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ARC's Customer Support Center is here to help
Phone: (703) 816-8003
Fax: (703) 816-8039
E-mail: csc@arccorp.com
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| The following is an initial list of frequently asked questions that ARC has received about the Corporate Travel Department (CTD) initiative. This document was developed using input from a number of sources including CTD applicants and ARC staff. We have published this FAQ in an effort to help educate various parties on some of the issues. This is not meant to replace the CTD Reporting Agreement or any application instructions but rather to create a user-friendly document of the more commonly asked questions that ARC has received to date from interested parties. This document will be updated as necessary if more questions are received. |
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What is the difference between an ARC Approved CTD and an ARC Approved Agency?
The ARC Approved CTD is intended for the purpose of purchasing carrier transportation and services for its own employees, owners, and officers. (i.e. in-house travel department). This is unlike an ARC Agent that is open and accessible to the general public for the retail sale of air transportation.
The ARC Approved Agent is governed by the Agent Reporting Agreement (ARA) and the ARC Approved CTD is governed by a separate Corporate Travel Department Reporting Agreement (CTDRA).
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I already operate a "rent a plate" location. Isn't this the same thing?
ARC doesn't officially recognize a "rent a plate" scenario where a corporation performs all the travel services but has an ARC approved travel agent only secure an ARC appointment. In those cases, ARC and the industry look to the agency, not the corporation, as the legal entity controlling that location. In many ways, the CTD initiative is a response to requests from numerous corporate travel departments who wish more independence, including owning, and not "renting", their own ARC plate or appointment as well as their ARC data for that location.
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If I am approved by ARC as a CTD, does that mean that I must perform all travel related functions internally and may not outsource any of them to an agency or other vendor?
Not at all. The contract is flexible so that a CTD can outsource practically all, none, or only a portion of their travel related functions. The only function that can not be outsourced is the actual CTD legal and fiduciary agreement between the CTD and ARC.
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Can I outsource to more than one agency or entity?
Yes. The only limits on outsourcing are that the CTD agreement is the responsibility of the company and not the agent. All other functions may be outsourced to any number of agencies or other companies. Please note, however, that the manager and the Certified ARC Specialist (CAS) must be employed by the CTD or by an ARC approved agency.
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If we decide to outsource, can I have more than one agency or travel management firm operate on my premises?
Yes. More than one unrelated entity can operate on your premises. However, each must meet the security rules set forth for the office type in the corresponding agreement.
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Can the approved CTD operate their own Branches or STPs?
Yes, once the home office of the CTD is approved the entity will be able to apply for remote branch and STP locations. All applications and forms for CTD locations are available directly from ARC's Accreditation Services Department. One form will provide the branch application and another provides the STP application for the approved CTD.
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Where can the CTD be located?
A CTD may be located on the premises of the parent company, one of its wholly owned subsidiaries or another ARC approved travel agency to service the business needs of the entire organization.
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Is the CTD program still a limited pilot program?
ARC's Board first approved the CTD agreement in March 1998 and the program was only a pilot program in that we were limited in the number of firms we could approve in 1998. In December 1998, ARC's Board officially lifted the pilot status, thereby, lifting the restrictions on the number of companies able to apply to the program. The CTD program is now open to any company that wishes to apply.
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I've heard that the ARC sales reporting process is highly manual and time consuming. Is it? If so, are they any changes planned to improve this process?
ARC has recently launched a new version of Interactive Agent Reporting (IAR). The new version takes advantage of advances in technology to offer an easier to use web-based system that allows a user to access IAR from any Internet connected computer, uses a point and click interface instead of two-character commands and uses bigger screens making it easier to review information and correct errors. Information on IAR is available in detail on ARC's Web site: http://www.arccorp.com/products/prod_fin_IAR20.html
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The trade press has reported that some carriers have suggested that they will introduce a process for corporations that will bypass ARC. What is this about and does that mean that an ARC CTD appointment will have no future value?
Not at all. ARC is providing more options in its system to support multiple distribution channels and meet the various needs of participation suppliers and customers.
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What is the trade name or doing business name that I must use to identify my services? Will that same name appear on my printed tickets?
The CTD d.b.a. or "doing business as" name can be any name that you choose, so long as it is not the same as, or misleadingly similar to, a carrier, and it is not identified as an airline office. The name that is provided to ARC will be used to order the CTD identification plate, which the CTD will receive upon approval of its application for accreditation.
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Explain the security provisions that I must meet.
There are a number of ARC traffic document security requirements designed to protect interests of all parties that the CTD must meet in order to be granted approval. There are also provisions for relief from absolute liability if more stringent security provisions are in place. These requirements are outlined in the CTD General Information (Form 700) and in more detail in Attachment B of the CTD Reporting Agreement that will be provided in the CTD Application Kit.
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Are there any government, banking or association rules that might preclude us from becoming approved as a CTD?
ARC is aware of some requirements and may be able to assist with broad suggestions in this area. However, it is up to the CTD for ensuring that they are in compliance with all requisite local, state, and federal licenses required to operate the CTD from the designated location.
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Must I have my ARC Specialist in place before I submit an application?
ARC requires one ARC Specialist staff at each approved location except STPs. The ARC Specialist must be named in the application before the application can be processed. However, that individual is not required to have already passed the ARC Specialist test at the time that the application is submitted. The proposed qualifier must pass the ARC Specialist test, and meet all other ARC requirements, before the CTD application may be approved. (See Forms 20-22 on ARC's Website for more details on the ARC Specialist program.)
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We are planning on installing a self-booking and a T&E accounting system. How will my CTD appointment impact on that decision?
These systems, along with a GDS and ARC's Interactive Agent Reporting (IAR), are a natural complement to the CTDRA for corporations who are interested in lowering costs and gaining more hands on control over their travel process.
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Does ARC have an annual air volume budget that a CTD must meet before being approved?
ARC has no minimum required volume but suggests that the number be factored and fully evaluated in the ROI process used by the entity when planning the CTD operation.
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How will the approved CTD be identified to the suppliers?
ARC will provide basic location information on the approved CTD to carriers and other industry suppliers who purchase ARC data. Those files will also identify the CTD as a corporate purchaser, as opposed to a travel agent who is a retail seller of travel.
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What will the commission be if I am approved? Will employees of the CTD be eligible for free and reduced travel privileges?
Remuneration and other commercial arrangements are matters between the CTD and its suppliers. ARC is not involved in such matters and suggests that you contact individual suppliers directly.
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I have heard that the CTD application process is very involved and time consuming and that I also have to provide personal information on all of our corporate officers. Is that true?
The entire application process can take up to 90 days from the date the application is considered complete. For a publicly held corporation, ARC requires a completed personal history form for only one corporate officer involved with the CTD.
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Will ARC be able to assist with a transition plan as we move from our existing agency relationship to our own appointment?
ARC may be able to offer generic suggestions that can assist in a smoother transition. However, ARC is unable to assist in the specific detail agreements between the proposed CTD and the ARC agency.
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What additional steps would you suggest we take before we decide to pursue ARC's CTD approval?
After reviewing ARC's CTD information and other related material, we suggest that you:
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Fully evaluate all factors including costs, benefits, your company's core competencies and service philosophy;
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Seek initial senior management support for the proposal;
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Contact various industry professionals including your travel management company, other CTD’s and key suppliers for additional advice;
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Gain senior management approval to proceed.
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I have completed my analysis and I'm ready to proceed with ARC's CTD accreditation. What is my next step?
Complete Form 700 (General Information & Application Order Form) which is available on ARC's Website. ARC will in turn mail the proposed CTD an application kit for completion.
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