There are 50 states, but only five require travel sellers to register before selling to their residents. California's seller-of-travel law has been in force since 1994. Florida's trust account requirements catch operators who have never set foot in the state. If you sell travel to US consumers and have not checked these five statutes, you may already be operating in violation.
The problem
The United States has no federal seller-of-travel registration requirement. Travel industry regulation is handled at the state level, and most states do not regulate travel sellers at all. The five states that do maintain active registration regimes are California (Business and Professions Code sections 17550-17556.5), Florida (Florida Statutes section 559.927-559.9355), Hawaii (Hawaii Revised Statutes Chapter 468L), Iowa (Iowa Code Chapter 120), and Washington (Revised Code of Washington Chapter 19.138).
The challenge for operators, particularly inbound DMCs and international tour operators selling to US consumers, is that these statutes have extraterritorial reach. California's law applies to any person or entity selling travel to California residents, regardless of where the seller is located. Florida requires registration or a trust account for sellers transacting with Florida residents. An operator based in London selling a European tour package to a customer in Miami is, under a strict reading of Florida law, required to comply.
California: the broadest reach
California Business and Professions Code section 17550.1 defines a seller of travel as any person who sells, provides, or arranges travel services. Registration with the California Attorney General is required before commencing business. Sellers must maintain a trust account or post a bond (minimum USD 50,000 for non-ARC/IATAN registered sellers). California's law applies to any seller transacting with California residents, and the state has pursued enforcement against out-of-state entities. The registration is annual and requires disclosure of ownership, financials, and any prior regulatory actions.
Florida and Hawaii: trust account requirements
Florida Statutes section 559.927 requires sellers of travel to register with the Department of Agriculture and Consumer Services. Sellers must either maintain a surety bond of USD 50,000 or establish a trust account for consumer payments. Hawaii Revised Statutes Chapter 468L similarly requires registration and a travel agency trust fund account. Both states define their jurisdiction broadly enough to capture sellers located outside the state who transact with state residents. Florida has been particularly active in enforcement, including against online travel agencies operating from other states.
Iowa and Washington: narrower but active
Iowa Code Chapter 120 requires registration with the Secretary of State and a surety bond of USD 50,000. Washington's Revised Code Chapter 19.138 requires registration with the Department of Licensing and a trust account or bond. Both states have narrower enforcement histories than California or Florida, but the registration requirements remain in force. Washington updated its statute in 2021 to clarify applicability to online sellers, signaling continued regulatory attention.
What to do now
If you sell travel services to consumers in California, Florida, Hawaii, Iowa, or Washington, check your registration status in each state. Do not assume that being based outside the US or outside the state exempts you. California and Florida enforce extraterritorially. Register where required, establish the necessary trust accounts or bonds, and build the annual renewal deadlines into your compliance calendar. The penalties for unregistered selling include fines, cease-and-desist orders, and in California, criminal misdemeanor charges.