Virtuoso travel agencies are adding independent contractors (ICs) at three times the rate of employees, a trend during the last few years, said David Kolner, senior vice president of Global Member Partnerships for the luxury travel-agency network.
“Many of our members are growing by adding more ICs into their host agencies,” Kolner said. “They're adding new ICs because they bring in new business, and it's a low risk to the agency. It's a great way (for agencies) to build their buying power.”
A recent survey of Virtuoso's U.S. member agencies not only found that they are adding ICs at a higher rate than employees, but many said their share of employees versus ICs has changed, too.
Over the past five years, 45% said the share of employee agents had stayed the same, 43% said there are more ICs and 13% said there are more employee agents.
Kolner said that Virtuoso member agencies, many of which are struggling to find qualified employees to fill positions, have expanded the use of ICs and broadened the hosting models.
“The hosting models have become more refined and differentiated so that you can find the perfect host based on whether you need a lot of support or just a little support,” he said.
Some ICs may look for a lot of mentoring or technological support. Others might be more interested in the most favorable commission splits.
Virtuoso provides a matching service for ICs not affiliated with a Virtuoso agency. For many ICs, geography is important because they like having a physical office that they can visit and meet with managers and other agents in person, Kolner said. Others may have other priorities, he said.
For example, those new to the industry are matched with Virtuoso agencies that offer mentoring and the Virtuoso Certified Travel Advisor curriculum that prepares new agents to become luxury travel advisers.
VCTA includes a three- to six-month training period before new agents attend an intensive five-day workshop conducted at Virtuoso headquarters. The retention rate for those who complete the VCTA program is high, Kolner said, with 97% still working as a travel agent two-and-a-half years after finishing.
ICs are also invited to Virtuoso Difference, which is part of the agency network's annual Virtuoso Travel Week Global convention in Las Vegas. The one-day event, scheduled for Aug. 7, is $125 per person (with student discounts available) and open to those interested in entering the luxury travel field as ICs or employees and not currently affiliated with a Virtuoso agency.