HOMEBASED TRAVEL AGENTS BLOG

WHAT THE INDEPENDENT, HOME-BASED TRAVEL AGENT SHOULD KNOW ABOUT HOST AGENCIES AND CONSORTIA

It's very confusing for home-based/independent travel agents to determine when and why they should join a Host Agency and/or a Consortia. I hope to make this decision a little easier for you but, in the end you will need to decide for yourself.

HOST AGENCIES

Let's Begin with Host Agencies. Host Agencies are simply, fully licensed and bonded travel agencies who will loan you their credentials so that you may use them to book travel. Some of them may also be a retail travel agency. Unless the Host Agency maintains the hosting separately from the retail portion, they may be in competition with you as well as providing lesser support. Most of these agencies are generally retail operations with outside travel agents and would not be a good choice for a Host Agency, in my opinion.

While we are discussing the wrong side of Host Agencies, you should be aware that there are "so-called" Host Agencies that sell other products such as business opportunities, network selling, selling websites and non-related travel products. Most of these are known as MLMs or Multi-Level-Marketing agencies. It's wise to stay away from these MLMs if you want to be a serious travel agent. Many of these agencies do a good job in hiding what they really are, so please, do your homework.

One final word with Host Agencies that you may want to stay away from. There has been a rash of new Host Agencies that are offering 100% commission levels to agents in exchange for a monthly fee. I guess this is a prelude to the 110% commission Host Agency perhaps coming in the future. Seriously, you may want to take a good look at these Host Agency models, as it has been shown from past experience, (Remember JoyStar?) that when you "give away the store" so to speak, you will inevitably fail possibly leaving travel agents without a commission.

There are several reasons why you should join a reputable Host Agency. Many excellent articles have been written by others listing the reasons to join and what you should look for in selecting a Host Agency. We have included many of their suggestions at the site mentioned below. All new people entering the travel industry, agents who prefer just to sell travel and not be concerned with the back office part of operating a business including part-time or full-time agents who just don't have the time to keep abreast of the industry's technology and marketing advancements should be working with a Host Agency. A good Host Agency should provide all the back-office support and keep you up to date with the travel industry. For a great site to visit to see the details of why you should join a Host Agency, please go to Http://www.choosingahostagency.com.

CONSORTIA

When joining a Host Agency be sure they also belong to a Consortium. When you join a Host that also belongs to one of the major Consortia, you really receive a double benefit as well as reduced costs. The franchise Host Agencies usually have their own Consortia built into their model. Some of them have excellent marketing, technology and Customer Relationship Management software however, the costs of joining a franchise may be a little expensive with lower commission tiers.

There are some independent travel agents that feel they don't need a Host Agency because they do much of their own back-office work and don't have a need for higher commission levels. Joining a Corsortium does have its fees as opposed to possibly paying those same fees to a Host Agency who is already a member of that Consortia. The affiliated agents with a Host will most likely not need to pay additional fees. A two for one deal, if you will.

Consortia are basicly marketing companies which is why most Host Agencies are members. Consortia derive the bulk of their revenue from preferred supplier overrides, incentives and marketing dollars as well as member fees, etc. Host Agencies derive the bulk of their revenue from their portion of the commission split, booking fees membership fees, etc.

A Consortium provides the ability to email or to direct professional mailings to your client-base. Most also provide special booking engines for cruises, air, hotels and car rentals. Training and education is a major component of Consortia. Generally, the agents who join just a Consortia are truly independent travel agents who prefer to control 100% of their agency. We'll get more into this when I discuss the differences in going solo as compared to joining a Host Agency. The main Consortia memberships are Travel Savers, who owns the NEST, Virtuoso, Ensemble and Vacation.Com. In regards to Vacation.com, please keep in mind that they are owned now by Travel Leaders, who also owns a couple of Host Agencies. Many feel that this is a conflict of interest which is why I mention it here.

BEING 100% INDEPENDENT VS JOINING A HOST AGENCY

Most industry professionals will tell you that all new and relatively new travel agents must join a Host Agency. The costs and the time involved to go it alone is just too prohibitive. The right Host Agency will simply save you time and money in the early years of your business. If you are one of those individuals that insists on being 100% independent, go for it. Just expect higher costs, inability to stay current with the industry and daily frustration. Frustration in this business is high enough without shooting yourself in the foot by maintaining your total freedom from a good Host.

WHEN SHOULD YOU GO SOLO OR BE 100% INDEPENDENT?<P> As I mentioned above, there are those hardliners that want and remain 100% independent from the beginning. I don't have a problem with that as I probably would be one of those agents myself. However, for most of you joining a Host Agency from the beginning, you may ask, how long should you remain and when should you leave a Host Agency?That depends on your individual situation. There are those agents who will always remain with a Host Agency. That's because they like working with a Host plus, they receive adequate support and prefer just to build their client-base and sell travel.

Generally speaking, when an agent has built his/her clientbase sufficiently and their sales in their specialty achieve the higher commission rates from the suppliers, then it may be a consideration. The down side, for example. If you are a Sandals agent selling at the top of their commission tier and now you want to book a cruise which will provide you a 10% commission, you are stuck. Maintaining your relationship with the Host will provide, let's say 80% of a 16% commission or 12.8% in your pocket.

The bottom line is you need to do your "due diligence" before selecting a Host Agency. You should be rewarded with a great relationship by your choice.

ABOUT THE AUTHOR

Peter Stilphen, ECC is the CEO of Heritage Resorts Management, LLC doing business as Coral Sands Travel, a well know, National Host Agency a/k/a America's Host Agency, World Cruising Society and America's Cruise Centers. Mr Stilphen was also a Founder of PATH and its first President, a host agency organization.

Mr Stilphen is known for his controversial articles and blogs concerning the wrong side of the travel agent distribution system including the so called Multi-Level-Marketing (MLM) agencies.

It's very confusing for home-based/independent travel agents to determine when and why they should join a Host Agency and/or a Consortia. I hope to make this decision a little easier for you but, in the end you will need to decide for yourself.

