Everything You Need to Know About Travel Advisor Seller of Travel Licenses

Growing up as a kid, you probably heard some version of “you have to eat your vegetables before you can have dessert.” We all know what that means—before we can have our reward and get to the fun stuff, we have focus on our nutrients first.  

In the travel industry, you’re going to encounter things that might not be the most fun part of the job, but they are absolutely necessary to get your business going.  

One such of these tasks is getting your travel agency license. If you live in California, Florida, Hawaii, or Washington, or if you have clients who do, it’s especially important to be aware of just what goes into making sure yours Ts are crossed and your Is are dotted.  

Let’s take some time to break down the hows and whys behind becoming a licensed travel advisor to help you get registered.  

The Big Four: States That Require Travel Agent Licenses 

Let's cut to the chase. There are four states in the US that have Seller of Travel (SOT) registrations, which is fancy talk for "travel agent license requirements:” 

• California 
• Florida
• Hawaii
• Washington

We like to call these the "Big Four SOT States." Catchy, right? 

If your agency is based in one of these states OR you have clients living in these states, you'll need to register as a seller of travel. Yes, even if you're sitting pretty in New York but booking a trip for your cousin in California! 

Now, you might be thinking, "Why do I need a license in the first place?"  
 
It’s really just about making sure everything is above board. You wouldn’t trust just anyone to be your mechanic, and the same kind of logic applies here to show that you are someone authorized where necessary to help someone book a vacation. 

Let’s get into this a bit more, because there is some nuance: 

1. There's no national travel agent license requirement. But again, be mindful of where your clients are—if you’re growing your business, ideally you’ll have clients who live all over the country, so be sure to stay on top of SOT requirements.  
   
2. Let’s take this a step further: if your business grows the way you want it to, it’s likely you’ll end up regularly transacting with clients who live in one of these four states. So it makes sense to follow these rules.  
   
3. Only the Big Four states have strict requirements. 

In some cases, you might be able to use your host agency's license. 

State-by-State Breakdown 

We all know that one state’s laws don’t always line up with another, and in our case, it’s more of the same. Here’s what you need to know to make sure that you’re squared away in each of the Big Four: 

CALIFORNIA

California's SOT requirements are the most complex of the bunch. Here's what you need to know: 

• You need to register with the Travel Consumer Restitution Corporation. Essentially what this means is that California has a restitution fund that all sellers of travel participate and contribute to. 

• You'll need to establish a trust account for client payments. 

• Annual renewal is required. 

• Exemptions are available for certain business models and host agency relationships.   

How to Apply: 

In most cases, any exemptions will be rarer, and you’ll need to follow suit with California’s SOT requirements. Here’s how to do just that: 

1. Register Your Business: File as a foreign entity if out-of-state ($70–$150 fee). Note that you’ll need to register for a business ID regardless of whether or not you live in California. Find all filing fees and requirements here.  
2. Join the Travel Consumer Restitution Fund: $100 fee per location. According to the CA Dept. of Justice (DOJ), "A registered seller of travel whose principal place of business is in California and who does business with persons in California must participate in the TCRC."

1. Set Up a Trust Account: There are a few alternatives to this practice, but for the most part, this is something you’ll need to do.  
2. Submit Your SOT Application: Includes proof of business registration and trust account details. 
3. Renew Annually: File an attestation form if there have been no changes to your agency since you previously applied OR update via renewal forms if there are changes you need to account for. 

If at any point you get lost or have a question during this process, you can contact the agency at: 

Email: Sellers.Travel@doj.ca.gov  

Phone: 213-269-6564  

State of California Seller of Travel Certificate of Registration 

FLORIDA

Florida's requirements are a bit simpler. Let’s go through some of the ins and outs and expound a bit on each: 

• Annual registration costs $300—fill out this application if you need your own seller of travel number, or apply here if you can use your host agency's SOT number. Active duty military, honorably discharged veterans, and military spouses may be eligible for a waiver of these fees. 

• All registrations are valid for one year, beginning the day the certificate is issued, unless it's for some reason suspended or revoked.  

• Note that you should always be on top of your renewal, because Florida has the right to issue civil or administrative fines of up to $5,000 per violation, or in other words, each time you attempt to make a booking without your registration for the year spoken for. 

• You may need to provide a $25,000 surety bond. Basically, this means that you are agreeing to provide your services as a travel advisor and fulfill the role you are applying to take on.  
   
  Ensure that the seals or signatures by principal and witnesses are on the bond and that the power of attorney is included as well.  
   
  **There is an exception here: if you have a clean record and five or more years of operating as a travel advisor in the state of Florida, you can file for a complete waiver of the bond requirement (which can be found in the registration/renewal application) and/or a reduction of the surety bond fee requirements that could reduce the amount down to anywhere from $10k-20k.) 
  

• As with California, there are exemptions to this rule. In Florida, there are two key ways to attain a license.  

