As many of you who read my newsletters know, I have been an outspoken critic of the "fake" or "wannabe" Host Agencies who have permeated the Host Agency segment of our industry. I've also referred to them as the "bums" and "carpetbaggers." I've been relatively quiet on this subject for the last couple of months but my "shrink" told me I should release some of my stress before I go postal. So, here it is.
It's getting more and more difficult for the home-based and independent travel professionals, especially the new ones trying to break into the business to choose a Host Agency. They are blasted with e-mails and are asked to look upon gimmicky and hyped websites from every conceivable angle from these "carpetbaggers."
By the way, for some of you "younga" agents the word "carpetbaggers" comes from the Civil War era when the South, after the war, was invaded by every charleton and scammer that wanted to sell you everything from magic medicine to land in Florida. (Land in Florida really came later)
Part of the reason we have more and more bums entering the Host Agency arena is because there really isn't any true definition for a Host Agency. Another reason is that Host Agencies rarely communicate with each other for fear someone may steal a secret. Foolish, isn't it? The truth of the matter is most Host Agencies follow the same basic business model. The differences lie in the various technologies, marketing and training methods offered by each Host and the type of affiliate they seek. The "bums" out there don't even begin with the same business model therefore, a trained eye can tell them apart. Their business model is generally short lived as it generates lots of losses as it preys upon the naive. They are more into referral programs and selling cards than selling travel.
The easy ones to figure out are the "card and benefit mills." Others are a form of a pyramid scheme where an agent makes money based upon the number of agents they bring in. YTB, International comes to mind. Speaking of YTB, did you know they have another company called Vacation Central (formerly called RezConnect), which advertises themselves as a Host Agency but is nothing more than a lazy travel agent's booking engine? We've got them all. I met an executive of one of these companies a couple of years ago. He was wearing a loud green sport jacket. When he opened his jacket he had several gold watches hanging on the inside and asked me which one I wanted to buy. They are not all that conspicuous but you should attend one of their consumer parties if you want a good laugh. And to think, there are some suppliers out their who cater to these people.
Allow me to attempt to define a basic Host Agency. A Host Agency is an ARC or IATAN accredited travel agency that offers its Independent Contractors support and training, does not co-mingle their consumer sales division (if they have one) with the Host Agency division, are members of PATH, NACTA and OSSN, adheres to advertising/marketing principles, is stable and pays its commissions on time. There are lots more you and I can add to this definition but if the Host can answer yes to all of the above, the travel professional won't stray too far.
I've been saying this for 2 years now. If the true Host Agency wants to define itself in a positive way and not be thrown into the same pot as the "bums" and "carpetbaggers" out there, you need to get away from your desk and smell the roses or the manure depending upon how you look at things and do something about it. We are all Host Agencies serving our independent agents. I don't care if you have 10 or 5,000 affiliates; we can all do something to insure our future.
Oh! I almost forgot. Check out PATH at www.path.travel.
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