If you are looking to become a travel agent, you have probably heard from someone or some source that you will need to belong to a Host Agency for you to start selling travel. If you have never heard the term before, then naturally your next question is, What is a host agency, and what exactly do they do?
Similar to a real estate agent and a real estate brokerage, your host agency is your brokerage under which you sell travel. The role of your host agency is to provide you with the right tools, infrastructure, training and the necessary resources for you to be able to sell travel. Training, product access, and vendor relationships are at the top of the list when it comes to what a host agency should provide for a new travel agent.
How Much Does It Cost To Join A Host Agency?
Many host agencies have setup and monthly fees in place that agents must pay to join. These fees generally cover expenses related to getting access to GDS (Global Distribution System) platforms that travel agents use to search for net hotel and airline pricing, along with other administrative support. Fees can range anywhere from a couple of hundred dollars to get started, to some well in the thousands. There are no particular rules systems in place to determine what a host agency should or should not charge a new travel agent, so the price is based solely on the value that particular host agency believes they can bring to your business.
Commission Payouts
Host agencies and travel agents work on a commission split structure. What this means is that, when you sell travel using the IATA, ARC or CLIA number of your host agency, the vendor will pay the host agency the commission for the sale, and the host agency will pay a part of that commission to you. The most common commission split is the 70/30 model. This means that your get 70% of the total commission earned and your host agency keeps 30%. Some host agencies will take more and some maybe less. Some host agencies offer higher payouts to their travel agents based on the volume of sales. As a new travel agent, it is important to formalize an agreement with your host agency on what the commission split level will be before you get started. This needs to be negotiated and placed in the contract.
Choosing The Right Host Agency
Choosing the right host agency is not just about setup and monthly fees or commission split-levels. Those things are important yes, but the most critical thing is making sure whatever host agency you choose has the right tools and infrastructure in place for you to build the type of travel business you want. You must have a clear knowledge of what type of systems and technology your host agency have in place to help you drive sales and easily manage your business. Commission split does not matter if you do not have sales. The travel industry is very competitive both online and offline, and in order to be a successful travel agent, you need to be a part of a system that allows you to be able to compete effectively in both sectors of the market.
The key thing is, making sure you choose a host agency with a vision for the future and the right environment for you to grow and excel as an independent travel agent in the increasingly competitive travel marketplace.
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