The Travel Industry Council of Ontario (TICO) has released its proposals for a future funding model and launched a consultation period with industry members. To the disappointment of some, the proposals do not include a consumer-pay model for the Ontario Travel Compensation Fund.
“Throughout the past year, we researched other comparable regulators and listened to insights from consumers, industry and stakeholders, and have developed a proposal that reflects what we heard. Our approach carefully balances the needs of consumers and of industry, while also being pragmatic,” said TICO CEO Richard Smart.
“The proposal we’re sharing today reflects TICO’s commitment to develop a fair and modern funding model that reflects cost recovery, delivers value to stakeholders during this time of industry renewal, and continues to keep consumer protection at the forefront.”
The Travel Industry Council of Ontario celebrated 25 years at its virtual AGM led by CEO Richard Smart. (Photo Credit: Travel Industry Council of Ontario)
How Fees Will Be Affected
TICO says that under its new funding proposals, the majority of registrants can expect a modest increase in their total fees payable to TICO.
The regulator says 35% of registrants will see their total fees to TICO decrease (combined registration renewal fees and Compensation Fund payments). However, most will see an increase, with TICO noting that the average aggregate rate of increase in total fees paid to TICO by registrants, based on historical Ontario sales, will be 3.6%.
Five Key Proposals
There are five key proposals.for TICO’s future funding framework, fee structure and Compensation Fund that will be consulted on during the upcoming stakeholder sessions.
Compensation Fund:
1. Decrease Compensation Fund payments to $0.05/$1,000 from $0.25/$1,000 of Ontario Gross Sales.
2. Remove non-contributing end-supplier coverage (airlines and cruise lines) from the Compensation Fund, subject to government consideration and decision-making.
3. Double the maximum Compensation Fund payment per person to $10,000 from $5,000 for consumers, subject to government consideration and decision-making.
Registration Renewal Fees:
4. Recalibrate registrant renewal fees, with modernized and more equitable fee bands.
Other:
5. Institute new late filing fees to encourage timely submission of required documentation and ensure efficient processing.
Proposals #1, #4 and #5 have an anticipated implementation date of April 1, 2024.
Proposals #2 and #3 are subject to government consideration and decision-making and are not within TICO’s authority to implement at this time. TICO says it may need to reassess its fees in the future if these proposals are not implemented.
TICO has developed a detailed guide of each proposal, along with key insights and survey data from the comprehensive funding framework review.
To estimate fees payable to TICO (combined registration renewal fees and Compensation Fund payments) under the proposed funding framework, TICO registrants can click here.
Next Step: Consultations
TICO is conducting consultation with registrants and stakeholders about the proposals.
There are two ways to get involved:
1. Complete an online survey and provide your written feedback. The survey will remain open until Friday, November 10, 2023. The survey will take approximately 10-15 minutes to complete.
2. Attend a virtual or in-person focus group
To register for a session, please visit TICO’s website.
Thursday, October 12 – Mississauga
TICO’s office
55 Standish Court, Suite 460
Mississauga, ON L5R 4B2
10 am – 12 pm
1:30 pm – 3:30 pm
5 pm – 7 pm
Monday, October 16 – Virtual (Zoom)
12 pm – 2 pm
Tuesday, October 24 – Ottawa
Hilton Garden Inn Ottawa Airport
2400 Alert Road, Ottawa, ON K1V 1S1
9 am – 11 am
12 pm – 2 pm
4 pm – 6 pm
Friday, October 27 – Virtual (Zoom)
10 am – 12 pm
Monday, October 30 – Virtual for Northern Ontario registrants (Zoom)
2 pm – 4 pm
Thursday, November 2 – Waterloo
The Inn of Waterloo & Conference Centre
475 King St N, Waterloo, ON N2J 2Z5
9:30 am – 11:30 am
1:00 pm – 3:00 pm
5:00 pm – 7:00 pm
Tuesday, November 7 – Virtual (Zoom)
3 pm – 5 pm
Timeline
· Thursday, October 5, 2023 – TICO announces proposals and launches consultation period
· Friday, November 10, 2023 – Consultation period concludes
· Monday, April 1, 2024 – Anticipated effective date for proposed changes #1, #4 and #5
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