Glossary

• Accommodation – any room that is to be used for lodging by the customer or other person for whom the travel services were purchased and includes other facilities and services related to the room that are for the use of the customer or other person, but does not include meals. See also Travel services.
• Affidavit – a formal legal statement written and sworn to or affirmed before someone authorized to administer an oath (such as a commissioner of oaths, a notary public, or a lawyer).
• Appeal – a legal term that refers to a request for a decision to be reconsidered by a higher authority.
• Arm’s length – a relationship in which the two parties are not related and do not have close ties.
• Canadian Institute of Travel Counsellors (CITC) – a not-for-profit membership organization for individual travel professionals. As the educational trade association for Canada’s travel industry, CITC manages the national certification programs leading to the professional designations CTC and CTM. As well, the CITC conducts professional development seminars, conferences, distance-learning courses, and in-house training for travel counsellors.
• Claimant – someone who officially makes a claim to a benefit or right. In the case of the Travel Industry Compensation Fund, a claimant is someone who wishes to be paid back (“reimbursed”) for what he or she spent on a travel service but did not receive.
• Compensation Fund – see Travel Industry Compensation Fund.
• Current assets – the assets of a company that can be converted to cash within one year. They include the sum of cash and cash equivalents, accounts receivable, inventory, marketable securities, and prepaid expenses. Current assets are important to most companies as a source of funds for dayto-day operations.
• Current liabilities – the short-term debts that a company owes to its suppliers and creditors. These are all bills – such as operating bank loans, accounts payable, and taxes payable – that are due in less than a year. A company normally pays off its current liabilities by converting some of its current assets into cash.
• Director – see Statutory Director.
• End supplier – a person that operates a travel service for which they have ownership. Examples of end suppliers include airlines, cruise lines, hotels and car rental companies. End suppliers do not need to be registered under the Travel Industry Act, 2002 provided that they do not otherwise act as a travel agent or travel wholesaler in Ontario. The Travel Industry Compensation Fund does not cover the non-provision of travel services by an end supplier except for airlines and cruise lines.
• Event – any action that leads to claims being made on the Travel Industry Compensation Fund. An example is the failure of a registrant. An action that has particularly serious consequences is called a major event.
• Exigent circumstances – an emergency, a pressing necessity, or a set of circumstances requiring immediate attention or swift action. (“Exigent” describes something that requires immediate aid or action.) Because the legislation does not define what an exigent circumstance is, TICO typically assesses these situations on a case-by-case basis.
• Financial statement – as defined in the Regulation, financial statements must include the registrant’s:
  - statement of sales in Ontario made during the period to which the financial statements refer;
  - balance sheet;
  - income statement; and
  - reconciliation of the trust account with customer deposits
• Force majeure – a legal term (from the French for “greater force”) that refers to natural disasters (such as floods, hurricanes, and other so-called “acts of God”) or acts of people (such as riots, strikes, and war) that prevent suppliers and subcontractors from meeting their obligations in a contract. In the legislation, the term is used to remove liability if some unexpected or unavoidable event prevents registrants or suppliers from meeting their obligations to a client or travel agent.
• General account – the account used for operating expenses. Funds from the general account are used to pay salaries, rent, utilities, and similar operating expenses. After the suppliers have been paid in full from the trust account, commission and mark-up may be transferred to the general account.
• Good faith – (as in “acting in good faith”) means acting honestly, with no intent to defraud or take advantage of someone, observing reasonable business standards.
• Home-based agent – see Outside sales representative.
• Interested person – as defined under the legislation, one who is associated with the registrant or who, in the opinion of the Registrar:
  - has or may have a beneficial interest in the registrant’s business;
  - exercises or may exercise control either directly or indirectly over the registrant; or
  - has provided, or may have provided, financing either directly or indirectly to the registrant’s business.
• Jointly and severally liable – a legal term meaning that someone has legal responsibility both as an individual and as part of a group.
• Liability – a financial obligation, debt, claim, or potential loss.
• Liable – having a financial obligation, debt, claim, or potential loss.
• Licence Appeal Tribunal – an independent body appointed by the Ontario government. It hears appeals of proposals to suspend, revoke, or refuse to grant or renew a travel business’s registration. It also hears appeals of decisions to deny claims against the Travel Industry Compensation Fund.
• Licensed Public Accountant – a public accountant licensed under the Public Accounting Act, 2004.
• Licensed accounting professionals (called certified public accountants or public accountants) prepare, evaluate, and attest to the accuracy and completeness of financial statements and related information.
• Lien – a legal right or interest that a creditor has over another party’s property.
• Manager – a person who administers or supervises the affairs of a business or office.
• Non-registrant – an organization or individual that sells or supplies travel services but is not registered in Ontario. Examples include:
  - wholesalers and retailers not located in Ontario;
  - companies that sell to clients in Ontario by means of advertising, the Internet, or toll-free phone line, but whose home base or call centre is not located in Ontario;
  - end suppliers (e.g., airlines, hotels, rail services, cruise lines) that may or may not be located in Ontario; and
  - anyone who is operating in Ontario illegally.
• Outside sales representative – a travel counsellor who works from a location other than the registered office of a travel agency. However, all sales must be processed through the registered office, either in person or by electronic means. In addition, the registrant must record the outside sales representative as either an employee or contractor for the company. An outside sales representative may also be an employee of a travel wholesaler who contacts travel agents, in person or by mail, telephone, or email with the purpose of selling travel services. An outside sales representative is bound by the Travel Industry Act, 2002 and Ontario Regulation 26/05 in the same way as any other seller of travel products. He or she must have a written contract with a registrant.
• Overland travel services – services for travel by, on, or across land. They do not include travel by air or by sea.
• Person – a human being or an entity (such as a corporation) that is recognized by law as having the rights and duties of a human being.
• Reasonable – a term used in law to mean behaviour that is logical, appropriate, or usual in the circumstances.
• Travel wholesaler – a person who acquires rights to travel services for the purpose of resale to a travel agent, or who carries on the business of dealing with travel agents or travel wholesalers for the sale of travel services provided by another person.
• Trust account – the account where all monies received from consumers are deposited. These funds must remain in the trust account until the suppliers of the travel service have been paid in full.
• Trust accounting – a system in which a consumer’s money is held in a separate bank account (the trust account). The registrant is not legally permitted to use the funds in the trust account, other than to pay the supplier or refund the customer. This way, if a registrant becomes bankrupt or insolvent, the clients’ money can be returned. Only after the travel service has been paid in full does the agency or wholesaler become eligible to collect the commission or mark-up earned on the sale of the travel service. At that point, the commission is transferred to the general account.
• Working capital – a company’s ability to meet its liabilities as they come due. It is generally calculated by subtracting current liabilities from current assets.working capital = current assets minus current liabilities Working capital can be positive or negative, depending on how much debt the company is carrying. In general, companies that have a lot of working capital are more successful because they are better equipped to withstand any market changes, financial downturns, or unexpected events. See also Current assets and Current liabilities.