HOST AGENCIES

Let's Begin with Host Agencies. Host Agencies are simply, fully licensed and bonded travel agencies who will loan you their credentials so that you may use them to book travel. Some of them may also be a retail travel agency. Unless the Host Agency maintains the hosting separately from the retail portion, they may be in competition with you as well as providing lesser support. Most of these agencies are generally retail operations with outside travel agents and would not be a good choice for a Host Agency, in my opinion.

While we are discussing the wrong side of Host Agencies, you should be aware that there are "so-called" Host Agencies that sell other products such as business opportunities, network selling, selling websites and non-related travel products. Most of these are known as MLMs or Multi-Level-Marketing agencies. It's wise to stay away from these MLMs if you want to be a serious travel agent. Many of these agencies do a good job in hiding what they really are, so please, do your homework.

One final word with Host Agencies that you may want to stay away from. There has been a rash of new Host Agencies that are offering 100% commission levels to agents in exchange for a monthly fee. I guess this is a prelude to the 110% commission Host Agency perhaps coming in the future. Seriously, you may want to take a good look at these Host Agency models, as it has been shown from past experience, (Remember JoyStar?) that when you "give away the store" so to speak, you will inevitably fail possibly leaving travel agents without a commission.

There are several reasons why you should join a reputable Host Agency. Many excellent articles have been written by others listing the reasons to join and what you should look for in selecting a Host Agency. We have included many of their suggestions at the site mentioned below. All new people entering the travel industry, agents who prefer just to sell travel and not be concerned with the back office part of operating a business including part-time or full-time agents who just don't have the time to keep abreast of the industry's technology and marketing advancements should be working with a Host Agency. A good Host Agency should provide all the back-office support and keep you up to date with the travel industry. For a great site to visit to see the details of why you should join a Host Agency, please go to Http://www.choosingahostagency.com .

CONSORTIA

When joining a Host Agency be sure they also belong to a Consortium. When you join a Host that also belongs to one of the major Consortia, you really receive a double benefit as well as reduced costs. The franchise Host Agencies usually have their own Consortia built into their model. Some of them have excellent marketing, technology and Customer Relationship Management software however, the costs of joining a franchise may be a little expensive with lower commission tiers.

There are some independent travel agents that feel they don't need a Host Agency because they do much of their own back-office work and don't have a need for higher commission levels. Joining a Corsortium does have its fees as opposed to possibly paying those same fees to a Host Agency who is already a member of that Consortia. The affiliated agents with a Host will most likely not need to pay additional fees. A two for one deal, if you will.

Consortia are basicly marketing companies which is why most Host Agencies are members. Consortia derive the bulk of their revenue from preferred supplier overrides, incentives and marketing dollars as well as member fees, etc. Host Agencies derive the bulk of their revenue from their portion of the commission split, booking fees membership fees, etc.

A Consortium provides the ability to email or to direct professional mailings to your client-base. Most also provide special booking engines for cruises, air, hotels and car rentals. Training and education is a major component of Consortia. Generally, the agents who join just a Consortia are truly independent travel agents who prefer to control 100% of their agency. We'll get more into this when I discuss the differences in going solo as compared to joining a Host Agency. The main Consortia memberships are Travel Savers, who owns the NEST, Virtuoso, Ensemble and Vacation.Com. In regards to Vacation.com, please keep in mind that they are owned now by Travel Leaders, who also owns a couple of Host Agencies. Many feel that this is a conflict of interest which is why I mention it here.

BEING 100% INDEPENDENT VS JOINING A HOST AGENCY

Most industry professionals will tell you that all new and relatively new travel agents must join a Host Agency. The costs and the time involved to go it alone is just too prohibitive. The right Host Agency will simply save you time and money in the early years of your business. If you are one of those individuals that insists on being 100% independent, go for it. Just expect higher costs, inability to stay current with the industry and daily frustration. Frustration in this business is high enough without shooting yourself in the foot by maintaining your total freedom from a good Host.

WHEN SHOULD YOU GO SOLO OR BE 100% INDEPENDENT? As I mentioned above, there are those hardliners that want and remain 100% independent from the beginning. I don't have a problem with that as I probably would be one of those agents myself. However, for most of you joining a Host Agency from the beginning, you may ask, how long should you remain and when should you leave a Host Agency?That depends on your individual situation. There are those agents who will always remain with a Host Agency. That's because they like working with a Host plus, they receive adequate support and prefer just to build their client-base and sell travel.

Generally speaking, when an agent has built his/her clientbase sufficiently and their sales in their specialty achieve the higher commission rates from the suppliers, then it may be a consideration. The down side, for example. If you are a Sandals agent selling at the top of their commission tier and now you want to book a cruise which will provide you a 10% commission, you are stuck. Maintaining your relationship with the Host will provide, let's say 80% of a 16% commission or 12.8% in your pocket.

The bottom line is you need to do your "due diligence" before selecting a Host Agency. You should be rewarded with a great relationship by your choice.

ABOUT THE AUTHOR

Peter Stilphen, ECC is the CEO of Heritage Resorts Management, LLC doing business as Coral Sands Travel, a well know, National Host Agency a/k/a America's Host Agency, World Cruising Society and America's Cruise Centers. Mr Stilphen was also a Founder of PATH and its first President, a host agency organization.

Mr Stilphen is known for his controversial articles and blogs concerning the wrong side of the travel agent distribution system including the so called Multi-Level-Marketing (MLM) agencies.

THE ABC's OF HOME-BASED TRAVEL AGENT TRAINING

 

Continuous training is a must for every home-based travel agent desiring to
be successful in the travel industry. To believe otherwise is just plain
ridiculous. Training is mandatory, whether you are just starting out as a travel
agent, working from home or you are a 30 year veteran working in a professional
office. Today's travel professional is expected to know something about the kind
of travel they are attempting to sell to their clients. The more you know, the
better chance you have of booking and maintaining that client. The face of the
travel agent is rapidly changing. Are you going to have what it takes and the
knowledge to be successful?

