Chapter 3: TICO’s Role in the Travel Industry

1. TICO’s Mandate (3.1):

 TICO administers the Travel Industry Act, 2002(the act passed 1974),

delegated by the Ontario government since 1977.

 It regulates and is financed by the retail and wholesale travel community in

Ontario. Non-profit corporation.

 TICO manages the Travel Industry Compensation Fund. Refunds: fully or in

part. Eligible consumers who bought travel services from an Ontario registered

travel agency or website and not received it bc bankrupsy.

 The Act governs travel retailers and wholesalers registered in Ontario.

 End supplier: is a person who operates a travel service for which they have

ownership: ex: airlines, cruises, hotels and car rentals. They don’t need to be

registered under the act.

 The travel industry compensation fund does not cover the non-provision of travel

services by an end supplier except for airlines and cruises, when the service is

purchased from Ontario registered travel retail or website.

2. Relationship with the Provincial Government (2):

 TICO cooperates with the Ministry of Public and Business Service Delivery.

 It holds regular liaison meetings, consults on policy and legal issues, and submits

annual reports and business plans.

3. Organizational Structure and Board Membership:

 CEO manages TICO, reports to a Board of Directors.

 The Board consists of 9 Directors, including 3 from travel industry, 3 consumer

reps., and 3 appointed by the ontario government.

4. 3 board committees: 1. audit, technology and risk management, who oversees financial statements,

internal control structures, compliance, technology and strategic risk management framework and audit

functions. 2. Reg. and business strategy, 3. Governance and nominations: human resources, complaints,

procedures and standars.

5. Ticos 2 councils: industry advisory council and consumer .

 Committees and councils provide oversight and recommendations.

 Main responsibility for tico: to administer the act so registrants follow the rules.

6. Mission, Vision, and Values: The goal is consumer protection.

 Mission: To regulate consumer protection and promote awareness, education, and

compliance in Ontario's travel industry. “A fare, safe and informed marketplace

as it relates to Ontario's industry act, 2002.”

 Vision: To be a progressive regulator advancing consumer protection and ethical

business practices. and a trusted marketplace where consumers are confident purchasing

travel from registered professionals.

 Values: Include efficiency, leadership, accountability, service excellence, teamwork, innovation,

communication, openness.

7. TICO’s Primary Responsibilities (3.5):

 Administering the Travel Industry Act, 2002.

  Ensuring compliance with regulations to protect consumers.

 orking with 3 groups to carry its mandate: consumers, the travel industry, and
W

government .

 Specific responsibilities include registration, consumer protection, complaint

resolution, government liaison, and more.

8. Ticos Delegated Responsibilities: by the ministry:

- Registration: processing new applications and ensure the criteria ans standars met., as

well as renwals and to meet financial viability and compliance, supervisor, manager

qualifications and other issues, and respond to registrant and consumer inquiries.

- Consumer protection: compensation fund, inspections: financial reviews, , registrants

and disclousure to customers such as condition of booking. Keep the act and regulation

by ensuring the registrants correct, deficiencies identified, enforcing act, customers

inquiries and consumer education.

- Complaint resolutions: b etw een co n su m ers an d reg istran ts, co n su m ers an d tico , reg istran ts

and tico, provide options if not resolved.

- Government laison: ministry, reform and public interest.

- Others: consumer awareness through the website efficient and quickly for customers.,

industry awareness: upto date websites, consumer compensation: nabrupcy or

insolvency. , ethical conduct.

- Examples of representations include: oral presentations, advertisements, brochures, and websites.

9. TICOS ADDITIONAL RESPONSABILITIES: Consumer Education and Awareness

(3.6)
  TICO focuses on enhancing consumer awareness of protections and the benefits

of using registered travel agencies.

 Utilizes digital platforms, including its website and social media, to provide

timely information.

10. Registrant Continuing Education and Awareness (3.7):

 TICO provides educational opportunities for registrants through webinars,

seminars, and resources.

 Aims to reinforce understanding of regulatory requirements and ethical conduct.

11. Guide to Finding Information in the Act and Regulation:

 Overview of the Travel Industry Act, 2002, and Ontario Regulation 26/05,

including definitions, registration requirements, business obligations, and more.

12. Sections travel insutry act, 2002: 1-3: defeinitios, terms director and register. 4-7: prohibiotiosn against travel

retailers or wholesalers unless registered to do so. 7.1-15: registration requirements. 16-23.1: complaints,

inspection and discipline. 24-34.5: conduct and offenses. 35-40: confidentiality, fees and certificates. 41: travel

compensation fund. 42-43: minister and governor regulations.

13. Ontario regulation 26\05: 1-2: definitions and exemptions. 3-7: application and renewal procedures. 8-21: business

req. registration. 22-29: registrants financial obligations and record keeping req. 30-35: req. of representations.

36-47: sum. Disclousure req. for registrants. 48: disclousure of information on regsitrants. 49: period pf preapproval

of advertising. 50- 55: compensation fund in general . 56- 71: claims made on the fund. 72- 75: funds administration.

Key Points to Remember:

  TICO's role is to regulate and protect consumers in Ontario's travel industry.

 It collaborates with the government, industry stakeholders, and consumers to fulfill its

mandate.

 TICO's mission is to promote consumer protection, while its vision emphasizes ethical

b u sin ess p ractices.

 Understanding TICO's responsibilities, organizational structure, and the regulatory framework is

cru cial fo r b o th co n su m ers an d in d u stry p ro fessio n als.

Quiz:
MODULE 3

1. TICO IS FUNDED BY: Ontario Registrants.

2. Travel Industry Compensation Fund: refunds fully or in part for eligible customers who bought travel services
from an Ontario registered travel agency or travel website but did not receive them bc of insolvency of a
registrant or an airline or cruise line end supplier. And does not cover non-provision travel by end suppliers
except for airlines and cruises when service is purchased from an Ontario registered travel retailer or
website.
3. What is an end supplier: no need to be registered under the act 2002, bc they don’t act as a travel retailer or
wholesailer. A person that operates a travel service for which they have ownership. Examples: airlines,
cruise hotels and car rental companies.
4. TICO WORKS WITH CONSUMERS TO ENSURE THAT: they are aware of their rights under the travel industry
act, 2002.
5. TICO ENHANCES INDUSTRY PROFESSIONALISM IN MANY WAYS INCLUDING: maintaining an informative and
up to date website.
6. WHY IS CONSUMER PROTECTION LISTED AS ONE OF TICOS MOSt IMPORTANT FUNCTIONS: to create
consumers confidence when purchasing travel services.
7. WHAT IS ONE OF THE SERVICES THAT TICO PERFORMS TO PROTECT CUSTOMERS: Review of financial
statements, to identify which registrants pose a financial risk to consumers and the compensation fund.
8. Who is responsible for the consumer legislation in Ontario, including the Travel Industry Act, 2002: The
provincial ministry of public and business service delivery (the ministry).
9. The ministry requires Tico to submit: an annual report and business plan that includes: ticos financial
position, past year achievements and sets objectives for the upcoming 3 years. Posted on ticos website:
www.tico.ca.