Updated ARC Agent Reporting Agreement Takes Effect July 1

The updated version of ARC’s Agent Reporting Agreement will go into effect as scheduled on July 1. The modernization of the agreement, announced a year ago, was achieved with the help of agencies, airlines, and agency trade associations.  

The new version will simplify several processes for travel agencies:

•    It will allow an agency to retain its ARC number if it moves across state lines.

•    It will allow multiple ARC numbers within an agency at one physical address to facilitate the agency’s accounting systems.

•    A new Associate Branch Location classification allows an agency to add branch offices not fully owned by the home office.

•    Auto-authorization for “zero reports” will relieve an agency from manually submitting a no-sales report.

•    The draft/credit window is reduced from 10 to five days; 55% of agencies will receive a credit faster each month.

Automatic transmission for agencies
The agreement itself has been reduced from 56 to 18 pages and is written in easy-to-understand language.

Agencies and airlines currently covered under the present ARA will be transitioned automatically to the amended agreement if they continue to participate in ARC’s settlement services on July 1.

The ARA is the three-party contract between travel agencies, ARC and ARC’s participating carriers. It defines the requirements to receive and maintain ARC accreditation and participation.

ARC said the initial version, written in the early 1980s, had become unwieldy and out of step with all three parties’ current business needs.