Deciding which host travel agency is the right fit is one of
the most critical decisions an independent agent has to make, and there are
steps to take to avoid making a bad choice, said Joanie Ogg, a travel industry
veteran who owns the Ogg Marketing Group with her husband, Tom. The company
operates the sites homebasedtravelagent.com,
findahosttravelagency.com
and travelprofessionalcommunity.com.
Not all independent agents join host agencies, but the vast
majority do because affiliation with a host provides ease of entry into the
industry and many benefits, particularly override commissions, back-room
accounting support, technology, networking and marketing help, Ogg said.
“There are hundreds and hundreds of host agencies,” Ogg said
during a webinar for the Travel Institute. “There has been a proliferation of
different business models, and there is no regulation. Anyone can call
themselves a host agency.”
Ogg warned of “unsavory” people who have created “scam” host
agencies, such as card mills that profit by selling memberships rather than
travel products.
“It makes it difficult to find your way,” she said. Be wary
of companies offering 100% commission for an upfront payment or anyone who
claims you'll “travel like a travel agent.”
However, there are plenty of quality host agencies that are
financially stable and professional, Ogg said. Agents need to research and
conduct a careful interview with prospective hosts before signing a contract.
First, determine what kind of support you'd like from a
host, the specialties you'll focus on and whether you'd like specific services
such as consumer leads or a certain type of technology.
Narrow your candidates to three to five and create a spreadsheet
with key elements that you're looking for. Then, conduct interviews of
prospective host agencies.
Ogg suggested agents ask those hosts the following questions before coming to a decision:
- How
long have you been in business, and how many agents do you have? What is your
staffing-to-agent ratio?
- What
are the ideal characteristics of your agents?
- What is the average sales volume per agent? This figure can reflect how serious the company and its agents are about selling travel.
- What
are your preferred suppliers? This will show if the company is a match for your
specialties.
- What
consortium do you belong to? Each has its own value proposition to agents. Make
sure it's the right fit for you.
- What
technology do you use? This could be a huge factor if you're looking for a
particular GDS, CRM tool or accounting system.
- What
training do you offer? Most hosts offer ongoing training, webinars, conventions
and other types of education and networking opportunities. If you're a veteran
agent and the company is geared to newcomers, it might not be a good fit.
- If
you're a new agent, do they offer a mentoring program to help you?
- Does
the company offer consumer leads? Decide whether it's something you'd like.
- What
does the company offer you that will help you sell your specialty?
- Are
there any additional benefits for me?
- What
is the total cost to get involved with the host agency? Hosts should disclose
all their costs.
When you've completed the interviews, analyze the results
and determine who seemed the most interested in you, who has the most
compatible features and benefits for your specialties and who had the synergies
that motivated you, Ogg said.
“Host agencies come in all shapes and sizes, and it's
important to choose wisely,” she said.