Training and education are plentiful these days. It runs the gamut from
learning about an individual vendor or supplier to the more sophisticated
courses offered by such 3rd parties as Sharon Emerson, Nancy Kist and Kelly
Monaghan. The important thing to remember is that there is no such thing as the
travel agent with all the answers. That is why, in today's world, you must
specialize. Whatever your specialty, you will never be successful until you know
every aspect of that niche and continue to keep abreast by taking courses as
they become available.

Most new or experienced travel agents don't realize the benefits of
participating in or taking advantage of many of the industry training, FAMS or
virtual/live conferences and trade shows. While your online training is usually
more economical you are not going to get the interaction of a live event. You
can find much of it for free while others will ask for a nominal fee or larger
amount if it's a full course of subjects.

The virtual online conferences and trade shows, for the most part, have
solved the financial problem of attending a national type conference. The
conferences are free and you can attend the activities at your own leisure as
the show is recorded. The virtual shows are here to stay and I'm sure they will
get even better as the technology improves. The only sad part is the fact that
the Shrimp Lady (www.theshrimplady.com) has been shut out until the shows are
able to produce smells from the show itself, and in this case, the smell of
freshly steamed shrimp.

The following organizations as well as most of the mainstream media and
suppliers offer training in various forms. Here are a few of my favorites.

Cruises:

The obvious first choice is CLIA, www.cruising.org. CLIA has many of the
online courses, regional and national seminars, Seminars at Sea, videos, printed
matter and just about everything you need in cruise training. CLIA also offers
the various designations such as ACC, MCC and ECC which are a must to obtain if
you want to specialize in cruises. I would obtain their Photo ID card for easier
acceptance to the FAMs or Seminars at Sea.

Seminars at Sea conducted by Cruise and Travel University would be the best
and most serious of the many organizations, outside CLIA, that do provide cruise
training as well as an all around training program. What is unique about the
University of Travel (www.cruiseandtraveluniversity.com) is they also have well
known industry instructors as well as other training topics other than just
cruises. All of their training programs have been developed with the assistance
of industry leading trainer Dr. Marc Mancini. The University of Travel also
offers an exclusive curriculum that guarantees there will be an instructor and
classes on every Seminar at Sea no matter how many agents attend. I don't
believe anyone else provides this guarantee.

I would recommend Platinum Seminars located at www.platinumseminars.com for
the upscale seller of cruises. They offer seminars on such ships as Regent,
Seaborne Crystal and Oceania as well as the usual RCL and NCL style ships.

Don't just go on any Seminar at Sea sponsored by an organization as sometimes
the training is just not good and sometimes even non-existent. Those who try and
sell many of these seminars are really just in the business of selling reduced
price cruises to travel agents. It pays to check out who is presenting your
seminar,who may be the instructor and what is the subject matter.

Of course, all of the cruise lines themselves have some great training for
their product and itineraries.

Hotels and Resorts:

All of the major resorts such as Disney, Universal, Sandals, SuperClubs,
ClubMed, etc have excellent training courses about their products. Disney of
course, is the most comprehensive. Both Marriott and Starwood Pro offer agents
excellent training along with reward programs.

The best hotel course online is still Marriott's "Hotel Excellence" course.
Unfortunately, you must possess the IATAN photo ID card.

Land Destinations:  

The Travel Institute is the guru of land destination training. They,
like CLIA, have the most extensive collection of training tools, including many
"niche" or specialty courses available in one place. Contact them at
www.thetravelinstitute.org. They also have their designations such as the CTA
and CTC, a must for the professional travel agent.

Individual Suppliers:

Yes, all mainstream suppliers have product training courses and webinars
available either directly or through your favorite organization and the travel
media online websites. You can't possibly take all these courses. I would
recommend you take those that apply to your own "niche."

Media publications, destination tourist boards and travel agent organizations
also offer excellent product and destination courses and they are all generally
free. Keep in mind that you don't need to join any travel agent organization to
receive training, education and FAMs. Most of it is all free or at nominal
prices.

If I was entering the travel industry for the first time my training and
education agenda may look like the following.

1) Joining CLIA as a member or an associate member.

2) Joining the Travel Institute.

3) Take the Marriott Hotel Excellence course as it can cover most hotels even
if you don't have an IATAN card.

4) Take the Disney course, "College of Knowledge." I mention items 1 through
4 above because you will need access to cruise and major land products because
they are musts in the travel business.

5) Attend The University of Travel because of the wide spectrum of cruise,
land and self improvement courses.

6) Join the websites of those suppliers, etc that will provide the training
for your specialty.

7) Join a travel agent community forum such as Tom and Joanne Ogg's Home
Based Travel Agent Network.

8) Subscribe to online and printed publications such as Agent@Home,
Vacation@Home, Travel Weekly , Travel Pulse, Travel Agent, Recommend, JaxFax and
TRO. It's important you also keep up with industry news.

I would recommend you clipping this article for future reference.

Peter Stilphen, ECC

ARE YOU A STUPID VOTER?

Advertisers who create the ads for our beloved politicians as well as the so called Super Pacs refer to uninformed voters as the "stupid element." They will create ads for their clients that are totally false just to appeal to these "stupid voters" as they all them and they also know these individuals will
believe them and pass it on to others if repeated often enough. This year's Presidential race is the dirtiest and most dishonest in history from both sides with these 'stupid" ads in our faces everyday.

First, I have to apologize for writing a political article in our travel industry newsletter. However, the
results of this year's race as to who will become our next President willdrastically shape this country's future.

I just feel compelled to say something. Just in case you are wondering about me, I am neither a Democrat nor Republican. I generally vote for the individual and what he/she stands for that
is relative to my beliefs. I follow politics very closely and generally search out the real truth after an important statement by any politician or advertisement.

The following comments are straight forward and have beenchecked out thoroughly and they are in plain English.

The first rule of thumb for any voter is not to believe the political ads from either party. 95%
of these advertisements are totally false or at a minimum, twisting the real facts for their own or their party's benefit. If you are one of the 50% of the American voters who don't take the time to know these candidates, but base your decision on advertising sound bites or statements made by individuals during media interviews, you are doing yourself and your country a disservice.

