Travel firms should tell us if they're failing, report says

[Bulldog]

Failing travel companies should have to warn the industry watchdog they intend to shut down, a government report recommends in the wake of the sudden closing of Conquest Vacation in April that stranded hundreds of vacationing customers.

"It is likely that, had Travel Industry Council of Ontario (TICO) received more notice that Conquest intended to close, it could have been wound down in a more orderly manner, with less disruption to the travelling public," the report released yesterday states.

More than 3,600 customers were affected by Conquest's closure on April 15. TICO had known the company was struggling but was still caught unaware when it collapsed, and eventually paid out $360,000 from a special fund it administers to help 540 travellers return home.

The minister at the time, Harinder Takhar, who has gone on to government services, drew sharp criticism from the opposition and consumer advocates for failing to alert the public to Conquest's woes, even though the ministry knew it was failing to maintain required levels of working capital.

TICO had set an April 14 deadline for the company to resolve the problem but Conquest instead closed its doors.

The government report says besides forcing firms to alert TICO "as soon as practicable" of their intentions to close, TICO itself should make more information available about travel agents and tour operators and their history available on its website.

That information could include number of complaints laid against a company, suspensions, whether TICO is holding security on a company and whether a firm's fund contributions and financial statements are up to date.


http://www.torontosun.com/news/canada/2009/07/25/10255771-sun.html