Airline Reporting Corporation (ARC) Bond
Overview
Airlines and travel industry partners need assurance that accredited travel agencies will pay for the airline tickets they sell. ARC — the Airline Reporting Corporation — requires this bond from travel agencies before granting them accreditation to issue and sell domestic airline tickets. Without it, your agency cannot participate in the ARC settlement system, and you cannot process airline transactions on behalf of carriers. This is a federal industry requirement administered directly by ARC, not a state licensing board.
Who Needs This Bond?
Travel agency owners and operators seeking ARC accreditation are the applicants for this bond. If you are opening a new travel agency or applying to join the ARC settlement system for the first time, ARC will require this bond as part of your accreditation application. Existing agencies may also be required to obtain or renew this bond if ARC determines a financial guarantee is necessary based on your agency's sales volume or payment history. You cannot legally issue airline tickets through the ARC system without satisfying this requirement.
What is this Bond For?
This bond guarantees that your travel agency will remit all ticket sales proceeds to the airlines through the ARC settlement process. If your agency collects money for airline tickets but fails to forward those funds to ARC on behalf of the carriers, the bond provides a financial remedy. It protects the airlines and ARC's settlement system from losses caused by non-payment, default, or financial failure of an accredited agency. The bond holds your agency financially accountable for every transaction processed through the ARC system.
When is it Required?
Accreditation approval is the moment this bond becomes mandatory. Before ARC will grant or maintain your agency's ability to sell and settle airline tickets, you must submit proof of this bond. New agencies must have the bond in place before accreditation is finalized. Agencies already operating under ARC may be triggered to obtain this bond if their financial standing is reviewed and ARC determines a guarantee is required to continue participation.
Where Does it Apply?
This is a federal-level requirement administered by the Airline Reporting Corporation, which operates nationwide. There is no single state that governs this bond — it applies to any ARC-accredited travel agency operating anywhere in the United States. Your agency's physical location does not change the requirement; what matters is your participation in the ARC settlement system.
How to Buy Online
Click 'Buy This Bond Online' on this page and the secure surety portal will open in a new tab. Enter your agency information, complete the application, and follow the steps to receive your bond documents. Once issued, you can submit the bond directly to ARC as part of your accreditation documentation.
Why Bond Titan?
Bond Titan is powered by The Southern Agency and gives you direct online access to this bond without waiting on an agent callback. Our nationwide catalog is built for business owners who need to move fast — apply, purchase, and download your bond in one session. No phone tag. No delays. Just the bond you need, ready when ARC is waiting.