Travel Agency Bond

Also known as an ARC (Airline Report Corporation) bond, a travel agency bond is utilized by travel agents to ensure payment for airline tickets. They guarantee that the money collected by a travel agency for booked flights will be remitted to the proper airline in a timely manner.

All travel agents must post a ‘seller of travel’ bond because they handle large amounts of money that must be delivered as payments to the companies providing services for the traveler. If an agent fails to forward funds to the appropriate company, the bond allows the company (or airline) to regain its losses by filing a claim against the bond. If the claim is found to be valid, the travel agency will be responsible for paying any monies owed.

The Travel Agency bond is usually required by the state or locality in which the travel agency is based. However, many service companies such as airlines or hotels might also require the bond to do business with a travel agency. They are helpful for consumers in that they force travel agents to act ethically, forward their money to the correct parties, and offer the widest possible range of travel options.

Application Information

Complete the Commercial Application to get started. Please note: in addition to our commercial bond application, we may need to request the business and personal financial statements of the owner(s) and copy of any statute or ordinance that’s requiring the bond and/or a bond form.