Choosing a Host Agency

Takes Planning and

Diligence

By Lynn Korn, CFO, Cruise Planners

When my partners and I created Cruise Planners in 1994, using only Home Based agents, the idea was a relatively new one. Few Host agencies dotted the travel landscape, the Internet was in its relative infancy and brick-and-mortar agencies dominated the travel business.
Now there has been a paradigm shift in booking travel. More and more agents who currently work for conventional travel agencies are switching to working on their own. When we started, there were only a handful of Host agencies. Today NACTA lists over 70 Host agencies on its site and there are probably more.
While being a Home Based travel agent offers tremendous advantages for the agent, it’s critical to make an informed decision when it comes to affiliating with a Host agency. As a first step, be sure to look at the Host agency’s Uniform Franchise Offering Circular or UFOC to ensure its financial stability. Every Host agency is not only required to have one but also to provide a copy to you. This document illustrates the company’s financial health and documents growth. Pick one that’s growing rapidly.
The UFOC also details commission levels. As a franchisee you’ll want a company that considers all franchisees as part of one organization. That means your commissions can start robustly, as soon as you join a company, such as ours. In a consortium, on the other hand, each individual is paid based upon his or her own volume.
Also, be sure to join an organization that will protect you with errors and omissions insurance. In the event a customer claims something you did on their behalf was done incorrectly and cost them money or caused harm, you can be sued. So you have to be properly protected.
Speaking of protection, be sure to affiliate with a Host company that allows you to keep your customer list proprietary. The Host agency should never see or retain the names of your customers. In that way, if you decide to move to another agency, you can take your clients with you.
Get the support of a sophisticated marketing program so you, as an agent, can concentrate on selling. Compare the programs of each organization. How much support do they offer? Do they help you set up and run a Web site? Provide on-going direct mail or E-mail programs? Provide lead generation? Ask before you join.
Technology is critical in today’s travel business. Make sure that the Host agency you join has the right tools for your business. This not only includes programs to generate new business over the Web but also back-end software to keep track of your clients, manage the business and book group travel.
And, finally, make sure you can contact some of the Host agency’s other franchisees to get testimonials. Make at least two or three calls to see whether these agents are satisfied and earning what they hoped or expected.
Becoming an independent, Home Based travel agent will be one of the more important decisions you’ll ever make. Make the right choice for your Host affiliation by doing your homework first.

Lynn Korn, who has been in the travel industry for over 25 years, is one of the founders of Cruise PlannersSM, and serves as the CFO for the company.