TICO Travel Industry Act, 2002 2

Question 1

Under the Travel Industry Act, 2002, which of the following businesses is required to be registered as a travel wholesaler?

Accepted Answer

A company that creates and sells vacation packages in Ontario to retail travel agents for resale to consumers

Answer

A hotel chain that sells rooms directly to consumers via its own website

Answer

An airline that sells flights directly to the public through airport ticket counters

Answer

A car rental company that offers vehicles to business travellers in Ontario

Question 2

The Travel Industry Act, 2002 defines 'travel services' as including which of the following?

Accepted Answer

Passenger transportation, accommodation, vehicle rentals, and tours sold as part of a travel-related transaction

Answer

Only international airline tickets sold by IATA-accredited agencies

Answer

Only cruise packages sold in conjunction with shore excursions

Answer

Only accommodation sold with a minimum 7-night stay

Question 3

Under the Travel Industry Act, 2002, what is the key element of the 'travel agent' definition that triggers the registration requirement?

Accepted Answer

Selling travel services 'to the public' for compensation, as opposed to personal arrangements or government work

Answer

Earning more than $100,000 in annual travel sales in Ontario

Answer

Having a physical office with at least three employees in Ontario

Answer

Selling international travel only, not domestic Canadian travel

Question 4

The Travel Industry Act, 2002 grants the TICO Registrar the power to appoint a receiver-manager for a travel agency under which circumstances?

Accepted Answer

When the registrant is in financial difficulty and there is a risk that consumer funds are at risk

Answer

Only when more than 100 consumers have filed complaints within a single year

Answer

Only when the registrant has voluntarily consented to the appointment

Answer

Only when a court has first ordered the appointment

Question 5

The Travel Industry Act, 2002 requires registrants to carry Errors and Omissions (E&O) insurance. What is the primary purpose of this insurance?

Accepted Answer

To protect consumers from financial losses arising from mistakes or negligence by the travel agent

Answer

To insure the registrant's own business assets against theft or fire

Answer

To cover the travel agent's liability for injuries sustained by clients during travel

Answer

To pay TICO's administrative costs when the agent makes a filing error

Question 6

Which of the following is an example of 'carrying on business as a travel agent' that triggers the TICO registration requirement?

Accepted Answer

A person who operates a website allowing Ontario consumers to search and book travel packages for a booking fee

Answer

A person who occasionally recommends a hotel to a friend without receiving any payment

Answer

A federal government employee who books international travel for official government delegations

Answer

A hotel concierge who provides brochures about local tours at no charge