TICO EXAM REVIEW 2024-2025 QUESTIONS WITH 100% VERIFIED

ANSWERS

Who is TICO funded by? ANS-Ontario Registrants

TICO works with consumers to ensure that..... ANS-They are aware of their rights under
the travel industry act 2002

what 3 groups work with TICO to carry out its mandate? ANS-The travel industry, the
Provincial goverment, consumers

describe the Ontario Travel industry act, 2002 ANS-they set down the rules under which
travel retainers and travel wholesalers must operate in ontario

who conducts the registration and inspection of travel businesses in ontario? ANS-TICO

what does TICO stand for? ANS-Travel Industry Council of Ontario

what does the travel industry act of ontario define a travel agent as? ANS-a person who
sells travel services provided by another person

who does the compensation fund apply to? ANS-any one that purchases from a
registered agency in ontario

would the compensation fund apply to a manitoba conumer who purchases from a local
agency that has a branch agency in Ontario ANS-no

true or false before counselling or advising a travel agent must inform the client of any
counselling fee charged ANS-true
does the travel agent have to show a picture of the travel services being sold? ANS-no

what does the term 'Representation' in the 2002 travel industry act refer to? ANS-
presentations of any type, including oral, print and electronic

in cases where the Registrar issues a false advertising order because a registrant's
advertising violates the Act, when does the order take effect? ANS-immediately

true or false according to the travel industry act 2002 the travel agent does not have to
inform a client before booking that some days can be cloudy even in a sun destination?
ANS-true

true or false according to the travel industry act 2002 a travel agent does not have to
inform a client before booking that a counselling fee is applied by the agent ANS-false

why would TICO not accept 'From $999' as an acceptable newspaper ad? ANS-because it
is open ended and it also does not state if taxes are included

an agency is promoting a resort on its website. they included a drawing of the resort.
would TICO approve of this? ANS-yes, as long as the drawing is accurate and the
representation states that the drawing is not a photograph

what is something that the ontario regulation 26/05 demands that is included in a
newspaper ad that has prices listed? ANS-all taxes except PST and HST

what is the maximum % that the price can increase when paid in full ANS-7%
joe buys travel services from an agency. joe may be entitles to a full refund or a
comparible alternative travel services if the flight is delayed by.... ANS-25 hours if it not
because of weather

whose responsibility is it to check that a client's accommodation is going to be in the

same condition as when it was described to the client at the time of purchase? ANS-the
registrant

true or false a travel agent must identify what charges are non refundable ANS-true

can a travel agent tell part of the group about the travel documents needed for their
trip? ANS-they have to tell each client

a client buys a vacation from a travel agency on may 1st. they are leaving on 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? ANS-june 1st

when do travel agents need payment by? ANS-21 days before

how many days before departure does the travel agent have to produce the ticketing?
ANS-14 days before

T or F when a client is offered the choice of a refund or comparable alternative travel

services, the registrant is not required to write to the Travel Industry Compensation
Fund stating that no claim is pending ANS-true

T or F when a client is offered the choice of a refund or comparable alternative travel

services, the registrant is not required to note the method of communication used ANS-
false
T or F when in a destination you can receive alternative transportation and money from
the fund ANS-false

which of the following is not part of the travel industy compensation fund:
- contributions from registrants
- contributions from consumers
- recoveries of money paid from the compensation fund
- income earned on the money in the compensation fund ANS-contributions from
consumers

could a client claim taxes paid on the travel services on the claim form for the travel
industry compensation fund? ANS-yes

could a client claim insurance premiums on the claim form for the travel industry
compensation fund? ANS-no

if a consumer makes a claim against the Travel Compensation Fund and the TICO Board
accepts the claim, what is the maximum amount payable? ANS-$5,000 per person

which item would take precedence over other claims on the Travel Industry
Compensation fund? and why? ANS-trip cancellation - people stuck in the destination
with no way of getting home

