HOMEBASED TRAVEL AGENTS BLOG

DON'T PEE DOWN MY BACK AND TELL ME IT'S RAINING, a Look at the Legitimate Host Agencies by Peter Stilphen, MCC

Host Agencies owe their independent travel agent affiliates 100% support in all areas of the travel business I.e. marketing, technology, training and general business advice.  This does not mean the Host must have its own in-house programs covering all these areas.  Most Hosts outsource one or more of these programs.  In any event the Host must be in a position to either offer or recommend these sources to their affiliates.  Many Hosts, despite their claims as having original programs, offer the same product branded in their name or copy someone else's program and sell it as proprietary.  there is nothing wrong with any of this except a little distortion of honesty or integrity which really isn't necessary.

Host Agencies do owe their affiliates honesty and integrity as well as paying commissions on time.  It has become noticeable with our segment that some Hosts are beginning to "nickle and dime" their affiliates in an attempt to become more profitable.  A major part of the reason for this is because, as the segment has become more competitive, more Hosts believe that they need to offer better deals to attract affiliates.  This has created a "musical chair" effect with the experienced travel agents as many of them wander from Host to Host for that extra 5% commission.  The whole scenario makes no economic sense.

Another reason for the added fees by Hosts is because of the various programs they promote.  An example of this is the offering of a 90/10 commission split with zero startup, zero monthly and zero renewal fees.  Unless the Host has another way to bring in revenue, the program is doomed to fail.  Host agencies will remain in business as long as their business model and programs remain economically feasible.  Once a Host begins to add fees particularly without notice, I would question why and look at what is happening to the business model.

I mentioned above that some travel agents play the "musical chair" game with Host Agencies.  The reasons are not always for better commissions, but rather, a very small percentage of agents are using this opportunity to scam the Host and the consumer by utilizing unlawful credit card transactions.  The Hosts most affected by this are the ARC appointed Hosts.  ARC appointed and probably all Hosts should begin to request background or credit checks.

As the Host Agency segment continues to evolve, I'm sure there will be some merges, shake ups and unfortunately, even some failures.  Today it is vitally important that any travel agent, new or experienced, do their due diligence when seeking a Host.

If you are already working with a Host Agency, look for the following warning signs and ask tough questions of your present Host.

• A sudden change in their business model without an explanation that makes sense to you.
• Charging you for new fees much like a bank without proper notice or explanation.
• Commissions that are paid more than 60 days after the client's trip was completed.  There are some vendors that don't pay the Host until 2-3 weeks after the trip.  Many hotels and small suppliers are just slow in paying out commissions.  Determine if it's the supplier problem and not the Host's problem.  Don't jump when a commission falls through the crack.  We all make mistakes.  It is the same consistency of slow paying by your Host to watch carefully.  Most Hosts pay out commissions within 30 days of receipt of same from the vendor except individual cruises that may be paid earlier by the cruise line but held by the Host pending last minute cancellation recalls.
• Sudden and frequent changes in your Host's personnel should raise a red flag.

Ask your Host how they handle unclaimed commissions.  Ask about their policy regarding paying out earned commissions even after termination.  If you have earned commission, you should receive it even if you left that Host.

There are many profitable Host Agencies out there that operate their business with honesty and integrity.  As in any business or industry there are the "bad apples."  the better ones hang out at www.path.travel.

ARE HOST AGENCIES ON THE RIGHT PATH? by Peter Stilphen, MCC

During the four years I've been involved with the Host Agency segment of our travel agent distribution system, I have seen many Host Agencies come into the picture; each one with a different business model.  I've made it my business to learn as much as I can about Host Agencies because that's my business, they are my competitors for the most part and I can also learn from them.  Once in a while I see business models that I know won't work in the long run and those are the ones that will eventually affect the payment of commissions to their affiliated agents.  I generally speak out about them because a sudden demise of any Host Agency will have lasting effects on all of us.

