In September 2022, TICO launched the largest review of its funding framework and fee structure since its inception. The review includes TICO's current funding framework, as well as a full review of the Compensation Fund and associated contributions.
The review is being led by Optimus SBR, an Ontario-based consulting firm, and TICO says it is committed to considering all available options for a modernized funding framework that meets the needs of consumer protection today and into the future.
Review Update
Since September, the focus of the review has been to examine the current funding framework and Compensation Fund, including feedback from a broad range of stakeholders.
Activities have included:
-- Stakeholder engagement to obtain input on the strengths, challenges, gaps and constraints of the current funding framework and the Compensation Fund. Feedback was obtained via:
-- Sessions with retailers with various business models, tour operators, host agencies, independent travel advisors, consolidators;
-- Sessions with travel associations - Association of Canadian Travel Agencies, Canadian Association of Tour Operators, Ontario Motor Coach Association;
-- Online feedback survey that was open to all registrants;
-- Third-party survey of 850 Ontario consumers; and Sessions with TICO's leadership, Board of Directors and Consumer & Industry Advisory Committee (CIAC) members.
-- A comparator scan to understand practices and approaches taken by comparable travel regulatory bodies, including those in Quebec, British Columbia, California, the UK and Australia.
What's next?
TICO says the focus of the review has now turned from assessing the current framework to forming recommendations for a future approach for the funding framework and Compensation Fund. The regulator says it is "open to all options, balancing industry input with regulatory responsibilities and consumer protection."
Any recommended future funding framework will be presented to all registrants and stakeholders for consultation. This consultation is expected to take place later this year.
Project Timelines
Spring 2023 - Consultant to present recommendations to TICO's management and Board of Directors
Summer/Fall 2023 - TICO to conduct comprehensive consultation/fee review with registrants and stakeholders on new funding framework
Fall 2023 - Final recommendations provided to the Minister of Public and Business Service Delivery
Late Fall 2023 - Announce next steps regarding the framework and timing/transition for a new, modernized funding framework
For more background about the review and process, click here.
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