Trailfinders has updated its trust account model so that no money is withdrawn until customers have returned from their holiday.

The company, which had paid out £115 million in refunds for cancelled holidays by June, introduced the change on July 31.

Trailfinders dynamically packages trips for its customers, becoming the organiser of the package and responsible for the refund.

Chairman Mike Gooley said: “Trailfinders have taken our already copper-bottomed trust account to the ultimate as no monies will be withdrawn from trust until our travellers have completed their itinerary.”

He described the latest iteration of the company’s trust model as “the ultimate safeguard of pipeline monies”.

Gooley added: “Like everything else there are trust accounts and trust accounts. At the lowest level of protection, pipeline monies circulate through with little restriction on the timing of pay-outs.

“At the other end of the scale general accounts pay out and get reimbursed from the trust account at some point in the cycle.

“Trailfinders have year by year protected the trust account by settling suppliers from the general account only. As from now, no trust funds are being drawn down until the traveller is home safe.”

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The Interview: Mike Gooley, Trailfinders [March 19]