Legally, when does a travel agency recognize revenue?

Question

Does a travel agency recognize revenue after the sale of a ticket? Or does the flight actually have to take place before it can be recognized.

Answer 1

I think since the airline is technically the ones who redeem the tickets, it doesn't matter to the agency when it is redeemed, unless the agency is only given money for the ticket once it is redeem.  If that were the case than you would decide when to recognize the income based upon whether the agency used the cash or accrual method.

Cash = when you receive the funds

Accrual = when you make the sale