What is the purpose of the Ontario Travel Industry Compensation Fund?

The Ontario Travel Industry Compensation Fund is designed specifically to provide financial protection to consumers in the unfortunate event that a registered travel agency fails to meet its obligations. This mechanism ensures that customers are compensated for losses, such as non-fulfillment of travel services or loss of deposits, which can arise if a travel agency goes bankrupt or does not deliver on purchased travel arrangements.

This fund plays a critical role in enhancing consumer confidence in the travel sector, as it reassures travelers that their financial investments are safeguarded. By focusing on compensation for consumers, the fund seeks to maintain trust and stability within the travel industry. Other options, while related to aspects of travel and agency operations, do not align with the primary purpose of the fund, which is consumer protection in situations of agency insolvency.