Host Agency or Out on Your Own?

When you’re starting a business, you can venture out and do it all on your own, or you can get help.

For example, if you’re opening up a McDonald’s franchise, the store is yours but McDonald’s is a valuable resource for franchisees. The same goes in the travel industry. You can start a solo Lisa Smith Travel Agency, or you can connect to a host agency that can provide resources and support for you while you build your business.

Which is the right way to go for you?

It depends on what you are looking for when starting your business.

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Debbie Brisky is with KHM Travel Host Agency and said it was the best decision she could have made for her business.

“I have the luxury of having my own company but I also have an amazing support system as well,” said Brisky, whose company is Beach Monkey Travel LLC. In Pittsburgh, Pennsylvania. “KHM works very hard to give their agents the tools they need to succeed. At this point in time, I know that I will continue to stay with a host agency. The rewards far exceed the split I give them.”

Pam Walker ran her own agency for 30 years, but when she sold it, she thought about venturing out on her own. It wasn’t so easy.

“The overhead was less and, yes, I had the respect of my suppliers due to owning a big agency previously. But as time went on, the cost of joining Virtuoso, getting higher commissions, doing my own advertising, purchasing a database and agency accounting system became way more than I had bargained for financially and time-wise,” said Walker, of Walker Adventures Ltd., an affiliate of Travel Experts in Palm Coast, Florida.

“Having a host agency makes my life so easy, and I can just concentrate on my clients,” said Walker. “Not only does my host have a membership in Virtuoso, but also due to the numbers of independent contractors they get, I get higher commissions, better relationships with suppliers and more attentive sales reps, a lot of online training, online forms to get things done and much more.”

On the other hand, Samarah Meil of Amarillo Travel Network in Amarillo, Texas is an independent agency with eight independent contractors that work for her.

“Together it helps our volume and we have received wonderful support from our business development managers and preferred suppliers,” she said.

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According to the National Association of Career Travel Agents, here are a few things to look for when selecting a host agency:

—They already work with successful independent agents.

—They do not have any unresolved complaints against their agency.

—They are committed to the development of a professional independent travel agent network.

—They do not have a "travel agent recruiting other travel agents" program.

—They do not tout "travel agent ID cards" to obtain travel discounts.

—They offer meaningful commissions and overrides

—They are active ASTA and/or NACTA members

—There is a clear contract outlining your and their responsibilities.

—They offer ongoing support in the form of technology, marketing, and supplier service issues.

"As it started to get challenging to stay an independent boutique travel company, we began an exhausting search to find a personalized marketing option that would include staying true to ourselves yet relevant in the business," said Irene Pasquesi, LagoBlu Travel of Chicago, Illinois.

"Agent Studio has provided that and more with its automated marketing and the Travefy platform combination. It not only is affordable but lets us focus on the most important aspect which is servicing our clients."

"Agent Studio has helped me take my agency from a startup to a thriving, growing agency," said Miki Taylor, Agent Ambassador, Agent Studio. "The use of the Marketing Center and Automated Social Media features have allowed me to cancel multiple subscriptions to third-party tools ultimately saving me money. As an independent agency, Agent Studio allows me to easily grow my agency my way."

Once you decide what works for you, check out what’s available for you to become a travel agent success.