FOR ALL YOUR SURETY BOND NEEDS.
These surety bonds are general for all states.
Learn more about travel agency bonds, and apply today. Absolute Surety offers surety bonds nationwide through a convenient online application system.
A travel agency bond, also known as a “seller of travel” bond, is a type of license and permit bond required in many states as a condition for getting licensed to operate as a travel agency within the state. The primary purpose of the bond is to protect consumers and companies providing travel services against financial loss due to the illegal or unethical actions of a travel agency.
The bond guarantees that consumers don’t lose out if a travel agency commits fraud, misrepresents a product or service, or misappropriates customer deposits collected for forwarding to hotels, airlines, resorts, cruise lines, or other travel services. It also protects consumers against the loss of such deposits if the travel agency becomes insolvent.
Travel agencies typically purchase these bonds because their state requires them to do so. Without a travel agency bond, travel agencies in states that require bonding will be unable to obtain or renew a business license.
Even in states that don’t require them, many agencies will purchase a bond anyway. Being bonded demonstrates their commitment to ethical business practices. Knowing that a travel agency has voluntarily purchased a bond makes consumers feel confident and safe in doing business with that agency.
The three parties involved in the bond are:
In buying the bond, the principal is making a pledge to conduct business in accordance with all applicable rules and regulations. The surety is agreeing to investigate any claims against the bond and pay any that are found to be valid. The principal is accepting the responsibility to reimburse the surety for any claims paid out.
Two factors determine the premium cost of a travel agency bond: the required bond amount and the applicant’s credit score and financial condition. The bond amount varies from state to state, and travel agencies choosing to become bonded in states that don’t require it can select their own bond amount.
Depending on their credit history and finances, applicants may pay as little as 1% or as much as 15% of the bond amount as the annual premium.
Use our convenient online system to apply for a travel agency bond today.
