Why Use a Host Agency?
Many Professional Travel Agents find that working with a "host" agency is the most desirable way to operate their independent travel business. Host agencies specialize in offering independents sophisticated services, overrides, automation, quality control and support. 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;
- They already work with successful independent agents
- They do not have any unresolved complaints against their agency
- They are committed to developing a professional independent agent network
- They do not have a "travel agent recruiting other travel agents" program.
- They do not tout "travel agent ID cards" to obtain travel discounts.
- They offer meaningful commissions and overrides
- They are active ASTA and NACTA members
- You understand what you are getting for your investment (if any)
- 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 has a membership for host agencies and the minimum standards for a host agency to qualify for this program are as follows:
- Must have been in business as a host agency for at least one full year
- 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 $10,000.00
- There are no unresolved complaints against Host agency
- Committed to the development of a professional independent travel agent network
- Registered to operate as a host agency with all local, state and federal governments as required
- Do not have a "recruitment program" whereby consumers recruit other consumers into the network as a higher priority than individual travel sales.
- Do not offer a "Travel Agent Photo ID Card" for the purpose of consumers to obtain travel professional benefits.
Frequently Asked Questions 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, 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 specializes 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 does one host agency charge $7,500.00 and the next charge $300.00?
Host agencies are just like other businesses. One may specialize in recruiting brand new agents and have a heavy concentration on training and start up integration into their network. The very next may simply recruit experienced agents and offer no training or integration support whatsoever. Common sense should lead your way through this maze. If the host agency you are looking at is charging $7,500.00 and giving you nothing but simply paying for their marketing cost of finding new agents, then look somewhere else. But, If you can easily see the value in a host agency charging even say, $10,000.00, then that may be a wise decision to make concerning your future.
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 really necessary unless you are going to be booking a lot of domestic airline tickets. Many host agencies offer Internet access to their CRS or GDS and others may offer dial up access via modem. 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. Generally, however, these are the things that NACTA looks at. 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, the State Attorney General's Office, or the FTC? Agencies appearing on these links have all passed these standards.
What about the $495 instant travel agency deals or Card Mill organizations?
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. There are some host programs that do charge a start up fee of around the $495 amount but what they include or offer can be on the up and up. Check carefully....If it sounds too good to be true, it probably is!
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