ARC comes up early in almost every conversation about starting a US travel agency, and it is usually misunderstood in one of two ways. New agents either assume they need their own accreditation before they can sell anything, or they assume it is a rubber-stamp formality. Neither is right. ARC accreditation is a financial and administrative commitment aimed at agencies that want to issue airline tickets on their own number, and plenty of successful agents never apply for it. This guide covers what ARC is, what it costs, what applying actually involves, and how to decide.
What ARC Is and What It Does
The Airlines Reporting Corporation (ARC) runs the settlement system between US travel agencies and the airlines they sell for. When an accredited agency issues a ticket, ARC collects the sales from the agency and passes the money to the airline. Sales are reported and settled in weekly periods, which is why accreditation comes with discipline around reporting deadlines and cash management rather than just a number on your letterhead.
ARC describes accreditation as the step that enables a US agency to issue airline tickets. In practical terms, if you want to ticket on ARC-settled airline stock under your agency's own authority, you need an ARC number. Without one, you either work under another agency's number or send the ticketing elsewhere.
The Real Costs of Applying Directly
These are the figures ARC publishes for new applicants. Check them at ARC before budgeting, because fees and rules are revised.
| Item | Requirement |
|---|---|
| Application fee | $2,300, non-refundable |
| Financial instrument | At least $20,000 as a surety bond, irrevocable letter of credit or ARC cash security deposit, in the agency's legal name |
| Foreign-domiciled parent | Minimum of $150,000 if the parent entity is outside the US |
| Location | In, and authorised to do business in, the US, US Virgin Islands, Puerto Rico and/or American Samoa |
| Staffing | A designated agency manager and an ARC Specialist who must pass an ARC exam before accreditation is granted (one person can hold both roles) |
Two details are easy to miss. First, the financial instrument amount is calculated under ARC's rules and reflects average total cash sales, with one instrument covering the home office and all branches. A larger agency can be asked for more than the $20,000 floor. Second, the minimum applies for two years, after which it may drop to $10,000 unless the Agent Reporting Agreement requires more. The cash security deposit option is a one-time bank wire with no financial statements, credit reports or annual fees, while a bond or letter of credit involves a surety or bank and its own charges.
What the Application Package Looks Like
ARC wants proof of the business and the people behind it. Expect to assemble:
- Business structure documents, such as articles of incorporation or organisation, an LLC operating agreement, a partnership agreement or a fictitious name certificate
- Signed, notarised personal history forms for each owner, officer, director, partner, member and the agency manager
- An IRS confirmation letter or Form W-9, and any business licences or permits your jurisdiction requires
- A bank signature card or a signed notice from your bank, plus a lease or title for the operating location
- Prior-year business tax filings and a financial statement, with audited statements preferred
ARC's published requirements give no standard processing time, so don't assume one. Build slack into your launch plan, and don't promise clients ticketing on your own number until the number is in hand.
Worked Example: Own Number or Host?
For illustration, imagine two hypothetical agents.
Dana is leaving a corporate travel desk to start a home-based leisure business. She expects to issue maybe 30 tickets a month in year one. The application fee, a $20,000 instrument she has to fund or secure, ARC exam preparation and the weekly settlement discipline add up to a heavy load for her volume. She joins a host agency and sells under its number, paying a commission split. In year three, with steady corporate clients and 200 tickets a month, she reconsiders.
Marcus already runs a four-person agency with steady ticketing through a consolidator and a track record of clean books. The consolidator margin and the lack of control over servicing frustrate him. For his volume, an ARC number gives him direct airline relationships and control over his own settlement. The cost is justified by what he currently gives away.
Ask yourself what your ticketing costs you today: consolidator mark-ups, host splits, delayed refunds. If that total is smaller than the annual cost of staff time, bond fees and compliance work, stay where you are.
