TICO Issues Guidance as Cuba Operations Halt

TICO is reminding its registrants of consumers’ rights and protections as all major tour operators suspend Cuba operations.

“We recognize and acknowledge the value and expertise of travel advisors in helping their customers navigate consumer protection information,” said TICO CEO Richard Smart. “By helping consumers understand what their booking includes and what their rights are, advisors ensure travellers can make confident, informed decisions, especially when circumstances change unexpectedly.”

Packaged travel

Under Ontario law, if a travel agency or tour operator acquires rights to travel services for resale and is unable to provide the travel services because a supplier fails to deliver them (e.g., flight to destination or availability of hotel), customers must be offered their choice of:

• A refund; 
• Comparable alternate travel services acceptable to the customer; or
• A voucher or similar document that is acceptable to the customer for future redemption towards travel services.

If a customer prefers a full refund for a travel package, Ontario’s consumer protection laws require a refund be provided within a reasonable timeframe.

Relevant section of the Regulation: 46

Accommodations

Registrants may be responsible for taking reasonable measures to ensure that the accommodations sold to customers are in the same condition as described at the time of sale, when the time comes for the customer to use those travel services. 

If they are not, the registrant must promptly notify the travel agent or customer, and must offer the customer a choice of:

• A refund; or
• Comparable alternate travel services acceptable to the customer.

Relevant section of the Regulation: 40

What if the accommodations are part of a package?

If the accommodations are sold as part of a package that includes transportation to a destination, the refund or comparable alternative services must apply to the entire package. If the accommodations were sold separately, the requirement is to offer a refund or comparable alternative services for the accommodations.

Relevant sections of the Regulation: 37 and 39

Conditions affecting travel purchase decisions

Registrants are required to warn customers of the evolving nature of conditions in Cuba. Prior to reserving travel services for a customer, a travel agent shall bring to the customer’s attention any conditions that the travel agent has reason to believe may affect the customer’s decision to make the purchase.  

Relevant section of the Regulation: 36(a)

Advising customers of changing conditions

Registrants may also have a continuing obligation to inform customers of a deteriorating situation in the travel destination after the travel services have been reserved.

After booking, if any material information previously communicated to the customer changes (e.g., details from an advertisement or brochure) that may have influenced their purchase decision, the registrant must promptly inform the customer.

Relevant section of the Regulation: 37

Terms and conditions

Where suppliers continue to deliver services, customers remain subject to the booking’s terms and conditions, including any applicable change or cancellation penalties.

While some suppliers may choose to offer a goodwill gesture to their customers, registrants should consider all their contractual and legal obligations in determining how to address the situation.

Relevant section of the Regulation: 36

Additional resources:

• Registrants are encouraged to monitor supplier websites for the latest updates on service availability and goodwill gestures.

• For potential compensation and regulations for air-only cancellations and delays, advisors and passengers should refer to the Canadian Transportation Agency’s Air Passenger Protection Regulations. 

Questions?

If you have questions, please email tico@tico.ca or call 1-888-451-TICO (8426).