TICO Distributes CAD$250,000 In Compensation To Consumers Affected By Sinorama Failure
Bruce Parkinson, Open Jaw
On 28MAY, 2019, the Travel Industry Council of Ontario (TICO) approved a payment of CAD$249,490 to compensate 135 consumers who did not receive travel services from Sinorama Holidays Inc. when the retailer voluntarily terminated its operation on 8AUG, 2018.
“It’s unfortunate when a registered travel retailer or wholesaler ceases operations, but TICO is here to support consumers affected by the failure and to protect their travel investment,” said TICO President & CEO Richard Smart. “While these situations are rare, they are a timely reminder that consumer protection and reimbursements through the Travel Industry Compensation Fund are only available to consumers who book with a TICO-registered travel agency or website.”
Consumers affected by the failure of Sinorama Holidays Inc. had until 11FEB, 2019 to submit claims and by now, all eligible claims have been paid out.
At the time of Sinorama’s failure, TICO assisted a total of 136 consumers for almost CAD$70,000. This included a payment of CAD$12,500 to assist six travellers already in a destination at the time of the failure, and a payment of CAD$55,500 to assist 130 consumers with immediate departures.
The compensation is taken from the Ontario Travel Industry Compensation Fund, which is wholly-financed by the industry to protect consumers who do not receive the travel services for which they paid due to the insolvency or bankruptcy of an Ontario-registered travel agency or travel wholesaler or due to the cessation of an end supplier airline or cruise line.
The Fund only covers consumers who have booked through an Ontario-registered travel agent.
Bruce Parkinson Editor-in-Chief
An observer and analyst of the Canadian and international travel industries for over 25 years, Bruce uses the pre-dawn hours to prepare a daily news and information package to keep industry members up to date.