Traditional or Host Agency? How to Make that Choice

by Marilee Crocker January 29, 2015

This is the second story on choosing to affiliate with a traditional agency or a host agency

Given the options open to them today, independent contractors of all experience levels need to weigh the pros and cons of affiliating with a traditional travel agency or a dedicated host agency.

Once they’ve made that choice, they’d also be wise to thoroughly vet the individual agency or host agency before finalizing their decision.

A question of support
“A traditional agency may or may not have the understanding or know-how to really support an independent,” said Wendy Burk, CEO of the Virtuoso member agency Cadence in La Jolla, Calif.,

At the Professional Association of Travel Hosts (PATH), one of the chief complaints that board president Anita Pagliasso hears from ICs affiliated with small to mid-size agencies is that the agency is so busy they don’t have the time or the staff to help the independent.

“That’s something an agent needs to ask: ‘If I need help, who do I come to? If everybody’s busy, what do I do?’” advised Pagliasso, who is president and founder of the San Jose, Calif., agency Ticket to Travel, a member of Vacation.com.

Not ready to host?
Scott Koepf, senior vice president of sales for the national host agency Avoya Travel / American Express, believes that many traditional agencies are simply not equipped to serve as hosts.

“The reason there has been a growth in host agencies is because supporting independent contractors and supplying resources to them is a completely different business than being a travel agency on Main Street,” Koepf said.

“In my opinion, unless that agency has a specific design, program and staff to support an individual, then it’s not a good choice,” Koepf said.

Making the choice
What factors should independent contractors consider when choosing whether to align with a traditional travel agency or a dedicated host agency?

Ann van Leeuwen, president of NACTA, urged agents to look at a host of factors.

These include:

Commission rate and split
Fees and overall financial commitment to the host or agency
Relationships with suppliers, clout with suppliers
Does the host’s arrangement with suppliers allow for recognition and reward of the IC’s sales?
Reputation of the host/traditional agency within the industry
Financial strength of agency or host
Does the host or agency’s consortium affiliation have programs that support ICs?
How many ICs are connected with the host or agency?

Other considerations
There are also several key questions, ICs should ask themselves when making a decision, Van Leeuwen said.

Does the agency maintain separate hosting and retail operations? Will you be competing with staff agents for business?, she said.

And finally, does the host or agency have close ties to the suppliers you sell most often and/or in the areas in which you specialize?