What must agents do when they receive client funds?

When travel agents receive client funds, the proper and ethical procedure is to place those funds into a trust account. This is a legal requirement that ensures client money is kept separate from the agency's operating funds. Trust accounts are specifically designed to protect consumer funds and guarantee that they are only used for their intended purpose, such as paying for travel arrangements once they are confirmed. This practice promotes transparency, helps maintain the integrity of the transactions, and builds trust between clients and the travel agency.

Using client funds for agency expenses, investing them in the agency, or depositing them into a personal account can lead to mismanagement and legal issues, as these options do not provide the necessary safeguards to protect the clients' money. Maintaining a trust account is a critical aspect of responsible financial management within the travel industry.