I can write a 30 page article on politics but we just have enough time to mention
the issues we hear mostly about. Here are a few.

1. If you believe in the separation of Church and State, you should vote for Obama.

2. If you are a long term Republican and don't approve of your Party being taken over by the
Tea-Baggers, the extreme religious right and the large corporations you may want
to take a more in depth look at your new Republican Party.

3. Then again, if you like what's become of the Republican Party you'll vote for
Romney.

4. If you believe Obama has done little to make the promisedchanges when elected in 2008 and that responsibility is his alone and not of the previous Republican administration, then you should not vote for Obama.

5. If you believe a woman shall not have the right to choose in case of rape, incest or the mother's health, you will vote for Romney. This is also in the GOP platform.

6. If you believe all illegal immigrants, including children born in the US from illegal aliens, should be deported or as Romney says "self deported", you will vote for Romney.

7. If you believe Gay's and Lesbians should not have any rights, vote for Romney.

8. If you feel Medicare should be converted to a voucher program for citizens, please vote for
Romney. See links to the true facts websites at the end of this article.

9. Repealing so-called "ObamaCare" will eliminate the 22 million America's recently added to the insured rolls, will reopen the "donut hole" for seniors, and eliminate the opportunity for women to receive preventive care such as mammograms. Vote for Romney if you want the new insurance program repealed.

10. If you feel our economy will be repaired if we eliminate benefits from the middle class and offer more tax breaks for the very rich, you should vote for Romney.

11. If you think jobs are created by the superrich and not the middle class, you might vote Republican.

12. If you think Obama was born in Kenya and is totally responsible for today's bad
economy, you will vote for Romney.

If you feel my questions were slanted toward Obama, you are correct. I firmly believe that today's Republican Party is against all that made this country great. President Reagan is rolling over in
his grave wondering what happened to his party. Today's Republican Party would not have voted Reagan in as their Presidential nominee as he was too much of a moderate. The crazies (Most tea-party members and the religious right) are now in charge.

I don't expect you to believe all that I have said, although I did check out the facts. You can also go to the fact checking sites to seek the truth. This link will give you a list of these websites. (Please copy and paste into your browser)


http://www.vikitech.com/454/get-your-facts-right-6-fact-checking-websites-that-help-you-know-the-truth


I want you to understand the potential danger this country will be in if the extremes of either political party come into office. You have already seen what one element of the extreme has done to Congress with voting "no" on 100% of what the moderate Democrats or Republicans propose in the House of Representatives. I'm referring to the 40-50 Tea-Party folks elected to Congress.


Just one more thing I would like to mention for you to think about. A meeting that took place on January 20, 2008 (The night of Obama's inauguration) between 13 Republican Congressman is by itself the most damming and possibly treasonous incident brought about by elected officials of this country. Theparticipants included Paul Ryan and Eric Cantor. Please take the time to readthe entire story. Here is the link. (Please copy and paste into your browser)

http://www.dailykos.com/story/2012/06/08/1098434/-Eric-Cantor-Paul-Ryan-Kevin-McCarthy-Plot-To-Sabotage-US-Economy-with-Frank-Luntz


In summary, I am asking you to be sure and vote this November. Please, please check out the real facts before you make that vote.

Peter Stilphen, ECC

.

TAKE THE HOST AGENCY TASTE TEST

 

Many of you may have seen the Geico taste test commercials on TV. It would
seem rather ridiculous to do a taste test with Host Agencies. However, how many
of you have ever left a Host with a bad taste in your mouth? Hopefully, I can
help you to avoid that in the future.

That said, I will attempt to give you a little more insight than what you may
have seen in other articles and even my own that you may have seen on "Choosing
a Host Agency".

Let's see if we can find a Host Agency that will not leave a bad taste in
your mouth. Lack of support, slow commission payments and general indifference
to their affiliated agents would definitely leave any agent with a bad taste and
a little "gun shy" when seeking a new Host. Let's take the Host Agency taste
test.

There are several ways you can check out Host Agencies to determine which one
best fits your needs.

1) Always be prepared with a list of questions, which we'll discuss later,
for the President or owner of the Host Agency. Do not ask questions of a sales
person. Many times sales people are ill- trained to provide a straight forward
response and more than likely can't answer the tough questions. Insist on
talking with the boss or move on to the next Host.

2) Never rely 100% on your travel industry magazines, especially when they
print an article concerning, "How to Choose a Host Agency". Although some of the
recommendations may be good, they only promote their own advertising Host
Agencies. Therefore, many good Host's may be left out. NACTA is usually a good
place to obtain a better list.

3) Be wary of any Host Agency that promotes 100% commissions and no or low
fees. In order for them to make money, they need to generate it from someplace.
Generally it's from transaction fees or they support their Host Agency business
from their larger retail operation. Does it make much sense to work with a Host
that is competing with you in retail sales? The 100% commission Host Agency
days, in my opinion, are numbered. I know of one major Host agency that has shut
down their 100% commission program. There is really no money in it for the Host
and generally, there are many agents who don't deserve the 100% commission.

4) The "lead program" business for those that promote it, in my opinion, is a
a loser except for the Host Agency. The Hosts that promote their "live lead"
program generally give you 30% plus of the commission and keep the client as
your own. You must have to be a lazy and probably not the smartest travel agent
to go for this program. The Host Agency wins big on this one.

5) Unless you are a corporate or an old fashioned travel agent, don't go for
the monthly charge from the Host Agency for the use of a GDS. They are simply
outdated and unwarranted with today's travel agent.

6) All the training for today's travel agent is free with a few good
exceptions such as CLIA and The Travel Institute. A good Host Agency will
provide continuous training for its affiliates without charge. Ask all the
questions you need on this subject to be sure you are comfortable with their
responses.

7) I have for years preached that the MLMs and the "card mills" are bad news
and the worse thing you can do when becoming a professional travel agent. That
is still very true. They try to hide under a legitimate website today but they
still are what they are, a stigma on the industry. Ask me if you are in doubt.