The Host Agency, which did begin as a "renter" of travel agent credentials has certainly come into its own in the past 5-6 years.  It's business model now offers a myriad of programs, technology tools, marketing programs and Internet sites for members containing all sorts of training, booking engines and other travel agent bells and whistles.  The above has become the staples of today's Host Agency business.

All Host Agencies claim to be number one or the best.  They offer more programs and higher commission levels. But when it comes right down to it, it's what each one offers in the form of camaraderie with their affiliates, the individual support levels, honesty and integrity and just doing what is right for your affiliates.  All this adds up to a superior Host Agency.

Most Host Agencies do not have "newbie" programs and those that don't are not advancing the home based independent travel agent segment.  We all need to bring in new blood to this industry.  Most Hosts believe it is not profitable to accept "newbies".  That's a total myth.  Of course, you must charge start up fees and even have a lower commission split but we all need to bring in new travel agents.  There are thousands of new travel agents coming into the business but are joining the multi-level marketing agencies because there aren't enough of us offering "newbie" programs.  There is also potential additional liability in bringing in "newbies" but this also can be reduced substantially with the proper safeguards.  I realize the ARC accredited Hosts have unique problems especially with runaway debit memos.  This requires even higher safeguards and even removing the ability to make airline reservations until the proper training is in place.

As in any business, there are the scalawags that hurt the other Host Agencies trying to operate a successful business.  As I mentioned above, there are Hosts whose business model gives away the store, so to speak.  The old saying "I'll make up my losses by doing more volume" won't work either as some Hosts believe and are discovering.  What is the point of growing sales to magnificent heights if the dollars that flow to the bottom line more than evaporates on the way resulting in a deficit.  I don't care if you are a graduate of Harvard Business School, an investment broker or Houdini.  If the bottom line remains a deficit, you must make adjustments or the ship will eventually sink.  I've noticed that some Hosts whose business model I questioned are beginning to "nickle and dime" their affiliates to make up for losses.  At this point it is too late.  The cat is out of the bag so to speak.

In recent years due to the surge of the home based travel agent and the usual search by consumers for cheap vacations, more and more multi-level marketing companies are entering the scene making promises of fantastic commissions, travel perks and discounts that even a real travel agent can't earn and other business opportunities that are more about recruiting others into the program and even consumer booking websites that promise you large earnings while you sleep.

The multi-level marketing companies also provide a travel agent photo ID card such as CLIA's photo ID card giving the holder access to deeply discounted fares or rates.  Many of the MLM's still provide their own photo ID card resembling the coveted IATAN card.  The MLM's have been pushing the easily obtainable CLIA card because it offers more credibility than their own issued card.

The affiliates of the MLM/card mills or Referral Travel Agents as they are commonly called, number in the hundreds of thousands.  There's an MLM affiliate party coming to your neighborhood soon, if not already.  The consumer considers the MLM's as Host Agencies not knowing there is another side of this travel agent distribution system and the legitimate Host Agency.

It is imperative that successful Host Agencies unite and define themselves.  A couple of years ago an organization known as OATH was founded.  During the months following the birth of OATH and due to the input of many Host Agency executives, OATH evolved into PATH, Professional Association of Travel Hosts.  Today PATH comprises 23 of the finest Host Agencies and is still growing.  These Host Agencies are the "who's who" of the travel industry and can be found at www.path.travel.com.

There are the naysayers out there who don't believe there should be a code of ethics and standard practices for Host Agencies or are just waiting around for the final verdict on this new organization.  PATH has arrived and with its present 8600 member Host Agency affiliates, the suppliers are beginning to take notice.

PATH is not just about practicing ethics; it is about enhanced training and education to its affiliates and improving communications between the suppliers, Host Agencies and its affiliated members.  Without organizations like PATH, outside elements such as the rise and influence of the MLM's will devalue the purpose of the legitimate Host Agency as well as the travel professional.  We need to define ourselves through PATH.  Additional information about PATH may be found at www.path.travel.

