Travel Agent License Requirements by State (Seller of Travel Rules)

Wondering whether you need a travel agent license to sell trips legally?
The answer depends on where your clients are and how you sell travel, not just where you live.

In the U.S., most states do not have a special “travel agent license.”
Instead, a small group of states enforce Seller of Travel (SOT) or similar registration laws that apply to:

  • Agencies and independent agents who sell or market travel to residents of those states
  • Businesses that advertise packages, cruises, or tours to those residents—even online

This guide explains:

  • Which states require Seller of Travel registration
  • Who needs to register (independent vs host-agency agents)
  • Key disclosures, bonds, and trust-account rules
  • How licensing compares to travel agent certifications like CTA, CTC, and VTA

Always confirm current requirements with your state attorney general or consumer protection agency—rules can change frequently.

Do Travel Agents Need a License?

There is no single national travel agent license in the U.S.
Instead, you must follow:

  • State Seller of Travel laws (where applicable)
  • General business registration rules (sole prop/LLC, local tax IDs, etc.)
  • Card brand and advertising standards (for payments and disclosures)

For many agents, compliance comes down to:

  • Whether they accept payments from clients directly
  • Whether they advertise to residents of Seller of Travel states
  • Whether they operate under their own brand or under a host agency’s umbrella

If you book travel only through a host agency and all consumer payments flow through that host, the host may cover most SOT obligations—but you still need to understand what they require from you.

States With Seller of Travel or Similar Laws (2025)

As of 2025, the core Seller of Travel states include:

  • California – Full Seller of Travel registration (Cal. Bus. & Prof. Code §17550)
  • Florida – Seller of Travel registration with bonding requirements
  • Hawaii – Travel agency registration for in-state sellers
  • Washington – Seller of Travel registration and trust/escrow requirements
  • Iowa – Registration rules that can apply to travel clubs and promotions

Other states have narrower or more general consumer-protection rules that can still touch travel marketing (such as prize promotions or timeshares), but the five above are the primary SOT jurisdictions for most agents.

If you market online to clients nationwide, assume that people in these states may see your offers—and plan your compliance accordingly.

Who Must Register as a Seller of Travel?

While each state is different, typical triggers include:

  • Advertising or selling travel packages to residents of the state
  • Receiving payments directly from consumers for travel services
  • Offering travel certificates, credits, or club memberships
  • Operating your own brand (agency name, website, or social channels)

You may need to register even if:

  • Your agency is physically located in another state
  • You work from home and sell part-time
  • You use a host agency but handle your own marketing and client payments

In many cases, the agency entity (not each individual agent) completes Seller of Travel registration, posts the required bond, and maintains trust accounts where required.

Host Agencies vs Independent Agents

Many new agents start under a host agency. The host:

  • Holds key industry credentials (IATA, ARC, CLIA, etc.)
  • Manages supplier relationships and commission payments
  • May already be registered as a Seller of Travel in the required states

If you join a host:

  • Ask which states they are registered in and under what legal name
  • Confirm whether you must be listed under their registration
  • Clarify how payments are handled (through host vs directly through you)
  • Request written guidance on what you can and cannot say in marketing

If you set up your own agency, plan for:

  • Business registration (LLC or similar)
  • Separate business bank accounts
  • SOT registration in relevant states
  • Possible surety bond or trust account

Key Compliance Requirements to Expect

While the details differ by state, Seller of Travel registrants may need to:

  • Maintain a surety bond or trust/escrow account for client funds
  • Display registration numbers and disclosures on websites and invoices
  • Keep detailed records of bookings and payments
  • Renew registration annually and pay fees
  • Follow special rules for prize promotions or “free travel” offers

Failure to comply can lead to fines, forced refunds, and bans on selling travel in that state.

Travel Agent License vs Certification

It’s easy to confuse licensing (legal permission to sell travel) with professional certification (industry credentials).

  • Licensing / Seller of Travel

    • Managed by state governments
    • Focused on consumer protection and handling of client funds
    • Often requires registration, bonding, and specific disclosures

  • Travel Agent Certifications (CTA, CTC, VTA, CLIA, etc.)

    • Issued by industry associations and training bodies
    • Focused on education, ethics, and business skills
    • Help with marketing, credibility, and supplier access

Most serious agents need both:

  • Proper registration or coverage under a host agency in SOT states
  • At least one recognized certification to stand out and qualify for higher commissions

For a deep dive on certification options, see our Travel Agent Certification Guide.

Quick Checklist: Are You Covered?

Use this simplified checklist to discuss licensing with your host or legal advisor:

  1. Where are your clients located?

    • Do you actively market to CA, FL, HI, IA, or WA residents?

  2. Who takes payments?

    • Do funds go directly to your host agency, or into your own business account?

  3. Whose brand is on invoices and marketing?

    • Are you selling under your host’s brand, your own, or both?

  4. Is there an existing Seller of Travel registration?

    • Ask for registration numbers and the exact legal name registered.

  5. What disclosures are required?

    • Make sure your website, invoices, and terms include required state wording.

Next Steps

  • New to the industry? Start with our How to Become a Travel Agent guide.
  • Ready to specialize? Explore the Travel Agent Certification Guide to compare CTA, CTC, VTA, and other credentials.
  • Setting up your own agency or host? Consider speaking with a business attorney who understands Seller of Travel laws before you accept client payments.

This guide is for educational purposes only and doesn’t replace legal advice. Always verify requirements with your state and, if needed, with a qualified attorney or compliance specialist.