8) Most people entering the travel profession want to go into business for
themselves with control over their business name and their clients. Watch out
for those Host Agencies who want to dominate you and your business. Work with
those that understand your goals and will give you as much freedom as the law
allows. You can tell by the number and kind of rules they try to impose on you.

Now, if you can agree with most of what I discussed above, you will be in a
much better position to determine which Host Agency may have the better taste.

 

CONFUSED WITH HOST AGENCIES VS CONSORTIA? WHAT THE INDEPENDENT TRAVEL AGENT SHOULD KNOW.

It's very confusing for home-based/independent travel agents to determine when and why they should join a Host Agency and/or a Consortia. I hope to make this decision a little easier for you but, in the end you will need to decide for yourself.

HOST AGENCIES

Let's Begin with Host Agencies. Host Agencies are simply, fully licensed and bonded travel agencies who will loan you their credentials so that you may use them to book travel. Some of them may also be a retail travel agency. Unless the Host Agency maintains the hosting separately from the retail portion, they may be in competition with you as well as providing lesser support. Most of these agencies are generally retail operations with outside travel agents and would not be a good choice for a Host Agency, in my opinion.

While we are discussing the wrong side of Host Agencies, you should be aware that there are "so-called" Host Agencies that sell other products such as business opportunities, network selling, selling websites and non-related travel products. Most of these are known as MLMs or Multi-Level-Marketing agencies. It's wise to stay away from these MLMs if you want to be a serious travel agent. Many of these agencies do a good job in hiding what they really are, so please, do your homework.

One final word with Host Agencies that you may want to stay away from. There has been a rash of new Host Agencies that are offering 100% commission levels to agents in exchange for a monthly fee. I guess this is a prelude to the 110% commission Host Agency perhaps coming in the future. Seriously, you may want to take a good look at these Host Agency models, as it has been shown from past experience, (Remember JoyStar?) that when you "give away the store" so to speak, you will inevitably fail possibly leaving travel agents without a commission.

There are several reasons why you should join a reputable Host Agency. Many excellent articles have been written by others listing the reasons to join and what you should look for in selecting a Host Agency. We have included many of their suggestions at the site mentioned below. All new people entering the travel industry, agents who prefer just to sell travel and not be concerned with the back office part of operating a business including part-time or full-time agents who just don't have the time to keep abreast of the industry's technology and marketing advancements should be working with a Host Agency. A good Host Agency should provide all the back-office support and keep you up to date with the travel industry. For a great site to visit to see the details of why you should join a Host Agency, please go to Http://www.choosingahostagency.com.

CONSORTIA

When joining a Host Agency be sure they also belong to a Consortium. When you join a Host that also belongs to one of the major Consortia, you really receive a double benefit as well as reduced costs. The franchise Host Agencies usually have their own Consortia built into their model. Some of them have excellent marketing, technology and Customer Relationship Management software however, the costs of joining a franchise may be a little expensive with lower commission tiers.

There are some independent travel agents that feel they don't need a Host Agency because they do much of their own back-office work and don't have a need for higher commission levels. Joining a Corsortium does have its fees as opposed to possibly paying those same fees to a Host Agency who is already a member of that Consortia. The affiliated agents with a Host will most likely not need to pay additional fees. A two for one deal, if you will.

Consortia are basicly marketing companies which is why most Host Agencies are members. Consortia derive the bulk of their revenue from preferred supplier overrides, incentives and marketing dollars as well as member fees, etc. Host Agencies derive the bulk of their revenue from their portion of the commission split, booking fees membership fees, etc.

A Consortium provides the ability to email or to direct professional mailings to your client-base. Most also provide special booking engines for cruises, air, hotels and car rentals. Training and education is a major component of Consortia. Generally, the agents who join just a Consortia are truly independent travel agents who prefer to control 100% of their agency. We'll get more into this when I discuss the differences in going solo as compared to joining a Host Agency. The main Consortia memberships are Travel Savers, who owns the NEST, Virtuoso, Ensemble and Vacation.Com. In regards to Vacation.com, please keep in mind that they are owned now by Travel Leaders, who also owns a couple of Host Agencies. Many feel that this is a conflict of interest which is why I mention it here.

BEING 100% INDEPENDENT VS JOINING A HOST AGENCY

Most industry professionals will tell you that all new and relatively new travel agents must join a Host Agency. The costs and the time involved to go it alone is just too prohibitive. The right Host Agency will simply save you time and money in the early years of your business. If you are one of those individuals that insists on being 100% independent, go for it. Just expect higher costs, inability to stay current with the industry and daily frustration. Frustration in this business is high enough without shooting yourself in the foot by maintaining your total freedom from a good Host.

WHEN SHOULD YOU GO SOLO OR BE 100% INDEPENDENT?<P> As I mentioned above, there are those hardliners that want and remain 100% independent from the beginning. I don't have a problem with that as I probably would be one of those agents myself. However, for most of you joining a Host Agency from the beginning, you may ask, how long should you remain and when should you leave a Host Agency?That depends on your individual situation. There are those agents who will always remain with a Host Agency. That's because they like working with a Host plus, they receive adequate support and prefer just to build their client-base and sell travel.

Generally speaking, when an agent has built his/her clientbase sufficiently and their sales in their specialty achieve the higher commission rates from the suppliers, then it may be a consideration. The down side, for example. If you are a Sandals agent selling at the top of their commission tier and now you want to book a cruise which will provide you a 10% commission, you are stuck. Maintaining your relationship with the Host will provide, let's say 80% of a 16% commission or 12.8% in your pocket.

The bottom line is you need to do your "due diligence" before selecting a Host Agency. You should be rewarded with a great relationship by your choice.

ABOUT THE AUTHOR

Peter Stilphen, ECC is the CEO of Heritage Resorts Management, LLC doing business as Coral Sands Travel, a well know, National Host Agency a/k/a America's Host Agency, World Cruising Society and America's Cruise Centers. Mr Stilphen was also a Founder of PATH and its first President, a host agency organization.

