Selecting a Host Agency Partner
By Melody Fee, OSSN Vice President

There are many anxious agencies out there that want your business. These agencies come in all shapes and sizes. Here are some suggestions that you may want to consider in your Host Agency selection process.

Is it big enough? If the agency is too small or too new, it might not be able to give you the kind of support you need. However, depending on the tools that the smaller agency is using to assist you as you market to your clients, and depending on the professional travel industry affiliations that a smaller agency may elect to have as they also strive to build their business, a smaller agency’s opportunity to service your needs as an Independent Contractor can be equal to that of a larger agency in many cases. It is always important to remember that the larger the agency’s sales volume is, the more attractive its commission structure will be with certain “preferred” suppliers. That, in turn, should mean more commission in your pocket.

Is a smaller agency better? Today there are home-based agencies that contract with independent contractors. Small host agencies, including home-based agency locations can still be a great choice, too. A well-focused, niche agency that has a specialty may coincide with your marketing focus. For example, an agency that focuses on selling luxury cruises may not be a member of a large consortium, but may have negotiated on their own with specific suppliers to gain additional overrides or marketing support from the cruise lines that are part of this niche market. This would be to your advantage if this were also your marketing focus, since you could take advantage of the special concessions that they had been offered by these specific niche suppliers.

However, if you are new to the industry and realize that you need training to learn more about the products you want to market and promote and feel that you need more attention, you are going to want to select your agency partner and your industry affiliations accordingly. Both large and small agencies have various opportunities for training, in most cases. Some have organized conferences that allow you to meet their preferred suppliers and get to know more about their sophisticated tools that would be available to you. But these conferences may take place once or twice a year in an area that may or may not be convenient for you to attend. Small host agencies may not have the resources to offer such large training sessions, BUT if they are also part of a big consortium, then their consortium will probably offer such conference events for you to attend. It would be highly suggested for you to attend such events when possible.

A large host agency may have professional training manuals for you to study as you begin to establish your home based business, but may not have the “face to face” training opportunities that would benefit you since you may not be located in the local vicinity of this host agency partner. If their main office is in Chicago and you are located in Texas, there are various challenges to consider for the newer, less sophisticated agent, for example. As an agent who has been in the industry for awhile, these “face to face” training opportunities may be less important to you and the other benefits offered by certain larger agencies may still outweigh the inconveniences of the “long distance relationship.

Now, on the other hand, when considering the “convenience” of affiliating with the smaller (usually more local) host agency partner, if this type of small home-based agency is local to you, then there is also the possibility that they can be very attentive to local training since they can invite their preferred suppliers to come to a location that is convenient to their outside agents and provide ongoing training seminars. So sometimes, smaller host agencies may be a great match for you as an independent contractor. OSSN has many “home-based” agency members who do use the services of independent contractors, so we have seen first hand just how well this “match” can be arranged. But it would also be very important to know that the “local” smaller host agency is organized and using professional tools that can help you to look professional and work professionally, as well.

What kind of support can you expect? The more willing the agency is to train you, the better the deal. At a minimum, you should expect that someone will be available and willing to answer your questions about the mechanics of making bookings and negotiating the best deals with suppliers. There are many opportunities that a host agency can provide for you to make your business more profitable, regardless of their size and their physical location, but of course, the final answer to your success will be in your own motivation to build awareness for your products and services and your ability to build a professional appearance to present to your clients. This applies whether you are developing a local clientele or building your business via the internet with a professional website presence.

Selecting the right agency is an important ingredient in your road to success. There are thousands of travel agencies to choose from today. Choosing the right agency for yourself is not an easy task. Keep in mind that you are the kind of person that agencies are looking for- “the Motivated Outside Agent.” Travel Weekly Magazine, Travel Age & Travel Agent Magazines are constantly displaying classified ads from hungry travel agencies looking for outside agents to sell their travel products. Remember, you are an asset to a travel agency if you are a good salesperson and have a proven track record of performance.

My final suggestion in this article which should be considered would be as follows:

Interview the Owner or Manager of your potential Host Agency. During the course of your interview ask the manager/owner the following questions;

• Do you have, in writing, a list of preferred vendors and their override commissions?
• Are you a member of a consortium or franchise? If so, which ones? An agency who is a member of these types of organizations can mean higher income possibilities for you.
• What Industry Organizations does your agency belong to? (i.e. OSSN, ARTA, ARC, IATA, OSSN, CLIA)
• Will I have an inside contact, liaison person or outside sales supervisor to work with to assist my clients and me?
• Do you have a contract for me to sign as an Independent Contractor? Make sure the contract has everything spelled out exactly,including your commission split percentages.
• Is the development of an outside sales force part of your marketing plan?
• Do you have an accounting program that shows commissions pending and paid? Also, when do you pay commissions?
• Are there sales performance quotas? If so, will you earn higher commissions when you reach these sales quotas?

Choosing the right travel agency to associate with is an important decision. Making that correct decision can lead to higher profits and longer business relationships.

OSSN provides our members with a list of OSSN Host Agency Members that you should consider selecting from. This list can be found in the OSSN Members section on page: www.ossn.com/secure/resources/retail.asp For OSSN members who have not forwarded their information to OSSN, so that we may add you to this list, you should contact OSSN at 561 743 1900 to get your agency established on this “state by state” list!

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