If your agency wants to issue airline tickets independently in the United States, you’ll need ARC accreditation. The Airlines Reporting Corporation (ARC) is the body that settles ticketing transactions between U.S.-based travel agencies and the airlines they sell — and without it, you’re stuck routing every booking through a host agency or consolidator and giving up a share of the commission. This guide walks through what ARC accreditation is, who needs it, what it costs, and exactly how to apply in 2026.
What Is ARC Accreditation?
ARC was established in 1984 and is jointly owned by a group of major U.S. airlines. It functions as the settlement and reporting authority for ticket transactions between accredited travel agencies and the airlines they book — similar in role to IATA’s Billing and Settlement Plan (BSP) used outside the United States. ARC accreditation covers agencies registered and authorized to do business in the United States, Puerto Rico, the U.S. Virgin Islands, and American Samoa, and gives accredited agencies the ability to ticket directly with several hundred partner airlines.
Why Your Agency Needs ARC Accreditation
- Direct ticketing authority — issue and settle airline tickets without routing through a host agency or consolidator.
- Industry credibility — your agency appears on ARC’s official Agency List, which suppliers and airlines recognize without additional vetting.
- Commission retention — you keep the full commission instead of splitting it with a host agency that holds the accreditation on your behalf.
- Data and reporting access — ARC accredited agencies can access aggregated air transaction data and reporting tools to benchmark performance.
- Supplier partnerships — many GDS platforms, bed banks, and tour operators treat ARC accreditation as a baseline credibility check before extending preferred terms.
ARC vs IATAN: What’s the Difference?
This is where most new agency owners get confused. ARC and IATAN are related but distinct:
- ARC is the settlement plan — it’s what allows your agency to actually issue and pay for airline tickets.
- IATAN (International Airlines Travel Agent Network) is a separate accreditation primarily used to establish industry recognition with non-airline suppliers — hotels, tour operators, cruise lines — and to issue ID cards to your agents.
Many agencies pursue ARC accreditation first since it’s required for direct airline ticketing, then add IATAN once they meet its (typically stricter) eligibility requirements. ARC and IATAN use the same underlying numbering system issued by IATA, so an agency holding both appointments will have a single shared agency number.
ARC Accreditation Requirements in 2026
Business & Location Requirements
Your agency must be a legally registered business entity authorized to operate in the U.S., Puerto Rico, the U.S. Virgin Islands, or American Samoa. You’ll need to provide entity formation documents (articles of incorporation or LLC operating agreement), an IRS Employer Identification Number, and any state or local business licenses applicable to your jurisdiction.
Financial Requirements
ARC requires a financial security instrument — a surety bond, letter of credit, or cash deposit — held under your agency’s legal name. The standard minimum is $20,000, though this is frequently reduced after an agency maintains a clean accreditation record for a period of time. A nonrefundable application fee also applies; budget a few thousand dollars for this stage of the process and confirm the current fee directly with ARC, since application costs are periodically adjusted.
Staffing Requirements
Every accredited location needs a designated ARC Specialist (AS) and an ARC Specialist Qualifier (ASQ) — these can be the same person. To qualify, that individual completes ARC’s Specialist Training and Certification Program and passes the corresponding exam. You’ll also designate an agency manager responsible for day-to-day compliance, who again can be the same individual.
Background & Compliance Checks
Owners, officers, directors, partners, and shareholders typically complete a notarized personal history form as part of the application, and ARC reviews these for any disqualifying history. Honesty and completeness on this step matter — incomplete or inconsistent disclosures are one of the most common reasons applications stall.
Step-by-Step: How to Apply for ARC Accreditation
- Confirm eligibility. Register your business entity in an eligible U.S. territory and gather your formation documents, EIN, and any required state licenses.
- Designate your ARC Specialist. Have your chosen staff member complete the ARC Specialist Training and Certification Program before you submit your application — most agencies start this well in advance, since the exam and certification take time.
- Secure your financial instrument. Arrange your bond, letter of credit, or cash deposit for at least the minimum required amount under your agency’s legal name.
- Assemble your application package. This includes entity documents, personal history forms for all owners and officers, proof of your financial instrument, and payment of the application fee.
