To Host or Not to Host….That is the question!

By Doug Cooke, Publisher
As the number of Brick and Mortar agencies continues to decline, with the latest ARC statistics reporting 16,700 locations, more and more travel agents find themselves in need of a “home” for their business. Most industry suppliers require some sort of proof of an agent’s professionalism such as an ARC, CLIA or TRUE number. As more agents take their businesses home, they find themselves in need of a host agency to place their bookings through. Likewise, those remaining independent brick and mortar agencies may find value in joining a Consortium for the benefits these types of organizations provide. In a recent readership survey of JAX FAX subscribers, we found that 62% of agents were “very satisfied” with their host agency, and 30% said they would consider changing their host. It seems that while many hosts are doing a good job of serving the needs of their members, other agents are still looking for a perfect host.

First Annual Guide to Host Agencies, Co-op’s and Consortia
With this issue, JAX FAX is taking a leading role in educating both agents and agency owners about the benefits of working with a host agency or consortium. Our first annual Guide to Host Agencies and Consortia is being distributed in this issue of JAX FAX. This guide is unique in that it is designed to educate travel agents about the benefits of working with a host agency through guest editorials from industry experts, Joanie Ogg and Scott Koepf. Additionally, the guide provides a directory of Host Agencies and Consortia, giving you the information you need to make an informed decision on which organization is right for you.

Without a Host, You’re on your own
There are many factors that go into an agent’s decision to work with a host agency, not the least of which is a need for an industry identification number as outlined above. However, many other factors need to be investigated such as: cost, a host agency’s industry reputation and economic strength, preferred supplier agreements with increased commission levels, and the training and technology tools provided by the host. This guide is designed to provide you with a starting point for researching host agents or consortia. The recent failures and lawsuits involving traditional and MLM style hosts has highlighted the need for agents to be diligent and fully investigate their prospective partners. After all, you will be placing your business through them and in many cases they will be the ones collecting and distributing your hard earned commissions.

NEWS BRIEF

More than 1,100 industry professionals attended Vacation.com's 11th International Conference.
Attendees enjoyed a comprehensive Conference agenda that included many travel industry speakers, new products, a well attended trade show, and twice as many supplier training sessions as the year before, with 175 hours of classes and 162 sessions.
The unique business challenges that travel agents are facing in 2009 require that they work smarter, dig deeper and learn more, according to Lauraday Kelly, Vacation.com's Vice President of Conference & Corporate Communications. "Travel agents need to develop the sales tools to thrive ..Read More.