Travel Agent Communications

PED 10/16/2016


2016 Quarterly Transaction Fees – Third Quarter

This is a reminder about the agent/CTD transaction fee that is assessed on a quarterly basis. ARC imposed a new tiered quarterly transaction fee structure in 2016. See the chart below outlining this tiered fee structure. Note: Agencies with fewer than 1,000 transactions per quarter will not be assessed transaction fees. A separate debit representing this fee will be drawn against your ARC designated bank account on or after October 20, 2016.
 

 

Number of transactions per quarter

Price per transaction

Tier 1

1,000–2,224,999

.016

Tier 2

2.25 M–5.999 M

.013

Tier 3

6 M or more

.011


Elimination of Paper Airline Tickets on June 1, 2018

Effective June 1, 2018, the printing of airline tickets on Automated Ticket and Boarding Pass (ATB) ticket stock will be inhibited. After this date, all airline tickets reported and settled through the ARC system must be electronic. This change is expected to have minimal impact as today over 99.9 percent of the airline tickets issued through ARC are electronic, and this number is rapidly approaching 100 percent.
 
Please note that this change only applies to paper airline tickets. Travel agents will continue to have the ability to use ATBs for other purposes, including Miscellaneous Charge Orders (MCOs) and passenger receipts. Communication regarding this change will continue to ensure all parties are well-informed and prepared for the June 1, 2018, deadline.


Tip of the Week: Which Services Can Be Issued on an Electronic Miscellaneous Document?

An Electronic Miscellaneous Document (EMD) is an electronic non-flight document that may be issued and used for the purchase of optional services that airlines may offer. Eventually, EMDs will replace the remaining traditional paper Miscellaneous Charge Order (MCO). More carriers are allowing agents to issue EMDs through their global distribution system (GDS) for services such as preferred seating and baggage, but not all carriers support agency-issuance of EMDs.
 
There are two types of EMDs:

  • Stand-alone EMD (EMDS)
    • Used independent of an e-ticket (ET) for services such as ground transportation, deposits and residual value 
  • Associated EMD (EMDA)
    • Linked to an ET at the coupon level
    • Multiple EMDAs may exist for a single ticket
    • An EMDA coupon is considered used once its associated flight coupon is used
    • Baggage or seat upgrades are more likely to be issued on an EMDA, but whether a service is issued on an EMDA or EMDS is determined by the individual carrier 

EMDs are further categorized by codes determined by the type of service and the carrier. An individual EMD must be issued with one Reason for Issuance Code (RFIC), a single character code which defines the document (see below). Each EMD coupon must also have a Reason for Issuance Sub-code (RFIS). The RFIS is a three-character code further defining actual coupon usage. Individual coupons on a single EMD may have different RFIS codes, as long as the code belong to the same RFIC group:
 

RFIC

Description

A

Air Transportation

B

Surface Transportation/Non-Air Services

C

Baggage

D

Financial Impact

E

Airport Services

F

Merchandise

G

In-flight Services

H

Reserved for Future Airline Tariff Publishing Company (ATPCO) use

I

Individual Airline Use


RFIS codes are maintained by ATPCO to facilitate consistency and maintain distribution to airlines and travel agencies. For a complete list of these codes, also known as, “Optional Services industry Sub-codes,” you may refer to ATPCO’s website.