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Wednesday,  April 17, 2024 5:36 PM 

TICO releases proposal for funding model, registrants can expect “modest adjustment” to total fees

  • Other
  •   10-05-2023  10:52 am
  •   Pax Global Media

TICO releases proposal for funding model, registrants can expect “modest adjustment” to total fees
TICO CEO Richard Smart. (Sceenshot/TICO)
Pax Global Media

The Travel Industry Council of Ontario (TICO) on Thursday (Oct. 5) released its proposal for a future funding model and launching a consultation period.

The update comes after the travel regulator conducted a comprehensive funding framework review – the largest since its inception.

“Throughout the past year, we researched other comparable regulators and listened to insights from consumers, industry and stakeholders, and have developed a proposal that reflects what we heard. Our approach carefully balances the needs of consumers and of industry, while also being pragmatic,” said TICO CEO Richard Smart in a press statement.  

“The proposal we’re sharing today reflects TICO’s commitment to develop a fair and modern funding model that reflects cost recovery, delivers value to stakeholders during this time of industry renewal, and continues to keep consumer protection at the forefront.”

The majority of registrants can expect a “modest adjustment” to their total fees payable to TICO, the council said.

For instance, 35 per cent of registrants will see their total fees to TICO decrease (combined registration renewal fees and Compensation Fund payments) and six per cent is the average aggregate rate of increase in total fees paid to TICO by registrants, based on historical Ontario sales.

TICO has also shared its proposals for a future funding framework, fee structure and Compensation Fund that will be consulted on during the upcoming stakeholder sessions.

5 key proposals

As shared in a press release, there are five key proposals.

Compensation Fund

1. Decrease Compensation Fund payments to $0.05/$1,000 from $0.25/$1,000 of Ontario Gross Sales.

2. Remove non-contributing end-supplier coverage (airlines and cruise lines) from the Compensation Fund, subject to government consideration and decision-making.

3. Double the maximum Compensation Fund payment per person to $10,000 from $5,000 for consumers, subject to government consideration and decision-making.

Registration Renewal Fees

4. Recalibrate registrant renewal fees, with modernized and more equitable fee bands.

Other

5. Institute new late filing fees to encourage timely submission of required documentation and ensure efficient processing.

Proposals #1, #4 and #5 have an anticipated implementation date of April 1, 2024, TICO says.

Proposals #2 and #3 are subject to government consideration and decision-making and are not within TICO’s authority to implement at this time.

TICO said it may need to reassess its fees in the future if these proposals are not implemented.

For information about Ontario Gross Sales, click here

Detailed overview of proposals

TICO has developed a detailed guide of each proposal, along with key insights and survey data from the comprehensive funding framework review.

To view the detailed guide, click here.

To estimate fees payable to TICO (combined registration renewal fees and Compensation Fund payments) under the proposed funding framework, click here.

In the video below, TICO’s CEO Richard Smart addresses Quebec’s legislated consumer pay model.

TICO has developed a fee estimate calculator to help registrants understand their registration renewal fees and Compensation Fund payments owing to TICO under the proposed funding framework. 

This calculator does not represent actual payments owing to TICO, it is for estimate purposes only for the consultation. Click here to launch it. 

Have your say

TICO is also conducting a comprehensive consultation with registrants and stakeholders about the proposals.

There are two ways to get involved:

  1. Complete an online survey and provide your written feedback.
    Click here to get started
    The survey will remain open until Friday, November 10, 2023.
    The survey is expected to take approximately 10-15 minutes.

  2. Attend a virtual or in-person focus group:
    If the session you are interested in attending says it is at capacity/no longer accepting registrations, please see if another session will work for you. If you cannot find a session to attend, please email kwilson@tico.ca

    Thursday, October 12 – Mississauga
    TICO’s office (55 Standish Court, Suite 460, Mississauga, ON L5R 4B2)

    10 am – 12 pm – click here to register
    1:30 pm – 3:30 pm – click here to register
    5 pm – 7 pm – click here to register

    Monday, October 16 – Virtual (Zoom)
    12 pm – 2 pm – click here to register

    Tuesday, October 24 – Ottawa
    Hilton Garden Inn Ottawa Airport – Bonavista Room
    2400 Alert Road, Ottawa, ON K1V 1S1

    9 am – 11 am – click here to register
    12 pm – 2 pm – click here to register
    4 pm – 6 pm – click here to register

    Friday, October 27 – Virtual (Zoom)
    10 am – 12 pm – click here to register

    Monday, October 30 – Virtual for Northern Ontario registrants (Zoom)
    2 pm – 4 pm – click here to register

    Thursday, November 2 – Waterloo
    The Inn of Waterloo & Conference Centre – Heritage Room
    475 King St N, Waterloo, ON N2J 2Z5

    9:30 am – 11:30 am – click here to register
    1:00 pm – 3:00 pm – click here to register
    5:00 pm – 7:00 pm – click here to register

    Tuesday, November 7 – Virtual (Zoom)
    3 pm – 5 pm – click here to register

Additional Review Documents

TICO says it has also engaged third-party advisors as part of the funding framework and fee review process.

Funding Framework Report – click here for an executive summary.
Actuarial Report on the Compensation Fund – click here for an executive summary.

Timeline

As well, TICO has outlined the following timeline for its changes. 

  • Thursday, October 5, 2023 – TICO announces proposals and launches consultation period
  • Friday, November 10, 2023 – Consultation period concludes
  • Monday, April 1, 2024 – Anticipated effective date for proposed changes #1, #4 and #5

This is a developing story. 


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