I THINK I'M HAVING A "LATE LIFE" CRISIS by Peter Stilphen, MCC

The difference between going thru a "mid life" crisis when I was around 40 years of age and going thru a "late life" crisis in my 60's is that in my "mid life" crisis I desired that fast, red sports car that I never had and I thought my wife at the time was getting too old for me.  Now that I'm over 60 and going through a "late life" crisis, I have forgotten where I parked my car and my wife is looking at younger men.

I remember once I had a pre-nuptial agreement with one of my past wives.  She had reviewed the agreement and agreed to sign it the next day.  However, that evening, I added some additional verbage basically saying that she would overlook any grouchiness in my older years.  She signed the agreement without noticing my added text.

I must have set a precedent as the last Republican Congress borrowed this tactic when running their legislative bills during the wee hours of the night when no one bothered to read it again.

On a totally different subject I would like to say that IF travel agents want to be considered travel professionals, then why would one show up at a travel trade conference dressed in a Hawaiian shirt, Bermuda shorts, sandals and high black socks?  When I approached him, he told me he was a new agent at Joystar and hadn't taken Alverson's course on proper behavior.  I assumed he was from Iowa.

Continuing, IF travel agents want to be considered travel professionals, then why would one go through the buffet or hor d"oerves line piling up their plate with food and then eating half of it.  I met one lady who said she was one of Joystar's top producers, trying to chip pieces of ice from the ice sculpture and putting them in a plastic bag in her pocketbook.  When asked why she was doing this, her reply was, "I need to keep the shrimp cold that I had earlier put into my pocketbook."

I think the trade show sponsors should create two lines in a buffet.  One line for the agents acting as if this was their last meal and another line for the professional agents to watch the behavior of the non-professional agents in the other line and be entertained while waiting their turn in line.

Now that I've got that off my chest, I feel better.  I'm not grouchy anymore.

THE MOST COMMON QUESTIONS ASKED BY TRAVEL SUPPLIERS AND TRAVEL PROFESSIONALS by Peter Stilphen, MCC

Probably the most frequently asked questions by Travel Professionals and Travel Suppliers are as follows:

TRAVEL PROFESSIONALS:

• Should I be a totally independent travel professional or should I affiliate with a Host Agency?



• If I choose to affiliate, how do I find the right one for me among the maze of Host Agency business models out there?                                                                                             

TRAVEL SUPPLIERS:

• How do I find those home-based travel professionals other than just throwing out e-mail blasts, offering webinars, etc. to see what sticks?                                                          

I have an answer to all of these questions.

TRAVEL PROFESSIONAL - Response to questions above.

• If you have been a travel professional for less than 5 years or are doing less than $500,000 in sales volume per year, you absolutely need a Host Agency for no other reason than to earn higher commissions.  After all, the only reason we are in business is to make money.
  
        
• I know being totally independent is what we all want to be but, until you have the sales volume, forget it. The CLIA or TRUE cards won't get you to a higher commission level nor are these supplier's recognized ID cards totally accepted everywhere in the travel world.
  
           
• Now let's answer the second part of the above Travel Professional question.  No doubt most of you have seen the print ads and e-mail blasts for a variety of Host Agency models.  Some of these models are so totally flawed they will never generate a profit. YTB and Joystar come to mind.  Other models are so radical they can't begin to operate as a Host Agency.  They call themselves Host Agencies because these are the popular words these days.  Rather than give you another list of things to look for, as this has been addressed in many previous articles by me and others, I will instead give you the two bottom line recommendations.
  
                    
• Do your homework! (Research)
  
                                                                                          
• Choose the Host that you feel comfortable with after asking a myriad of questions.  Stick with your gut feelings and ignore the hype.
  
                                                                       
• A totally new and my third recommendation is discussed later as it addresses also the Travel Supplier's question.                                                                                                 

TRAVEL SUPPLIERS:

• No doubt, suppliers are bending over backwards to locate the Home-Based Travel Professional.  There are several avenues the suppliers are taking to locate this illusive segment of the travel industry.  Two of which are becoming members of OSSN and NACTA, the two champions of the Home-Based Travel Professional.  These trade organizations have approximately 6,000 and 4,000 members respectively and account for nearly half of the Home-Based out there. />  Other organizations have a sprinkling of the Home-Based.
  
