Airline Settlement
IATA BSP vs ARC: Airline Settlement Comparison
Compare the international BSP framework with the US ARC model
By Project OTA | 10 Aug, 2026 | 7 min read
A concise BSP versus ARC comparison for travel agencies choosing an airline distribution and settlement model.
Coverage and ownership
BSP is operated through IATA's market settlement structure across many countries and territories. ARC supports airline reporting and settlement for eligible US travel agencies. The systems serve similar operational goals but are not interchangeable.
Operational differences
Both models require accurate ticket, refund, exchange and void records, but reporting formats, remittance schedules, currencies, financial criteria and market rules differ. An agency must follow the framework applicable to its registered market.
Choosing the right technology
Multi-market booking software should use configurable adapters and reports rather than hard-coding BSP or ARC assumptions. Store a settlement system, country, airline, document and accounting reference on every transaction.
Frequently Asked Questions
Is ARC better than BSP?
Neither is universally better. The applicable system depends mainly on the agency's country, airline relationships and commercial model.
Can one agency use BSP and ARC?
A business operating in multiple eligible markets may have different settlement arrangements, but it must meet each market's legal and commercial requirements.
Key Takeaways
- BSP is IATA's international market framework; ARC is primarily associated with US agency reporting.
- Neither system alone grants universal airline ticketing authority.
- Country, airline and agency agreements determine the operational details.
Project OTA builds multi-market booking and finance systems that can support BSP and ARC reporting requirements.
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