Mr Stilphen is known for his controversial articles and blogs concerning the wrong side of the travel agent distribution system including the so called Multi-Level-Marketing (MLM) agencies.

 

Choosing A Host Agency Website

TRAVEL AGENTS NEED CONTINOUS TRAINING

Continuous training is a must for every travel agent desiring to be successful in the travel industry. To believe otherwise is just plain ridiculous. Training is mandatory, whether you are just starting out as a travel agent, full or part-time, or you are a 30 year veteran. Today's travel professional is expected to know something about the kind of travel they are attempting to sell to their clients. The more you know, the better chance you have of booking and maintaining that client. The face of the travel agent is rapidly changing. Are you going to have what it takes and the knowledge to be successful?

Training and education are plentiful these days. It runs the gamut from learning about an individual vendor or supplier to the more sophisticated courses offered by such 3rd parties as Career Quest, Kelly Monaghan, Certified Travel Teacher and Tom & Joanie Ogg. The important thing to remember is that there is no such thing as the travel agent with all the answers. That is why, in today's world, you must specialize. Whatever your specialty, you will never be successful until you know every aspect of that niche and continue to keep abreast by taking courses as they become available.

Your Host Agency, if you have one, or the NEST, would be the first place to go for continuous training and education. Whether you are affiliated with a Host Agency or if you are an independent agent without affiliations, here are my recommendations.

Most new or experienced travel agents don't realize the benefits of participating in or taking advantage of many of the industry training sites, FAMS or virtual/live conferences and trade shows. While your online training is usually more economical you are not going to get the interaction of a live event. You can find much of it for free while others will ask for a nominal fee or larger amount if it's a full course of subjects.

The virtual online conferences and trade shows, for the most part, have solved the financial problem of attending a national type conference. The conferences are free and you can attend the activities at your own leisure as the show is recorded. The virtual shows are here to stay and I'm sure they will get even better as the technology improves.

The following organizations as well as most of the mainstream media and suppliers offer training in various forms. Here are a few of my favorites.

CRUISES:
The obvious first choice is CLIA, www.cruising.org. CLIA has many of the online courses, regional and national seminars, Seminars at Sea, videos, printed matter and just about everything you need in cruise training. CLIA also offers the various designations such as ACC, MCC and ECC which are a must to obtain if you want to specialize in cruises. You should obtain their Photo ID card through Coral Sands Travel for easier acceptance to the FAMs or Seminars at Sea.

Seminars at Sea conducted by University Of Travel University would be the best and most serious of the many organizations, outside CLIA, that do provide cruise training as well as an all around training program.
What is unique about University of Travel's agendas (www.universityoftravel.com) at sea is they also have well known industry instructors as well as other training topics other than just cruises. All of their training programs have been developed with the assistance of industry leading trainer Dr. Marc Mancini. University of Travel also offers an exclusive curriculum that guarantees there will be an instructor and classes on every Seminar at Sea no matter how many agents attend. I don't believe anyone else provides this guarantee.

I would recommend Platinum Luxury Seminars located at www.platinumseminars.com for the upscale seller of cruises. They offer seminars on such ships as WindStar, Regent, Crystal and Oceania as well as the usual RCL and NCL style ships.

Don't just go on any Seminar at Sea sponsored by an organization as sometimes the training is just not good and sometimes even non-existent. Those who try and sell many of these seminars are really just in the business of selling reduced price cruises to travel agents. It pays to check out who is presenting your seminar; who may be the instructor and what is the subject matter.

Of course, all of the cruise lines themselves have some great training for their product and itineraries. Princess courses are really great and you can eventually meet Gavin McCloud, the original "Love Boat" captain remembered best by your grandparents from the 70's TV show.

HOTELS and RESORTS:
All of the major resorts such as Disney, Universal, Sandals, SuperClubs, ClubMed, etc have excellent training courses about their products. Disney of course, is the most comprehensive. Both Marriott and Starwood Pro offer agents excellent training along with reward programs.

The best hotel course online is Marriott Hotel's "Hotel Excellence" course. Unfortunately, you must possess the IATAN photo ID card.

LAND DESTINATIONS:
The Travel Institute is the guru of land destination training. They like CLIA, have the most extensive collection of training tools, including many "niche" or specialty courses available in one place. Contact them at www.thetravelinstitute.org. They also have their designations such as the CTA and CTC, a must for the professional travel agent.

INDIVIDUAL SUPPLIERS:
Yes, all mainstream suppliers have product training courses and webinars available either directly or through your favorite organization and the travel media online websites. You can't possibly take all these courses. I would recommend you take those that apply to your own "niche."

Media publications, destination tourist boards and travel agent organizations also offer excellent product and destination courses and they are all generally free. Keep in mind that you don't need to join any travel agent organization to receive training, education and FAMS. Most of it is all free or at nominal prices.

If I was entering the travel industry for the first time my training and education agenda might look like the following:

Your Host Agency and/or the NEST would be the first place for training as mentioned above.  Also:

1) Joining CLIA as a member or an associate member.

2) Joining the Travel Institute

 
3) Take the Marriott "Hotel Excellence" course as it can cover most hotels even if you don't have an IATAN card.

4) Take the Disney course, "College of Knowledge".

I mention items 1 through 4 above because you need access to cruise and major land products because they are musts in the travel business.

5) Attend University of Travel because of the wide spectrum of cruise, land and self improvement courses.

 
6) Join the websites of those suppliers, etc that will provide the training for your specialty.

7) Join a travel agent community forum such as AGENT CONTROL located in the NEST.

 

Subscribe to online and printed publications such as Agent@Home, Vacation Agent, Travel Weekly Central, Travel Pulse, Recommend and TRO. It's important you also keep up with industry news.

Please don't forget the comprehensive courses offered by Career Quest and Certified Travel Teacher. It's well worth the investment with their very extensive array of travel agent courses. There are also books and articles written by Kelly Monaghan and Joanie and Tom Ogg.

