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June 2005
Supplement to Travel Trade

What a Host Agency

Expects From You

 

In the past I have devoted a lot of my articles on tips for marketing, managing your groups and developing a host program, to name but a few. This article is directed toward the independent agent whose role in travel is becoming increasingly more important and whose ranks are rapidly growing in numbers.
The decision to become an independent contractor agent is not one to be taken lightly, regardless of whether you are new to the industry, a veteran agent, or even an agency owner who has decided the benefits of joining with a larger organization are more financially profitable than to continue operating independently.
You must investigate each program offered by host organizations and see if it is a fit. Once you’ve found what you believe to be the best offering for your specific needs and operations, you’re ready to get going. My fellow HBT contributors and I have written articles chock full of advice on what to look for when selecting a host, what to expect from the host, as well as the host’s responsibilities toward independents who choose to become affiliated with them.
One area we haven’t covered indepth, however, is what is expected of the independent and how to be the best independent under a host program that you can possibly be. After all, just as you have the right to end your association with a host, the host also has the right to terminate your association!
Upon signing up with a new host, first and foremost, get excited! You are no longer in this alone. You have a support organization that will seek out the best products, best specials and best suppliers for their benefit and yours. You will have marketing opportunities that you may not have had before coupled with opportunities to network with other agents, attend seminars and so forth. You have someone who will go to bat for you should a commission payment not be made or there be a particular problem you cannot handle alone.
But, along with these wonderful benefits (and there are many more) you have a responsibility. What are the requirements the host expects from YOU? While a host agency or organization cannot tell you how much to sell, who to sell to, when to sell, hours of operation or even require you to be affiliated with them exclusively, they can set down guidelines. As a participating member of their programs you have a legal responsibility to abide by these policies or your contract may be terminated. Most of these guidelines are in place in order to assist you in growing your business as well as protection for you, your client and the host. Each organization is different, but some of the expectations may be the same.

Minimum sales. As stated above, a host cannot tell you how to handle your sales or dictate a specific amount, but it can require that members sell a minimum amount in order to be affiliated with their hosting program. For most, this should not be a hindrance. After all, isn’t this a business and aren’t you in it to not only sell a product you love, but also to make money? Most of these minimum requirements are quite reachable for most of the independent agents I’ve come to know. If this is a hobby, chances are you may have to find a small local host agency in order to sell as an independent.

Suppliers. Have you ever wondered why a host and/or consortium/franchise organization has preferred suppliers? Are they just “favorites” the host/consortium/franchise has decided to sell? It goes a little beyond that. These are suppliers who have forged a partnership, so to speak, with these organizations and are willing to work toward growing business for all involved through special offerings, marketing programs, training and so forth. We all know that our profits are the results of numbers. The more we produce with a supplier, the higher our commission. This is true with our membership organization as well and, therefore, very important that we support those suppliers who have now become our preferred. If you consistently book with non-preferred suppliers rather than the preferred suppliers, you may be cheating yourself and your host out of some profits. That is by no means to say that you should never book with a non-preferred supplier! I seriously doubt you could actually successfully stay in business if you tried that. It just simply means you should try to honor both your host and the preferred suppliers by booking most of your business with these select suppliers.

Marketing. Most hosts that I know of offer some sort of marketing options for their independent members. For the smaller hosts, this may be negotiating co-op funds or advertising opportunities with preferred suppliers or mailers through the host’s consortium membership. For larger hosts it may include a Web presence, mailers, E-mail marketing and so forth. I’ve seen so many agents struggling day to day who are always asking how they can increase their sales — yet they don’t participate in any of the E-mail marketing opportunities nor do they take advantage of the FREE mailers. I personally can’t understand the whys of turning down any freebie offered to me. If it doesn’t generate a sale right away at least it is getting my name out there and that is a form of NAME BRANDING for my business.

Policies. These policies can be broad ranging and they range in importance to the host. It can simply be a supplier that the host has placed on a “no book” status or it can be vital to your receiving your commissions in a timely manner, or last but certainly not least, can be of extreme importance from a legal aspect. You have elected to become a part of this organization and as such you must abide by these policies. They were not put there to control, but rather protect you and the host.

The bottom line is that this is your business. Even if a host supplies you with leads, you are the one who will have to work these leads. You will have to market yourself and your business. You will have to complete the sale and do follow up. Learn how to deal with problems with the supplier so you are viewed as a professional with both the supplier and the client. Educate yourself about the products you sell. As you do these things you will grow, as will your business.
Be the best you can be and have fun doing what you love.

Mary Brutscher and her husband Franz are owners of The Travel Stop, Charleston, SC, which is a host agency. They are planning the launch of “virtual classroom” travel classes in the near future.

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