TICO Warns Ontario Agencies: Bookings With Out-of-Province Tour Operators Not Protected

The Travel Industry Council of Ontario (TICO) is reminding all registered travel agencies to be cautious when working with tour operators and suppliers based outside the province, noting that many are actively marketing to both agencies and clients.

In its notice, TICO emphasized that bookings made with out-of-province operators who are not registered in Ontario fall outside the scope of provincial consumer protection. “If you book clients with a tour operator that is located outside of Ontario and not registered with TICO, those clients will not be protected by the Travel Industry Compensation Fund, if the tour operator ceases operations,” the regulator stated.

What the Compensation Fund Covers

The Ontario Travel Industry Compensation Fund provides up to $5,000 per passenger for travel services purchased through a TICO-registered travel retailer that are not received due to the closure or bankruptcy of a TICO-registered retailer, TICO-registered tour operator, or any airline or cruise line.

However, “tour operators located and operating outside of Ontario are not covered by the Compensation Fund,” TICO noted.

Verification Encouraged

TICO is urging agencies to regularly verify the registration status of any supplier they work with to ensure clients remain eligible for Compensation Fund coverage. The regulator maintains a public registry of all registered retailers and wholesalers.

TICO also publishes three key lists to support due diligence:

• Closure list: companies no longer registered, typically due to voluntary closure or relocation outside Ontario
• Revocation list: companies whose registration has been revoked
• Suspension list: companies whose registration has been suspended

FAQs and further details about the Compensation Fund are available through TICO’s website.

Topics From This Article to Explore