WHERE TO FIND TRAVEL AGENT TRAINING

Continuous training is a must for every travel agent desiring to be successful in the travel industry. To believe otherwise is just plain ridiculous. Training is mandatory, whether you are just starting out as a travel agent, full or part time, or you are a 30 year veteran. Today's travel professional is expected to know something about the kind of travel they are attempting to sell to their clients. The more you know, the better chance you have of booking and maintaining that client. The face of the travel agent is rapidly changing. Are you going to have what it takes and the knowledge to be successful?

Training and education are plentiful these days. It runs the gamut from learning about an individual vendor or supplier to the more sophisticated courses offered by such 3rd parties as Career Quest, Kelly Monaghan and Tom & Joanie Ogg. The important thing to remember is that there is no such thing as the travel agent with all the answers. That is why, in today's world, you must specialize. Whatever your specialty, you will never be successful until you know every aspect of that niche and continue to keep abreast by taking courses as they become available.

Coral Sands Travel/World Cruising Society, along with our consortium, the NEST would be the first place to go for continuous training and education.  Going beyond your affiliation with your Host Agency or if you are an independent agent without affiliations, here are my recommendations.

Most new or experienced travel agents don't realize the benefits of participating in or taking advantage of many of the industry training sites, FAMS or virtual/live conferences and trade shows. While your online training is usually more economical you are not going to get the interaction of a live event. You can find much of it for free while others will ask for a nominal fee or larger amount if it's a full course of subjects.

The virtual online conferences and trade shows, for the most part, have solved the financial problem of attending a national type conference. The conferences are free and you can attend the activities at your own leisure as the show is recorded. The virtual shows are here to stay and I'm sure they will get even better as the technology improves.

The following organizations as well as most of the mainstream media and suppliers offer training in various forms. Here are a few of my favorites.

CRUISES:
The obvious first choice is CLIA, www.cruising.org. CLIA has many of the online courses, regional and national seminars, Seminars at Sea, videos, printed matter and just about everything you need in cruise training. CLIA also offers the various designations such as ACC, MCC and ECC which are a must to obtain if you want to specialize in cruises. YouI should your obtain their Photo ID card through Coral Sands Travel or your own Host Agency for easier acceptance to the FAMs or Seminars at Sea.

Seminars at Sea conducted by Cruise and Travel University would be the best and most serious of the many organizations, outside CLIA, that do provide cruise training as well as an all around training program.
What is unique about Cruise and Travel University's agendas (www.cruiseandtraveluniversity.com) at sea is they also have well known industry instructors as well as other training topics other than just cruises. All of their training programs have been developed with the assistance of industry leading trainer Dr. Marc Mancini. Cruise and Travel University also offers an exclusive curriculum that guarantees there will be an instructor and classes on every Seminar at Sea no matter how many agents attend. I don't believe anyone else provides this guarantee.

I would recommend Platinum Seminars located at www.platinumseminars.com for the upscale seller of cruises. They offer seminars on such ships as WindStar, Regent, Crystal and Oceania as well as the usual RCL and NCL style ships.

Don't just go on any Seminar at Sea sponsored by an organization as sometimes the training is just not good and sometimes even non-existent. Those who try and sell many of these seminars are really just in the business of selling reduced price cruises to travel agents. It pays to check out who is presenting your seminar; who may be the instructor and what is the subject matter.

Of course, all of the cruise lines themselves have some great training for their product and itineraries. Princess courses are really great and you can eventually meet Gavin McCloud, the original "Love Boat" captain remembered best by your grandparents from the 70's TV show.

HOTELS and RESORTS:
All of the major resorts such as Disney, Universal, Sandals, SuperClubs, ClubMed, etc have excellent training courses about their products. Disney of course, is the most comprehensive. Both Marriott and Starwood Pro offer agents excellent training along with reward programs.

The best hotel course online is Marriott Hotel's "Hotel Excellence" course. Unfortunately, you must possess the IATAN photo ID card.

LAND DESTINATIONS:
The Travel Institute is the guru of land destination training. They like CLIA, have the most extensive collection of training tools, including many "niche" or specialty courses available in one place. Contact them at www.thetravelinstitute.org. They also have their designations such as the CTA and CTC, a must for the professional travel agent.

INDIVIDUAL SUPPLIERS:
Yes, all mainstream suppliers have product training courses and webinars available either directly or through your favorite organization and the travel media online websites. You can't possibly take all these courses. I would recommend you take those that apply to your own "niche."

Media publications, destination tourist boards and travel agent organizations also offer excellent product and destination courses and they are all generally free. Keep in mind that you don't need to join any travel agent organization to receive training, education and FAMS. Most of it is all free or at nominal prices.

If I was entering the travel industry for the first time my training and education agenda may look like the following:

Coral Sands Travel/World Cruising Society or your own Host Agency would be the first place for training as mentioned above.

1) Joining CLIA as an associate member or full member if you are not Host affiliated.
2) Joining the Travel Institute
3) Take the Marriott "Hotel Excellence" course as it can cover most hotels even if you don't have an IATAN card.
4) Take the Disney course, "College of Knowledge".

I mention items 1 through 4 above because you need access to cruise and major land products because they are musts in the travel business.

5) Attend Cruise and Travel University because of the wide spectrum of cruise, land and self improvement courses.

 
6) Join the websites of those suppliers, etc that will provide the training for your specialty.

 
7) Join a travel agent community forum such as the Home Based Travel Agent Network and Agent Nation; one of the newer forums that is just for the travel agent. www.agentnation.com

8) Subscribe to online and printed publications such as Travel Trade, Travel Weekly Central, Travel Pulse, Recommend and TRO. It's important you also keep up with industry news.

 
Please don't forget the comprehensive courses offered by Career Quests. It's well worth the investment with their very intensive array of travel agent courses. There are also books and articles written by Kelly Monaghan and Joanie and Tom Ogg.

I would recommend you clipping this article for future reference. Also visit www.americashostagency.com for additional information. 

WHAT IS WRONG WITH TRAVEL AGENTS?

