Chapter 5

Registrant Obligations–After the Sale and Before Customer Travels

Summary

The Travel Industry Act, 2002 and Regulation require registrants to meet several obligations in following
through with a customer between the time they purchase a travel service and the time they travel.
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.

1. Invoicing Requirements

1.1 Travel Retailer Invoicing Requirements

 Section 38(1) of the Regulation: after the sale, the travel agency/website must issue a cx
statement, invoice or receipt by law. Can be more than 1 page as long as the first page shows
that more pages follow. Note: If the document its by hand: must be pre-numbered; If
document is prepared on a computer, it must be assigned a unique identifier or locator
number.

 Requirements for statement, invoice, or receipt after a sale.

 Details to include:

 Travel agency/website and travel counsellors’ identification: name under travel retailer
carries on business, t.r. business address, phone #, registration #; Contact info such as t.r.
fax #, and email address; the name of the travel counsellor who made the booking and
accepted the first payment.

 Customer identification: Name and address who purchased the travel services.The
name if known, of each person on whose behalf the payment is made.( Those whose
travelling.)

 Travel service details: Date of booking, fair and accurate description of the travel service
contracted for, including: destination, departure date, and names of the persons who
will provide the travel services.

If the t.r. sale insurance: A statement if the cx has purchased, trip cancellation insurance
and if applicable, out of province health insurance.

If the t.r. not sell insurance: A statement that the cx was advised of the availability of
trip cancellation insurance and, if applicable, out of province health insurance.

 The advice given to cx regarding “typical information”and travel documents like passports, visas
for each person who purchase the travel.
 A statement that entry to a country may be refused even if they have the correct information
and travel documents completed.
  A statement that living standards and practices at destination may differ from those in Canada,
and those standards and conditions concerning the provision of utilities, services or
accommodation may differ.

 Payment details: Date of first payment, amount of the payment (if full or partial
payment); the amount of any balance owing, if known and the date when is to be paid;
any fees, levies, service charges, surcharges, taxes, and other charges, and if the
amounts are refundable or non-refundable; the total price of service purchased; if the
contract permits increases: if so, the following statements must be added: no price
increases are permitted after the cx paid in full and if the total price of the service is
increased and the cumulative increase is more than 7%, then the cx has the right to
cancel the contract and obtain full refund. Note: this does not apply if the increase is
the result of an increase in PST, GST AND HST.

1.2 Travel Wholesaler Invoicing Requirements

 Section 38(2) of the Regulation: for any travel service that a travel retailer sells on behalf of a
travel wholesaler, the travel wholesaler must issue the t.r. a statement, invoice or receipt.
Note: If the document its by hand: must be pre-numbered; If document is prepared on a
computer, it must be assigned a unique identifier or locator number.

 Requirements for invoicing by travel wholesaler to travel retailer:

Details to include: Name and address of the travel retailer through whom the travel wholesaler is selling
the service.; Terms of payment and amount paid; Name of each Customer for the service purchased and
destination details of each customer and other person and if relevant, the departure date. (flyer with:
customer information, details of accommodation, business information, tico req number, email.,
documentation for each person, payment details, plus next page).
2. Disclosure of Changes to the Travel Services Purchased

 Section 37 of the Regulation: When to Inform a customer of a change: Requirement to inform

customers promptly of any changes to representations made at the time of booking that would
have affected the customer’s decision to purchase; It applies to representations such as
advertisements and websites. For example, Cx purchased an Alaskan Cruise, the itinerary
includes a coach tour to the Glacier Bay National Park. Before departure the parks were
announced as closed during the cx travel dates. The cx must be informed that the tour to the
park is no longer available. This could affect the cx's decision to travel.

3. Notice And Offer Of Refund Or Replacement

 Section 40 of the Regulation: If registrant is aware of situation or events occurred they have the
Obligation to inform customers of specific situations and offer choice of full refund immediately
or alternative acceptable to the customer.

 For example, cruise ship has been substituted; accommodation has been changed; contract
permits price increase of more than 7% of the total price excluding increase from PST, GST, HST;
the contract does not permit a price increase and the total price of the travel services is increase
whatever the amount or reason; the documents need change bc of the transportation routing
change and there is no time before departure date;
  The schedule departure of any transportation is delayed or advanced by 24 hours or more
unless the change is the result of: mechanical problems, safety considerations, weather
conditions, a strike or lockout.

 Registrants must create a file: Documenting their actions in detail and writing: the information
communicated to the cx, the date on which the information was comunicated to the customer,
the communication method used, choice the cx made.

4. Verifying Condition Of Accommodation: Section 39 of the Regulation: Requirement to ensure

accommodation is in the same condition as described or presented before purchase and payed for.

