Who Needs to Register as a Seller of Travel?

In California, you need to register with the Attorney General if you sell, provide or arrange any of the following services: 

• Air or sea transportation (separately or with other services)
• Land or water transportation (other than sea travel) with a total cost of over $300 per person

However, the following service providers are exempt:

• Air and ocean carriers 
• Hotels and motels that don’t receive money for providing guest transportation
• An insurance-certified person or group under the CA Insurance Code Division 2 Part 5 (unless selling air or sea travel)
• Motor, rail and water operators with valid government licenses or permits

Do I Need a Surety Bond to Register?

Under the CA Business and Professions Code Section 17550.15, you must provide proof of financial security to register as a seller of travel. The Attorney General accepts any of the following forms of security:

• Trust account: A cash deposit of the total of all sums received for any travel services offered as collateral
• Surety bond: A legal contract covering the same amount as the trust. However, you only pay a small percentage of the total cost upfront and only repay the full amount if a claim is made
• Consumer Protection Deposit Plan: A security deposit, such as a letter of credit or certificate of deposit, managed by a designated plan administrator

You may be exempt if you do not handle or control any credit card payments for travel services.

A surety bond is typically the most affordable and efficient financial security option, requiring only a small upfront premium rather than full cash collateral. 

Apply for your free California seller of travel bond quote online today. Premiums start at just $100.

What is the Travel Consumer Restitution Corporation Fund?

The Travel Consumer Restitution Corporation (TCRC) Fund protects consumers if a California seller of travel does any of the following: 

• Goes bankrupt
• Becomes insolvent 
• Stops operating
• Fails to deliver services as promised.

You must register your travel agency with the 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

Can I Offer a Travel Discount Program?

Yes, you can offer exclusive memberships, benefits and discounts if your program complies with the regulations outlined in CA BPC § 17550.27. This includes filing an additional $100,000 surety bond. 

Apply for your free CA Seller of Travel Discount Program Bond quote online. 

Do I Still Need a Surety Bond After Initial Registration?

All first-time seller of travel applicants must provide proof of financial security. However, you can be exempt after three years if you meet all of the following criteria:

• You do business with California residents only from in-state locations
• You send all customer payments in full directly to one of the following: the service provider, ARC (Airlines Reporting Corporation), a trust account listed on another registered seller’s certificate or another registered seller exempt from trust or bond requirements
• You are an officially appointed ARC agent in good standing* 
• You've been in business under the same ownership for at least 3 years. Changing your business entity type or removing an owner doesn’t qualify as an ownership change
• You sell travel services directly to consumers, and the services are provided by third-party companies
• You are a registered seller of travel
• You comply with all TCRC requirements

*Note: Verified Travel Consultants (VTC) don’t meet this requirement.

However, you can’t qualify for an exemption if your agency meets any of the following conditions:

• You sell to California consumers from business locations outside the state
• Your business is less than three years old 
• You’ve added new owners during the past three years

How Much Does It Cost to Register a Travel Agency?

You can expect to pay at least $475 to register a travel agency in California. However, the total cost varies based on the following fees:

• TCRC Fund registration fee: $275
• SOT Program registration fee: $100 per business location
• Surety bond premium: Starts at $100 and increases based on bond amount*

*This reflects SuretyBonds.com seller of travel bond rates for a one-year term. 

How Do I Update My Information?

If there are any changes to the information submitted at registration, you must file an amendment form with the Attorney General within ten days of the change. 

Use Form 600 to submit ownership changes and Form 500 to submit any other updates. There is no fee for filing amendments.

Certain changes, such as a name or address change, require you to update your bond documentation. If you work with SuretyBonds.com, email [email protected] to update your bond form.