What is an Airline Reporting Corporation Bond?
An Airline Reporting Corporation (ARC) Bond is a type of surety bond required by airlines the Airlines Reporting Corporation for travel agencies who access the ARC system for the distribution of airline tickets. The surety bond guarantees that the travel agent properly forwards payment for airline ticket sales when proceeds are received by the agency. The Airlines Reporting Corporation (ARC) serves airlines, travel agents and corporate travel departments, processing the majority of travel ticket sales worldwide.
If you are looking for a bond required by a state government for travel agents, tourism professionals and other parties involved in facilitating travel arrangements for consumers, you may need a different surety bond called a Seller of Travel Bond.
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What Does the Airline Reporting Corporation (ARC) Bond Protect Against?
The bonded principal is entering into an Agent Reporting Agreement (ARA) with the ARC. The surety bond guarantees payment of all amounts owed by the bonded principal to the airline carriers or to ARC for tickets or other instruments of value issued on ARC traffic documents.
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