Four Steps to Choosing a Host Agency

A good host agency can be an invaluable asset for newcomers to the travel industry and home-based agents, offering training and marketing and networking. But “anyone can call themself a host agency, and there are many scammers out there,” said Joanie Ogg, founder of HomeBasedTravelAgency.com, in a Travel Institute webinar last week. There is no federal legislation over host agencies, and that opens the door to scammers. Here are four steps to help you choose the right one.

1. Start with a vision.
Why do you want a host agency? What kind of support do you need? What products are you going to be selling? Before meeting with prospective host agencies, look at the pros and cons and understand the benefits. Not every independent agent joins a host agency, but the vast majority do. A host provides ease of entry into the industry and many benefits, including override commissions, back-room accounting support, technology, networking, and marketing.

2. While the host agency interviews, interview them.
Research every host agency, as you would any position for which you are applying. Ask:

How long have you been in business, and how many agents do you have? What is your staffing-to-agent ratio?

What are the characteristics of an agent you’re looking for?

What is the average network sales per agent?

Who are your preferred suppliers?

What consortia do you belong to?            

What technologies do you use?

What training do you offer?

Do you offer consumer leads?

What is the total cost to join the host agency?

3. Beware the “Travel like a Travel Agent” pitch, upfront fees with 100% commission guarantees, and multi-level marketing.
High-pressure sales tactics that resemble a time-share speech are not a good sign; neither is anything pitching “discount travel” rather than commission-based sales. Also beware of multi-level marketing schemes where the people at the very top are the ones who make all the profits.

4. Discount travel clubs are not host agencies.
“The biggest scam in the industry,” said Ogg, do not actually offer discounts from suppliers. Once you pay the fee, you find that the prices offered are not really the best value.

Photo courtesy: NCVO London