What is the main purpose of maintaining a trust account for client funds?

Maintaining a trust account for client funds serves the primary purpose of ensuring that these funds are safeguarded until the travel arrangements are completed. This is crucial in the travel industry because it builds trust and reliability between clients and travel agencies. When clients make payments for services yet to be rendered, such as bookings or tours, the use of a trust account ensures that their money is handled responsibly and is available specifically for its intended purpose.

This practice helps prevent misuse of funds, which might occur if the money were commingled with the agency's operating funds. The establishment of a trust account thus ensures compliance with regulatory obligations while safeguarding clients' interests, ensuring that their payments directly contribute to the fulfillment of their travel arrangements.