IATA, BSP & ARC Explained: Airline Risk, Cash Flow & Accreditation for Travel Agents and Tour Operators

The big picture: who actually does what

At a high level, airline distribution is held together by a small number of organizations that sit between you, as the seller, and the airline, as the service provider. They are not sales platforms but are financial and regulatory infrastructure.

International Air Transport Association (IATA) is the global trade association for airlines. Its role is to set industry standards and to accredit travel agents so they are authorised to issue airline tickets on behalf of member airlines.

The Billing and Settlement Plan (BSP) is the settlement system operated by IATA in most countries outside the United States. It is the mechanism that collects money from agents and distributes it to airlines.

In the United States, this role is performed by the Airlines Reporting Corporation (ARC). ARC combines both accreditation and settlement into a single system for the U.S. market and a small number of associated territories.

Together, these bodies form the financial plumbing of airline sales.

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