Host Agencies: Finding the Right Fit

by Maria Lenhart July 03, 2015

This is the second in a two-part series

Before joining a host agency, experts advise carefully considering if the focus, company culture and support services are a good match for a travel agency’s own brand and goals.

For insight on how to go about this, Travel Market Report spoke with host travel agency executives, educators and consultants: Scott Koepf, senior vice president of marketing, Avoya Travel; Andi McClure-Mysza, co-president, Montrose Travel; Patty Noonan, director of sales, The Travel Institute; and Nolan Burris, consultant and owner of Future Proof Travel Solutions.

How important is it that the host agency be in tune with your own brand?
Noonan: Make sure to align yourself with an agency that best represents your brand. You want a partner who shares a similar vision, passion, excitement, style, and philosophy.

Burris: You are a brand and your host is a brand as well, so make sure they are nicely meshed together. Make sure that any marketing that is being done to your clients on your behalf ties in with the brand you are trying to create.

For example, I know of one agent who focuses on luxury travel and received substantial fees per consultation. His host agency was more focused on mass marketing and discounts. So his clientele kept getting marketing information that was contrary to what his clientele wants. This confuses the customer and can have undesirable results.

How about education, training and tech support?
Koepf: Look carefully at what kind of education is available, both to start with and ongoing. Many hosts outsource this to consortia, but I would lean on host agencies who do it themselves and who do not rely on third parties. The education may not be customized to the world you’re living in and be in tune with what you need.

The same is true for technology. It’s better if the host owns and operates it. It should be proprietary for the host. A third party may have thousands of others to serve and it may be harder to get problems resolved.

McClure-Mysza: Does the host provide education for experienced agents as well as newbies? Even if you are a seasoned agent, it’s important to stay updated about this dynamic industry. A fairly common mistake is for seasoned agents to not take time for training.

The host can provide education in different ways, including events and webinars. We record all of our webinars so that our agents can receive the training when they need it. Ask if the host provides this kind of flexibility.

What about the host’s clout and relationship with suppliers?
Noonan: Look for a host with the best connections and buying power. Make sure they are part of a large consortium, recognized as a top producer for the brands you are interested in selling. Look for an agency that is actively involved in industry events, forums, advisory councils and industry boards.

Through their relationships and clout you will have access to value-added items you cannot get on your own like upgrades, included meals, comp shore excursions, welcome gifts, and shipboard credits.

What should you know before you finalize an agreement?
McClure-Mysca: Get a copy of the contract, study it and understand all the details. Sometimes there are hidden costs that you don’t know about. Make sure you know exactly what costs you may encounter down the line. It should all be in the agreement.

Are there other considerations that agents tend to overlook?
Burris: I always recommend that agents ask about whether the host will allow them to charge service fees to their clients in whatever way they want to. Fees are an entirely separate issue from the commission split. Make sure you are not limited in this.

Noonan: Ask how often they pay commission. Look for a pay cycle of at least twice per month.

McClure-Mysza: Look at the size of the host, as that can impact your needs. If they work with thousands of agents that may be okay if you just want a transaction shop. If you need more handholding or want more personalized service, that would make it difficult.