Laws and Regulations Applicable to the Travel Industry - Institut de ...

More documents

Recommendations

Info

ADMINISTER 2FUNDS At the end of this topic, you will be able to: • define an individual security, a trust account and FICAV (Fonds d’indemnisation des clients des agents de voyages) – Compensation Fund for Customers of Travel Agents; • understand the purpose of the various funds administered by travel agents; • know the amount of and how to provide the individual security; • apply the contribution amount to be collected for the Compensation Fund for Customers of Travel Agents (FICAV); • present the accounting records; • know the penalties regarding cases of non-compliance with the law. Establishing procedures to carry out your management activities is of paramount importance when operating a travel agency. The National Assembly and the Government of Québec have provided a three-fold consumer protection. First, a travel agent must open a trust account, separating the money belonging to the consumer from the travel agent’s own funds. The second protection is to provide an individual security guaranteeing the travel agent’s obligations. The third is the creation of a compensation fund for travel agents customers (FICAV). Before going any further, test your knowledge as it would apply to the story of Mrs. Fairbrother. This topic refers more specifically to the following obligations and conditions: Act • Division III.1 – Provisional Administration (s. 15 and 16) • Division IV – Obligations of a Travel Agent (ss. 32 to 33.2) • Division V – Inspection (s. 35, 36 c, 36 c.1 and 36 c.2) Regulation • Division VII – Accounting (s. 17) • Division VIII – Special Provisions (s. 20) • Division IX – Trust Account • Division X – Individual Security and Compensation Fund • Division XI – Individual Security (except for 1.01, 4, 31.7, 31.8, 33.4, 34, 35.1, 36) • Division XII – Compensation Fund (except for 43.2 to 43.5) Context A Mediterranean cruise was Mrs. Fairbrother’s longtime dream. So one day she decided to drop by the Fancyfree Agency Inc. Based on the information she received from the counsellor, she reserved and paid for her trip, which cost a total of $4,407.36. Several weeks following this purchase, she returned to the agency for additional details regarding her trip. Surprise! She found a note on the door saying the agency was closed… until further notice! Worried, Mrs. Fairbrother wonders what will become of her trip and her money.
In fact, the Fancyfree Agency Inc. (contrary to its name!) had financial problems. AlI in good faith, Management paid its rent and telephone bills from the trust account in order to keep the agency running. When it wasn’t enough to cover expenses, they used the money collected from customers for the travel agency customer compensation fund (FICAV). Test your knowledge True or False 1. Mrs. Fairbrother has lost her money and will be unable to take the trip she planned. 2. The counsellor who did business with Mrs. Fairbrother is personally responsible and will have to reimburse her. 3. The OPC could reimburse Mrs. Fairbrother through FICAV, the Compensation Fund for Customers of Travel Agents. 4. The manager of a travel agency can use the money from a trust account to pay his bills, as long as he pays it back. 5. Fancyfree Agency Inc. no longer had a valid permit; therefore Mrs. Fairbrother no longer has any recourse against this agency. 6. Fancyfree Agency Inc. was entitled to withdraw the amount of its commission as soon as the customer paid for the trip. Answers to this test are at the end of this topic. 2.1 TRUST ACCOUNT 2.1.1 What is it for? The trust account is used to systematically hold your customers’ funds such as cash, cheques or other negotiable instruments as well as any amount representing the monetary equivalent of all or part of a payment by credit card or debit card or of any other form of payment (s. 21, T.A.R.). This trust account must be opened in Québec with a bank governed by Québec and Canadian laws. Note that it is your responsibility to inform the OPC of any modifications, such as opening, closing or transferring a trust account (name, address and account number) as well as changes in the list of account signatories, within 15 days of any such change occurring. You can access the trust account only to administer it as a trustee. You cannot use funds from this account for personal or corporate purposes. Accordingly, money belonging to your company or to its directors must be deposited in a different bank account, from which current transactions can be made. The holder of an agency licence may provide written authorization allowing a member of his staff to conduct banking operations on his behalf in the trust account. Apply for a travel agent trust account. 18 18 Laws and Regulations Applicable to the Travel Industry: Textbook for Travel Professionals
Page 1 and 2: Laws and Regulations Applicable to
Page 3 and 4: Laws and Regulations Applicable to
Page 5 and 6: SECOND FOREWORD The Office de la pr
Page 7 and 8: TOPIC 3 — OPERATING WITH A LICENC
Page 10 and 11: A WORD FROM THE AUTHORS This Guide
Page 12 and 13: This topic refers more specifically
Page 14: MODULE I OPERATING A TRAVEL AGENCY:
Page 17 and 18: use of part of the income from the
Page 19 and 20: Figure 1 Structure and Responsibili
Page 21 and 22: Did you know that… According to t
Page 23 and 24: Did you know that… It is the Cour
Page 25 and 26: Do you know… How much time the cu
Page 27 and 28: 1.2.4.2 What is the role of the com
Page 32 and 33: You are authorized to withdraw fund
Page 34 and 35: Individual security amount to provi
Page 36 and 37: Contribution to FICAV Accumulated s
Page 38 and 39: Check list Administration of funds
Page 40: Answers 1. False. The customer has
Page 43 and 44: Test your knowledge True or False 1
Page 45 and 46: Did you know that… An association
Page 47 and 48: Typical example Specimen: Travel Ag
Page 55 and 56: 3.1.4 Licence renewal Do you contin
Page 57 and 58: The information provided through th
Page 59 and 60: Check list Licence Penal liability
Page 61 and 62: Supplementary readings and exercise
Page 63 and 64: Test your knowledge True or False 1
Page 65 and 66: Did you know that… … your certi
Page 67 and 68: Answers 1. False. Since January 1,
Page 70 and 71: 5 This PUBLICIZE YOUR PRODUCT OR SE
Page 72 and 73: Test your knowledge Based on your c
Page 74 and 75: Example Conviction for failure to c
Page 76 and 77: 5.1.3 Compliant written or printed
Page 78 and 79: Typical example Non-compliant adver
Page 80 and 81:
5.4 PENALTIES AND OFFENCES Clients
Page 82 and 83:
DEALING WITH 6CUSTOMERS At the end
Page 84 and 85:
What is an obligation of means or a
Page 86 and 87:
According to case law, the liabilit
Page 88 and 89:
To offset various problems that cou
Page 90 and 91:
Now it’s your turn to assess your
Page 92 and 93:
PREPARING THE CUSTOMER’S 7DEPARTU
Page 94 and 95:
7.1 DOCUMENT DELIVERY 7.1.1 Invoice
Page 96 and 97:
Some websites include useful inform
Page 98 and 99:
7.3 PRICE CHANGES Like every kind o
Page 100 and 101:
Example Natural disaster Eruption o
Page 102 and 103:
Checklist Billing Penal liability C
Page 104:
To conclude the sale in the absence
Page 108 and 109:
APPENDIX
Page 110 and 111:
APPENDIX 1 (con’d)
Page 112 and 113:
APPENDIX 2 (con’d) Travel Counsel
Page 114:
APPENDIX 3 (con’d) Answers - Exer
Page 117 and 118:
Debtor: Person who is required to f
Page 119 and 120:
Travel agent: A person, partnership
Page 121:
Laws and Regulations Applicable to
show all

Laws and Regulations Applicable to the Travel Industry - Institut de ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?