Airlines Reporting Corporation

From Wikipedia, the free encyclopedia
Jump to: navigation, search
Airlines Reporting Corporation
Arc-blue logo.jpg
Abbreviation ARC
Formation January 1, 1985 (1985-01-01), Washington, D.C.
Type Private
Purpose Financial and Data services to the travel industry.
Headquarters Arlington, Virginia
Membership 200 airlines, 9,400 travel agencies, 15,000 points of sale
Key people
  • Mike Premo (President and CEO)
  • Bonnie Reitz (Chairman of the Board)
Website arccorp.com

The Airlines Reporting Corporation (ARC) serves the travel industry by providing ticket transaction settlement services between airlines and travel agencies (both traditional and online) and the travel management companies that sell their products in the United States. ARC, which is owned by nine major airlines, also offers its transactional data within various industries, including financial, to help them gain better insight into the airline industry. ARC assists more than 9,400 travel agencies with 13,000 points of sale and 200 airlines to easily engage in commerce. In 2013, ARC processed more than $86 billion[1] worth of transactions for its customers. ARCLabs is a research and development initiative within the company that focuses on developing new products and providing analytical insight using ARC airline ticketing data. [2]

History[edit]

ARC was established on September 17, 1984 as a close corporation following airline deregulation in the United States. The corporation began operations on January 1, 1985 in Washington, D.C., settling financial ticket transactions between airlines and travel agencies. ARC is the successor to the Air Traffic Conference of America, an operating division of Airlines for America,[3] formerly known as the Air Transport Association of America, Inc. (ATA).

Mission[edit]

ARC's primary mission is to support the travel industry by providing transaction settlement between travel suppliers and resellers. The corporation also accredits travel agencies in the United States to sell airline tickets, and provides data information services and analysis based on archived aggregated data.

Products and services[edit]

Accreditation Services ARC plays an important role for airlines by accrediting travel agencies, including online and corporate, to sell air tickets. Accreditation involves understanding the financial health of an agency, among other factors, to make sure the agency is qualified.

Ticket Reporting Agency Ticket Reporting Agency (TRA)-accredited travel agencies have the authority to directly issue airline, bus, and rail tickets through a global distribution system (GDS). TRAs have access to ARC's financial settlement service, as well as to numerous travel agency tools, including ARC's credit card and service fee processing program, and fraud prevention solutions. The TRA program provides travel agencies with the ability to process tickets directly and independently.

Verified Travel Consultant The Verified Travel Consultant (VTC) program was created for the growing number of agencies that do not directly issue airline, or rail tickets through a GDS. VTC program members include full-service agencies that focus primarily in leisure travel. These agencies often secure air accommodations through alternative methods.

Fraud Prevention ARC fraud analysts work in partnership with travel agents, airlines, law enforcement, and GDSs to minimize financial losses within the U.S. travel agency channel. When fraud is detected, ARC alerts travel agents and acts as an investigative support and educational resource.[4]

ARC MarketPlace [5] ARC MarketPlace is a website offering travel resellers a collection of destination products and services to offer their clients.

Data and analytics[edit]

ARC offers airline ticket transaction data to various industries including travel, financial, and the news media. ARC information is based on closed ticket transactions, as opposed to bookings, that are initiated within the United States. These closed transactions are an accurate measure of airfare costs and airline passenger volume trends. In June 2012, ARC, in partnership with IATA, began offering DDS (Direct Data Solutions),[6] containing global airline ticket transaction data derived from direct airline purchases from ARC and IATA's Billing Settlement Plan (BSP) with direct ticketing data contributed by participating carriers.

ARC DataXpert Market Intelligence (ADXMI) ADXMI is used to retrieve ticket transaction data back to January 2008, and can be used to analyze historical ticketing information as well as future travel. ADXMI assists in the analysis of airline ticketing settlement data for an organizational planning and budgeting. ARC designed ADXMI for route planners, sales and marketing departments, and others who make decisions regarding airline passenger itineraries.