The Middle Option: ARC's Verified Travel Consultant Program
ARC offers a lower-cost entry called the Verified Travel Consultant (VTC) program, with an application fee of $195. It gives individuals an ARC number and industry recognition without ticketing authority; ARC says holders can later apply for full accreditation to add ticketing. It suits an agent who mostly sells cruises, tours and hotels and wants credibility with suppliers, not the ability to issue airline tickets. Confirm the current scope on ARC's site, because the program has evolved since it launched.
Selling Under a Host Agency Instead
| Path | Who it's for | Ticketing |
|---|---|---|
| Own ARC accreditation | Established agencies with real ticket volume | Issue directly under your own number |
| Verified Travel Consultant | Non-ticketing agents wanting an ARC number | No airline ticketing |
| Host agency's ARC number | New, independent or home-based agents | Handled under the host's accreditation, on the host's terms |
A host's number is a convenience, not a free pass. You accept the host's commission split, preferred suppliers and rules, and you need to understand who is responsible if a ticket is mis-issued or an airline raises a dispute. Our guides to choosing a host agency and becoming a travel agent in the US cover the due diligence, and IATAN vs ARC vs IATA explains how the three bodies differ.
ARC Is Not a Licence
This catches people out. ARC accreditation is a commercial arrangement with the airline industry. It is not a government licence to operate as a travel agent. Some states have their own seller-of-travel rules. California, for example, requires sellers of travel to register with the Attorney General's office and renew annually; check your state's requirements separately, because accreditation does not settle them. Also separate is professional liability cover. Errors and omissions insurance is not something ARC lists among its accreditation requirements, but it is a sensible business protection and may be required by your host or suppliers. See our E&O insurance guide.
Common Mistakes
- Applying because it feels like a milestone rather than because the numbers justify it.
- Underestimating weekly settlement. Your cash flow has to cope with the agency being drafted for ticket sales on a fixed cycle, regardless of when clients pay you.
- Putting the financial instrument in the wrong legal name. ARC requires it in the agency's exact legal name.
- Treating the exam as a formality. The ARC Specialist must pass it before accreditation is granted.
- Quoting a $20,000 bond without checking whether your projected sales push the required amount higher.
Whether you ticket on your own number or a host's, the client still wants a clear document. A raw GDS record isn't one, and the free PNR converter turns it into a readable itinerary. This article is general information, not legal or financial advice, so confirm current requirements directly with ARC before you commit money.
Frequently Asked Questions
Do I need ARC accreditation to be a travel agent in the US?
No. You can sell travel without your own ARC number, for example under a host agency's accreditation or by selling non-air products. ARC accreditation matters if you want to issue airline tickets under your own agency's authority.
How much does ARC accreditation cost?
ARC publishes a non-refundable $2,300 application fee and a financial instrument of at least $20,000 (bond, letter of credit or cash security deposit) for new applicants. The required amount can be higher depending on your sales or the location of your parent entity, so confirm current figures with ARC.
What is the ARC Verified Travel Consultant program?
It is an ARC program for non-ticketing travel professionals, with an application fee of $195. It gives an ARC number and recognition without airline ticketing authority, and holders can later apply for full accreditation.
Do I need a physical office to get ARC accredited?
ARC requires the agency to be located in, and authorised to do business in, the US, US Virgin Islands, Puerto Rico and/or American Samoa, and asks for a lease or title for the operating location. Confirm with ARC whether your specific set-up qualifies.
Can I use a surety bond or must I pay cash?
ARC accepts a surety bond, an irrevocable letter of credit or an ARC cash security deposit. The cash deposit is a one-time wire with no financial statements, credit reports or annual fees, whereas bonds and letters of credit involve a third party and their charges.
Is ARC accreditation the same as a state seller-of-travel registration?
No. ARC accreditation is an industry settlement arrangement, not a government licence. Some states, such as California, have separate seller-of-travel registration, so check your state's rules.
Does ARC require errors and omissions insurance?
ARC does not list E&O insurance among its published accreditation requirements, but your host, suppliers or your own risk assessment may call for it. It is worth reviewing separately.
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