Dear Tammy: I have a goal of becoming a travel agent, but I do not understand the difference between working with a host agency and working as an independent contractor. Which one is more beneficial?
Tammy:
Don't worry. You're not alone in not understanding this.
I was recently at a tradeshow and I kept asking agents if they were on their own or set up under a host. They would answer, "Under a host." I would then ask which one and they would say, for example, "ABC Travel, it's a small agency with about four independent contractors."
That is not a host agency. That is just an agency that has hired you and you are an independent agent. Now, if one of those travel agents had said they were under Cruise Planners, Uniglobe, or Nexion, those are hosted agencies that have many agents that are set up under their own company name. Cruise Planners has, for example, Betty's Travel Agency, Inc. under their hosted Cruise Planners agency.
Host agencies came about primarily after the attacks on 9/11 when a lot of agents were out of work and they wanted to find a home to work out of. Most are bonded, accredited ARC/IATAN agencies and, through these companies, you make your bookings.
If you are a home-based travel agent you are typically an independent contractor looking to build your own agency and working under a host agency allows you to do that. Usually, you have to pay a commission or fee to the host each month.
On the other hand, working as an independent contractor (IC) is quite different. You work for a travel agency that may or may not give you leads, but you work as a part of their agency. So for example, my company, Elite Travel, has ICs and they have a choice -- they can work in my office if they need to or they can work from home. I have chosen to give them a place they can work out of, but do not ask them to work during certain times or days. That is their choice. I give them leads and they work under the Elite Travel Brand.
Whatever one works for you depends on your level of experience and your future goals. So when asked, you need to know who you are with and what your role is in the industry.
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