Do Travel Agents Need a License?

Let’s get one thing out of the way and summarize this blog post in an easy way, okay?

If you are working for a Host Agency, like VacationLab, you don’t need to register for anything, since you will be using the host agency’s credentials when it’s time to book trips for your guests. The Host Agency is like an umbrella that protects you and provides everything you need, allowing you to work with your guests without worrying about payments, fees, or specific credentials.

However, this doesn’t mean that you simply contact a host agency and that’s it. Most Host Agencies have their own certification courses that you need to complete before you can use their licenses, and in some cases, host agencies might even ask you for a monthly payment to use their registration number. We here at VacationLab are strictly against fees like that!

So, if you are working with a host agency, you won’t need any special registration to start working as a travel agent. In fact, that’s the main advantage of joining a host agency: no need to worry about licenses, pay fees, or wonder if you need any sort of registration. Host Agencies handle all of that, and the good ones offer all the support you need in exchange for a small commission split. In the case of VacationLab, the split starts at 70/30 and can go as high as 80/20, with the larger portion going into your pockets.

One of the few times that travel agents need to pay a fee, even if they are under a host agency, is if they live in or are selling to clients in Florida. In this case, you must complete the Independent Agent Statement of Exemption Form, which costs $50 per year. However, that's still a great deal compared to solo travel agents, who must pay $300 per year!

What if I want to work as a solo Travel Agent?

Things become a little more complicated in this case. While there are certainly benefits to working as a solo travel agent, such as maximizing your commissions and, depending on the volume of bookings (and a bit of luck), potentially building your own empire, it’s not without challenges. One of the main issues is the number of licenses you need when working solo, which can quickly become difficult to navigate and, above all, expensive.

If you are a U.S. travel agent, depending on the state you live in or if you sell to residents in states with Seller of Travel (SOT) requirements, the answer is yes - you do need a license to work as a travel agent.

Technically, the Seller of Travel registration isn’t considered a license, but most people refer to it as such, so it’s perfectly fine to do so. The SOT doesn’t require training or anything of the sort, as it’s essentially a registration that informs states that you are authorized to work as a travel agent and offer your services.

On the national/federal level, a seller of travel license is not required. However, at the state level, the requirements change. Four states require this license, which includes:

• California (CA)
• Florida (FL)
• Hawaii (HI)
• Washington (WA)

If your agency is based in one of these states or you have clients in any of them, you will need to register as a seller of travel in those states. These registrations can also be costly. For example, the California Seller of Travel bond starts at $100 annually but can go up to $2,000 depending on various factors.

Additionally, if you want to book travel with specific suppliers, such as cruise lines and hotels, you'll need specific credentials as well. 

The most popular credentials include IATA (International Air Transport Association), CLIA (Cruise Line International Association), and TRUE (Travel Retailer Universal Enumeration). If you’re looking to get into the airline ticketing business, you’ll need your ARC (ARC Agency Accreditation). 

As you can see, if you plan to expand your business, you’ll be paying for a number of different licenses that can quickly add up. This is one of the major downsides of being a solo travel agent, as a host agency takes care of all these requirements for you.