HOW TO FALL IN LOVE WITH YOUR HOST AGENCY AND LIVE HAPPILY EVER AFTER by Peter Stiphen, MCC

I bet there are many travel agents, new and experienced, that are searching for a Host Agency but are either confused, being misled or don't even know the difference between a "legitimate" Host Agency and someone else calling themselves a Host Agency.  I am going to settle that confusion right now.

The first thing we need to know is WHAT IS A HOST AGENCY?  A Host Agency is a travel agency that offers its travel credentials to its affiliates (independent contractors) for a slice of the commission or a transaction fee.  The most common commission split nowadays is 80/20.  Some Hosts prefer to charge a transaction fee in lieu of splitting a commission.  The Host Agency's main focus is offering support to its affiliates which comes in the form of training, education, marketing and technology.  It is from this basic premise that each Host Agency competes with each other touting its own proprietary programs claiming to be the best on the market.

Before we go any further, we need to tell you who or what is NOT a "legitimate" Host Agency.  Here is my list of Host Agency "wannabees" you want to stay away from.

• Multi-Level-Marketing agencies and "Card Mills."
• Small independent "brick & mortar" travel agencies that are seeking outside agents who are not really focused as a Host Agency and its responsibilities to you.
• Single product agencies marketing an all in one booking engine.  Vacation Central is an example.
• Hosts that are not, as a minimum, registered as Sellers of Travel in Florida and California.
• Those that don't require an Independent Contractor's Agreement.
• Agencies that are not members of NACTA and/or OSSN.
• Aggressive agencies who offer you free vacations or other perks to join and continue to call you several times a day.

We can not concentrate on the "legitimate" Host Agencies.  Host Agencies can be divided into several groups.  It is up to you to determine which Host is better suited for you.  I will provide some of the more popular requirements for travel agents seeking a Host Agency in each category.

• NEW TRAVEL AGENTS:   All Hosts do not accept new agents primarily because of the more intensive training and "hand holding" support required.  It also takes longer for a new agent to  become productive.  If you are in this category you may be better off with a Host Agency that accepts "newbees" and who can provide you with the needed one-on-one support.
• CORPORATE/BUSINESS TRAVEL AGENTS:   Because of the heavy domestic air requirements, these Travel Agents should seek an ARC accredited Host also known as "fulfillment" agencies.  This does not apply to agents booking occasional air.
• LUXURY NICHE TRAVEL AGENTS:   These should look at Hosts that use a consortium working in the luxury market such as Virtuoso.
• All Host Agencies can provide you the support needed to book cruise and leisure products including international air, hotels and car rentals.  It is always better to work with preferred suppliers but you should not be deterred by the Host if you use a different supplier.
• Most all Host Agencies belong to a consortium where you can receive further marketing expertise and better deals and higher commission levels with their preferred suppliers.
• If you are a travel agent with an unusual niche specialty, you will need to discuss this with your potential Host and look for a level of comfort that fits you.
• The cost to join a Host Agency should never be a factor in selecting a Host however, be sure you know of any potential hidden costs that may come back to haunt you.
• Free websites and free E & O insurance also should not be a determining factor in selecting a Host.  Looking for a Host just for pricing and freebies may certainly come back to haunt you in the future.  The bottom line is to ask direct, tough questions of your Host  and go with your gut feeling.

Falling in love with your Host Agency follows the same rules as falling in love with your significant other.  Do your due diligence by studying what he/she has to offer you;  that it fills a definite need and it will support and not abandon you.  Remember that falling for the hype will only get you into trouble.

There are websites you can visit to look for a "legitimate" Host Agency.  The best site would be www.path.travel.  Other sites with Host Agency listings are www.nacta.com and www.ossn.com.

MOST IMPORTANTLY, DO YOUR HOMEWORK.

Please keep in mind that the comments and opinions written above are my own and not those of my company or any organization, of which I may be a member. 

Comments

[Marcus Jones]

Please get your story straight about YTB. They have recently implemented a program effective on 1/1/08, wherein new Referring Travel Agents will need to sell at least $1500 in travel (not their own travel) in order to obtain their IATA card. We have been involved with YTB for 6 months and have made a significant amount of money with travel commissions. We enjoy traveling and also like to help people plan their trips. As such, we have become Disney Specialists. I recommend you do more research regarding YTB before posting such comments.

[Hosting]

Grate story.Hosting is a process that makes your site visible world wide on the internet. It suggests to the process of renting computer space and bandwidth (data transfer capacity) from a company so that you can make your website visible to the outside world.