The phrase “to promote a fair and informed marketplace where consumers can be confident in their travel purchases” is the mission statement of TICO.

The administration of the Travel Industry Act, 2002 was delegated to TICO by the Ontario provincial government.

TICO works with three groups to carry out its mandate – the travel industry, the provincial government, consumers.

The best description of Ontario’s Travel Industry Act, 2002 is that it sets down the rules under which travel retailers and travel wholesalers must operate in Ontario.

TICO lays charges after discovering that a man has been selling travel services without being a registrant or an employee in a registrant’s agency or office. When the man sees his name in the newspaper, he threatens to take legal action against TICO for violating his privacy. He will lose the case because Ontario Regulation 26/05 provides that TICO’s Registrar must make these details available to the public.

Can the Registrar act as Director? No, because the Director supervises the duties of the Registrar.

Before counselling or advising a client, a travel agent must inform the client of any counselling fee charged.

In the Travel Industry Act, 2002, the term “representation” refers to presentations of any type, including oral, print, and electronic.

ABC Travel puts an advertisement in the newspaper that announces a package holiday “From $999 and up.” TICO would not consider this acceptable because the Regulation states that consumers must know the exact cost of all the travel services provided.

A consumer selects a package tour from a travel wholesaler’s brochure. The hotel included in the package is some distance from town, which appeals to the consumer who wants a quiet location for her holiday. When she arrives at the hotel, she is upset by the non-stop noise outside her room as the hotel starts construction of a new swimming pool. Who is to blame for this consumer’s dissatisfaction? The travel wholesaler, which should have disclosed in its brochure information about construction or renovation of the property.

ABC, a wholesaler, has been selling XYZ Resort since the resort opened in 1965. ABC still puts a photograph of the resort from 1965 in the brochure to show off the location’s beauty. In fact, the resort has NOT been upgraded or renovated since 1965 and has become run-down and outdated. Has ABC done anything wrong in its brochure? Yes, because the photograph does not accurately depict the current condition of the resort.

A couple gives their travel agent a deposit for a package tour. They obtain a receipt from her that says, “Balance of $500.00 due on September 27, 2008.” The agent has also added the comment, “As discussed, some charges are non-refundable.” TICO would view this receipt as inadequate because, by law, the travel agent must identify charges that are non-refundable.

Betsy, the travel agent, concludes the sale with the clients and tells them to go to the Canadian Foreign Affairs website to find out what documents they need. She thinks that Canadians may need a visa for the chosen destination, but she does not have the website on hand. Betsy’s advice is insufficient because a travel agent must advise clients about the specific travel documents needed.

