If you’re an airline travel agent or agency seeking accreditation with the Airlines Reporting Corporation (ARC), obtaining an ARC Surety Bond is a critical step. This bond ensures financial protection for airlines, clients, and ARC while helping agencies operate in compliance with ARC’s strict requirements.

How Much Does an Airlines Reporting Corporation Bond Cost?

The cost of an ARC Surety Bond varies based on your agency’s financial health, credit score, and the required bond amount. Typically, ARC requires a bond amount of $20,000 to $70,000, depending on the agency’s size and sales volume. The premium for this bond is a small percentage of the bond amount, ranging from 1% to 5% annually.

For example:

• • A $20,000 bond with a 2% rate costs around $400 per year.
  • Agencies with excellent credit and financial records pay lower premiums, while those with weaker credit may face higher rates.

Why Do I Need an Airlines Reporting Corporation Bond?

The ARC Surety Bond protects the Airlines Reporting Corporation and participating airlines from financial losses caused by an agency’s misconduct or noncompliance. It ensures that travel agents:

• • Properly report and remit airline ticket sales and taxes.
  • Follow ARC’s regulations and ethical standards.
  • Fulfill financial obligations to airlines in case of errors or disputes.

Without this bond, agencies cannot secure ARC accreditation, which is essential for selling airline tickets directly.

Who Requires Me to Have an ARC Bond?

The Airlines Reporting Corporation (ARC) requires travel agencies and agents to secure an ARC Surety Bond as part of their accreditation process. ARC acts as the intermediary between accredited travel agencies and airlines, ensuring streamlined transactions and financial accountability.

Does an Airlines Reporting Corporation Bond Renew Every Year?

Yes, the ARC Surety Bond must be renewed annually. During the renewal process, the surety provider will re-evaluate your agency’s financial status and credit history to determine the bond premium for the following year.

Agencies are responsible for maintaining an active bond to keep their ARC accreditation in good standing. Failure to renew the bond can result in:

• • Suspension or revocation of ARC accreditation.
  • Inability to sell airline tickets.

How Do I Get an Airlines Reporting Corporation Bond?

The process to secure an ARC Bond is straightforward:

1. 1. Determine the Bond Amount: ARC will inform you of the required bond amount during the accreditation process.
   2. Find a Trusted Bond Provider: Work with a reputable surety company experienced in ARC Surety Bonds.
   3. Complete an Application: Provide details about your business, financial history, and credit score.
   4. Receive a Quote: The provider will offer a premium based on your qualifications.
   5. Pay for the Bond: Once approved, pay the premium to finalize the bond issuance.
   6. Submit the Bond to ARC: File the bond with ARC to complete your accreditation requirements.

Getting Accredited with ARC

ARC accreditation is essential for travel agencies to issue airline tickets directly. Here are the steps to becoming accredited:

1. 1. Submit an Application: Complete the ARC application form and provide required documents, including business licenses and financial statements.
   2. Secure the ARC Bond: Meet ARC’s financial security requirements by purchasing the required surety bond.
   3. Pass ARC Evaluation: ARC will review your application, financial stability, and compliance history.
   4. Receive Accreditation: Once approved, you can start issuing airline tickets and conducting business with participating airlines.

Why Choose Innovative Bonding Services?

At Innovative Bonding Services, we make obtaining an ARC Surety Bond simple and hassle-free. Here’s why travel agencies trust us:

• • Competitive Rates: Get affordable premiums, even with credit challenges.
  • Quick Approvals: Secure your bond quickly to keep the accreditation process on track.
  • Expert Support: Our team guides you every step of the way.