            
• Host Agencies (I estimate about 200 of them) probably account for the other 50% of Home-Based Travel Professionals with some overlap with the two trade organizations.  Another problem the supplier has is finding the serious travel professional as opposed to the majority of hobbyists located in such agencies such as Pro Travel Network, YTB, Global International and JoyStar.  The supplier, up until this year, had to seek out each individual Host Agency to negotiate business.
  
                                                                                                        
• How much easier would it be if the supplier could contact these Host Agencies via one single source?  An organization exclusively for Host Agencies will be coming out later in January 2007.  Not only will a travel supplier eventually be able to seek out a single source for Host Agencies, they will be able to find those Host Agencies that work with the serious Home-Based Travel Professional, who offer great training programs to their affiliates and follow a strict code of ethics.   A double advantage to all suppliers.
  
                                            
• As mentioned above, I stated a third recommendation for the Home-Based and Independent Travel Professional on how to locate a good Host Agency for themselves.  PATH, a bi-partisan, professional society of Host Agencies will be officially launched to the travel interest and the consumer later in January 2007.  PATH's website will contain valuable information about who PATH is and their goals.  PATH will have serious membership requirements for its Host Agency Members separating them from the hype of the multi-level-marketing and card mills now preying upon the travel industry.
  
                                         
• PATH, although not a trade organization for Travel Professionals, it will be a valuable source for agents seeking a reputable Host Agency.  The website will be located at www.pathonline.travel and should be active in the second half of January.
  
                          
• Watch for PATH.  It will make a difference for Host Agencies, Travel Suppliers and Travel Professionals seeking a Host Agency.

      

HOST AGENCIES, WHICH ONE IS FOR YOU?

There are many great Host Agencies out there with different business models that appear to work for themselves and their independent travel professionals.  A few Hosts emphasize "state of the art" booking and CRM systems, while others may work with agent training and support.  There are also those Hosts who claim they embrace all of the above. 

There are so-called "mega" Host Agencies which you can count on one hand, but most Host Agencies fall into the under 500 affiliates category.  The "megas" really can't offer you the one-on-one support that many of the smaller Hosts can offer because their internal structure is usually too cumbersome to offer the one-on-one personal service.  That's probably one reason why they cater to the experienced agents and not the newbies.  Newbies are more interested in basic training and "hand holding" support than sophisticated technology at the beginning, however, over time most grow into the more high tech systems.

It makes no difference in which State a Host is located as long as they are registered under the Travel of Sellers program for the States with which they do business and especially in Florida and California.  One of the single biggest problems I have with Hosts, and I would think that professional agents seeking a Host should also be concerned about, is that the Host or a related company to the Host is selling travel to the consumer.  There are two problems with this.  One is that the Host is in competition with you selling consumer travel and two, that the Host cannot serve two masters at the same time;  its affiliates and the consumer.  Two of the "megas" sell travel through subsidiaries.  However, I don't see any problem with a Host using consumer websites to generate leads for their affiliates.

There are several other considerations that one seeking to affiliate with a Host should consider.  A huge consideration is stability and profitability.  I know one "mega" who touted their first profit ever in the 2nd quarter of this year to turn around and generate a loss for the 3rd quarter of 2006.  That same "mega" has declared that the smaller Hosts will be eaten up by the "megas" in the next 12 months.  I would think that with a $47,484 loss for the 3 months ended 9/30/06 and a $277,347 loss for 2006 to date and an $8.7 million loss for the time they have been in business, they would concentrate on making themselves profitable rather than trying to steal the best agents from other Hosts.  I sure miss John Stone of Travel Trade and his great investigative reporting.