Definitions: Accommodation: Ontario reg. 26/05: “Any room that is to be used for lodging by the cx or
other person for whom the travel service was purchased and includes other facilities and services
related to the room that is for the use of the cx or other person, does not include meals.”

Registrants obligations if accommodation is not the same: The cx travel retailer must be notified and
offered full refund of all charges; if accommodation is part of a package, the refund or alternative applies
to the whole package; If the accommodation is not part of a package, the refund or alternative applies to
the accommodation only.

For other changes, resgistrants must document all refund offers or alternative services: In a digital log
or record that includes: information communicated to the cx; date; communication method used; choice
the customer made.

5. Requirement To Provide And Verify Travel Documents: Section 41: If a traveler retariler sells travel
services and pays the travel wholesaler 21 days or more before the day of departure, the travel
wholesaler must forward all tickets, vouchers, the itinerary, and other documents to the travel retailer
at least 14 days before the customers departure date. Section 42 of the Regulation: After receiving
these documents from the travel supplier or wholesaler, the travel counsellor 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.

6. Travel Wholesaler’s Requirement To Provide Travel Services: Section 43 of the Regulation:

Prohibition on travel wholesalers refusing to provide services already purchased. If: the cx has paid a
travel agency/website for the travel services; and the travel wholesaler has provided the tickets to the
traveler retailer for distribution to the customer. It applies even if the travel retailer has not yet paid the
travel wholesaler for the travel services. The wholesaler assumes all risks if it extends credit to the
retailer.

7. Restrictions, Resale Of Travel Services: Section 45 of the Regulation: Requirement for written
agreements with suppliers for resale of travel services from wholesalers if reselling.

8. Duty of Registrants Who Resell Travel Services: Section 46 of the Regulation: Obligations of a
registrant, if a supplier fails to provide paid-for services by a cx. The registrant who acquired the rights
for release must: reimburse the cx; provide alternative travel services for cx or provide cx voucher,
certificate, coupon or similar document acceptable to the cx, for future redemption towards travel
services=a future travel credit. If the registrant sold a package w/o rights for resale this provision section
46 does not apply.
9. Invoicing Checklist: Section 47 of the Regulation: Registrants cannot sell air transportation unless
the air carrier is properly licensed with the Canadian Transportation Agency, approvals filed, and
complied with the regulatory requirements in all relevant jurisdictions. The air carrier must met all
safety req. to be licensed by the federal government.

 Detailed checklist for invoices provided by travel agencies/websites to consumers.

In summary, registrants must:

 Name and address of cx who purchased the travel services.

 Name of each person on whose behalf the payment os made.

 Date of booking

 Date of first payment.

 Amount of payment-full or partial

 Amount of balance owing

 Due date of balance owing must be paid.

 Any fees, levies, service charges, surcharges, taxes, or other charges and if refundable or not.

 Total price of travel services

 Name under which the travel retailer carrioes on business.

 Travel retailers address, phone, relevant contact infor like email or fax number.

 TICO reg. number

 Fair and accurate description of the travel services, includes: destination, departure date and the
name of the persons who will provide the travel services.

 Insurance was purchased. If not be advised to the cx.

 Indication if the contract permits icreases.

 Statements: no price increase permitted after cx paid in full. If contract permits increases more
than 7% (w/o taxes gst, psh, hst)the cx has the right to cancel the contrct and obtain a full
refund.

 A description of typical information and travel documents needed. Advise them that they may
be refused by other countries even if they have all docmuntation complete.

 The living standards may change as of Canadian standars.

 The name of the travel counsellor who made the booking and accepted the first payment

 Know what travel services they sold to customers.

QUIZ QUESTIONS:

1. The statement included on the customer's invoice says that price increases are
permitted. The customer has to pay more if the price is increased by: 5% before the
customer has paid in full.
2. J.S. purchased 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: 25 hours because of a severe snowstorm.
3. Whose responsibility is it ti 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 the purchase:
Registrant.
4. A travel retailer has acquire the rights to certain travel services for resale. A cx purchases
travel services from the travel retailer. The supplier of the travel services fails to provide
the services. Which if the following is NOT one of the options that the travel retailer
must provide in this situation: Reimburse the cx the amount paid and provide a voucher
for a free comparable travel service.
5. Which of the following is not required on a travel retailer's invoice to a cx: The name of
the owner of the travel retailer.
6. When a cx is booking travel outside of Canada, a travel retailer invoice to a cx must
indicate the travel documents that will be needed for which of the following: Each
person for whom travel services were purchased.
7. Which of the following invoice examples do not comply with ticos requirements: All of
the above: missing tico information, documentation is generic, does not specify the cx
choice of cacncellation and medical insurance.