Finding a Host Agency: Look Beyond the Commission Split

This is part one of a two-part series

When it comes to selecting a host agency, there is much to ask about besides the commission split. It’s a two-way partnership that should enable a business to reach its maximum potential.

To get some perspective on what to look for in a host, Travel Market Report sought the views of host travel agency executives, educators and consultants: Scott Koepf, senior vice president of marketing, Avoya Travel; Andi McClure-Mysza, co-president, Montrose Travel, and Patty Noonan, CTC, director of sales, The Travel Institute.

How should you begin your search for a host agency?
Noonan: First and foremost, a new agent should remember that they are interviewing hosts, not just the other way around. A minimum of three hosts should be interviewed in order to get a good comparison.

Second, determine what you need from a host. I would be looking for strong customer management support for tracking data, which is your single, most important asset. Also important is a turnkey marketing program. And a great back-up office system will free you to spend more time selling.

Ask for references. Speak with other agents working with them [the hosts]. If they do not provide a reference, then continue your search elsewhere.

McClure-Mysza: Some new agents will go to the host agency website and not even bother calling. You need to make a phone call and talk to these people. Get a sense of how responsive they are on the phone, do they return phone calls quickly?

The conversation with the host is a two-way street. Introduce yourself and tell the host what your needs and business goals are. It’s hard when an agent calls up and acts secretive.

Honesty and openness are important—and it goes both ways. We want a good fit as well. We don’t take everyone. We are looking for true entrepreneurs who want to build a business. We’re not for people who just want freebies and discounts.

Koepf: The biggest question is one that agents need to ask of themselves. How committed are you to making this a real business and to making it grow? If you’re just dabbling at being an agent, the host may not want you.

Then ask the host agency about what kind of agents they don’t accept. If they will take just anybody, they may not be a group you want to be with.

Is the commission split the most important consideration when choosing a host agency? If not, why?
McClure-Mysza: If you are just asking about the commission split, you are barely scratching the surface of what will contribute to your success as an entrepreneur. Your priority needs to be about learning the industry and in building your client base.

The intangibles are the most important – the culture, the responsiveness of the host, the support they provide. When people become unhappy with their host, most of the time it has nothing to do with the commission split.

Koepf: You need to look at the commission split, but it’s much more important to look at what support they will provide in bringing in new business or in bringing back existing business.

Many agents go right to the commission issue first. They want as close to 100% as possible. But 100% of nothing is nothing. You have to have customers before you can worry about the commission split.

If someone does say they can offer you 100%, you have to ask how long they will last doing this. We’ve seen hosts go out of business and hold the bag on commissions because they made promises that don’t add up.

What are the advantages of going with a “pure” host agency versus one that is also a retail agency with in-house agents?
Koepf: It’s important to ask if the host agency is truly in the host business and not just a retail agency with one or two contractors. Ask if they are a pure host agency, one where 100% of its sales are done by contractors, which is what Avoya is. If the agency also has internal sales, that can create a conflict.

McClure-Mysza: When a host agency also has retail in the mix, there’s a whole other level of advice you can provide that a purely host agency cannot. Our retail agents are a great resource for our home-based/independent agents. While our host support team knows a lot, sometimes it’s our frontline agents who can really help with the nitty-gritty questions.

For example, do you need a recommendation for a great restaurant for honeymooners in Jamaica or small hotel in Venice? Often one of our frontline agents may have the answer.

Next time: Host agencies—finding the right fit