ARC adapts traditional carrier participation program to attract the full range of carriers that operate worldwide.

February 20, 2003 - In an effort to help carriers of all sizes realize the revenue opportunities in the U.S. market, ARC has adapted its traditional carrier participation program to create the Associate Carrier Program, a cost-effective solution for small to mid-sized carriers with U.S. distribution needs.

Traditionally, ARC carrier participants (currently nearly 130 carriers) have been the larger domestic and international carriers.  However, ARC found that there were many more small regional U.S. carriers and dozens of international carriers expressing interest in reaching the nearly 30,000 ARC-accredited U.S. travel agents and Corporate Travel Departments.  Many of the international carriers, while well established abroad, may not be operating to the U.S, and therefore have a minimal direct presence here.  ARC's traditional participation cost structure was not cost proportionate to these carriers' size and anticipated U.S. sales volume.  The new Associate Carrier Program is the ideal solution to this disparity.

“There are numerous benefits for these carriers in reaching the U.S. market through ARC, and creating this program allows them to affordably realize these benefits.  It makes solid business sense for passenger and organizational growth,” said Jim Watson, ARC's Senior Manager, Carrier Marketing and Relationships.  “Many of these carriers have distribution strategies outside the U.S. that include the IATA BSP systems.  The U.S. market should also be affordably available to become a key part of their distribution strategy.”

On the other side of the coin, ARC's thirty-thousand accredited travel agents and CTDs face a challenge in trying to book and ticket carriers that are not ARC participants.  Much of the value from ARC to the Agency and CTD community is the one-stop access to the supplier.  Exceptions to this easy access is an extra cost to ARC accredited agencies.

The Associate Carrier program is designed for carriers who anticipate averaging less than 1,000 transactions per month passing through the ARC system.  Because of the lower transaction volume, ARC has significantly lowered the traditional initial participation fee and fixed monthly fees for Associate Carriers.  Associate Carriers, like full carriers, will pay a transaction fee on top of the lowered fixed monthly fees.

“Associate Carriers have access to all of the same ARC benefits that full ARC carriers enjoy, including ticket sales resolution, debit and credit memo settlement, fraud prevention consultation/reporting and a full range of ARC COMPASS data report options.  Once they are in our system, all carriers are treated to the same high service level expectations,” said Watson.  “This program is clearly the best solution for low-mid volume carriers to reach the U.S. traveler through ARC accredited travel agents, while offering an excellent combination of value-added products, services and consultation.”

Six carriers have already joined ARC under the Associate Carrier program in the past few months and several others are currently completing the application process.  “We are just now starting to promote this option, yet through word-of-mouth only, we have seen a rapid rise in interest with inquiries arriving almost daily from diverse carriers around the globe,” said Watson.  “Some of these carriers had recently started service to the U.S. and the Associate Program offers them a logical and affordable opportunity to reach new customers.  Others fly regionally overseas, but certainly see business potential with the U.S. traveler flying in their region.  ARC records show ticket transaction volumes growing in all cases, which is a strong indicator that carriers made the right decision.”

ARC recognizes that change and adaptation are crucial within this industry, and perceives clear benefits in providing opportunities to global carriers of every scale.  The challenging airline and economic environment requires innovative and cost-saving initiatives, and represents a major focus at ARC.  The Associate Carrier Program is just one example of how ARC is focusing on cost-savings solutions and adding value to the Industry.  Others are the ARC Direct Connections initiatives for reducing ever-increasing distribution costs and the ARC COMPASS ticketing data warehouse and customized report capability.

ARC continues to investigate different opportunities for affiliation and to develop productive relationships, so that all carriers may realize the advantages of the U.S. travel distribution network.

ARC is excited about the growth potential for the Associate Carrier Program as a solution for the global airline community.  Carriers interested in the Associate Carrier Program can request more information at CarrierSolutions@arccorp.com.