Why Use a Host Agency?

A host agency is similar to a franchise. The host agency supplies you with a "host" of benefits that would cost you thousands of dollars per year. Because of the host agency preferred relationship with suppliers you get access to higher commissions and over-rides as well as special discounts for you and your clients for vacation packages and cruises. In return you pay the host agency a membership fee and a percentage of you commission.

Most Home Based Travel Agents find that working with a "host" agency is the most desirable way to operate their travel business. Host agencies specialize in offering sophisticated technology, agent training, marketing, commission overrides, websites, quality control, book keeping, support, discount blocked cruise space and vacation specials.

By aligning yourself with a quality host agency you can catapult your business into existence or take it to another level with great confidence that your clients will benefit. Finding a quality host agency is critical to your success as an independent travel agent. As you might expect, host agencies are all very different so spend some quality time researching which host makes sense for you.

Here are a few things to look for in a host agency;

1. They have been a host agency for 10 years or more with home based travel agents.
2. They do not have any unresolved complaints against their host agency.
3. They are committed to providing on-going training for there travel agents.
4. Do they provide you with marketing programs.
5. Do they split just the commission or do they include the over-rides? 
6. Do they offer meaningful commissions and overrides.
7. Are they are active BBB, PATH, IATAN, CLIA and NACTA members.
8. Do they offer ongoing support.

It really doesn't matter where the host agency is located so don't get locked into the idea that they have to be down the street from your operation. There are several solutions to the issues of access, communication and delivery that resolve the question of location. Most of all you should feel comfortable with your new host agency and their ability to fulfill your needs as your business grows.

NACTA and PATH Host Membership  
NACTA and PATH sets minimum standards for a host agency - to qualify as a Host Agency they must carry at least one million dollars in Errors and Omissions Insurance or require all independents to maintain their own current policies. Average sales volume per independent agent must exceed $10,000. There must be no unresolved complaints against Host agency. They keep your clients money and your commission is a secure account separate from there operating funds account. Registered to operate as a host agency with local, state and federal governments as required.

F & Q about Host Agencies

Why do I need a host agency?
Most Independent Travel Agents find it necessary (and desirable) to associate with a host agency for the purpose of obtaining domestic airline tickets, override commissions, marketing support, agent website, expertise, automation, quality control, clout, operational support and many other reasons that may be a combination of the above.

How Do I Know Which Host Agency To Choose?
Long before you choose your host agency you should develop a business (and marketing) plan so that you understand the nature of the business you intend to develop. If you plan to specialize in selling cruises you will probably want to find a host agency that specialize in working with a cruise specialist. Conversely, if you plan to specialize in handling corporate accounts, you will want find a host agency with the expertise and support mechanism, to make you successful. It is highly unlikely that a cruise specialist can help you if you want to sell corporate accounts and vice versa.

Why Do Some Host Charge $500 to $7,500? 
If the host agency you are looking at is charging you $500 to $7,500.00 they are simply making you pay for their marketing and advertising cost of finding new agents.

What is the best computerized reservation system (CRS) or GDS to use?
Many new agents think the sun rises and sets on access to the CRS in the travel industry. Their first concern is "what computer software do I need to book travel". For the most part, CRS (Computerized Reservations System) or GDS access is NOT necessary anymore. All ticketing can now be done over the INTERNET.  The decision on which host to pick should not be based on the type of CRS access they offer, but on the level of support and overrides they offer as it pertains to your business plan.

What should I look for in a host agency?
There are quite a few things to look for in terms of how a host agency pertains to your business plan.  How long have they been in business? Does the host agency carry Errors and Omissions Insurance? What is the average sales volume per independent agent? How many independent agents belong to the network? Are there any unresolved complaints against the agency with the Better Business Bureau? Agencies appearing on NACTA and PATH links have all passed these standards.

What about the $495 instant travel agency deals or Card Mill organization?
Think about it. If all anyone had to do was pay $495 and then fly first class, stay in suites for free, and take cruises for $10 per day, who would pay full fare? If you really believe you can do all of this for $495, then you probably deserve to lose the money anyway.

The truth is that when these operations first started they were able to fool some of the suppliers with phony ID cards and receive travel discounts, but the industry is wise to them now and it is going to be difficult (if not impossible) to fool anyone into accepting phony ID cards.  Check carefully....

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