Overview of the Airline Reporting Corporation

Airlines use ARC for ticketing
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ARC stands for the Airline Reporting Corporation. The Airline Reporting Corporation is an airline-owned company that provides information and transaction services for the travel and hospitality industry. ARC processes many of the tickets that business travelers purchase for airline flights and more.

Details

Basically, you can think of the ARC as a clearinghouse for processing the transactions (money or credits exchanging hands) for airlines, hotels, travel agencies, corporate travel departments and more.

The organization processes close to $90 billion each year. It's basically a back-end technology company that services the airlines and travel industry.

The key services that ARC provides include financial services, data products, and ticket distribution. It operates primarily in the United States, along with territories such as Puerto Rico, the U.S. Virgin Islands, and American Samoa.

In addition, ARC provides accreditation for travel agencies and corporate travel departments.

History

The Airline Reporting Corporation was established in 1984 as part of the process of airline deregulation. It was set up as a private company whose purpose was to settle transactions among different airlines. It currently handles both traditional transactions as well as online transactions.

ARC works with over 200 airline carriers and 14,000 travel agencies. It provides over 25 products for the travel industry. 

ARC Products and Services

Since its founding as the agency of record for transaction settlements, ARC has grown to include a wide range of other products and services, including ones that provide information and intelligence on the travel industry.

ARC's products and services currently include the following:

  • ARC Marketplace: The ARC Marketplace is a travel website that allows travel agents and others to provide and book a wide range of travel services, including things like car rentals, activities at travel destinations, airport transfers, and more.
  • ARC Travel Agency Service Fee: The ARC Travel Agency Service Fee product is a program for processing credit cards for travel agencies. It allows travel agents to accept credit cards for a wide variety of travel-related products and services.
  • Direct Data Solutions: ARC's Direct Data Solutions is a product that provides access to information on the global airline market. It includes travel agency sales data from two main travel industry settlement processors (ARC and IATA). Direct Data Solutions can be used by travel industry professionals to gain insight and information for making better strategic, as well as tactical, decisions.
  • Faresight: ARC's Faresight product provides information on the airline ticketing industry. It can be used by airlines (or other companies) to optimize their services and pricing. It can be used by companies to analyze their air travel spending patterns and identify possible savings opportunities by a carrier.
  • ARC Memo Manager: The ARC's ARC Memo Manager product helps organizations improve their settlement processing process as well as automating paper memo distribution. It also allows organizations to process credit and debit memos.