Agency List Pro [7] Agency List Pro provides current information about travel agencies that provide users the ability to analyze a particular agent's market position. Destination Marketing Organizations (DMO)[8] can also narrow their focus and strengthen ties with agencies selling their specific destination using Agency List Pro.

Market Locator [9] Market Locator helps marketers and planners optimize marketing spend, using a dashboard indicating airline ticket purchaser locations. Through a combination of the geographic location of the airline ticket purchaser, flight itinerary and other information, Market Locator can provide insight into U.S. air passenger purchase and travel behavior. Market Locator provides a data sample that mirrors consumer behavior in the broader travel industry. Answers to these questions can be applied to a range of uses, including market analyses, revenue leakage and diversion studies, media buying strategies, marketing effectiveness, and competitive benchmarking.

FareSight [10] FareSight allows corporate travel departments to analyze and compare their company's air fare costs compared to the general business market. This is helpful in building travel budgets and optimizing corporate travel programs. Data used in FareSight comes from ARC's Compass data warehouse. FareSight also analyzes a company's travel patterns and compares those patterns with the overall market, and profiles its travelers' preferences based on actual ticketed travel.

Process and financial management[edit]

ARC Ticket Resolution Service (TRS)[11] TRS helps ARC participating carriers account for and collect payment for used ARC unreported tickets and carrier-identified credit card chargeback ticket transactions.

ARC Document Retrieval Service (DRS)[12] DRS is a paperless record-keeping system for ARC participants that delivers immediate online access to more than three years of Interactive Agent Reporting (IAR) ticketing data.

Memo Manager[13] Memo Manager provides a means to resolve and collect debit memos. The online memo processing and settlement system gives carriers real-time access to memo status, and agencies can make full or partial payments in the Interactive Agent Reporting (IAR) system. Memo Resolution Service (MRS) manages debit memos starting 10 days after the memo is issued, and continuing until 90 days after issuance. Third Party Resolution Services (TPRS) offers debit memo collection efforts once a memo ages past 90 days. MRS and TPRS functions can be combined.

Agent's Choice[14] Agent’s Choice is a Web-based credit card processing tool that travel agents can use to get paid for all travel-related charges and service fees using their customer's credit card. These charges can include management of consolidator tickets, packages, deposits, and all other types of travel-related charges.

Shareholders and board member companies[edit]

Shareholders:

Additional board members:

Awards[edit]

  • DM Review (now Information Management)] World Class Solution Award - 2006.[15]
  • TDWI Best Practices Award - 2007, 2008, 2009.[16]
  • Washington Business Journal's Healthiest Employers, Washington, D.C. 5th Place - 2011.[17]
  • Travel Weekly Magellan Awards 2013.[18]

Controversy[edit]

On December 13. 2007 the American Society of Travel Agents, Inc., Carlson Travel Network Associates, Inc. and Uniglobe Travel USA, LLC (ASTA or travel agents) filed a Notice of Appeal from the December 6. 2007 decision of the Board of Directors of Airlines Reporting Corporation (ARC) which increased the annual administrative fees ARC charges travel agents. ASTA requested that the Independent Arbitration Panel (IAP) issue an order that the new fee structure adopted by ARC be rescinded retroactive to December 31, 2007.[19]

The ability to challenge a decision of the ARC Board of Directors before the IAP stemmed from the settlement of earlier litigation, Association of Retail Travel Agents, Ltd. v. Air Transport Association of America, 623 F.Supp. 893 (D.D.C. 1985). In particular, Section 11 of that settlement agreement provided that “all future fees will be subject to review by the Independent Arbitration Panel (“IAP”), taking into consideration the level of costs and a fair allocation of costs between carriers and agents.”

A hearing was held in Washington, D.C. on June 7 and 8, 2008. Post-hearing briefs were filed by ARC and ASTA on June 18, 2008. IAP decided that ARC had not met its burden of proof to show that the new annual administrative fees adopted by ARC on December 6, 2007 represented a fair allocation of costs between carriers and agents. The IAP ruled in favor of the American Society of Travel Agents (ASTA) and its co-appellants, Carlson Travel Network Associates and Uniglobe Travel USA.[20]

References[edit]

External links[edit]