Jamie Biesiada
It's not uncommon for agents to change their business model.
An agent looking to retire but still service existing or top clients might opt to move to a hosted model. A new agent who started with a host agency to learn the ropes might want to move to a franchise model. Or, one model might simply appeal more than the other.
Debbie Fiorino is the senior vice president of franchises CruiseOne and Dream Vacations, as well as host agency Cruises Inc., all World Travel Holdings brands. She said agent movement within the company's brands does happen.
Oftentimes, agents will start as a hosted agent with Cruises Inc. They tend to be new to the industry, perhaps looking to book travel for family or friends.
"Then as they get in and they start to see that they can make this work, they move over to CruiseOne or Dream Vacations, which is a franchise," Fiorino said.
Fiorino said a franchise is more of an investment financially.
"When they're considering a franchise, I think they are really considering now this is their full-time career, and they want to own a business," she said.
Franchises tend to attract entrepreneurial agents, according to Fiorino.
"It's a little bit more of an investment, but they're ready to take on that investment," she said. "They're ready to really build so that they can take most of the profit for themselves."
Movement between hosts and franchises is not discouraged.
"We don't frown upon it because, quite honestly, we think we have a really great model that allows them to come in, figure out this is what they want," Fiorino said. "Because we don't want to see people invest a lot of money and then fail."
Fiorino advised agents looking for franchises to focus on the support they will offer, the most important thing, in her mind.
Most franchises in the travel space offer technology, marketing and back-office support.
"To me, that's all stuff that we all have," she said. "We can say, 'This is better,' and we're all going to continue to invest in it to make sure that we have the best tools and resources out there for them."
But support is key, she said, and agents should understand what kind of support their prospective franchiser would offer.
She also advised agents to review franchisers' financials through their franchise disclosure document, which includes information on performance. They can compare average sales from franchiser to franchiser, giving them an idea of the overall health of the business.
"No matter what spin we all give, our technology and marketing and all that, at the end of the day the numbers are going to prove themselves," Fiorino said.