Always talk with the CEO when asking questions of a Host.  Never talk with a salesperson as they will bullsh.. you most of the time.  After all, the whole premise as to why a Host Agency is in business is to attract affiliates and build its volume.  Why leave this job to an underling?  Many Hosts will tell you to work only with a Host that has been in business for at least 3 years.  It does make sense, however, if everyone did that we would not have any new Host Agencies.  I just think you need to ask a lot more questions if the Host has been in business less than 3 years.  One word of caution.  Be wary of "brick and mortar" agencies pretending to be Hosts but are just looking for outside sales people.  They generally lack a real Host Agency structure, offer little training and support and pay you less in commissions.

In summary, if you follow the following basic rules you have your best opportunity to reach the right Host for you.

• Do your homework.

• You must feel comfortable with that Host and not fall for some salesperson's hype.

• Stay away from unprofitable Host Agencies.  After all, you want to be sure you will always receive your commissions.

• Stay away from Hosts that thrive on hyped advertising and load their websites with testimonials.

• Keep away from the multi-level-marketing companies and "card and benefit mills."

• Don't be overly concerned as to which Host has the most technology as you can always grow into it.  Stick with the basics.

• Don't get sucked in with "no fee" programs, free websites and free E & O insurance.  Free is never free.  Ask where the company is making its money.

• Be wary of Hosts competing with  you directly or indirectly by selling travel to consumers.

• Be sure your Host is a member of PATH, the Professional Association of Travel Hosts, whose members abide by a strict code of ethics.

      

THE BIRTH OF A SUPER HERO?

On July 26, 2006 there was born in the State of Florida, a new entity, conceived by 11 nationally known Host Agencies who are dedicated to establishing a code of ethics, performance standards, educational and training opportunities for Host agencies and their members, bridging the communication gap with travel suppliers and the promotion of its Host agency members.

This new entity, PATH, which is the "Professional Association of Travel Hosts" will be support to the many legitimate Host Agencies throughout our fair land. Is this a new super hero in the travel industry or just another travel membership organization seeking to expand its member base. Let's look at why PATH is needed in the first place.

There are three basic segments of the travel industry that we will discuss here. Host agencies, Independent or home-based travel agents, and travel suppliers.

HOST AGENCIES:

I have written articles and blogs about Host agencies. Every day the emails come through with agencies touting their expertise as a "Host Agency". Some of these emails are from legitimate Host agencies while others are from what I lovingly refer to as the "bums". I hear catchy statements such as "The No-Fee Host Agency", "The Absolute Host", Your Whole Host Agency" and even "America's Host Agency" OOPS!  Forget that last phrase. Well anyway, what I am trying to say is that everyone has a gimmick or is hyping something. Somewhere along the road some agencies have forgotten about just plain honesty in advertising. There are MLM agencies and "card mills" now pretending to be Host agencies. We even have one Host agency who is outsourcing its ownership to the Chinese. Well maybe, that is good in this instance (Sorry Bill). No wonder it is confusing to the experienced travel agent never mind the "newbies" in the business.

Eventually one of these "bums" will go out of business and will screw the travel agent community out of a great amount of commissions. When this happens, how will it effect the Host agency business? Not good! We need an organization that will have strict requirements for becoming a member as well as requiring all members to follow a code of ethics. Is PATH the answer? I know so.

INDEPENDENT or HOME-BASED TRAVEL AGENT:

There are probably more new travel agents entering the business than experienced agents. The average age of a travel agent is also dropping much like the average cruiser. I think it fell from 83 to around 46 years of age. Travel agents have the opportunity of going it alone with their own Iatan or Clia indentification numbers,( I won't mention the other supplier recognized Id numbers out there. That's another blog for another day.) or affiliating with a Host agency. About half are deciding to join a Host. The other half prefer to go it alone and earn far less money. There are probably as many different varieties of Home-based agents as there are Host agencies. You have the serious full and part-time travel agent, you have the referral agent, the "got sucked into a modern pyramid scheme' agent, the agent that loves to live like a travel agent with all its perks (That's a joke in itself), the "gypsy' agent who jumps around the different Hosts and the felonious agent with the credit card schemes.

