Sabre Travel Network this month notified its travel management company customers that beginning in November it will charge a monthly fee to agencies that use ARC's card settlement application to process travel agent service fees. Sabre in April launched a settlement tool called Card Services that undercuts the transaction fees ARC charges travel management companies
(BTN, April 26).
Sabre's move to charge the fee drew the ire of ARC, which late last week offered reproach. "Sabre has elected to impose a fee on access to the ARC product that we have provided to travel professionals over the past decade," Kathi Argiropoulos, ARC vice president of travel agency services, said in a statement. "The travel community should know that ARC is in no way involved in this action by Sabre, nor will it benefit from this action."
Tim Maher, Sabre Travel Management Solutions marketing manager, in April said agencies are billed 3.5 percent and at least 70 cents by ARC per transaction. "In our world, it's going to be 2.9 percent plus 12 cents," he said.
While ARC in April conceded Sabre charges less on a transactional basis, the company noted Sabre charges a monthly service fee that ARC does not impose. Sabre said it charges between $15 and $35 per pseudo-city code per month based on agency size and volume, yet will waive the fees when an agency signs up for Card Services.
Meanwhile, Sabre by November will broaden its access to all major T&E payment providers to include Universal Air Travel Plan, which already is processed by ARC.