominently displayed at every place of business where the registrant operates.
Q7: If a sole proprietorship travel agency is sold to a new owner, what happens to the existing
TICO registration?
A. It automatically transfers to the new owner
B. It remains valid until the next renewal date
C. It is cancelled, and the new owner must apply for a new registration
D. It can be transferred upon payment of a transfer fee
Correct Answer: C [CORRECT]
Rationale: Registration is not transferable. A change in ownership constitutes a new legal
entity or operator, requiring the new owner to apply for and obtain their own registration
before operating.
Q8: Which document must a registrant submit to TICO annually as part of the renewal process
to prove financial stability?
A. A personal bank statement of the owner
B. A notice of assessment from the CRA
C. A financial statement prepared in accordance with generally accepted accounting principles
D. A letter from the primary supplier confirming credit limits
Correct Answer: C [CORRECT]
Rationale: Registrants must submit annual financial statements to demonstrate they continue
to meet the working capital and financial security requirements outlined in the Regulation.
Q9: What is the primary role of the TICO Board of Directors?
A. To adjudicate individual consumer complaints
B. To manage the day-to-day operations of travel agencies
, C. To provide governance and strategic direction for TICO
D. To set the price of travel services in Ontario
Correct Answer: C [CORRECT]
Rationale: The Board of Directors provides governance, oversight, and strategic direction for
the Council. They do not handle daily operations or individual complaint adjudication, which
is handled by staff and the Registrar.
Q10: An Ontario-based travel agent wishes to sell travel services to customers in British
Columbia. Do they need to register with TICO?
A. No, because the customer is not in Ontario
B. Yes, because the agent is located in Ontario and carrying on business here
C. Only if the transaction exceeds $5,000
D. No, inter-provincial sales are federally regulated only
Correct Answer: B [CORRECT]
Rationale: The Travel Industry Act, 2002 applies to anyone carrying on business as a travel
agent or wholesaler in Ontario. Location of the consumer does not exempt the Ontario-based
seller from registration.
Q11: What is the consequence of operating as a travel agent without being registered with
TICO?
A. A warning letter is issued for the first offense
B. The individual may face prosecution, fines, and/or imprisonment
C. The individual is barred from obtaining insurance
D. The individual must pay double the registration fee retroactively
Correct Answer: B [CORRECT]
Rationale: Operating without registration is an offense under the Travel Industry Act, 2002.
Conviction can result in significant fines for individuals and corporations, and potentially
imprisonment.
Q12: Which of the following best describes a "Travel Wholesaler" under the Act?
A. A person who sells travel services directly to the public
Ontario Travel Industry Council –
Comprehensive Review .
Section 1: TICO Regulatory Framework & Registration (Q1–Q15)
Q1: Which of the following entities is legally required to register with TICO under the Travel
Industry Act, 2002?
A. A hotel located in Ontario selling rooms directly to consumers
B. An airline based in Ontario selling tickets directly to consumers
C. A travel agent located in Ontario arranging travel services for consumers
D. A tour operator located outside of Ontario selling packages to Ontarians without an
Ontario office
Correct Answer: C [CORRECT]
Rationale: Under the Travel Industry Act, 2002, any person or entity acting as a travel agent or
travel wholesaler in Ontario must be registered. Hotels and airlines are generally exempt from
registration when selling their own inventory directly.
Q2: What is the minimum working capital requirement for a travel agent applying for initial
registration with TICO?
A. $5,000
B. $10,000
C. $25,000
D. $50,000
Correct Answer: B [CORRECT]
Rationale: Ontario Regulation 26/05 specifies that a travel agent must maintain minimum
working capital of $10,000 to ensure financial stability and protect consumer interests.
Q3: A registered travel agency opens a new branch office in a different city within Ontario.
What is the regulatory requirement regarding this new location?
