What must travel agents ensure when handling client funds?

When handling client funds, travel agents must ensure compliance with TICO regulations, which are designed to protect consumers and maintain the integrity of the travel industry. TICO regulations require that client funds be managed in a specific manner, including keeping them in trust accounts, separate from the agency’s operational funds. This helps to guarantee that money paid by clients for travel services is secured and only used for the intended purpose, such as purchasing those services on behalf of the client.

Adhering to these regulations not only safeguards client funds, but also enhances customer trust and confidence in the travel agency. It is crucial for agents to follow these guidelines to avoid any legal repercussions and to ensure that clients receive the services they have pre-paid for. Failing to meet these regulations can lead to serious consequences, including penalties or loss of license.