Funding Framework and Fee Review Proposal
The consultation period took place from October 5, 2023 until November 10, 2023 and has now concluded.
On February 1, 2024, TICO announced upcoming changes to its fee structure that will take effect as of April 1, 2024. Please click here to learn more.
After conducting a comprehensive funding framework review, including the Compensation Fund, the Travel Industry Council of Ontario (TICO) has released its proposal for a future funding model and launched a consultation period.
Click here to view the consultation news release.
Quick Facts
- The majority of registrants can expect a modest adjustment to their total fees payable to TICO.
- 35% of registrants will see their total fees to TICO decrease (combined registration renewal fees and Compensation Fund payments).
- 3.6% is the average aggregate rate of increase in total fees paid to TICO by registrants, based on historical Ontario sales.
Proposals at-a-glance
There are five main proposals and an additional consideration that TICO is bringing forward to registrants and stakeholders as part of this consultation process.
Compensation Fund
- Decrease Compensation Fund payments to $0.05/$1,000 from $0.25/$1,000 of Ontario Gross Sales*.
- Remove non-contributing end-supplier coverage (airlines and cruise lines) from the Compensation Fund, subject to government consideration and decision-making.
- 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
- Recalibrate registrant renewal fees, with modernized and more equitable fee bands.
Other
- 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.
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 may need to reassess its fees in the future if these proposals are not implemented.
*For information about Ontario Gross Sales, please click here.
Consultation Consideration
Registrant Options for TICO’s Fee and Payment Structure at the Point of Sale:
Seek input from registrants regarding if there is a potential interest to voluntarily pass on to consumers and display registration renewal or Compensation Fund fees at the point of sale.
Detailed Overview of Proposals
TICO has published a detailed guide of each proposal, along with key insights and survey data from the comprehensive funding framework review.
To view the detailed guide, please click here.
Estimate your Fees Under Proposed Funding Framework
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.
Access the fee estimate calculator below:
Fee Estimate Calculator (actual fees will differ)
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- Annual Renewal Fee: $0
- Annual Compensation Fund Fee (with PST): $0
Total Annual Fees: $0
TICO’s CEO Richard Smart Addresses Quebec’s Consumer Pay Model
Consultations – Have your Say
TICO conducted a comprehensive consultation with registrants and stakeholders about the proposals, including in-person and virtual focus groups and an online survey. Thank you to everyone who took the time to provide their feedback.
Additional Review Documents
TICO 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
- 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