A client buys a vacation package from ABC Tours on May 1. The departure date is June 15. ABC Tours pays the travel wholesaler on May 8. On which date must the travel wholesaler produce the tickets, vouchers, itinerary, and other related documents for the travel agent? June 1 (14 days before departure)

A travel agent doesn’t have to offer the client a full refund or comparable alternative travel services where the scheduled departure of any transportation is delayed or advanced by 12 hours or less

When a client is offered the choice of a refund or comparable alternative travel services, the registrant is NOT required to write to the Travel Industry Compensation Fund stating that no claim is pending

A client can claim  taxes paid on the travel services from the Travel Industry Compensation Fund.

If a consumer makes a claim against the Travel Industry Compensation Fund and the TICO Board accepts the claim, the maximum amount payable is $5,000 per person.

Joe and Sally are originally from Sudbury, but now live in Windsor. They depart from Toronto for a round-trip vacation package to Europe. When the supplier declares bankruptcy, Joe and Sally are stranded overseas. Under the trip completion provision in Ontario Regulation 26/05, where can Joe and Sally be returned, assuming that costs for each destination are approximately the same? Toronto or Windsor

Joe Smith is a travel agent with ABC Travel. He went out of his way to ensure that all the travel arrangements for Dorothy and David Black were “perfect.” The couple paid ABC Travel and then ABC Travel forwarded the funds to the travel wholesaler. When the travel wholesaler declared bankruptcy and the Blacks’ trip was ruined, Joe Smith made a claim on the Travel Industry Compensation Fund for the $75.00 service fee he charged as a destination specialist. What will TICO do? Refuse the claim because the Compensation Fund does not cover service fees.

Sally Smith belongs to a travel program. She saves up her points for two years until she has enough for a vacation package at a sun destination. The travel wholesaler noted in the brochure that the trip was valued at $2,500.00. After Sally transfers the points to the travel wholesaler, the wholesaler declares bankruptcy. Sally files a claim on the Travel Industry Compensation Fund for $2,500.00. Would her claim be eligible for reimbursement? No, because Sally did not actually pay money for the trip.

Carnival Cruise Lines awarded Travelonly with the Pinnacle Award, for Production and Outstanding Partnership. This is the second consecutive year that Travelonly has earned this award.  Patrick Luciani, President & CEO, often known as the Chief “Experience” Officer of Travelonly, was on hand to receive the exclusive Pinnacle Award at their Head Office in Brantford, Ontario.

Dana Gain, Business Development Director of Western Ontario for Carnival Cruise Lines, was on hand to present the award.

Patrick Luciani expressed, “As a long-time, strong supporter of Carnival Cruise Lines, this is especially rewarding upon our recent launch of the CITC approved Travelonly Academy & Mentorship Program. We take great pride in our learning organization, headed by Holly McBean, CTC, our VP of Training and Business Development.  With her team of CITC and CLIA certified trainers & mentors, Travelonly has been able to implement the same great sales and learning tools that Carnival offers with their Carnival University.”

The award ceremony commenced with handshakes and Gain stating “Carnival looks forward to continued growth and partnership with Travelonly in the future”.

Luciani added, “We believe very strongly in our partnership with Carnival Cruise Lines and look forward to another record-breaking year.”

About Travelonly
Travelonly is Canada’s Premier National Travel Host Agency with over 34 years of experience in the travel industry.  The company boasts a team of over 500 Independent Travel Professionals across Canada, specializing in special interest and group travel. Travelonly has an unbeatable combination of support, technology and extensive hands-on training available for its Associates.

• American plan – a hotel plan that includes three meals daily
• modified American plan – a hotel plan that includes breakfast and dinner (but not lunch)
• Bermuda plan – a hotel plan that provides a full breakfast daily
• continental plan – a hotel plan that provides a continental breakfast daily
• European plan – a hotel plan that provides no meals (EP=Empty Plate)
• hotel plan – a plan and a room rate for providing a room and meals to guests at a hotel
• meal plan – a plan and a room rate for providing a room and meals to guests at a hotel

This is my no means an exhaustive list. It covers the most often encountered definitions for Canadian travellers.

I want to help Canadian travelers enjoy their vacations. Most people enjoy a vacation because by definition that’s what vacations mean. But in today’s hectic world of instant messages and jet lag there are plenty of ways that a vacation could turn out to be less than enjoyable. I want to identify and perhaps help you avoid some of the modern day potholes in the road to happy vacation land.

My posts will be short and hopefully helpful. They will be on most any subject I find interesting to me and I think might be of interest to you the reader. Of interest to me means I’ll enjoy and learn from researching and writing the entry. Read a bit more here.