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ARC (Airline Reporting Corporation) is a corporation jointly owned by most U.S. Airlines.  Many non-owner carriers, both domestic and foreign also participate in the ARC program.  ARC appoints (approves) new travel agencies for the sale of domestic airlines tickets.  ARC is also responsible for monitoring travel agency standards of operation.  ARC supplies ticket stock, assigns ticket numbers to travel offices.  The offices must comply with strict security procedures specified by ARC.  ARC has the power to close a travel agency for failure to follow specified operating regulations.  Money from domestic and international airline tickets, as well as from certain railroads, sold by travel agencies is collected by ARC and is then distributed to the appropriate airline or railroad, through the corporations Area Settlement program.

Any airline (or railroad) is eligible to use ARC’s services upon signing a Carrier Services Agreement and meeting ARC’s requirements.  At the end of the second quarter of 2001, ARC had 37,317 accredited travel agency locations (travel agent retail and satellite ticket printer (STP) locations), 91 ARC accredited corporate travel departments (CTD), 134 participating air carriers, and 3 participating railroads.  

BSP (Billing and Settlement Plan) is essentially the same as ARC, but is mostly used internationally.  It is a system designed to facilitate and simplify the selling, reporting and remitting procedures of IATA Accredited Passenger Sales Agents, as well as improve financial control and cash flow for BSP Airlines.  

Apply Your Knowledge

Settlement Processing Services (SPS) is the TRX Department that manages the relationship of TRX with ARC.  This department falls under the TRANXACT Solution and is managed by Rita Anderson, Manager Settlement Processing.

Module Summary

In this module, we have covered the following:

Travel-related organizations and associations

Introduction To Travel10 of 57

Concepts and TerminologyConfidential, TRX Inc.7 November 2007

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