Agency Operations and Legalities week 3 PDF

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Week 3 class 2 Lecture notes...

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Agency Operations and Legalities Week 3 - TICO

Quiz #1 review Travel Industry Act §

Registration System

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Posting of security

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Compensation Fund

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Truth in Advertising

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Trust Accounting

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Supervision/Educational Requirements

TICO’s Responsibilities: § Registrations § Consumer Protection § Complaint Resolution § Government Liaison § Consumer Awareness § Industry Awareness § Consumer Compensation § Ethical Conduct

§ Legislative and Regulatory Amendments

Definitions: § Travel Agent: “a person who sells, to consumers, travel services provided by another person.”

§ Travel Wholesaler: “a person who acquires rights to travel service 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.”

§ Travel service: “transportation, sleeping accommodation or other service for the use of a traveler, tourist or sightseer.”

Registration Requirements: § Completed Registration form and fee of $3000.00 § Security deposit of $10,000 § A balance sheet showing a minimum of $5,000.00 in working capital § Proof of trust accounting § Must operate from a permanent place of business in Ontario and abide by Municipality laws

§ Qualified Supervisor or Manager (meeting TICO education standards) § Criminal Background Check and credit check § (branch offices also need to pay fee) TICO Funding

u TICO is financed by retail agencies and travel wholesalers

Registration Renewals § Registration Renewals are every year § Based on gross sales in Ontario during the last fiscal year § Anywhere from $300 to $1800 § Additional fees for branch offices Selling Travel In Ontario § The Travel Industry Act requires registration of all Travel Agencies and Travel Wholesalers with a presence in Ontario

§ The Act sets out clear rules that must be met when advertising travel services and making a sale. The reason is to ensure that consumers are given all the facts they need to make an informed purchase

Definitions § Full Disclosure: Giving complete information about any matter that the other party should know in deciding to buy. “Telling the whole truth”

§ Representation: Is a presentation of fact made in person, electronically or in print in order to induce someone to act or enter into a contract

§ oral presentations, advertisements, brochures and websites

Travel Retailers and Wholesalers Responsibilities § Full Disclosure

§ Representation: Oral and Written § Advertising/Printed Materials/Brochures § Invoices/Receipts § Notification of changes to Travel Arrangements § Trust Accounting

Guidelines for Advertising/Price § Price must reflect the total amount to be paid § As a total price including all fees and service charges § As a base price plus a total for all fees § As a base price plus a list of fees § Ad must include a description of the travel services being offered (AIR ONLY) and a statement about further information

§ Price has to be applicable at the time, must be in CANADIAN $ unless clearly indicated

§ Disclosure of air carriers, hotels and wholesalers must be given to all consumers

Guidelines for Advertising/Price § Must include agency address § Must specify roundtrip or one-way § Must include TICO registration number

§ Must include description of travel services (airline, tour operator, etc.) § Must include reference to more information (website, travel agent, brochure etc.)

Guidelines for Advertising/Price

§ The only items that don’t need to be included are provincial sales tax (PST), goods and services tax (GST), and harmonized sales tax (HST)

Full Disclosure §

Agent must disclose

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Total price

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Cancellation and refund policies

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Terms and conditions of the sale

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Inform about insurance available (medical, cancellation)

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Travel documentation (passports, visas)

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Standard of accommodations and services

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Must inform if charging a consultation fee

Registrants Obligations:...