Explaining ARC to people outside the industry or who are new to it can be tough. So first things first: ARC is a travel agency accreditation company that only works with US agencies. That’s their base. ARC is owned by airlines, and was created to handle financial transactions between agencies (thousands of them) and airlines (hundreds of them). We’re talking transactions to the tune of $88 billion in 2015. Whoa.
ARC is like the accounting arm of the airlines: You buy a ticket, that money goes directly to ARC, and then ARC sends the moola to the airlines. And it’s not a one-way street either. If you book a ticket that earns commissions (more on agent commissions here), the airlines pay the commission to ARC, who sends that money back to you.
And just like with Visa (sorry to harp on the credit card metaphor), if you have a beef with fraudulent activity on your card, you call VISA—not the merchant directly. The same goes for ARC—they broker interactions between agencies and airlines. ARC has three accreditation options:
- Who is it for? At its most basic, ARC travel agency accreditation is for U.S.-based travel agencies (or host agencies) that book air through the GDS. The application is rigorous, so if you’re a travel agency that primarily sells leisure, straight up ARC might be too big a tool (and you could check out ARC’s VTC as an alternative).
- Countries Applicants Accepted From: United States, Puerto Rico, American Samoa, Guam, U.S. Virgin Islands
- Travel Agency Accreditation Cost: $2,000 application fee (includes $210 annual fee) and $210 annual fee. Additionally, ARC requires one employee to serve as an “ARC Specialist” (AS). That appointed employee must pass the ARC Specialist Qualifier Exam (ASQ). The Exam runs $250, with optional classroom training for $300.
- Application Requirements:
- A background credit check
- Submission of a tax ID number and required state licenses
- Submission of a Personal History Form for owners and officers
- An establish bank account with ARC
- Bond, letter credit, or cash deposit of $20,000
- Office must have an ARC Specialist Qualifier (ASQ), Manager and Administrator for MyARC (Don’t worry! It can be the same person!)
- Onsite interview with agency owners—ARC representatives will run through the Agent Reporting Agreement (ARA) requirements, overview ARC benefits and make sure the application is complete and accurate.
- Notification Time: 10 days initially to review application; 60-90 days to complete interview and notify the applicant of the decision.
- Number of Agencies ARC-Accredited: 12,645 (7,050 separate entities—total number includes branches)
ARC Sound Bite: Learn about the program directly from ARC!
- Who is it for? ARC’s VTC is a non-ticketing alternative to ARC. It’s a lower cost accreditation and is good for independent travel agencies (no branches) who a.) don’t book a lot of air but b.) want supplier recognition/ to book directly through vendors.
- Countries Applicants Accepted From: United States, Puerto Rico, American Samoa, Guam, U.S. Virgin Islands
- Travel Agency Accreditation Cost: $105 application fee and $195 annual fee (prorated first year). :
- A background and credit check
- The submission of a tax ID number and required state licenses
- The submission of a Personal History Information Form for owners and officers
- An established bank account with ARC
- The return of all stock and plates (if applicable)
- Follow-up communication with agency owner.
- Notification Time: 10 days to review application; 30 days to complete interview and notify of the decision.
- Number of VTC-Participants: 1,723
VTC Sound Bite: Learn about the program directly from ARC!
3. Corporate Travel Department, ARC’s CTD:
- Who is it for? ARC’s CTD is similar to traditional ARC but is specifically for businesses that regularly issue airline tickets to their employees and only their employees. (For example, a pharmaceutical company that sends employees to multiple conferences or a wedding planner that wants to scout destinations). A CTD is useful for businesses that book a high volume of air for their employees. CTDs can either invest in their own GDS or hire a third party (like a travel management company) for booking tickets.
- Countries Applicants Accepted From: United States, Puerto Rico, American Samoa, Guam, U.S. Virgin Islands.
- Airline Ticketing? Yes. CTDs don’t need to have GDS. They can outsource their ticketing to a third party.
- Travel Agency Accreditation Cost: $3,000 application fee and $206 annual fee. Additionally, ARC requires one employee to serve as an “ARC Specialist” (AS). That appointed employee must pass the ARC Specialist Qualified (ASQ) Exam. The Exam runs $250, with optional classroom training for $300.
- Application Requirements:
- An IRS Employer Identification Number (EIN).
- A bond, letter of credit or cash deposit in the minimum amount of $20,000.
- The office must be an ARC Specialist Qualifier (ASQ) and a Manager Qualifier (MQ). Donot worry! The MQ and ASQ can be the same person!
- Notification Time: 10 days to review application; 60-90 days to complete interview and give notice of their decision.
- Number of Agencies CTD Accredited: 143
Insider Info: Primary reason travel agency accreditation is denied? The agency doesn’t meet the requirements of the Agent Reporting Agreement (ARA). It’s a very very long list with tons of legal mumbo-jumbo—but essentially if you’re eligible for accreditation and forthcoming in your application, you should be in good shape.
