TICO Certification: Changes, refunds and alternatives

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1. The resort in a package is changed to a different hotel of a lower standard. What must happen?

   1. Only an apology letter from the wholesaler
   2. A partial refund of 10 per cent of the hotel portion of the cost
   3. Notice and a full refund or acceptable alternative offer
   4. Nothing, if the new hotel is in the same city
   Show answer and explanation

   Correct answer: Notice and a full refund or acceptable alternative offer

   A change of accommodation, or of its standard, requires prompt notice and an offer of a full and immediate refund or comparable alternate services acceptable to the customer.

   Based on: O. Reg. 26/05 s. 40(1) para 3; checked 2026-10-24

   Official reference ↗

2. When does the rule that no price increases are allowed apply?

   1. After the customer has paid in full
   2. Only for trips inside Canada
   3. Within 60 days of departure
   4. After the first deposit has been paid
   Show answer and explanation

   Correct answer: After the customer has paid in full

   Where a contract permits price increases, the invoice must state that no price increases are permitted after the customer has paid in full.

   Based on: O. Reg. 26/05 s. 38(1)(j); checked 2026-10-24

   Official reference ↗

3. When a registrant offers a refund or alternative under section 40, what must it note in its file?

   1. Only the customer's final decision, with no date
   2. Nothing, because a verbal offer is enough
   3. What was said, the date, the method and the customer's choice
   4. The supplier's explanation and nothing at all about the customer
   Show answer and explanation

   Correct answer: What was said, the date, the method and the customer's choice

   Registrants keep a file and note what information was communicated, the date, the method of communication and the customer's choice; these files are kept as business records.

   Based on: O. Reg. 26/05 s. 40(3); checked 2026-10-24

   Official reference ↗

4. A wholesaler buys hotel rooms to resell. What duty does it have about their condition?

   1. Inspect every room in person once a week
   2. Take reasonable steps so they match the description
   3. Nothing, since the hotel is responsible
   4. Guarantee that the rooms will exceed the published description
   Show answer and explanation

   Correct answer: Take reasonable steps so they match the description

   A registrant that acquires a right to accommodation for resale must take reasonable measures to ensure the accommodation is in the condition described at the time of sale when the customer uses it.

   Based on: O. Reg. 26/05 s. 39(1); checked 2026-10-24

   Official reference ↗

5. Accommodation sold in a flight-and-hotel package is not in the condition represented. What must the customer be offered?

   1. A full refund of the package or a comparable package they accept
   2. A refund of the hotel nights only, minus taxes and fees
   3. A credit note for future travel booked within one year
   4. A free seat upgrade on the return flight in place of any refund
   Show answer and explanation

   Correct answer: A full refund of the package or a comparable package they accept

   If accommodation sold as part of a package with transportation is not as represented, the registrant offers a full and immediate refund of the whole package, including fees and taxes, or a comparable alternate package acceptable to the customer.

   Based on: O. Reg. 26/05 s. 39(2)(a); checked 2026-10-24

   Official reference ↗

6. A cruise line replaces the booked ship with a different ship. What must the registrant do?

   1. Offer a refund only if the new ship is smaller
   2. Ask TICO to approve the change first
   3. Nothing, as long as the itinerary and ports of call stay the same
   4. Notify and offer a full refund or acceptable alternative
   Show answer and explanation

   Correct answer: Notify and offer a full refund or acceptable alternative

   Substitution of a different cruise ship is one of the events that requires prompt notice and an offer of a full and immediate refund or comparable alternate travel services acceptable to the customer.