A. No action is required if it is under the same ownership
,B. The branch must be registered separately with TICO before conducting business
C. The branch only needs to display the main office’s registration certificate
D. The branch must register only if it has its own trust account
Correct Answer: B [CORRECT]
Rationale: Each place of business where travel services are sold or arranged must be
registered. A branch office is considered a separate place of business and requires its own
registration under the Travel Industry Act, 2002.
Q4: How often must a TICO registrant renew their registration?
A. Every 6 months
B. Annually
C. Every 2 years
D. Every 5 years
Correct Answer: B [CORRECT]
Rationale: Registrations with TICO are valid for one year and must be renewed annually by
the deadline specified by the Registrar to maintain legal status.
Q5: Which of the following is NOT a valid reason for the Registrar to refuse an application for
registration?
A. The applicant has been convicted of a crime relevant to the travel industry
B. The applicant fails to meet the financial security requirements
C. The applicant has previously had their license revoked for cause
D. The applicant plans to offer discounted rates below market value
Correct Answer: D [CORRECT]
Rationale: Offering competitive or discounted pricing is a legitimate business practice. Refusal
grounds relate to fitness, propriety, financial stability, or past regulatory violations, not pricing
strategies.
Q6: What must a registered travel agency prominently display at each of its places of
business?
A. The owner’s personal photo ID
,B. The current TICO registration certificate
C. A list of all employee commissions
D. The full text of the Travel Industry Act, 2002
Correct Answer: B [CORRECT]
Rationale: Regulation 26/05 requires that the current registration certificate issued by TICO be
prominently displayed at every place of business where the registrant operates.
Q7: If a sole proprietorship travel agency is sold to a new owner, what happens to the existing
TICO registration?
A. It automatically transfers to the new owner
B. It remains valid until the next renewal date
C. It is cancelled, and the new owner must apply for a new registration
D. It can be transferred upon payment of a transfer fee
Correct Answer: C [CORRECT]
Rationale: Registration is not transferable. A change in ownership constitutes a new legal
entity or operator, requiring the new owner to apply for and obtain their own registration
before operating.
Q8: Which document must a registrant submit to TICO annually as part of the renewal process
to prove financial stability?
A. A personal bank statement of the owner
B. A notice of assessment from the CRA
C. A financial statement prepared in accordance with generally accepted accounting principles
D. A letter from the primary supplier confirming credit limits
Correct Answer: C [CORRECT]
Rationale: Registrants must submit annual financial statements to demonstrate they continue
to meet the working capital and financial security requirements outlined in the Regulation.
Q9: What is the primary role of the TICO Board of Directors?
A. To adjudicate individual consumer complaints
B. To manage the day-to-day operations of travel agencies
, C. To provide governance and strategic direction for TICO
D. To set the price of travel services in Ontario
Correct Answer: C [CORRECT]
Rationale: The Board of Directors provides governance, oversight, and strategic direction for
the Council. They do not handle daily operations or individual complaint adjudication, which
is handled by staff and the Registrar.
Q10: An Ontario-based travel agent wishes to sell travel services to customers in British
Columbia. Do they need to register with TICO?
A. No, because the customer is not in Ontario
B. Yes, because the agent is located in Ontario and carrying on business here
C. Only if the transaction exceeds $5,000
D. No, inter-provincial sales are federally regulated only
Correct Answer: B [CORRECT]
Rationale: The Travel Industry Act, 2002 applies to anyone carrying on business as a travel
agent or wholesaler in Ontario. Location of the consumer does not exempt the Ontario-based
seller from registration.
Q11: What is the consequence of operating as a travel agent without being registered with
TICO?
A. A warning letter is issued for the first offense
B. The individual may face prosecution, fines, and/or imprisonment
C. The individual is barred from obtaining insurance
D. The individual must pay double the registration fee retroactively
Correct Answer: B [CORRECT]
Rationale: Operating without registration is an offense under the Travel Industry Act, 2002.
Conviction can result in significant fines for individuals and corporations, and potentially
imprisonment.
Q12: Which of the following best describes a "Travel Wholesaler" under the Act?
A. A person who sells travel services directly to the public
