PHOTO: Montrose/MTravel holds an annual conference for all of its travel agents, including its independent contractors.

Many large host travel agencies today are focused on serving hundreds of independent contractors as pure hosts. They have no inside travel agents selling travel as employees. But the fact is nearly every other travel agency today has both inside and outside agents. Few of these hybrid models, however, are as successful as Montrose Travel.

Montrose, based on Montrose, Calif., just outside Los Angeles, began as a small storefront agency in 1956. Leora and Joe McClure, Sr. purchased the agency in 1972 as a business they could run in their retirement, but then their kids got interested.

Joe McClure, Andi McClure-Mysza and Julie McClure bought the agency from their parents in 1990. Joe and his sister Andi are co-presidents and Joe’s wife Julie is the chief financial officer. They have dramatically grown the business from a $6 million mom-and-pop agency in 1990 to a $280 million family-owned and operated agency selling both corporate and leisure travel today.

Eleven years ago, Montrose created a separate division for independent contractors called MTravel led by McClure-Mysza. Essentially, MTravel is a pure host agency within a more traditional full-service agency, providing services to outside agents. Montrose/MTravel now has more than 200 employees and more than 500 independent contractors.

The agency’s business mix is roughly 50 percent corporate and 50 percent leisure for both its internal operation and MTravel. Unlike other host models geared to leisure travel, MTravel independent travel professionals do sell slightly more corporate travel.

While many pure hosts sell the fact that they don’t compete with their independent contractors because they have no internal agents, Montrose actually touts the benefits of its hybrid model. “There are significant benefits to being affiliated with a travel agency that’s both a host and a retail travel agency,” says McClure-Mysza. “Our own history has given us first-hand experience in what it takes to actually operate a successful travel company. We’re in the same trenches together and have an appreciation for what an agent experiences on a daily basis — from customers to suppliers.”

McClure-Mysza says this enables Montrose/MTravel to be that much more effective in coaching, supporting and providing advice to its independent contractors. “Our storefront infrastructure lends itself beautifully to the hosting model,” she says. “In addition to the personal business development and sales support team available to our independent contractors, they can also connect to any of our front-line agents…some of whom have been with us for decades.”

That means Montrose/MTravel outside agents can get destination, supplier and hotel advice from a front-line expert in leisure, corporate, romance, groups and more simply by conferencing them in on a call. “Providing access to that kind of knowledge deeply impacts the success of our independent contractors and is simply not available with most hosts,” says McClure-Mysza. “It’s important to me that I make myself available to our independent contractors. I never want them to feel they’re just a cog in an impersonal machine.”

A 90/10 Commission Split

Montrose’s MTravel unit has been busy launching new programs designed to support the agency’s independent contractors. Indeed, last month the agency unveiled a new commission program under which qualified agents can now get a 90/10 percent commission split, matching some of the highest splits available in the industry. Montrose previously had capped its commission split with independent contractors at 80/20.

The new “Executive Agent” level was introduced to provide affiliated agents with even more incentive to grow their businesses and attract new independent agents to the agency. Under the program, MTravel also will continue to offer an “inclusive” hosting model that makes its services and tools available for one annual fee rather than ancillary or monthly fees.

Annual costs start at $299 to $499 for the first year and $259 to $459 for renewal years. Commission splits start at 50/50 for new independent contractors and now go up to 90/10 under the “Executive Agent” program based on knowledge and volume.

“We’re fans of simplicity,” says McClure-Mysza. “We eliminate the aggravation of monthly and hidden fees and simply bundle all the key elements of the program for one annual, inclusive fee.”

Membership Benefits

So what do travel agents get when they affiliate with Montrose’s MTravel unit? Like other hosts, the agency offers a wide range of marketing, training and technology services aimed at boosting the business and profitability of its affiliates.

On the marketing front, MTravel helps its agents develop an annual plan that can include word-of-mouth, email, online, direct mail, special events and public relations, depending on the client base they have or want to attract. It also offers CRM Client Connex, an integrated database and e-marketing tool that houses the client bases of agents and allows them to target market using demographics, travel history and special interest.

At no additional cost, agents also can create their own blast emails using MTravel’s in-house marketing team as well as marketing resources from Ensemble Travel Group, the travel agency cooperative that Montrose has been affiliated with for years. Ensemble gives MTravel agents access to a direct mail marketing program created specifically for the agency.

Through its membership in Ensemble, Montrose/MTravel has access to top amenities and VIP benefits for preferred cruise, hotel, resort and tour companies. Ensemble’s on-location suppliers in top destinations also provide an advantage for agents with clients looking for a unique vacation.

Montrose/MTravel provides more than five webinar sessions a week, conducted by a live trainer, that focus on relevant industry and supplier information, as well as business development practices to increase profits for affiliated agents. Its Jump Start Series is a nine-part online program designed to get new and experienced agents ready to launch or revive their business. Another Group Travel Series teaches agents how to go after group business from soup to nuts.

Over the phone, email or even using in-house meetings Montrose/MTravel offers one-on-one counseling and business coaching for its agents. The agency also hosts an annual educational conference to provide more in-depth training and networking for its affiliates. This September the conference is being held in Jamaica, with pre- and post-conference fam trips to highlight the destination.

Montrose/MTravel provides each of its independent contractors with a private-labeled consumer website with online booking capabilities. The agency also offers Agent Connex, a back-office portal with everything from a training archive to marketing information to sales and commission tracking in a searchable format.

A Group Connex tool allows agents to create custom-designed group packages and tours that clients can book into online, while the agent manages the group on the back-end. In addition, the agency provides its Apollo GDS to any agent who needs more control over their ticketing process. Corporate travel specialists can take advantage of a suite of tools.

Beyond all these programs, however, what makes Montrose/MTravel different is its host-plus-retail agency model as well as its family ownership. “It imparts so many rewards to our independent contractors that they could not get from a host-only model,” says McClure-Mysza.

The fact that Montrose/MTravel has been privately and family-owned for so long gives it yet another advantage, according to McClure-Mysza. “Our commitment to fostering a close-knit, family-like atmosphere isn’t a slogan,” she says. “It’s the core ethos of what differentiates us from other hosts with thousands of independent contractors. Our agents are our business partners, but they are also our friends. We wouldn’t want to do business any other way.”

For more information on Montrose/MTravel, call 800-870-5799 or visit www.MTravel.com.