What is an ARC Number?


What is an ARC Number?

If you’re new to the travel industry, the amount of numbers we have that are in cryptic acronym form is a bit disturbing. CLIA, IATAN, ARC, and more… blech! It’s complicated but I’ll do my best to give you all the details. What is an ARC number, you ask? I’ll tell you.

What is an ARC Number?

In broad terms, think of it as a social security number for a travel agency so they can be identified by vendors. Don’t want to be plastering it all over or putting it in your email signature, but at the same time, you give it out to an uncomfortably large amount of people for it being a number with so much power.

ARC (Airlines Reporting Corporation) gives out these the ARC numbers to accredited agencies and it allows those travel agencies to issue airline tickets. The use of an ARC number extends beyond air tickets. Travel agencies will use it to book everything from a hotel to a cruise ship.

When it comes to booking, ARC numbers are the Visa cards of travel numbers. They’re accepted by every type of vendors/suppliers that works with travel agents. Little secret, that’s not always the case with some of the travel agency ID numbers out there. For instance, CLIA agencies (without ARC accreditation) cannot issue airline tickets. Makes sense since CLIA numbers were designed specifically for cruise-focused travel agencies.

Who Uses an ARC Number?

Short answer: It was a necessity for travel agencies at one point in time.  Most air ticketing agencies have an ARC number but  non-airline ticketing agencies may use a variety of other accreditation numbers including CLIA, VTC (through ARC), IATAN non-ticketing entity, or TRUE accreditations.

Long answer: Back in the day, an ARC number was an absolute necessity if you had a travel agency. Not the case today. The number of ARC accredited travel agencies has plummeted. In 1995, ARC had 47,000 accredited travel agency locations with $73 billion in sales. In February 2012, the number of travel agencies holding an ARC number was expected to fall below 14,000 for the first time.  An undeniable drop in accreditations due to fewer agencies and other accreditation options but there is one small factor to mention.  Don’t quote me on the exact date of the change, but travel agencies previously had to have an ARC number for every branch and satellite ticketing printer.  Now days, you can have one ARC number regardless of the number of branches or satellite printers.

Many agencies that previously needed the GDS have dropped their accreditation due to expenses and the disappearance of airline commissions. Some agencies completely stop issuing airline tickets and shut up shop or opted for other accreditations.  Some agencies ticket under their host agency’s accreditation number.

The Complexities of ARC Accreditation: Not for Everyone

ARC numbers are not needed for every type of travel agency. If you’re a home based travel agent or storefront agency that only books leisure travel (no air), having your own ARC number is overkill. For those agencies that have small air ticket sales, having your own ARC number is expensive, time intensive, and can be risky.  There are fees and the ARC report that needs to be filed and reconciled weekly.  You run the risk of fraudulent ticketing activity occurring with your ARC that you are held financially responsible for.

Due to the financial risk involved with booking airline tickets, ARC requires an in-depth screening process (including an on-site visit and a financial survey). You will also need to pass an exam. At of the time of writing, ARC accreditation has a $1600 price tag to start up and a $195 annual renewal fee. Did we mention that there is a minimum $20,000 bond, letter of credit or cash deposit you have to put up?  We’re not hating on the fees, airline fraud is rampant and we’d take preventative measures too.  What we are saying is you need to be ready to dole out some cash if you want an ARC number.

Positives of Having an ARC Number

Despite everything above, there are many positives to having your own ARC number. I won’t go in-depth since my target audience is travel agencies aligned with host agencies and I believe there are very few of my readers that this would be a good idea for.

But, lest someone call me biased, I’ll give a positive. For agencies with high segment counts in the GDS (global distribution system), there are financial incentives from both the GDS and the airlines for your sales. There’s a reason the remaining ARC accredited agencies sales are growing larger and larger!

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Closing

Steph Lee TravelIATA, CLIA, ARC , and TRUE are all accreditation numbers with subtle, and sometimes not-so-subtle, differences.  Hopefully my series of posts on what an ARC number is and what a CLIA number is will help you navigate the murky waters of travel ID numbers!

If you still don’t feel up to speed, ask your question in the comment box below and we’ll get you on the right path. :)

 

Sources:
http://www.arccorp.com/aboutus/milestones.jsp
http://www.travelagentcentral.com/trends-research/agency-locations-continue-decline-while-sales-soar-33838

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