The biggest majority by far is the serious travel agent whether Home-based or "brick and mortar" based. Thank God for that. However we still have the others and we need to continually filter them out of the process in order that they don't infiltrate the legitimate host agencies. I feel the members of PATH will come up with a program to filter out these undesirables.

TRAVEL SUPPLIERS:

Last but not least (Mmmm) are the people who pay us all those exorbitant commissions. Many of the travel suppliers are coming up with elaborate schemes, for lack of a better word, to locate those independent travel agents hiding in their basements selling travel. The travel suppliers are providing training opportunities via the web, local and regional mini seminars, while a few are seeking those high producers working for Host agencies and coercing them away with 'wine and dance'. I love the ethics in this business.

The suppliers, however, are overlooking some basic operating problems. Their outside sales force is working their buns off getting the agents to sell more but nothing is going on in the customer service, reservation or most inside sales areas. Most reservations or inside sales people simply don't recognize the Home-based agent because their computer screen doesn't allow for the right questions to be asked nor information on the Home-based to be entered.. Other than obtaining the name of the agent, there is no provision for future contact with that agent other than contacting the Host agency and asking for John as if he is in the office rather than 1500 miles away. I can't tell you how many calls my agency receives asking for Mary in order to make final dining arrangements or a change in the itinerary. I can go on and on but I think you get the point.

Travel suppliers need Host agencies as much as Host agencies need travel suppliers. What a better conduit for communications than working with an organization representing the mainstream, legitimate Host agencies. Is PATH the answer? Absolutely!

SUMMARY:

The comments above are solely the personal view of the writer. They do not represent those of PATH, its subsidiaries or employees or even Bill Alverson. The "rantings and ravings" belong exclusively to yours truly. Now that I have the disclaimer done, I will continue.

In the coming months you will hear more about this exciting and new organization that will promote honesty, ethics, and dedication to its network members. I have provided a more serious update elsewhere in this newsletter and will continue to do so as PATH progresses.

WHEN IS A HOST AGENCY NOT A HOST AGENCY?

WHEN IS A HOST AGENCY NOT A HOST AGENCY?

Reprinted from our monthly newsletter. Our first newletter blog last month concerning the formation of a professional society for legitimate host agencies was well received. I received several constructive remarks and a couple of remarks I can't repeat in this family newsletter.

I sort of enjoy, in my own sadistic humor, throwing darts at the "bums" out there who make every attempt in giving the consumer and the Home-Based Travel Agent a "snow job" (Sorry! not a reference to Tony Snow) in their print and constant flow of deceptive e-mail blasts. Whatever happened to the Spam laws? Probably went in the same direction as the Fax laws. No where!

WHEN IS A HOST AGENCY NOT A HOST AGENCY?

The hot subjects of the day are the Home-Based Travel Agent and the Host Agencies that provide the credentials and support to more than half of the present Home-Based Travel Agents.

Many of you have seen our advertising, blogs and media articles in an attempt to explain the differences between host agencies. However, I seem to be the only living being on the Host Agency Planet. Legitimate host agencies don't say much because they are a minority in a sea of marketing, gimmicky, and hyped obsessed agencies running around using the "Host" word and conning would be travel agents. They are probably also afraid of being sued or wanting to rock the boat. For lack of a more descriptive word, I'll refer to those marketing agencies as the "bums."

In order to be fair, there are those travel firms that have some aspects of a legitimate host agency and also are clinging to that word "Host" for dear life. They didn't call themselves a "Host" until recently. There are also other honest business models out there that offer true services but feel again they must use the "Host" word. Then there are the "bums".