- Submit and wait for review. ARC reviews submitted applications for completeness before scheduling the next step. Build in lead time — the full process commonly takes around 90 days from submission to approval.
- Complete your interview. An ARC representative will conduct an interview (in person or virtual, depending on your location) to walk through your Agent Reporting Agreement (ARA) obligations and confirm your application details before issuing accreditation.
Common Reasons ARC Applications Get Rejected
The most frequently cited reason for denial is failing to meet the terms of the Agent Reporting Agreement (ARA) — which is a dense, legally detailed document covering everything from financial responsibility to reporting obligations. Beyond that, applications commonly stall over incomplete personal history disclosures, financial instruments that don’t meet the minimum threshold or aren’t held in the correct legal name, and missing or inconsistent business registration documents. Reviewing the ARA carefully and working with your bonding company before you submit can prevent most of these delays.
How Long Does ARC Accreditation Take?
Plan for roughly 90 days from a complete application submission to final accreditation, though this varies based on application volume and how quickly you respond to any follow-up requests. Agencies that prepare their ARC Specialist certification, bonding, and documentation in advance — rather than starting each piece after submitting — tend to move through review faster.
ARC Accreditation vs. Joining a Host Agency
Not every agency needs to hold its own ARC accreditation immediately. Many new and smaller agencies start by booking under a host agency’s existing ARC number, trading a share of commission for access to ticketing, support, and supplier relationships without the upfront bonding and application costs. This is often the more practical starting point if you’re a newer leisure-focused agency with lower air ticketing volume. Once your booking volume and tenure justify it, pursuing your own ARC accreditation lets you retain full commission and operate independently.
How the Right Booking Technology Supports ARC Compliance
ARC accreditation is a regulatory and financial milestone — but staying compliant day to day depends heavily on the booking and reporting infrastructure behind it. An accredited agency needs to reconcile airline ticket transactions accurately, track agent and sub-agent activity, and keep clean financial records that match what ARC expects to see in your reporting.
This is where a unified booking platform makes a real difference. SoftCloud B2B gives ARC-accredited agencies centralized control over sub-agent credit limits, markups, and commission tracking, so your settlement data stays clean and auditable. Combined with SoftCloud IBE‘s direct GDS connectivity through Travelport and Sabre, your agency can issue and reconcile tickets through a single platform rather than juggling disconnected booking and accounting tools — which matters both for day-to-day operations and for staying in good standing with ARC’s reporting requirements.
Frequently Asked Questions
Do I need two years of experience to get ARC accredited?
Requirements vary by accreditation type and have changed over time, so this is worth confirming directly with ARC for your specific situation. Some related accreditations (like IATAN) explicitly require prior industry experience, while ARC’s core requirements focus more heavily on your financial instrument, staffing, and business registration. Don’t assume either way — verify against ARC’s current published checklist before you apply.
Can I sell airline tickets without ARC accreditation?
Yes — through a host agency or a consolidator that already holds ARC accreditation. You won’t retain the full commission, but it’s a common and practical way to start selling air travel before you’re ready for your own accreditation.
How much does ARC accreditation cost in total?
Costs include a nonrefundable application fee, your bond or letter of credit premium (often a small percentage of the bond amount if you go the surety bond route), and any state-specific licensing fees. Total upfront cost commonly runs from a few hundred to a few thousand dollars depending on your bonding terms — confirm current figures directly with ARC and your bonding provider, since fees are periodically revised.
Does ARC accreditation expire?
ARC accreditation itself doesn’t carry a fixed expiration date, but your designated ARC Specialist certification requires ongoing continuing education to remain valid, and your agency must maintain its financial instrument and good standing to keep accreditation active.
Final Thoughts
ARC accreditation is a meaningful commitment — in time, in upfront cost, and in ongoing compliance — but for agencies serious about independent air ticketing in the U.S. market, it’s the credential that unlocks direct airline relationships, full commission retention, and industry-wide recognition. Whether you’re applying for your own accreditation or operating under a host agency in the meantime, having booking technology that keeps your ticketing, reporting, and sub-agent management clean from day one will make the transition to full ARC compliance considerably smoother.
Want to see how SoftCloud Tec supports ARC-accredited agencies with GDS connectivity, multi-currency payments, and sub-agent management? Get in touch or explore our pricing plans.
