Hawaii Charter Tour Operator Bond Guide
If you operate a travel agency in Hawaii and want to also become registered as a charter tour operator, you’ll need to file a surety bond.
Learn how the bonding and registration process works with this comprehensive guide.
Bond Overview
- Purpose: To protect prepaid airfare if a charter operator defaults on its contracts
- Who Needs It: Travel agencies that offer public charter flights in Hawaii
- Regulating Body: The Department of Commerce and Consumer Affairs – Travel Agency Program
- Required Coverage: Varies based on number of charter tours
- Premium Rates: Credit-based, typically 1–3% of the bond amount
What Is a Hawaii Travel Agency Charter Tour Operator Bond?
A Hawaii tour charter operator bond is a type of surety bond that protects travelers by holding agencies financially liable for upholding state regulations.
The bond can be used to reimburse customers who did not receive the charter flight services they paid for or are otherwise harmed by a travel agency’s actions.
How Much Bond Coverage Do I Need?
The required bond amount reflects the number of charter tours the operator provides annually.
- 1–6 Tours: $10,000 per flight
- 7–15 Tours: $300,000 bond
- 16+ Tours: $1,000,000 bond
How Much Do Charter Tour Operator Bonds Cost in Hawaii?
Hawaii travel agent or tour operator bonds typically cost 1–3% of the total bond amount.
Exact rates vary based on the bond amount and personal credit score. Apply now to get your free, no-obligation quote.
You may be eligible for premium financing to lower the upfront cost of your bond. Ask your account representative for more information.
Who Needs a Travel Agency or Tour Charter Operator Bond?
Under 14 CFR § 380.34, any agency that provides charter tour services in Hawaii needs to file a surety bond or a letter of credit.
By filing a surety bond, tour charter operators demonstrate financial security to the state and their customers.
How Does a Tour Charter Operator Bond Work?
A Hawaii travel agency tour charter operator bond creates a legal contract between three parties:
- Principal: The charter tour operator
- Obligee: The Director of Commerce and Consumer Affairs
- Surety: The licensed surety provider
If you break the bond terms, harmed parties can file claims for reimbursement. The surety will pay out valid claims then seek full repayment from the principal.
How Do I Get a Tour Charter Operator Bond in Hawaii?
To get your Hawaii tour charter operator bond, follow these quick steps:
- Apply: Submit an online quote request
- Sign: Review your quote and sign the indemnity agreement.
- Checkout: Pay your invoice and select your shipping method.
We’ll mail you the original bond form for you to submit to the state along with your registration form.
How Do I Renew My Tour Charter Operator Bond?
Hawaii tour charter operator and travel agency bonds last for one year. To renew your bond, just pay your SuretyBonds.com renewal invoice when prompted.
We’ll extend your bond for another year, no new bond form required!
How to Become a Registered Tour Charter Operator in Hawaii
Charter tour operators contract with air carriers to offer charter flight sales. If you are already licensed as a travel agency in Hawaii, you can get your tour charter operation registration.
Follow these quick steps to apply:
- Provide your social security number
- Pay the $20 application fee via check
- Attach a current "filed-stamped" copy of the "Application for Registration of Trade Name" issued by the Business Registration Division
- Provide proof of a client trust account with a federally-insured financial institution in Hawaii (must be separate from travel agency trust account)
- Submit proof of a surety bond in the required amount
Mail this application packet to:
Travel Agency Program
DCCA, PVL Licensing Branch
P.O. Box 3469
Honolulu, HI 96801
All registrations expire on December 31 of each odd-numbered year. Continuously renew your license and bond to maintain active licensure.
