Should ICs Choose Multiple Hosts?

While independent agents can choose to affiliate with multiple host agencies, it might be a better idea to forge a relationship with just one.

That was the message a panel of host agency executives delivered to attendees at last week’s National Association of Career Travel Agents (NACTA) convention in Fort Lauderdale.

As the number of independent agents explodes, more and more agents are facing a decision whether to affiliate with one host, multiple hosts or remain on their own, said NACTA president Ann van Leeuwen, who moderated the panel.

There are currently some 40,000 independent contractors, “so we [the industry] are moving from agency-centric to agent-centric,” van Leeuwen said.

A strong relationship
Independent agents might be tempted to work with more than one host, thinking that might lead to higher commissions, but it’s not necessarily a wise choice, said panelist Betsy Geiser, vice president of Uniglobe Travel. “I’m not sure how much sense that makes,” she said.

Geiser stressed the importance for agents of developing a strong affiliation with their hosts. “It should be about your relationship with your host,” she said.

“It needs to be a much fuller relationship and you need to make the most of that relationship.” Geiser noted that while Uniglobe offers independents a wide range of tools, “many have no clear idea that they exist.”

Suppliers’ investment
Nexion president Jackie Friedman pointed out that many host agencies, including Nexion, belong to a consortium. (Nexion is a member of Vacation.com.) When independent agents maintain dual host affiliations this can affect the host-consortium-supplier business dynamic.

She explained that when independent agents dilute their volume with their primary host, by splitting bookings among several hosts, this in turn devalues the investment of preferred suppliers with the consortia to which host agencies belong.

In addition to the preferred deals a consortium has with a supplier, suppliers provide marketing and training programs that are valuable resources for everyone – the independent agents, host agencies and consortia, Friedman said.

“That’s something that agents should consider.”

Going it alone
Bonnie Lee, CEO of the host agency Travel Quest, discussed why an independent agent might choose not to affiliate with a host.

“A person with an entrepreneurial spirit will choose a host because they’re concerned with the bottom line, while an individualist might not choose to,” Lee said.

“If you have a real specific niche, say selling Disney, you might find it good to go it alone,” she added.

“But it’s also a situation where ‘you don’t know what you don’t know,’” Lee said. “So check out what a host agency offers.”

Identity crisis
A lot of independent agents fear they might lose their identity in the industry by aligning with a host, said Skip Fortier, director of Join Avoya, which recruits independents for Avoya Travel / America’s Vacation Center.

That’s not the case, he said. Suppliers want to know who their top bookers are, said Fortier. Uniglobe’s Geiser agreed.