I have been reading lately from both the travel media and Expedia about their travel agent sign up program. The new program, like most travel affiliation programs, provide commission levels that aren't fit even for an MLM referral travel agent. I cannot understand why any travel agent professional would even consider signing up for these ridiculous programs. There are plenty of travel agent booking sites that are available that offer fair commissions. What is even worse, some of these affiliation sites do not require you to have any travel agent credentials. In addition, these same affiliation sites, especially the mega online agency programs, will probably capture( steal) your clients as you book them.

My word of advice to the travel agent professional is that they stop holding the hand that keeps on slapping them down. They really need to avoid working with those suppliers who will steal your clients, play games with your commissions and are not really interested in anything that recognizes you as a travel agent professional. I avoid doing business with those who have bitten me at least once. For example, Delta Airlines who was instrumental in eliminating your commissions has Delta Airline Vacations. The only reason for anyone doing business with these people and the others like them is because you are trying to serve your client's needs, which must come first. Otherwise, seek out alternative suppliers who haven't hurt you in the past.

Why not send a letter or email to your cruise line President asking him or her to be transparent with their "Non-Commissioned Fares" (NCFS). It's really not a big deal for the cruise lines to be honest about this. Why not report on Facebook or other social websites, suppliers who have wronged you if you can substantiate it. The bottom line is if travel agents continue to "let things slide" because they feel they can't fight the "big guys" are doing an injustice to themselves and their fellow travel professionals.

I know being pro-active as a travel professional can make a difference in the long run. I know my rhetoric over the years has made some differences. Can you imagine if a couple thousand of us became more active? It would make a difference

WHEN ARE THE CRUISE LINES GOING TO EXPLAIN THE NCF?

In this age of ever more demanding transparency, why do cruise line executives continue to evade providing straight explanations concerning "non- commissioned fares" a/k/a NCFs. We have not really heard anything substantial from the cruise lines regarding this very controversial subject. Some travel agents believe the NCF's are just another way to reduce agent commissions. Cruise line executives prefer to avoid the discussion and change the subject when asked. Rick Sasso, President of MSC cruises recently stated "Instead of wasting energy focusing on NCFs, retailers would be well advised to focus on selling more cruises to increase their compensation." Travel Agents have a history of "turning their cheek" when it comes to responding to this kind of insulting rhetoric.

What is the real answer? Is it all about a segment of the travel industry continuing to "screw" the travel agents or is it just about corporate policy determining that using the NCF is needed to earn a profit for the cruise line by reducing agent commissions or burying unexpected expenses and asking travel agents to pay for it.? Why the need to play games? Is it that the cruise lines don't want to be as direct in reducing and then eliminating commissions as the airlines did in the 90's? Is this just a different approach to eventually ending in the same result?

Travel agents have always been a patsy for many suppliers. First the airlines and more recently the cruise lines. I personally believe this will always be the case until the travel agents stop their petty bickering and shortsighted "what's in it for me" attitude and join together and create their own voice in this industry. It's one good reason to become a member of STARS. The suppliers have their CLIA for cruise lines and USTOA for the major tour operators. What do the travel agents have? No one!

I would love to hear more from reasonable cruise line executives and travel agents concerning this subject. I recently attended the Cruise World conference where they had a panel of cruise line Presidents. The NCF question was asked very sheepishly and only Rick Sasso responded. RCL and NCL remained mute. Mr. Sasso's response was one we have always heard. A bunch of unknown or extraordinary expenses that cruise lines can't or won't account for. Doesn't everyone in business incur these types of expenses? Is it just a "slush" fund to account for expenses that should have been budgeted in the first? I believe it all should be brought out into the open. Is the NCF just a ruse or is there legitimate reasons why it is there?

Why not turn the NCF problem over to CLIA to properly explain to travel agents. The cruise line executives are doing a terrible job of it and are putting their sales people in embarassing positions trying to explain it, when they are not sure either. There's a simple answer to the NCF misuse. Allow travel agents to add an additional commission when making a booking online.

I would like to continue this conversation and would like your input. Please send comments to [email protected].

ARE HOST AGENCIES TRANSITIONING?

During the seven 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. Too often 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.

Most of us know what happened as a result of the infamous JoyStar failure and the coming failure of YTB and its ever changing business model. Many of the suppliers who did recognize these business models didn't really care about the consequences these agencies would have on both suppliers and travel agents. Greed was the primary motivator in hanging on to these companies. We all know that "pure greed" is never the answer. It has a tendency to bite you in the butt when you least expect it.

The Host Agency, which did begin as a "renter" of travel agent credentials has certainly come a long way in the past 7 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 staple of today's legitimate Host Agency business.

All Host Agencies claim to be number one or the best. They offer more programs, 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, agent friendly technology and marketing programs, honesty and integrity and just doing what is right for your affiliates. All this adds up to a superior Host Agency.

Many 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 and credit card fraud. 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. Many multi level marketing companies also provide a travel agent photo ID card allegedly giving the holder access to deeply discounted fares or rates.

The affiliates of the MLM/card mills or Referral Travel Agents as they are commonly called, originally numbered in the hundreds of thousands. There's an MLM affiliate party coming to your neighborhood soon, if it hasn't been there already. However, in the past two years these numbers have dwindled considerably. The consumer considers the MLMs 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 I was the original founder of an organization known as PATH. PATH was created to represent the legitimate Host Agency. However, in recent times it has become a reactive organization as opposed to a pro-active representative of the successful Host Agency model. Despite relative inactivity, PATH remains as the only organization serving Host Agencies. Please also remember, although there are good Host Agencies as members of PATH, there are other equally good Host Agencies that, for their own reasons, choose not to join PATH. Coral Sands Travel, America's Vacation Centers and CruiseInc may be the most notable.

I know it is very difficult, especially for newer travel agents, to know where to find good, stable Host Agencies. One site to check out is www.choosingahostagency.com or go to my host agency website at www.americashostagency.com where there are a great many links for you to get straight forward answers. You can also ask me personally about any Host Agency and I will give you a truthful response at [email protected]. I won't even try to sell you on Coral Sands Travel.

The comments and opinions written above are my own and not those of my company or any organization.