I guess we need to define what is a Host Agency. A Host Agency is a full service Iatan ( Arc or Non-Arc) appointed travel agency who provides the necessary travel credentials, marketing, technology and general support, directly or indirectly to independent or home- based travel agents 24/7 for a set fee and/or a split of commissions. Its main business is supporting its member network and generally does not compete with its members utilizing an inside sales team. Now that's a mouthful and I'm sure not unanimously agreed upon. I would love to hear other constructive definitions of what is a Host Agency.

Based on my definition we would eliminate more than half of the agencies calling themselves "Hosts". Perhaps one way of separating all of these business models is to assign them to categories within a total "Host" concept. For example we have fullfillment agencies (Nexion), single product agencies (Agenta), franchises (Cruise Planners), MLM agencies (Joystar), card mills (Global Intern'l), retail agencies with outside agents(Cruise Brothers) and consumer oriented agencies (YTB). These are all legal operations within their own "niche" but not Host Agencies under my definition. I'm not trying to play God here, I'm just trying to resolve a potentially messy problem for the true host agencies and the travel agents confused about which "Host" is best for them. This is why we need to form a professional organization to address these points and to create standards of conduct as well as training for would be hosts and travel agents through the organization's members. Perhaps we can develop a breakdown of Host Agency types into similar categories as I attempted to above. There are some agencies that can qualify for more than one category. Nexion, for example, may be under both Fulfillment and Host catagories.

I have listed several of the Host Agencies under several of the catagories in my blog website. My decision was based on details contained in their respective websites. A few of the "bums' are also listed. As they say in baseball and in this year's political elections, "Throw The Bums Out!"

Peter Stilphen, MCC

HOST AGENCY CATEGORIES

                                       HOST AGENCY CATEGORIES

I have attempted to separate travel agencies and firms advertising themselves as Host Agencies into catagories in order that the consumer or independent travel agent may better determine which firm they may wish to associate themselves with as their "Host."

I have defined a Host Agency as a full service Iatan (Arc or Non-Arc) appointed travel agency who provides the necessary travel credentials and marketing, technology, and general support , directly or indirectly, to independent or home based travel agents 24/7 for a set fee and/or a split of the commissions. Its main business is supporting its member network and generally does not compete with its members utilizing an inside sales team.

Based on my definition above, I looked at several websites and arbitrarily put these agencies into a category. If anyone disagrees with any part of these categories and the agencies listed below, please let me know and why you feel I should change the agent category. I want to be as accurate as possible. I'm also not going to identify the "bums" included in this list. You can determine that for yourself. I've only listed a few of the better known agencies and will add as we go along.

My purpose in categorizing "Host" agencies is to demonstrate the need to breakdown the many varieties of agencies seeking independent travel agents. I hear over and over again that travel agents seeking a host faces confusion and indecision. I feel there are many good business models out there but we need to educate the travel agent on the differences in order that they can make informed decisions.This is advantageous to both the host and the travel agent. As you can tell from my blogs, I am against those business models that attempt to fool and deceive the consumer and travel agent. Fortunately, there are more "good guys" than "bums" out there. Come on guys and gals, I need your input on this important issue.

TICKET FULLFILLMENT AGENCIES (Probably the original Host Agencies)

Nexion / Magellan360 / Four 4.0 Vacation.com / Agenta/Travel Planners International

CONSUMER RELATED AGENCIES

YTB / Global International / Joystar/Vacation Central, KHM Travel Group

SINGLE PRODUCT FIRMS

Vacation Central / Agenta / ETravco

MULTI-LEVEL-MARKETING FIRMS

Joystar / Global International / YTB / World Travel Management, World Class Travel Management

CARD MILLS

Global International / Travelwize, World Class Travel Network

FRANCHISES

Cruise Planners / Uniglobe

RETAIL TRAVEL AGENCY WITH OUTSIDE SALES PEOPLE

Cruise Brothers / Cruise Value Ctr / Gullivers Travel / Americas Vacation Center/Montrose Travel/  In addition there are many host agencies that begin as retail agencies with less than 10 independent agents and fall into this category.