1. You can follow all the steps above.  
2. You can follow the steps and guidelines below: 

• If you are planning on using your host agency’s Florida Seller of Travel Number, you’ll need to fill out an Independent Agent Statement of Exemption form, which costs $50 per year to complete.  

• You must be with a host agency that has a Florida Seller of Travel number; AND have a written contract with your host agency. 

• You won’t be able to accept or charge fees in this instance (i.e., service or consultation fees). 

HAWAII

As with the other states we’ve covered, Hawaii's requirements have some unique features: 

• If you’re an LLC, LLP, Corporation, or Partnership, you need to register your business in Hawaii, even if you're out-of-state. 

• If you’re selling individual stand-alone activities to your client, (an excursion, for instance), you’ll need an activity desk license.  

• You'll need a business bank account with a bank located in Hawaii. This typically requires travel to Hawaii. 

• Fees vary depending on the year. 

Of course, there are exemptions here as well: Hawaii-based agents who want to go with a mainland host can apply for a waiver for the host. That only works, however, if an advisor is not handling any client money directly. All client money would need to go through the supplier or the host agency.  

Hawaii Seller of Travel + Travel Agency License: How to Apply 

Before we get into the process of applying for a license in Hawaii, let’s note cost, because it’s a bit different: $215/year on even-numbered years and $146/year on odd-numbered years. Got it? Good.  

Now that we’ve got that out of the way, let’s break down what you need to do to get your Hawaii seller of travel and travel agency license. 

1. Register your business with Hawaii's Department of Commerce and Consumer Affairs
   
   Register your business with the Business Registration Division (BREG) if you are an LLC, LLP, Corporation, or Partnership. If you have questions, you can email breg@dcca.hawaii.gov or call (808) 586-2727.
   
   
2. Open a trust account with a bank in Hawaii
   
   Note the exceptions for this step we listed above regarding working with a mainland host.
    
3. Apply for your Hawaii Seller of Travel registration
   
   Fill out your Hawaii travel agent license application with your trust account information included, and, if you’re an LLC, LLP, partnership or corporation, provide proof your business is registered with BREG.
   
   
4. Renew on odd-numbered years
   
   Again, each state has its own quirks, and in Hawaii, travel agency licenses, regardless of the date issued, expire on December 31st of each odd-numbered year. That means you have to renew before or on that particular expiration date. 
    
   Renewal applications and the notarized statement form are mailed to current registrations about 6 weeks prior to the expiration date. 

WASHINGTON

Last but not least, there’s Washington. Thankfully, it’s more of the same here. You’ll need to get your own Washington travel agency license and a proof of business registration.  

However, things are a bit easier in Washington, as if your agency is located outside of Washington, you can send in this proof to your home state.   

There is one twist: if your business holds payments for travel for more than five days, you'll need to take additional steps. 

 Washington Seller of Travel Exemptions 

The exemptions covered in Washington state to use your host’s Washington travel agency  number:  

• If the host agency has a Washington Seller of Travel number and has you registered under their number 
• You are conducting business using the name of your host agency, and no money goes through you and is instead collected in the name of and processed by your host agency (for example, no fees or checks made out to your agency).  

*It’s unlikely given these constraints that you’d be able to use this exemption, because in order to sell travel in Washington under your host agency’s license, you have to be selling under their name. And since you’re likely selling under your brand, that won’t work. This is, it should be noted, the opposite of the regulations for the state of Florida.  

Washington Seller of Travel + Travel Agency License: How to Apply 

Let’s walk through how to apply to get a Washington travel agency license online below: 

Applying for a Washington State Business License

If you’re out of state, you’ll attach the proof of business registration of your state. Washington-based businesses can apply for a business license here.  

Set up an account and under 'Business Licensing' heading, select "Apply for a New Business License." That’ll walk you through the steps to get registered in Washington.  

Be sure to select travel agent, agency in the Activity Search part of the process, which will then trigger the Seller of Travel endorsement form for your application. There’s a $50 processing fee and the overall license costs $222 per year.   

Note that licenses expire annually, so you’ll need to renew and follow this process again the following year.   

Other States with Travel Agency Regulations 

While the Big Four are the main players, other states have some rules too: 

• Delaware requires an occupational license for in-state agencies at a cost of $225 per year. This only applies if you open an agency in Delaware; in this case, you do not need it if you’re selling to clients who live in Delaware. 

• Illinois may require a trust account for certain agencies, but only for agents taking payments from clients rather than routing them through a supplier, and even then there are exemptions. 

• Louisiana has licensing fees for retail storefront travel agencies only. If you aren’t a retail agency, you’re all set.  

• Massachusetts and New York have specific rules for travel agencies. If this is you, head here for Massachusetts information and head here for New York information.  

Local and City Regulations 

Don't forget to check your local Chamber of Commerce for any city-specific regulations. Better safe than sorry! 

Checking In 

Got questions? Contact us at hello@worldvia.com and we’ll be happy to answer any questions you might have about this process. Happy booking!