   Based on: O. Reg. 26/05 s. 40(1) para 2; checked 2026-10-24

   Official reference ↗

7. A contract does NOT permit price increases, but the price goes up by 2 per cent. What applies?

   1. Nothing at all, because 2 per cent is below the 7 per cent limit
   2. The agent may absorb it and say nothing
   3. The customer must pay the increase before departure
   4. The customer must be offered a refund or acceptable alternative
   Show answer and explanation

   Correct answer: The customer must be offered a refund or acceptable alternative

   If the contract does not permit increases and the total price nevertheless increases, section 40(1)5 requires prompt notice and an immediate full-refund or acceptable-comparable-alternative offer, regardless of the amount or reason. The 7% threshold belongs to a different situation; an agency absorbing a supplier cost without raising the customer’s price is not this scenario.

   Based on: O. Reg. 26/05 s. 40(1) para 5; checked 2026-10-24

   Official reference ↗

8. A flight is delayed 26 hours because of a hurricane. Does the specific 24-hour trigger in Regulation section 40(1)1 apply?

   1. Yes, but only for flights outside Canada
   2. No, weather is an excluded reason
   3. Only if the customer bought insurance
   4. Yes, any delay over 24 hours requires it
   Show answer and explanation

   Correct answer: No, weather is an excluded reason

   Weather is one of the exceptions to this particular 24-hour departure-change trigger, along with mechanical problems, safety, labour disputes and force majeure. That does not decide rights under other contract terms, insurance or air-passenger rules; it is not a statement that weather delays can never lead to a refund.

   Based on: O. Reg. 26/05 s. 40(2); checked 2026-10-24

   Official reference ↗

9. A contract permits increases and the traveller has not paid in full. Above what cumulative increase, excluding the specified sales-tax increases, does section 40 require a refund-or-alternative offer?

   1. 5 per cent
   2. 10 per cent
   3. 15 per cent
   4. 7 per cent
   Show answer and explanation

   Correct answer: 7 per cent

   The trigger is more than 7%, excluding the specified retail sales tax or federal GST increases. Exactly 7% does not meet this particular trigger. Other grounds may still require an offer, and a permitted-increase contract does not permit an increase after full payment.

   Based on: O. Reg. 26/05 s. 40(1) para 4; checked 2026-10-24

   Official reference ↗

10. After a sale, the agent learns of a change that might have affected the customer's decision. What must the agent do?

    1. Tell the customer only after the trip ends
    2. Report it to TICO and say nothing to the customer
    3. Wait to see if the customer notices the change
    4. Tell the customer promptly
    Show answer and explanation

    Correct answer: Tell the customer promptly

    If, after purchase, a registrant learns of a change to any matter in a representation that might have affected the decision to buy, it must promptly advise the customer.

    Based on: O. Reg. 26/05 s. 37; checked 2026-10-24

    Official reference ↗

11. A routing change means a traveller needs a new visa and there is no time to get one before departure. What must the registrant offer?

    1. A full refund or a comparable alternative the customer accepts
    2. A refund of only the visa fee the customer already paid
    3. Nothing, because visas are always the traveller's responsibility
    4. A letter asking the embassy to waive the visa requirement
    Show answer and explanation

    Correct answer: A full refund or a comparable alternative the customer accepts

    When travel documents change because the routing changes and there is not enough time to obtain them before departure, the registrant must offer a full and immediate refund or comparable alternate services.

    Based on: O. Reg. 26/05 s. 40(1) para 6; checked 2026-10-24

    Official reference ↗

12. A charter flight's departure is moved 30 hours later for scheduling reasons. What must the registrant offer?

    1. A 10 per cent discount on a future trip
    2. A $50 meal voucher and nothing more
    3. Nothing, since charter flight times often change by a day or more
    4. A full refund or an acceptable comparable alternative
    Show answer and explanation

    Correct answer: A full refund or an acceptable comparable alternative

    A delay or advance of 24 hours or more (other than for mechanical problems, safety, weather, a strike or lock-out, or force majeure) requires prompt notice and an offer of a full and immediate refund or comparable alternate services acceptable to the customer.

    Based on: O. Reg. 26/05 s. 40(1) para 1; checked 2026-10-24

    Official reference ↗