California Seller of Travel Bond Overview
- Purpose: To protect consumers from fraudulent or negligent travel agencies
- Who Needs It: California sellers of travel that handle client funds
- Regulating Body: The California Attorney General — Seller of Travel Program
- Bond Amount: $5,000–$150,000, based on total funds received
- Minimum Price: $100, credit-based
What Is a California Seller of Travel Bond?
A California seller of travel bond, also known as a travel agency bond, protects consumers if you fail to provide the promised services.
The California Attorney General requires you to file proof of financial security to register with the state. This ensures all sellers of travel have the financial means to refund customers for prepaid travel agreements.
Who Qualifies as a Seller of Travel?
You must register as a seller of travel with the California Attorney General if you sell or arrange:
- Air or sea travel
- Land or water travel packages costing more than $300 per person
Airlines, ocean carriers, certain lodging providers and licensed transportation operators are typically exempt from registration.
Bond Coverage Requirements for California Sellers of Travel
The Attorney General requires you to provide one of the following forms of financial security:
- Surety bond
- Trust account
- Consumer protection deposit plan
For many sellers of travel, a surety bond is the most affordable option. Learn more about the difference between financial securities here.
The required coverage ranges from $5,000 to $150,000, based on the total amount of funds received for all travel services offered.
Note: You may be exempt if payments are processed directly by the travel provider. If you offer membership and discount programs, you’ll also need a $100,000 discount program bond.
How Much Do Seller of Travel Bonds Cost in California?
California seller of travel bonds start at $100. Qualified applicants often pay just 1–3% of the total bond amount.
Your exact price will depend on your coverage amount and credit score. Apply for a free quote today!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a California Travel Agency Bond Work?
A California travel agency or seller of travel bond is a legally-binding contract between these three parties.
| Bond Party | Description |
|---|---|
| Principal | The seller of travel purchasing the bond |
| Obligee | The seller of travel purchasing the bond |
| Surety | The issuing surety provider |
This bond holds you financially responsible for following the Cal. Bus. & Prof. Code §§ 17550–17550.30. The following acts are strictly prohibited:
- Accepting payment without providing customer disclosures
- Failing to refund customers for services that were never provided
- Misrepresenting your travel services
- Misusing consumer funds
- Not delivering services within the promised timeframe
If you violate this code, harmed parties can file claims against your bond. The surety will pay valid claims up to your full bond amount. However, you’ll need to reimburse the surety.
How Do I Get a Seller of Travel Bond in California?
Getting a California seller of travel bond is simple! Just follow these four steps:
- Fill out the quote request form
- Receive your quote within one business day
- Pay for your bond
- Receive your bond
Your bond will be emailed minutes after purchase. Once you have your digital bond form, sign and file it with the Attorney General.
Can I Get Bonded With Bad Credit?
You may still be able to get bonded with bad credit, but it will likely increase your cost. Apply for a free quote to see how credit affects your price.
How Do I Renew My Travel Agent Bond?
California travel agent bonds are active for one year. We’ll send you reminders by phone and email starting 90 days before your expiration date. Once you pay the invoice, we’ll automatically extend your bond for another term. You may need to submit proof of renewal to the Office of the Attorney General.
How Do I Update My Bond Information?
You’ll need to contact your surety company if any information on your bond form changes, such as:
- Name
- Address
- Coverage amount
Email [email protected] with the new information, and we’ll issue a bond rider if possible. You must file this form with the Attorney General to maintain your registration.
How to Become a Seller of Travel in California
First, you must register with the Travel Consumer Restitution Corporation (TCRC) Fund if you meet either of the following criteria:
- Your main office is in California, and you do business with California residents
- You operate at least one California location, do business with California residents, and are publicly traded or part of a publicly traded company
Next, buy a surety bond and gather all supporting documents. Upload all materials to the online application portal. After submission, you’ll receive a link to sign and pay for your registration. For detailed information, visit our complete guide to becoming a seller of travel in California.
Note: You must register at least 10 days before offering travel services.
Are Travel Agents Licensed in California?
There is no specific “travel agent” license in California, but almost all travel agents are legally considered sellers of travel. This means you must complete the same registration process, even if you’re a sole proprietor.
If full state registration isn’t practical for your business, you can join an existing agency as an independent contractor. However, you cannot personally handle the client’s money.
