Host Agencies: To Join or Not to Join

Open any travel-industry magazine these days and you’re practically guaranteed to see an advertisement for becoming a travel agent quickly and easily by joining a host agency. Should you join a host agency to make your dreams of working in the travel industry come true? Read on for the pros on cons of working with one.

Pro: Almost as soon as you are accepted to start working with the host agency you can begin selling travel. It doesn’t cost as much time and money as being an independent agent in terms of up-front investments; licensing and training can cost a lot of money. (However, not all states require you be licensed to be an agent.)
Con: You pay to be part of the host agency by sharing some of your commissions. Some host agencies also charge a sign-up fee and a monthly or annual fee. Also, you often will not get paid up-front; generally with a host agency you have to wait until the clients take their trips before you see any money.

Pro: Many agencies provide training in how to sell and run your own travel agency.
Con: Not all host agencies will train you.

Pro: The hours you work are up to you.
Con: Much of what you do is attached to the agency. Your website will mention them, and you might not be able to hire independent contractors to assist you with your workload without approval.

Pro: Many host agencies give you a bonus based on volume and help you find leads.
Con: You could end up paying extra for the leads they help you find.

Pro: You have someone to call when you have questions or problems.
Con: Not all host agencies provide 24/7 support.

Pro: Your host agency can introduce you to suppliers and vendors to help you sell more travel.
Cons: Many host agencies do not actually introduce you to their suppliers, and may not sell the destinations, packages, or properties your clients are looking for.

Pro: Your host agency can set you up with FAM trips.
Con: Since these trips are controlled by the host agency, you may have to meet certain quotas to be eligible.

For many travel agents just starting out, host agencies provide a helpful service that people consider to be worth the money they charge. But you need to be clear about the advantages and disadvantages of working for a host agency vs. running your own, in order to make an informed decision (see sidebar). I hope you will take the points I’ve made here into consideration before you make up your mind.