HOST AGENCIES BASED UPON THE ABOVE DEFINITION

Coral Sands Travel / America's Host Agency / Travel Planners International / Incentive Connection Travel / Cruise Gal / Design Travel Inc / Gtm Travel Group / Partners in Travel / Nexion /IC Travel Host/Trip Professionals/ World Class Network/Atlas Tour and Travel/Montrose Travel/Dugan's Travels LLC/America's Vacation Center/Partners in Travel

                                                                                                                                                                   

IS IT TIME FOR HOST AGENCIES TO CHANGE THEIR ACT?

                             IS IT TIME FOR HOST AGENCIES TO CHANGE THEIR ACT?

                      Reprinted from our newsletter

I guess we wouldn't be in vogue if we didn't have our own Blog page. We started this a couple of months ago on our new blogging website at http://homebasedtravelagentsblog.com. We posted our first blog last month and hope to add a couple each month. Being an individual who "says it like it is", I plan to have my blogs, all related to the travel business and to offer viewpoints and commentary that will stir controversy and hopefully get you to respond.

My first blog is a copy of a letter I recently wrote to the travel print media. I don't expect them to print it because it's provoking. The media print publications with the exception of Travel Trade Magazine generally won't print anything that criticizes their paid advertisers. They want you to look at everything through a rose colored glass.

IS IT TIME FOR HOST AGENCIES TO CHANGE THEIR ACT?

I received two e-mails the other day; one of about 500 I receive each day. Normally, I delete most of them. However, this one got my attention. The subject matter read “Host Agency Delivers More” and “Host Agency Guarantees Commission” and it was from a recognizable company called Vacation Central, also known as Rezconnect and other trade names, and is part of the YTB International Group. YTB is a multi-level marketing company who generally sells to those consumers who want to be referral travel agents and take advantage of all those travel perks and discounts normally afforded “real” travel agents.

The popularity of the Host Agency has grown so rapidly, there are many travel agencies with different business models who are jumping on to the band wagon. Home-based or Independent Travel Agents are getting more and more confused about what is a Host and what services they perform. That’s the $64,000 question. How do you define a Host Agency? There is no real definition established which accounts for all these business models. I was recently putting together a list of travel agencies who were listed and advertised under the “Host Section” of a reputable national organization. When I examined this list I found that half of them weren’t Host Agencies and were not even referring to themselves as Host Agencies. I would guess they listed themselves under Host Agencies to attract outside sales people or to gain attention to their product.

I believe it is time for the “legitimate” Host Agencies to begin to define themselves and set themselves apart from the rest of the pack. I am recommending that the serious host agencies form a “Professional Association of Travel Host Agencies.” This association would define a Host Agency member; abide by a code of ethics and written performance standards for both themselves and their network of home- based travel agents as well as establishing membership requirements. This “not-for-profit” association would set itself apart from other national membership associations in that its purpose would be to help close the communication gap between suppliers and the home-based travel agents; promote its Host Agency members and offer the members and their network of home-based travel agents educational programs via recognized educational institutions.

This association would supplement and not compete with the present NACTA and OSSN home-based organizations. Perhaps, as a requirement of membership, the Host would also be a member of one of these two fine organizations. Memberships would be for Host Agencies (voting) and Travel Supplier (non-voting) only. There would be no home- based travel agency members.

There have been a couple of attempts to form a Host Agency organization in the past year and no one has moved forward as of this date for whatever reason. I think its time to get off our Host Agency butts, stop talking this thing to death and move on and create a good professional association (or society) of Host Agencies that all segments of our travel industry will recognize and support. There is no room for posturing, travel industry politics and selfish attitudes. We must work together for the benefit of Host Agencies and the Home-Based Travel Agents they serve.

We need this association to be established before a serious event should happen, such as a major Host going out of business and leaving its member network without their hard earned commissions and creating a credibility gap for those “legitimate” host agencies. It’s also very important to both host agencies and suppliers of travel that we communicate ideas and improvements to allow our networks of home- based travel agents better access and identification. WHAT SAY YOU?