ARC (Airlines Reporting Corporation) Fee Structure Analysis 2024-2025
ARC implements a structured 90/10 cost recovery model for its core settlement services, where participating carriers fund 90% of costs while travel agencies contribute the remaining 10% through location and transaction fees [1]. This framework ensures balanced cost distribution while maintaining operational efficiency.
Annual Location Fee and Core Changes The annual agency location fee will increase from $276.00 in 2024 to $294.00 in 2025, with collection scheduled for January 23, 2025 [2]. Transaction fees are structured in three tiers, with each tier experiencing a $0.001 increase in 2025.
- Tier 1 (1,000 – 2,224,999 transactions): $0.015 per transaction
- Tier 2 (2,225,000 – 5,999,999 transactions): $0.014 per transaction
- Tier 3 (6,000,000+ transactions): $0.013 per transaction
- Return Draft Fee: $135 for IAR Settlement issues
- Ticket Resolution Fee: $0 (0-15 days), $55 (>15 days)
- Late Reporting Fee: $25
- Q4 2024: January 23, 2025
- Q1 2025: April 24, 2025
- Q2 2025: July 24, 2025
- Q3 2025: October 23, 2025
- Q4 2025: January 22, 2026
- Agencies processing fewer than 1,000 transactions per quarter are exempt from transaction fees
- The ticket resolution system actively monitors ARA violations, including unreported sales and credit card chargebacks