joe purchased a package from ABC agency that includes a return economy flight. The
airline and supplier becomes bankrupt during Joe's trip and he is standed at the
desitnation. he buys a business class flight home and then makes a claim to the
compensation fund. Will his claim for reimbursement of the flight be sucessful? ANS-no,
because the Fund will cover only the value of the unused portion of the original ticket.
not the upgrade to business class
a couple paid their travel agency and then they forwarded the funds to the travel
wholesaler. when the travel wholesaler declared bankruptcy and the trip was ruined,
they made a claim to the Travel Industry Compensation Fund for thr $75.00 service fee
he charged as a destination specialist. will tico accept the claim? ANS-they will refuse
the claim because the compensation fund does not cover service fees

does the compensation fund cover service fees? ANS-no

for a customer that never started their trip how long do they have to make a claim on
the Compensation Fund? ANS-within 6 months of the registrant's or end supplier's
failure

for a customer that did start their trip how long do they have to make a claim on the
compensation fund? ANS-within 3 months of the registrant's or end supplier's failure

according to the travel industry act of ontario, a travel agent who sells travel services to
a customer must do what? ANS-- Advise the customer of trip cancellation insurance and
out of province health insurance
- disclose price, conditions, dates
- tell them about proper documentation

what mechanisims does the travel industry act of ontario use to protect the customer?
ANS-registration, compensation fund, trust accounts

t or f the only 3 provinces in canada that have travel industry acts are Ontario, Quebec,
Alberta ANS-false
t or f prices in brochures of travel agencies and travel wholesalers registered in the
province of ontario must be in the currency of the country that the client is traveling to
ANS-false

t or f by July 1, 2009, all people involved in the sale of travel must have obtained the
required certification from CITC to legally act as travel counsellors or travel managers
ANS-True

t or f the maximum payout from the compensation fund for any one financial failure is
$5,000,000 ANS-True

T or F travel agencies are not aloud to incluse home phone numbers in any
advertisements ANS-True

T or F travel agencies contribute $1.00 to the compensation fund for each $1000.00 of
gross sales. ANS-False

T or F because end suppliers do not contribute to the compensation fund, the

compensation fund will not reimburse costomers for financial losses due to the
bankruptcy of an end supplier ( with the exemption of an airline or a cruise line) ANS-
True

T or F according to the travel industry act of ontario representations are a presentation

of fact made to a consumer in person, in print or electronically ANS-True

T or F A company's email address can not be concered as the company's address in

advertisements ANS-True

TICO's mission is to promote a fair and informed marketplace where consumers can be
confident in their travel purchases ANS-True
in order to make changes to the travel industry act of ontario revisions would have to be
passes by the Ontario Legislature, whereas the Regulations can be changes on the
authority of the Minister of Goverment Services or the Lieutenant Governor in Council
ANS-True

your clients line in Ottawa and book with your travel agency in Ottawa. you in turn book
the clients' vacation with a wholesaler whoes head office is in New Yok City. this
wholesaler has an office in Montreal. 2 weeks prior to departure the wholesaler goes
bankrupt. does your client lose their money? ANS-yes because the wholesaler is not
registered in ontario

your clients live in Halifax and book with your travel agency in Ottawa. You in turn book
the clients' vacation with a wholesaler in Toronto. 2 weeks prior to departure, the
wholesaler goes bankrupt. Does your client lose their money? ANS-no they would not
lose their money bacause they booked with a wholesaler in Ontario

your clients live in Gatineau and book with your travel agency in Ottawa. you in turn
book the clients' vacation with a wholesaler whoes offices are in Vancouver and
Toronto. 2 weeks prior to departure, the wholesaler goes bankrupt. does your client
lose their money? ANS-no they would not lose their money because the agency and
wholesaler are both located in ontario

