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Airlines Reporting Corporation surety bonds are in place to ensure travel agents fully and properly pay the ARC, rail, and airline companies for any tickets or transactions made via the ARC’s GDS (global distribution system). In addition, the surety bond protects the ARC and Carriers from unethical business activity, including theft and fraud, by a travel agent or agency.
The Airlines Reporting Corporation requires a surety bond to be posted in order to become an ARC Accredited Travel Agency. Therefore, the Obligee on the bond is the Airlines Reporting Corporation.
The ARC bond is continuous and runs in full force from the effective date until canceled, which can be done with 30 days notice to the Obligee from the Surety company. The bond will be renewed and billed for on an annual basis for as long as the agency maintains their ARC accreditation. It is likely that variations on business volume each year will require a different bond amount than the previous year.
What you will need to submit to become a new accredited agency:
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