Do I Need a Host Agency?
by Jody Ryland, Business Development Manager – Partners In Travel

The travel agency industry we’ve called “home” through the years has certainly taken several twists and turns. Before the Internet was much more than a thought, I was one of thousands who worked in a small “mom and pop” agency. Your clients trusted you to find them the best deals, your suppliers worked hard to please you, and the airlines actually paid base commissions for your hard work. If you’ve been in the industry for as many years as I have, you can completely relate to the statement I just made!

Today’s travel market is dramatically different, and the industry we call home may now be serviced from home

As you strive to retain your client’s trust vs. the Internet, keep supplier relations positive, book airline tickets without losing money and compete on pricing, a decision has to be made. You must ask what is this costing my business? As technology evolves, you may decide to move to the home-based arena.

If this is an option you’re considering, you’ll need to determine several key points:

1. What will comprise your business?
2. Can you succeed?
3. What tools will shape your success?
4. Should you acquire or maintain your own ARC number?
5. Should you hire additional professionals?

Naturally, each individual is different and has unique ideas about how much time can be devoted to doing business. Regardless, affiliations are essential to getting started on your road to success. Obviously, it can be difficult to do air bookings without an ARC number or cruise bookings without a TRUE ID Code, issued through OSSN ( from IATA) or a CLIA number – those are huge and expensive hurdles! While not required, affiliations with professional associations, particularly OSSN, are very helpful and should be carefully considered by every home-based agent since they provide invaluable resources and tools when questions arise.

Perhaps the biggest question a new home-based agent must ask is whether to go solo or to participate in a Host Agency Network. The advantages of joining a Host Agency Network are tremendous, if you join the right network. Home-based agents really must do their homework before joining a Host Agency Network. If you’re considering joining one, here are some questions to pose to them:

• How long have you been in business?
• Are you a division of any nationally-known agencies?
• What level of commission overrides do you receive?
• What commission splits do you provide?
• Do you provide any kind of marketing support?
• How often do you pay commissions to your agents?
• Is there a monthly/annual fee to join?
• What kind of support do you provide?
• What type of continuing education and training do you provide?
• What booking tools do you provide and how much do they cost your members?

There are Host Agency Networks out there that can work for you and save you substantial money in affiliations that they already have! The best also provide vendor support and buying power to provide higher commissions. Let’s face it – if you have your own ARC or TRUE ID code ( issued by IATA through OSSN) or CLIA numbers but cannot do the volume, your commission can be as low as 10% and you’re doing yourself a disservice. Some Host Agency Networks, such as Partners In Travel, earn commissions starting at 15% with a majority of suppliers with many reaching significantly higher. Even with a commission split, you’re earning more than if you were going it alone. After all, isn’t making money one of the reasons you’re in business?

Marketing and support are other vital components to your business. Partners In Travel provides your business information in a brochure mailing three times a year to over 150,000 clients, FREE! Thanks to Partners In Travel’s enormous buying power, our brochure consists of negotiated packages with suppliers that are hard for your competition to beat. Partners In Travel also provides an annual convention for our agents that consist of informative supplier presentations and trade show, intense training from major suppliers and open forum roundtable discussions between agents, among other items. Our support team consists of highly experienced agents who have been successful home-based consultants who understand your business. These are just some of the advantages of working with a Host Agency!

Do yourself a favor, make a list of questions and start researching Host Agency Networks. Even if you are already affiliated with a Host Agency Network, do comparisons with other Networks. You will be glad you did!

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