After announcing a comprehensive review of funding that included the Compensation Fund, TICO released its future funding proposal to media that includes increases to fund its bottom line and a controversial decision to avoid a consumer pay model.
The consultation process is now public, after TICO engaged a consultant to conduct a comprehensive funding framework review, seeking input from Ontario consumers, registrants and industry stakeholders. Comparable bodies were also reviewed, such as Quebec’s model as well as an overall state of the travel industry. Registrants and stakeholders are encouraged to have their say via attending a focus group or by going online until November 10.
If the review is approved, TICO registrants can expect a “modest adjustment” to total fees, with 35% of registrants seeing their fees decrees. The aggregate rate of increase is just under 4%.
The proposal also seeks to double the maximum Compensation Fund payment per person to $10,000 (from $5,000) per person, recalibrate renewal fees and institute late filing fees. TICO’s Richard Smart says the organization has only changed rule fees twice in two years and those fees are par for the course.
Of the five, the two biggest contentions are the lack of a proposed consumer pay model and the removal of non-contributing supplier coverage (airlines and cruise lines), from the Compensation Fund; meaning consumers wouldn’t receive compensation from cruise or airlines, should one fail.
One of last year’s key touchpoints was to increase consumer confidence in the industry by booking with TICO agents, how does Smart expect his new proposal will help?
“There are more consumer protections than just the coverage of the compensation plan. Consumers should still feel confident they’re dealing with a regulated marketplace where there’s a suite of consumer protections, dealing with a registered entity, dealing with a business that is overseen by a regulator.”
At the annual ACTA conference in Toronto early September, both ACTA and CATO discussed what they felt was a lack of transparency in the proposals and called for changes to the Compensation Fund by moving towards a consumer pay model such as what exists in Quebec.
Smart says they are welcome to present a formal proposal on those changes.
“I respect their view on it. I think a combination of the system, supported by a fair regulatory system works. The burden in Quebec is way harder than what it is in Ontario. I think we have a a good regulatory system, and a marketplace where consumers can feel confident dealing with Ontario registrants. It's different than Quebec but I don't think it's as easy to say one's better than the other.”
Registrants and Stakeholders can have their say at the following focus groups offered both in person and via Zoom:
12 – TICO office, Mississauga, Ont.: 10 a.m.-12 p.m.; 1:30-3:30 p.m.; 5-7 p.m.
16 – Virtual (Zoom): 12-2 p.m.
24 – Hilton Garden Inn Ottawa Airport: 9-11 a.m.; 12-2 p.m.; 4-6 p.m.
27 – Virtual (Zoom): 10 a.m. – 12 p.m.
30 – Virtual for Northern Ontario registrants (Zoom): 2-4 p.m.
2 – Waterloo, The Inn of Waterloo & Centre, Waterloo, Ont.: 9:30-11:30 a.m.; 1-3 pm; and 5-7 p.m.
7 – Virtual (Zoom): 3-5 p.m.
Input can also be given online. To register for sessions visit TICO’s website.
Smart is hoping the feedback from the industry will help propel his proposal forward.
“I think the government's listening and there is a need to change the course. Industry has been talking about this for years. Now we’re simply saying “we want this” and we will have something substantive in front of decision makers.”
