ARC To Reward Cash Settlement With Rebate

The Airlines Reporting Corp. today announced plans to implement an incentive program for cash settlements of corporate air transactions from ARC-accredited Corporate Travel Departments, travel management companies and agencies.

The ARC Credit-to-Cash program, which takes effect Aug. 1, provides ARC-accredited organizations with a 1.5 percent rebate on monthly cash settlements for corporate accounts with more than $1 million in annual air sales, according to ARC vice president of marketing, sales and customer care Mike Premo, who added that ARC is working on a second phase of the program in which agencies may be allowed to bundle smaller accounts' air sales to reach the $1 million threshold. Unlike monthly credit card settlements, cash settlement funds are collected about 11 days after the sales period. There is no additional sign-up fee for the program other than the annual $145 ARC-accreditation fee.

"This is a very bare-bones offering. We're not offering insurance, mileage, purchase protection or fees for expense management systems. This is really targeted for folks that are either are on or are going to a central-bill mechanism and want to maximize their savings opportunity," Premo said. "Given where the market prices are for some forms of payment, there is enough of a spread today where there is enough money and incentive for the various parties to benefit."

Premo last said week that acquiring carrier commitment had been challenging, and ARC was aiming for 70 percent to 80 percent carrier participation before releasing the program.