Commonwealth Business Travel Group

Seller of Travel Regulation

Overview

Seller of travel defined Registration Financial Security Exemptions Resources

What is Seller of Travel Regulation?

Due to the perceived abuse of consumers, some states began taking measures to contend with fraudulent business practices in the travel industry.

There are 17 states including the District of Columbia that impose some type of regulation on travel sellers and tour operators.

Why does the consumer need protection from travel sellers?

Consumers need protection from misrepresentation and selling of services that are not available.

States with travel seller and/or tour operator regulations

California Delaware District of Columbia Florida Hawaii Illinois Iowa Louisiana Massachusetts

Minnesota Missouri Nevada New York Oregon Pennsylvania Virginia Washington

Who are Sellers of Travel?

The definition of seller of travel varies from state to state.

California’s law says: A seller of travel is defined as a person who sells,

provides, furnishes, contracts for, arranges, or advertises that he or she can or may arrange, or has arranged, wholesale or retail, either of the following:

1. Air or Sea transportation2. Land or water vessel transportation

Can I leave the room?

The law applies to all travel agencies and tour operators (regardless of where the companies are physically located) who conduct business with consumers in any of these states.

Social media and websites allow you to reach beyond the borders of your state. Be aware of who you are reaching with your marketing initiatives.

Three common provisions for the 17 regulated states

States requiring sellers of travel to register States requiring financial security States offering exemptions

States requiring registration for sellers of travel.

Registration exceptions (only the following must register)

Missouri: travel clubs Virginia: travel clubs Washington, DC: tour guides

States requiring financial security

States offering exemptions

Disclosures

In addition several states require all travelers to receive a disclosure prior to purchase.

California and Washington are examples

Why register?

It is the law. In some states, seller of travel registration numbers

must be displayed on all marketing media, including websites, social media sites and other traditional advertising methods.

If you have home based employees located in any of the regulated states, you need to be registered.

If your website has potential to reach consumers in any of the regulated states, you need to be registered.

What happens if I don’t register?

Trends in regulation

In the last few years several states have relaxed or dismantled seller of travel restrictions. This can berelated to:

Ineffective lawsCompliance purely from law abiding business

peopleNoncompliance from crooks who do not care

about enhanced noncompliance penaltiesProgram costs

Where can I find more information?

ASTA is an excellent source of information on seller of travel regulation.

www.asta.org

See handout for state regulatory office information