What is a potential drawback for customers purchasing travel services from an Ontario agency that includes services from an out-of-province wholesaler?

When customers purchase travel services from an Ontario travel agency that includes offerings from an out-of-province wholesaler, a significant concern is the potential lack of protection provided by the Compensation Fund, which is specifically designed to safeguard consumers in case of the bankruptcy or default of Ontario-based travel agencies. This fund is a regulatory measure established to offer financial protection for clients who book through Ontario-registered agencies.

If customers book travel services through a wholesaler based outside of Ontario, they may not be covered by this fund, exposing them to financial risk if issues arise with their bookings. Therefore, understanding the jurisdiction of the wholesaler is vital, as it directly impacts consumer protection.

The other choices do not accurately reflect the core concern of purchasing from an out-of-province wholesaler. While extra fees might sometimes apply, they are not a guaranteed consequence and vary based on specific circumstances and pricing strategies. Refund policies are also not universally guaranteed; this varies by company policy and is not inherent to the location of the wholesaler. Lastly, the requirement to book through a registered travel agent pertains more to regulatory compliance and does not directly relate to the risks involved with wholesalers from other provinces. Thus, the implications involving the Compensation Fund are the most relevant and significant for consumers in