The Association of Canadian Travel Agencies and Travel Advisors (ACTA) says it is “disappointed” with the Travel Industry Council of Ontario’s (TICO) recent announcement on a new fee structure for registrants, which comes with a “significant increase in fees.”
The revised fees include a minimum of $750 for renewal for registrants with sales under $10 million, while Compensation Fund payments will drop to $0.05/$1,000 from $0.25/$1,000 of Ontario Gross Sales.
Ontario’s travel regulator says the new funding model represents a 3.4% aggregate increase in total fees paid by registrants, based on sales from 2019/2020.
“We have consistently advocated for a shift to a consumer-pay model for the Compensation Fund, seeking a minimized fee structure for our members,” said Wendy Paradis, ACTA President.
Wendy Paradis, ACTA (Photo Credit: PHOTO: courtoisie de l'ACTA)
“This decision to increase fees while maintaining a registrant-paid model for the Compensation Fund is a significant setback for travel agencies and advisors. These changes impose an undue financial burden on our industry, particularly during a period of recovery and rebuilding.”
ACTA says it has persistently advocated with the Government of Ontario and TICO, voicing the concerns of its members about the TICO funding formula.
“Unfortunately, despite lengthy consultations with the Ontario government and TICO, our concerns have not been addressed, leading to this unfavourable outcome,” said Paradis.
“We have strongly advocated for key items, including pausing any changes proposed by TICO until a thorough review of the Travel Industry Act is completed, as recommended by the Auditor General’s report.”
ACTA has advocated for simplifying the Travel Industry Act, focusing on core priorities that protect consumer funds and reduce burdens on Ontario registrants, particularly small travel businesses.
The advisor organization says there is a need to re-evaluate prior studies, assess the provincial government’s role in federally regulated sectors like airlines, expedite consultations, and rethink TICO’s core mandate and value to consumers.
“ACTA’s stance has been clear: if the current, costly compensation fund system, which provides minimal benefit to consumers, is to continue, significant changes are necessary,” said Paradis. “Yet, despite advocating for a consumer “insurance” contribution model for enhanced protection, ACTA has been met with resistance to this change.”
ACTA states that if substantial improvements to the Compensation Fund model are not forthcoming, it will urge the government to consider eliminating the fund or advocating for a national program funded by travel consumers, the beneficiaries of the fund.
“The fee changes are likely to have detrimental effects on the travel industry. It places ACTA members at a competitive disadvantage in what is becoming a global marketplace -- and adds an additional layer of financial strain,” said Paradis.
“We are committed to engaging further with government officials and TICO to revisit and reconsider this decision, advocating for a more equitable approach,” Paradis concluded.
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