TICO Module 2 Questions and Answers 100% Pass

TICO Module 2 Questions and Answers 100% Pass Why is travel legislation needed? A number of common travel problems can result from the actions or arrangements that travel suppliers make. Travel agents - even if they do not cause the above problems - may have to deal with the fallout from them. An Act: describes a particular set of rules. A regulation: in support of an Act describes how the rules will be enforced or applied. Does TICO register individuals? No, TICO does not. What are travel agencies 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. The introduction of regularly scheduled jet airline service in the late 1950s: marked the start of today's tourism industry. What brought larger and faster planes in the 1960s? Technological developments Who were the first to realize the potential of "bulk buying" for the travel industry? the Europeans What happened by the early 1970s? Charters and packaged holidays were well established in Canada and modern mass tourism had begun. When did unregulated growth in the industry become a crisis? What happened? 1973 and 1974; companies collapsed, consumers were having issues receiving what they were promised, no records of booking, travel agents taking their money and disappearing, etc. When was Quebec's Travel Agents Act enacted? 1974 When was the Ontario Travel Industry Act enacted? 1974 When was British Colombia's Travel Agents Registration Act enacted? 1977 What are the six mechanisms that are used to protect consumers? A registration system, a posting of security, a compensation fund, trust accounting, truth in advertising, and supervision/educational requirements. 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 license from the province concerned. 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 registrant's compliance. Compensation fund Each of the three provinces has a compensation fund. The funding, administration and coverage of the compensation fund varies from province to province. Trust accounting The monies collected from consumers must be placed in a trust account and used to pay for the consumer's 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. Truth in advertising All three provinces forbid a registrant from making false, misleading, or deceptive statements in any advertisement relating to travel services. 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 replaced the vague "sufficient experience" requirement that prevailed in previous versions of the legislation. Supervisor/managers must also show competence by passing an exam related to their duties and responsibilities under the Act and Regulation. If a consumer purchases travel from an Ontario agency while not residing in Ontario, what occurs? The consumer is covered by the Ontario Compensation Fund. When will the consumer not be protected by the Compensation Fund? If a customer purchases travel services from a registered Ontario travel agency, which include services provided by an out-of-province wholesaler. What happens in provinces where there is no travel legislation? 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. TIA 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 Registrar's opinion, have travel expertise and experience. 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. Travel services According to the Travel Industry Act, 2002, means transportation or sleeping accommodation for the use of a traveller, tourist or sightseer or other services combined with that transportation or sleeping accommodation. 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. Registrant A travel agent or a travel whole-saler who is registered as a travel agent, travel wholesaler, or both under the Travel Industry Act, 2002. 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. Travel agent A person who sells, to consumers, travel services provided by another person. 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. 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. 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. 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 Is the person appointed by the TICO Board of Directors to perform specific statutory functions. 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 An independent body appointed by the Ontario government. It hears appeals of proposals to suspend, revoke, or refuse to grant or renew a travel business's registration. It also hears appeals of decisions to deny claims against the Compensation Fund. Registrar The TICO Board of Directors appoints this to carry out its administrative and regulatory functions. Powers and functions are described in the Act. Essentially, 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, they cannot be the Director. The Board of Directors may appoint up to a maximum of two Deputies. The Deputy performs their duties in their absence.