Travel Agent Bond Apply now

What is a Travel Agent Bond?

A travel agent bond protects consumers from fraud caused by a travel agency or agent.  These bonds are typically required by states in order to register as a travel agent.  These bonds often pay for valid claims brought by your clients when you cannot or refuse to pay them.  However, you and your travel agency are responsible for paying the surety company back for an costs they incur on your behalf.

How does a Travel Agent Bond work?

A travel agent bond is a three party agreement.  The three parties to the surety bond are your company, the surety company, and your clients or other obligee.  In this situation your company is known as the principal, the entity issuing the license is the obligee, and the surety company is the surety.  You can read more about how surety bonds work by visiting our What is a Surety Bond page.

As mentioned above, the bond is meant to be a backstop in case you are unable to pay for valid claims made by your customers.  Valid claims are determined by the entity which issues your travel agency license and the surety company.  A claim typically involves some sort of fraud on your part.  An example of this could be when you take someone’s money but don’t deliver their hotel room or plane ticket.  If you can’t pay the client back, the surety company may have to pay on your behalf.

Who requires Travel Agent Bonds?

Suprisingly, not many states require you to obtain a travel agent bond.  Listed below are the states which have bond requirement:

Selecting a state will take you to that state’s travel bond page.  You can learn more about each state’s specific requirements and how to meet them.

What does a Travel Agent Bond cost?

The cost of a travel agent bond is mostly based on your personal credit score.  Other factors like experience and length of time in business may also impact your bond’s cost.  Additionally, some bonds, like the ARC bond, are more risky than others which can also increase your annual premium.  The average bond costs are listed below:

  • $10,000 surety bond = $100 for excellent credit and $200 or more for less than perfect credit
  • $20,000 surety bond = $200 for excellent credit and $300 or more for less than perfect credit
  • $25,000 surety bond = $250 for excellent credit and $500 or more for less than perfect credit
  • $50,000 surety bond = $500 for excellent credit and $750 or more for less than perfect credit

Please note the prices listed above are not firm quotes.  They are examples of average bond costs and can vary depending on the factors mentioned above.  The best way to determine your exact cost is to apply online for your free quote.

How do I apply for a Travel Agent Bond?

  1. Complete our online Travel Agent Bond application, or
  2. Download and complete our printable Travel Agent Bond application, and
  3. Receive your surety bond quote in minutes!

Apply now

Learn about seller of travel surety bonds