ARC is in discussions with a number of tour operators and other suppliers, urging them to use ARC's Memo Manager technology to pay agency commissions.
Allan Muten, ARC's director of strategic communications, said ARC's interest in promoting the idea to suppliers was born, in part, out of ARTA's complaint earlier this spring about agents' frustration with suppliers -- often tour operators -- that are slow to pay commissions. He said it was too soon to name prospective participants.
He said ARC's Memo Manager could offer a cost-effective and timely solution by facilitating these payments, mostly by electronic means.
Muten explained that Memo Manager, a tool used to settle some debit memos, also is used for credit memos and for paying commissions to agencies that book nonair products through ARC MarketPlace. More than 1,250 unique users book at MarketPlace, and about 65% receive payment in the form of credit memos through the ARC settlement system, Muten said.
Most of those that are not ARC-approved, and so don't have access to the ARC settlement system, receive direct deposits to their bank accounts. A few receive checks.
ARC said these commission payments range from a few dollars a month to more than $1,000.
Muten said participating suppliers are under contract to fund commission payouts within a specified period after the date of service.
He said similar arrangements could be made with other suppliers, even if those companies don't sell through MarketPlace.
Agents, he said, could be assured of a consistent pattern of commission payments. He added that suppliers would benefit from efficiencies and ease of use, and it would be "good for those frequently paying small amounts as well as those paying large amounts."
Muten reported that the most frequently booked products at MarketPlace are ground services: skip-the-line products, city passes and cards, hop-on/hop-off sightseeing options and ground transfers.
For example, in the skip-the-line category, the most frequently booked choices are tours of the Vatican, ancient Rome and the Colosseum in Rome and Madame Tussaud's in London. The most popular city passes or cards are for Barcelona, New York, Paris and Chicago, whereas the top hop-on/hop-off tours focus on three of the same cities (Barcelona, New York and Paris) plus London, Rome and Washington.
Muten said agents in 12 countries outside the U.S. book at MarketPlace, which is pushing ARC to make a key enhancement: adding the ability to pay overseas agents in their own currencies rather than the U.S. dollar. That will happen, he said.