Airline Reporting Corporation Bonds

What Is an Airline Bond?

Airline Reporting Commission Bonds, better known as airline bonds or ARC bonds, are a type of surety bond for travel agents who distribute airline tickets. The Airline Reporting Commission (ARC) requires these bonds to protect against fraudulent travel agent practices.

At SuretyBonds.com, we offer airline bonds at low rates without requiring collateral from qualified applicants. Plus, we offer the best service, fastest delivery and friendliest service in the industry!

How Much Does an Airline Bond Cost?

The price of an airline bond varies based on the bond amount and the applicant’s credit score. $20,000 is the minimum coverage amount for all travel agents, but ARC will determine your exact bond requirement. 

An applicant with excellent credit could pay a premium of as little as 1% of the total bond amount. For example, $200 for a $20,000 ARC bond. If your credit score is low, don’t worry — SuretyBonds.com approves 99% of applicants through our Bad Credit Surety Bond Program.

Who Needs an ARC Bond?

Travel agents, agencies and any businesses offering airline transport to their customers need to post an ARC bond. Bonded travel businesses get accredited by the Airlines Reporting Corporation to sell airline tickets to their customers and receive travel information.

Why Are Airline Reporting Bonds Required?

Airline bonds protect customers, airline carriers and ARC from fraudulent practices by:

• Ensuring any payment collected from customers by a travel agent is sent to the proper airline company
• Guaranteeing travel agents will forward payments to ARC made through the corporation’s systems

If a travel agent fails to forward any payments to ARC or a carrier, these parties can place a claim against the bond.

Airline Bonds vs. Travel Agency Bonds

ARC bonds are different from travel agency bonds. Travel agency bonds guarantee compliance for your bookings, regardless of whether they involve airlines. Also, airline bonds are required by ARC, while travel agency bonds are often required by state agencies. Depending on your location, you might need to obtain both bonds.

Learn More About ARC Bond Requirements

There are a few more things to know about airline bonds before you make a purchase:

• Airline reporting bonds are effective for one year and require annual renewal.
• Travel agents must maintain a continuous, valid ARC bond for as long as they have ARC accreditation.
• Several surety agencies require applicants to post collateral due to the risk of this type of bond.

SuretyBonds.com is licensed to issue airline bonds nationwide.

Additional Resources

• Travel Industry Agents’ Handbook
• Agent Reporting Agreement
• ARC Contact Information