California Seller of Travel Bond

A California Seller of Travel Bond is a protective measure for consumers. It serves as an alternative to a trust account and is required for travel agencies to provide travel booking services. This is one of the main prerequisites to obtaining your California seller of travel license.

Seller of travel surety bonds serve as a critical protective measure for consumers, providing them with a safety net in case of financial losses resulting from a travel agency's inability to meet its commitments. In addition to ensuring consumer protection, these bonds also serve as a testament to the credibility and reliability of your agency, highlighting your commitment to operating a reputable and trustworthy business.

Your bond is a three-party contract, similar to all other California surety bonds. The principal that has to get bonded is your travel agency. The obligee is the California Department of Justice that requires the bond. The surety is the entity which provides you with a bond and backs your agency.

With this bond, the state ensures that consumers are protected from potential harm due to fraudulent activities, bankruptcy filings, or other travel agency shortcomings. Seller of Travel Bonds also play a crucial role in regulating the travel industry, promoting accountability among agencies, and cultivating ethical business practices.

You need a California seller of travel bond if you want to sell travel bookings in the state. The licensing authority is the California Department of Justice. 

To get licensed you’ll need to follow the following steps:

• Complete the Seller of Travel Registration Application Form.
• Pay the required fees, your annual registration fee of $100 for each business location, plus any required late fee to the Seller of Travel Program.
• Provide financial security by using one of four options:
  • A trust account and a completed Trust Account Users Delegation Form (Form 300);
  • A Surety Bond and Seller of Travel Surety Bond Form (Form 400);
  • A Consumer Protection Deposit Plan
  • Credit Card Exemption

After you have registered, you need to display your registration number on all your advertising materials.

We recently supported an up and coming travel agency based in Northern California as they worked to obtain their  Seller of Travel Bond. Despite their extensive knowledge of the travel industry, they felt overwhelmed by the complexities of securing the bond and worried about its impact on their business operations. Recognizing their expertise in crafting memorable travel experiences, we provided guidance through the bond application process, highlighting the significance of compliance and how the bond would build trust with their customers. By streamlining the bonding process, we enabled the agency to meet California's regulatory standards, ensuring a smooth launch and enhancing their reputation as a dependable travel provider.

The bond amount that you will have to post is set by the California Department of Justice.

Your bond premium is a small percentage of this amount. If your finances are in good shape, you can expect to pay about 1% - 3% of the bond amount. Thus, for a $20,000 bond, your surety bond cost may be between $200 and $600.

The most important factors that affect your bond price are your personal credit score, as well as your business finances, and any assets and liquidity. That’s why applying with a reputable surety bonds company is important. With us by your side, you can trust in a comprehensive evaluation that reflects your stability and reliability. This strong partnership often translates to lower bond premiums, showcasing the confidence and trustworthiness of your business.

Yes, with Lance Surety Bonds you can get bonded even if your finances are problematic. Our Bad Credit Surety Bonds program is designed for applicants with low credit scores, tax liens, bankruptcies, and civil judgements.

The bonding rates are typically between 5% and 10% to compensate for the increased bonding risk. You can still get a great bonding rate with us, though. We foster close relations with a number of A-rated, T-listed surety companies, so we can shop around for you.

Do you need more details about the way bonding works? Make sure to check out our How to Get Bonded page, or call us at (877) 514-5146 to get help from our bonding specialists.

Your California seller of travel surety bond serves as an extra layer of protection for your customers. It is not insurance for your business. If you transgress from your obligations set in the state’s Business and Professions Code, you may get a claim against your bond. More specifically, a claim can be made if you knowingly work with an unregistered travel agency, if you provide false advertising, or if you misguide your customers in full knowledge.

If the bond claim is proven, you have to compensate the harmed party. The maximum reimbursement that can be demanded is up to the penal sum of your bond. You are liable to cover this amount, even if the surety steps up initially to pay the claimant.