California requires sellers of travel to register with the Seller of Travel program, and certain sellers — particularly those operating discount travel or membership programs — must post a surety bond. The bond protects consumers who pay for travel services in advance. You pay a premium that is a percentage of the bond amount, not the full amount. Requirements depend on the type of travel business, so confirm your specific obligation before bonding.
California’s Seller of Travel law protects consumers who pay in advance for travel. Most sellers register and participate in a consumer restitution fund, while certain sellers — especially those running discount travel or membership programs — must also post a surety bond. This guide explains when a bond is required, what it covers, and how to get one.
For how these bonds work in general, see our what is a surety bond.
When a Seller of Travel Bond Is Required
California’s requirements vary by business type:
- All sellers of travel must register with the state Seller of Travel program
- Many participate in the Travel Consumer Restitution Fund (if eligible)
- Discount travel and membership program sellers are commonly required to post a surety bond
Because the bonding obligation depends on the specific type of travel business, confirm your requirement with the California Seller of Travel program before purchasing.
What the Bond Covers
- Failure to provide travel services that a consumer paid for in advance
- Misuse of consumer funds or deposits
- Fraud or misrepresentation in selling travel
- Violations of California’s Seller of Travel law
A harmed consumer files a claim against the bond. The surety reviews claims, pays valid claims up to the bond amount, and collects reimbursement from the seller under the indemnity agreement.
Estimated Cost of the California Seller of Travel Bond
You pay a premium that is a percentage of the bond amount, based on a soft credit pull. For a common $20,000 discount-program bond, first-year premiums for good-credit applicants commonly fall in the range of roughly $200 to $600.
California products: California seller of travel bond and seller of travel discount programs bond. For full pricing, see the surety bond cost guide.
Getting the Bond with Credit Challenges
Applicants with weaker credit can still be considered, generally at a higher premium. Collateral options are available to reduce rates where needed. See bad credit surety bonds.
How to Get a California Seller of Travel Bond
- Confirm whether your business needs a bond and the required amount with the Seller of Travel program.
- Apply. Provide business and personal information and authorize a soft credit pull.
- Get your quote and pay. Turnaround may take from same day to a couple of business days.
- File with the program. Submit the bond with your Seller of Travel registration.
See more California bonds at the California state bonds hub.
Frequently asked questions
What is a California seller of travel bond?
Do all sellers of travel need a bond in California?
How much does a California seller of travel bond cost?
What does the seller of travel bond cover?
When is a seller of travel bond required instead of the restitution fund?
Can I get the bond with bad credit?
How long does the seller of travel bond last?
How fast can I get a California seller of travel bond?
A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal. The California Seller of Travel Bond holds you accountable for your business decisions.
By possessing a California Seller of Travel Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.