A Sellers of Travel Bond (also known as a Travel Agency Bond) is a type of surety bond required by state regulators to license or register a travel agency. It acts as a financial guarantee protecting the consumer: if an agency collects deposits but fails to book the trip, goes bankrupt, or misappropriates funds, the traveler or the state can file a claim against the bond to get their money back. While the U.S. does not have a federal license for travel agents, "strict" states like California, Florida, Washington, and Hawaii heavily regulate the industry. In these jurisdictions, posting this bond (or contributing to a state restitution fund) is a mandatory step to legally sell cruises, tours, and vacation packages to residents.

The cost of a Sellers of Travel Bond is not a flat fee but an annual premium, typically ranging from 1% to 5% of the total bond amount for applicants with good credit. For example, in Florida, where a standard travel agency bond is often $25,000, a qualified agent might pay between $250 and $1,250 per year. However, if you sell "vacation certificates," Florida increases the bond requirement to $50,000, doubling your premium. Because these bonds are financial guarantees, surety underwriters heavily weigh your personal credit score and business financials. Applicants with lower credit scores may see rates rise to 5%–10% or may be required to post collateral. Ultimately, your total cost depends on the specific requirements of the state(s) where you are registering (e.g., Florida, California, Washington).

A Sellers of Travel Bond operates as a binding legal contract between three parties: your travel agency (the Principal), the state regulatory department (the Obligee), and the surety company. It is crucial to understand that this is not business insurance; rather, it is a line of credit designed to protect the consumer. If your agency fails to provide promised travel services, misappropriates client deposits, or declares bankruptcy, the state or affected travelers can file a claim against the bond. The surety company will investigate and pay out valid claims up to the full bond amount (e.g., $25,000 in Florida). However, under the bond's indemnity agreement, you remain personally and financially liable to reimburse the surety for every dollar paid out, plus legal costs.

A Sellers of Travel Bond is generally required for any individual or business that solicits, arranges, or sells travel services (like airfare, cruises, or tour packages) to residents of regulated states. Currently, Florida, California, Washington, and Hawaii are the primary jurisdictions that strictly enforce these "Seller of Travel" laws. Importantly, these regulations are extraterritorial: even if your agency is located in Texas or New York, you may still need to post a bond in Florida or California if you plan to sell vacations to clients living in those states. However, exemptions often apply to "hosted agents" who operate under the umbrella of a larger, bonded host agency, as well as for those selling exclusively for a registered tour operator. If you are an independent contractor or a standalone agency, securing this bond is usually the first step in obtaining your state registration number (e.g., Florida ST# or California CST#).

To get a Sellers of Travel Bond, you must apply through a licensed surety agency that specializes in commercial bonds.The process typically begins with a standard application and a review of your personal credit score and business financials to determine your premium rate. Once approved, the surety will issue the official bond form, which you must sign and file with the appropriate state regulator - such as the Florida Department of Agriculture and Consumer Services (FDACS) or the California Attorney General's Office. To renew your bond, you simply pay the annual premium to your surety provider before the term expires. The surety will then issue a Continuation Certificate or update the state's registry directly to verify your coverage remains active. Be mindful that in states like Florida, the bond renewal often aligns with your annual registration renewal, so coordinating these dates is critical to avoid a lapse in your license.