Travel Industry Council of Ontario Practice Exam

The Travel Industry Compensation Fund (TICF) is designed to provide financial protection to consumers in the event that a travel agency goes out of business. This fund is particularly important within the travel industry as it ensures that travelers’ prepayments for services—such as flights, accommodations, and other travel-related expenses—are protected.

When a consumer makes a booking through a licensed travel agency, a portion of their payment contributes to the TICF. In the unfortunate situation where the agency fails, the fund is activated to reimburse consumers for lost funds, thereby providing a safety net and promoting confidence in purchasing travel services. This protective measure is crucial for maintaining trust in the travel industry and ensuring consumers are not left without recourse after a provider's failure.

Other options like the Travel Security Fund or Consumer Travel Trust Fund either do not exist as recognized protective measures or serve different purposes entirely, such as offering different types of insurance coverage or security measures that do not specifically deal with agency failure.