As discussed in the last Point-to-Point column, travel advisor independent contractors (ICs) are renters rather than owners that can become affiliated with as many host agencies as they wish. While few ICs will want to do business with more than two or three host agencies, there is a strong business case for not limiting yourself to one.
Also as discussed in the earlier article, you may want to do this to take advantage of a second host agency’s strengths; or it may be to avoid what you see as glaring weaknesses of your present choice. On a more obvious level, a second (or third) host agency may improve your bargaining position regarding commission rates and FAM trips.
Assuming you’re considering adding another host agency or leaving the one you now have, what do you do then? How do you decide which is the ideal one to add? Here are some factors to consider.
Recommendations
As in dating, one of the best assurances of a harmonious relationship between you and a new agency is the recommendation of friends or colleagues who know both of you. If your friends are now with the new host agency—so much the better. You won’t be alone in crossing over; their advice will be invaluable while interviewing and negotiating.
In addition to getting their overall feeling and impressions of whether you stand a good chance of fitting into the new agency, try to probe into the issues and benefits that interest you most. Leave the door open to further contact with your sources as you saunter down the dating path.
Strengths
As you winnow down the list of new host agencies you are most interested in, jot down a few quick thoughts about why you became interested in each. This may emerge as a list of unique strengths you didn’t realize you valued. You may think you started to look around because of your low commission rate, but the strengths you noted were the fellowship opportunities offered by a new agency and better chances of your clients buying into groups formed by the travel consortium you will also join.
In these cases, don’t be afraid to change your criteria to include new considerations or revise the list of the agencies you’re most interested in.
Growth
The shelf-life of the small, family-owned host agency is limited. Often, the founders are well beyond the normal retirement ages, and their children taking charge may not be in everyone’s best interests. If another agency has acquired the host agency you signed with—and perhaps has been swallowed in turn by a corporate whale—your work life may change in ways you can’t imagine.
While you may be elevated in the new hierarchy to levels you thought impossible, making routibe requests that could once be approved with a phone call to the owner must now be made in writing and face scrutiny by several persons who have never sold a single trip.
On the other hand, some host agencies are attracting ICs one at a time by offering them opportunities that are too good to miss; rather than by trying to net the whole school of fish.
Atmosphere
When working at home in a tee shirt with only a dog or cat keeping you company, explaining how “atmosphere” becomes something you value is difficult. Yet, it’s an attribute that makes a difference. The most important element is communication. Quality firms provide every IC with all managers’ and staff members’ direct phone numbers and email addresses in an online directory.
Everyone invariably thanks ICs for contacting them whenever they have issues or problems. Cooperation is another aspect of the atmosphere. Good companies provide bulletin boards and meetings that encourage ICs to work with each other and head office staff to solve problems encountered by any one of them. Shared expectations are a third element. These include written criteria for commission levels and fam trip awards and straightforward descriptions what is considered unethical behaviors.
Better Business Bureau Ratings, Complaints, & Reviews
Part of the due diligence that all ICs should do is check what has been written about any host agency they consider joining. Here are a few tips about understanding Better Business Bureau (BBB) profiles and complaints:
Most travel companies are not “Accredited.” Few seem to have that status but look for companies with at least an “A” Rating. For instance, during the pandemic, there were thousands of cases where airline or cruise company refunds were delayed or denied. Despite this, many cruise lines and airlines have maintained an A or A+ rating, meaning that most issues resulting in formal BBB complaints were eventually resolved or arbitrated. Consumer reviews may present a different picture. These unhappy customers felt they were wronged, even if they were only a small percentage of a company’s clients.
Technology
Unless one of the Host Agency owners describes themselves as a “Geek,” the technology will likely be at least a generation behind. Look for owners to lead the charge for Artificial Intelligence (AI) apps and seek to make today’s booking tools and client management systems obsolete. If the training offered by host agencies or their travel consortium is mostly limited to destination training and seminars on ClientBase, rather than skills such as prompt writing, developing brochures or books with ChatGPT, creating MidJourney illustrations, and identifying top-rated SEO wording, you probably should be looking for other host agencies.
Commission Rates and Hosting Costs
If choosing a new host agency is akin to courting, it’s like your mother told you, “It’s as easy to fall in love with a rich partner as a poor one.” All other factors being equal, you might as well go for high commission rates rather than modest ones. The commission rates for experienced agents seem to cluster for experienced agents between 80 and 95 percent, although some are much lower—especially if leads are provided or the agency isn’t looking for more advisors.
Qualifying for the 95 percent rate may require you to have earned commissions totaling at least $40,000 during the past 12 months. You can also pay less than $50 a month for all of your hosting services including a personalized website, a search & booking engine, and display ads selected from a list of your desired vendors. If you’re looking for a new (or another) host agency, your first stop should probably be the Host Agency Reviews website. Click on any of their listings to be provided with important data and a link to the host agency’s website.
Making the Final Choice
After using Host Agency Reviews and other resources, try to narrow your choice down to the three top host agencies for you. Develop a hand-drawn matrix or 3-column spreadsheet with the three agencies written across the top and the seven considerations from this article—plus others you provide—down the side. Now summarize all you know about the host agencies in the spreadsheet cells that you’ve created. Now make screening calls to each of the agencies to verify the information you’ve gathered and fill in the cells that have been empty until now. Rate each cell from 1-4 points depending on whether the information you’ve gathered is Very Disappointing (1), Disappointing (2), Encouraging (3), or Very Encouraging (4).
Total the scores in each column. Is there a clear winner? If so, call them back and try to make the deal. If not, consider adding a fourth agency or weighting each row regarding its importance to you. If you don’t have a clear winner at this point, perhaps it’s time to devote more time and work to your present host agency and put off selecting another for 3-6 months.
Dr. Steve Frankel has cruised on most of the Seabourn, Silversea, Crystal, Azamara, Oceania, Regent, and Windstar ships. He owns Cruises & Cameras Travel Services, LLC. It is affiliated with two host agencies with different consortia. Conde Nast Traveler magazine has recognized him as a Top Travel Specialist and he’s a Signature Travel Expert Select. His specialties are small-ship cruises, family travel, and luxury tours. He’s a Los Angeles Press Club member and has written 13 books and several hundred articles. His email address is steve@cruisesandcameras.com.
