An exchange with an add collect results in what?

Study for the Airlines Reporting Corporation (ARC) Test. Utilize flashcards and multiple choice questions with hints and explanations. Prepare for success!

Multiple Choice

An exchange with an add collect results in what?

Explanation:
The key idea is that add/collect creates a receivable from the traveler. In this scenario, the agency adds a charge and will collect that amount from its client (the traveler). That means the money is owed by the agency’s client to the agency (and ultimately to ARC through the agency). It isn’t money owed to ARC directly, nor money owed by the agency, and it isn’t a credit to the GDS. For this reason, the result is money owed by the agency’s client.

The key idea is that add/collect creates a receivable from the traveler. In this scenario, the agency adds a charge and will collect that amount from its client (the traveler). That means the money is owed by the agency’s client to the agency (and ultimately to ARC through the agency). It isn’t money owed to ARC directly, nor money owed by the agency, and it isn’t a credit to the GDS. For this reason, the result is money owed by the agency’s client.

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