your clients live in ottawa and book with a travel agency in Ottawa. You in turn book the
clients' cruise directly with the cruise line in Miami. 2 weeks before the departure, the
cruise line goes bankrupt. does your client lose their money? ANS-no they would not
lose their money because airlines and cruise lines are the exception to the
compensation fund ontario rule

your clients live in ottawa and book with your teavel agency in Ottawa. you in turn book
the clients in a hotel in Mississauga, ten minutes from Toronto airport. 2 weeks prior to
departure, the hotel closes its doors as a result of financial failure. does your client lose
their money? ANS-yes because it is just a hotel booking it is nat appart of a ITC.
independent hotels in canada are not apart of the compensation fund. g

what are some things that a travel agent must disclose before entering an agreement or
taking payment information from a client? ANS-- have to disclose if they think there are
conditions that may affect the clients decision
- the travel agent has disclose the total price and travel dates. they must also describe
the travel services
- provide details of cancelation and refund policies
- diclose terms and conditions
- inform customers of trip cancelation insurance
- a travel agent has to make a note of weather or not they offered travel insurance on
the invoice
- if a client is traveing outside of canada they have to disclose travel documents that are
required
- entry to the country might be refused even if everything is complete
- travel agents must explain the accommodations and city differences from canada
- they must answer any questions
- change of service fees

what are some examples of typical kinds of information that consumers should be
advised of reguarding documentation? ANS-- whether a passport is required and
weather the passport must be valid for a certain amount of time after the departure
- if you need a visa
-whether an affidavit or letter from the second parent is needed if only one parent is
traveling
who is on the board of directors? ANS-it is made up of 15 members: 10 representatives
from the reavel industry and 5 individuals appointed by the ministry to represent
consumers, business, and goverment

what are TICO's goals? ANS-- leader in developing customer protection

- a model for a progressive fair, and firm administrator of industry regulations
- developer, promoter, and advocate of good business ethics

What are TICO's Values? ANS-- Ethical

- firm but fair
- responsive and open
- respecting the business confidentiality of registrants
- improving the industry and industry practices

what are TICO's responsibilities? ANS-- administer the travel industry act
- make sure the registrants follow the rules

what are the 3 groups that help TICO carry out their mandate? ANS-Consumers, the
travel industry, and goverment

what are TICO's responsibilities in terms of registration? ANS-They have to process new
applications and make sure standard are met.
Processing registration renewals
responding to registrant and customer inquiries

what are TICO's responsibilities in terms of customer protection? ANS-administering the

travel industy compensation fund
cunducting inspections at agencies
maintaining compliance with the act and regulation
improving cusumer education

what are TICO's responsibilities in terms of Consumer awareness? ANS-working to

increase consumer awareness
boosting consumer confidence in travel

who is TICO funded by? ANS-the canadian travel industry

TICO works with consumers to ensure that... ANS-they are aware of their rights under
the travel industry act

TICO enhances industry professionalism in many ways including... ANS-

what are some common travel problems that can occur? ANS-- physical injusry
- delays and cancellations
- overbooking
-discrimination
- lost, damages, or stolen baggage
- misrepresenatation concerning transportation, accommodations, tours and other
travel services

what are the 3 provinces what have a version of the travel industry act? ANS-Ontario,
Quebec, British Columbia

what are the 6 mechanisms to protect consumers? ANS-- a registration system

- posting of security
- a compensation fund
- trust accounting
- truth in advertizing
- supervision/educational requirements

what is the registration system? ANS-every business has to be registered with the
province. companies must meet certain criteria to get a licence

what is the compensation fund? ANS-a fund with money for consumers if companies go
bankrupt

what is trust accounting ANS-money collected from consumers has to be placed in a

trust account and used to pay for their travel purchases. a trust account is different from
their general account.

what supervision and educational requirements does TICO offer? ANS-ageny personnel
are required to have a certain level of expertise and experience.

