Can I get a refund if a travel agency goes out of business?

What the Law Says

California law requires licensed travel agencies to participate in the Travel Consumer Restitution Fund (TCRF), which provides limited refunds to consumers when agencies go out of business or fail to deliver prepaid travel services.

The TCRF is administered by the California Attorney General’s Office. It protects consumers who paid for travel services (like flights, hotels, or tours) that were never provided because the agency ceased operations, became insolvent, or committed fraud.

To qualify, the travel agency must have been licensed by the State of California *and* enrolled in the TCRF at the time you made your purchase. Not all agencies are enrolled — you can verify participation using the Attorney General’s online TCRF lookup tool.

Refunds are capped at $25,000 per claimant and cover only the amount you actually paid for unused, prepaid travel services. The law does not cover incidental losses like cancellation fees, missed work, or emotional distress.

Statutory Text

Any person who has sustained a loss as a result of the failure of a licensee to provide travel services for which payment has been made may file a claim with the Administrator for restitution from the Fund.

— Business and Professions Code, § 17553.5 — Claims against the Fund

Statutory Text

The maximum amount payable to any one claimant shall not exceed twenty-five thousand dollars ($25,000).

— Business and Professions Code, § 17553.5 — Claims against the Fund

Statutory Text

A claim shall be filed within 90 days after the date the licensee ceases to do business or the date the claimant first learns that the licensee has failed to provide the travel services.

— Business and Professions Code, § 17553.5 — Claims against the Fund

What to Do

Sources