According to TICO, customers who book trips with Air Canada Vacations are eligible for full refunds if there is a lockout or pilot’s strike at Air Canada.
Meanwhile, a cautionary note from the president of TripCentral.ca, Richard Vanderlubbe. Travel agents who create their own packages, sold at a single price with single terms and conditions, “are now acquiring the rights for resale, which means taking on the associated risk. The package components fall under TICO regulations.”
Here are the regulations as they apply to ACV as per a TICO release on 10SEP:
With the potential for an imminent Air Canada pilot strike, the Travel Industry Council of Ontario (TICO), is sharing information for consumers who booked travel services with Air Canada Vacations (a TICO-registered tour operator) either directly or through a TICO-registered travel retailer.
At this time, as Air Canada flights have yet to be cancelled or impacted, Air Canada Vacations is offering a goodwill policy, which allows consumers with imminent travel to change their plans or receive a future travel voucher. More information can be found at this link.
Should a labour disruption begin with flight cancellations, the below regulation will apply.
Under Ontario law, if a travel retailer or wholesaler acquires rights to travel services for resale to other registrants or consumers (e.g., Air Canada Vacations) and is unable to provide the travel services purchased due to the failure of a supplier(s) to provide the service (e.g., flight to destination), then the consumer must be offered THEIR CHOICE of:
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- 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.
Where a consumer prefers a full refund for a travel package sold, or otherwise provided by Air Canada Vacations, Ontario’s consumer protections laws require a refund be provided within a reasonable timeframe.
“Large-scale travel cancellations can be challenging, not just for travellers whose plans and expectations are disrupted, but also for travel advisors who work hard to support their clients through stressful times,” said TICO CEO Richard Smart. “While no one wants to see their travel plans cancelled, consumers can rest assured knowing they have flexibility, including getting their money back, if a component of their package can’t be provided.”
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.
Under Ontario Regulation 26/05 (General Regulation under the Travel Industry Act), Section 46(1) provides guidance on refunds when travel services are not provided:
Section 46(1): If a customer has paid for travel services that are not provided in whole or in part, the travel agent or travel wholesaler who received the payment shall refund the payment to the customer promptly unless the customer chooses to accept comparable alternative travel services.
“Since Air Canada is not a registrant in Ontario (federally regulated and an airline, not a registrant under the Ontario act), but, Air Canada Vacations bundles flights, hotels, transfers, cruises and other travel services into a single package, Air Canada Vacations becomes joint and severally liable for the failure of any service to not be provided, and, must offer alternative services or a refund,” Richard Vanderlubbe, president of TripCentral.Ca told Open Jaw.
“This means, if Air Canada does not provide service due to a lockout or strike, Air Canada Vacations is required to provide an alternative flight (not likely to happen, but could, for example, with Star Alliance partners) or, alternative dates acceptable to the customer, or, will be required to refund the entire package.
“This can be controversial when non-refundable hotels have been booked. But it is up to ACV to engage in contractual terms for this possibility or bear the cost. Some registrants who “acquire the rights” for resale, both wholesale and retail, do not understand what tremendous risk they take when they acquire the rights for resale as a single package and charge a single price. That is what this section means.
“Travel agents do this all the time with small group departures, not realizing the risk if they do not sell each component separately, disclosing each terms and conditions of sale by the principal in the transaction (airline, cruise company, hotels, etc). The moment one bundles, they are captured by this regulation. ACV does this as their primary business, which is one of the advantages of booking with a supplier willing to take this risk,” Vanderlubbe said.
“We have had moments where wholesalers fail to realize their obligations and try to stick customers with non-refundable hotels and other components and offering credits and partial refunds in an airline strike scenario. This is not permitted in Ontario because of this section.”
