Understanding Host Agencies in Travel

What Is a Travel Host Agency?

A travel host agency is an umbrella organization that provides tools, resources, and support for independent travel advisors or agencies. It allows advisors to work under its accreditation numbers (e.g., ARC, CLIA, IATAN), streamlining access to suppliers, commissions, and essential operational tools.

Key Features

• Shared Accreditation: Advisors use the host's industry identification numbers instead of obtaining their own.
• Supplier Relationships: Suppliers recognize the host agency as the primary entity.
• Independent Operations: Advisors maintain their own branding while leveraging host resources.

Why Partner With a Host Agency?

Benefits

1. Higher Commissions:

   • Suppliers calculate commissions based on collective sales volume, enabling better rates.
   • Example: A single booking combined with others in the host agency can push you into higher-tier commissions.

2. Simplified Administration:

   • Hosts handle commission payouts, invoicing, and supplier relations, removing the need for individual accreditation.

3. Supplier and Technology Access:

   • Established relationships with suppliers ease booking processes.
   • Hosts provide discounted rates on essential tools like booking engines, CRMs, and marketing platforms.

4. Support and Training:

   • Ideal for new advisors, offering mentorship, professional development, and niche training.
   • Additional support may include E&O insurance and regulatory compliance assistance.

5. Airline Ticketing Assistance:

   • Access to Global Distribution Systems (GDS) and air-only booking engines for streamlined reservations.

6. Marketing and Branding Assistance:

   • Hosts often provide resources like marketing materials, websites, and promotional tools.

7. Flexibility and Credibility:

   • Independent contractors maintain control over schedules and business operations.
   • Affiliation with a recognized host agency enhances trust with clients.

How Host Agencies Operate

• Commission Flow:
  Suppliers pay commissions to the host agency, which distributes them to advisors based on predetermined splits (e.g., 70/30, 80/20).

• Fee Structure:
  Advisors pay subscription fees or a percentage of their commissions to the host agency for access to resources and tools.

• Tools & Systems:
  Hosts offer GDS, quality control services, airline ticketing systems, and group booking capabilities.

Choosing the Right Host Agency

Considerations

1. Alignment with Goals:

   • Select a host that supports your niche (e.g., luxury travel, group bookings).

2. Commission Splits & Fees:

   • Evaluate the financial arrangements, ensuring they suit your revenue goals.

3. Training & Resources:

   • Look for robust professional development programs and marketing tools.

4. Flexibility:

   • Ensure the host respects your independence as a contractor.

5. Specialization Opportunities:

   • Opt for a host agency with expertise in your target market or niche.

Why Do Host Agencies Exist?

Host agencies bridge the gap between independent travel advisors and the broader travel supplier network. Without a host agency, individual agents would need costly credentials and direct supplier relationships to operate. By consolidating these resources under one umbrella, host agencies simplify processes, reduce costs, and enhance opportunities for independent advisors.

Example:
If you sell a Sandals Resorts vacation, the commission check goes to the host agency, which is registered and credentialed. The host then distributes the payment to you based on the agreed terms.