The Travel Industry Act defines a travel agent as.... ANS-a person who sells travel
services provided by another person

what is a representation? ANS-a presentation of fact made in person, electronically, or

in print in order to introduce someone to act or enter into a contract.

what are some examples of representations? ANS-oral presentations, advertizements,

brochures, and websites
what has to be in a writen representation? ANS-- registrant's business name, address,
registration number. residential phone numbers should not be included
- deposit and final payment requirements
- cancellation terms and charges
- cancelation insurrence and health insurance avaliability
- refund polocy
- accommodation and transportation details
- period which the represenation applies

what is the difference between an oral and writen representation? ANS-they do not
have to include the registrant's business name, address, and registration number

what do you not need to include on a time and space limitation? ANS-the business
name, address, and registration number

what has to be included on a time and space limitation? ANS-- registrants business
name, addredd, and TICO registration number
- price
- where to get more information

what are the 3 ways people can display prices? ANS-- as a total price
- as a base price plus a total of all fees
- as a base price plus a list of all fees

what has to be included the price in representations ANS-customers should know

exactly what their travel services would cost.
they must include any conditions that affect or limit the price offered, reguardless of the
time or space limitations
what is not aloud in terms of price in representations? ANS-- it is not acceptable to show
a price with no upper limit
- it is not needed to hadd pst, gst, and hst
- it is not aloud to be listed in another currency

what do you have to include on a picture ANS-you have to state that its not a
photograph?

before may 1, 2013 how much did travel agents and wholesalers have to pay into the
compensation fund? ANS-$0.05 per $1000 in sales

on or after May 1, 2013 how much did travel agents and wholesalers have to pay into
the compensation fund? ANS-$0.15 per $1000 in sales

as of july 1, 2016 how much did travel agents and wholesalers have to pay into the
compensation fund? ANS-$0.20 per $1000 in sales

as of april 1, 2017 how much did travel agents and wholesalers have to pay into the
compensation fund ANS-$0.25 per $1000 in sales

what happens if the registrar conciders your advertizing violates the act? ANS-It will be
immediately stopped. retracted and publish a correction.

what happens if an advertizement violates and the registrant does not appeal? ANS-all
advertizing that they produce for a maximum of 90 days will have to be approved before
publication
in cases where the registrar issues a false advertizing order because a registrant's
advertizing violates the act, when does the order take effect? ANS-Immediately

what are 4 things that have to be included on an invoice? ANS-- Agency's and
counsellor's identification
- customer identification
- travel service details
- payment details

what are some specific thing that you have to include on an invoice for travel service
details? ANS-- date of booking
- description of travel services
- names of persons
- weather you offered insurance and if they bought it
- advice about travel documentation needed
- how living standards might be different

what are some payment details that have to be onthe invoice? ANS-- date of first
payment
- amount of the payment
- balance owing
- any fees and other charges and if they are refundable or not
- total price of travel services
- if price increases are aloud

when must the travel agent issue the statement, invoice or receipt? ANS-promptly
when do you have to inform a customer about a change for their travel services? ANS-
promptly

what are some examples of changes that you should inform your clients of? ANS--
different ship
- the accommodation or the sttandard of accommodation change
- if the price increases
-if the documentation for the trip has changes

when you inform your client of changes what else must you do? ANS-you have to put in
the file what information was communicated, the dat, the method of communication,
and the choice the customer made

how many days before the trip must the travel agent receive the tickets for the
customers? ANS-14 days before departure

joe smith purchases travel services from ABC agency, which includes a schedueled flight.
joe may be intitled to a full immediate refund or comparable alternative travel services
if the scheduled flight is delayed by....... ANS-25 hours or more

whose responsibility is it to check that a client's accommodation is going to be in the

same condition as when it was described tot he client at the time of purchase? ANS-
registrant

what is the compensation fund made of? ANS-- contibutions made by registrants
- any money borrowed
- recoveries of money
- income earned in the fund
what are the 2 types of claims that can be made on the compensation fund? ANS-a
standard claim and a trip completion expense claim