What You Should Know

About Host Agencies

Host agencies come in all sizes, shapes and geographical areas. This article is part of an ongoing series that will appear in future issues to help home based agents select a host agency. In this article, we asked several host agencies to share some of their expertise with our readers. For more detailed information on the host agencies featured, consult our Host Agency Guide, which will be distributed with the Sept. 26 issue of Travel Trade.

‘First, Get the Facts’

Choosing a reliable host agency that fits your needs may seem like a daunting task, said Nancy Peklo-Nosal, president of Design Travel, a host agency based in Arlington Heights, IL and a director of Midwest Area NACTA, who hosts 37 home based agents. She suggested that home based agents ask the following questions before becoming affiliated with a host agency:

The Basics
How long has the host agency been in business?
Is it properly licensed and bonded in the state?
Is it in compliance with all states advocating Seller of Travel laws?
Does it have Errors & Omission insurance and, if so, are you protected under it?

Fees and Commissions
Is there a start-up fee?
Is there a monthly fee?
Are there any other fees that you may incur during the course of conducting business through the host agency?
What is the commission split?
When do you receive commissions that you have earned?

Suppliers
Does the host agency have preferred suppliers?
Do you have to sell those preferred suppliers?
Does the host agency carry proper accreditations for you to sell travel through any supplier?

Training and Support
What kind of training can you anticipate receiving?
What kind of help will you receive if you are having difficulty with a program?
Does the host agency support a frontline staff that sells travel to the public? If so, does it have a separate administrative staff to support the home based network 24/7?
Will your host agency staff help you in closing a sale or perhaps work with you to develop and market your specialty through direct marketing or through its Web site?
Will the host agency do your “grunt work,” such as invoicing and managing reports for you, giving you freedom to sell more travel and make more money?

Communication
Are there network meetings for you to get to know everyone?
How will you be kept advised of promotions, events, fams and general newsworthy information if you cannot come in the office?

Technology
Is the host agency up-to-date on the latest technological enhancements — and does it offer training to make certain you are able to use it?
Does the host agency offer you the chance to link to its Web site and have your own Web page or site?
For more information, E-mail travel@dtmgi.com, call (847) 577-7930 or visit www.dtmgi.com.

‘All Host Agencies Are

Not the Same’

Peter Stilphen, ACC, CEO of Coral Sands Travel, “America’s Host Agency,” based in the Ft. Myers, FL, area, plays host to 210 member agents located “all over the country, as far west as Hawaii, as far north as Maine, with quite a few in Florida, Texas and California.”
Stilphen, a travel industry veteran, offered the following suggestions:
“When searching for a host agency, do your homework as all host agencies are not the same. Locate a host that you feel comfortable with and that pays your commissions on time. A true host agency’s main function is ‘support,’ therefore, you may wish to avoid technology/marketing firms, multi-level marketing firms and ‘card mills’ that really aren’t host agencies.”
Stilphen also suggested considering: how long the company has been in business; whether the host belongs to a consortium (Coral Sands Travel is a Vacation.com member), and whether the host agency is stable and making a profit.
“It’s also important to ask what commissions are based on,” said Stilphen.
“Do they include overrides and bonuses? What kind of deductions are made from commission checks (postage, transaction fees, etc.)?”
“To be profitable, the quality of our service is more important than quantity. We call ourselves a PURE host agency. Our only business is to support home based agents,” he added.
Stilphen noted that 30% of his members are “brand new” — and that’s where he believes the future of the industry lies. Three membership levels are offered, with the 80% commission program the most popular.
“This program is excellent for new agents or for those selling less than $100,000 per year. There are no productivity requirements or monthly fees in this program,” said Stilphen. A $295 signup fee and $150 annual fee are both reimbursable to those who make $15,000 in sales for that year. Stilphen believes that communication and support is vital — and he makes it a point to be highly accessible to members.
Members are provided with two types of branded Web sites: one is a free of charge consumer Web site with Vacation.com preferred supplier content; the other is a more search engine friendly Web site filled with travel information and supplier content for $100 per year. Consumer booking engines from Revelex are available for a monthly fee.
For more information, E-mail Host@coralsandtravel.com. call (863) 675-9900 or (866) 481-4678.

‘Knowledge is Power’

Knowledge is becoming a decisive factor in determining independent agents’ success and profitability, according to the co-owners of Cruise Planners: Michelle Fee, COO, Marvin Davis, CEO and Lynn Korn, CFO. Cruise Planners, a national franchise for home based cruise sellers, has been a host agency for 11 years.
From twice monthly online WebEx-type tutorials to annual conferences, regional meetings and seminars at sea, Cruise Planners’ training program is one of the reasons for its growth to over 550 member agents — all independents — with $85 million in 2004 sales and projected sales of $100 million in 2005, said Davis.
Hands-on nurturing of each Cruise Planners franchisee to optimize their earning potential and realize marketing opportunities is another key element in Cruise Planners’ success.
“There are new sales and marketing opportunities opening up — group sales, incentive travel and serving the upscale market among them,” said Toni Polsinelli, director of marketing for Cruise Planners. “We feel our agents will excel in any market if given the correct marketing and sales tools, along with ongoing training and support.”
Cruise Planners also works closely with top cruise lines to provide the resources, information and products essential to effective sales and customer relations management.
Davis said that Cruise Planners is committed to delivering the skills agents need and the training and professional education members can apply to their businesses. This includes business development and management and use of applied technology to increase productivity and service. Cruise Planners remains at the forefront of education and training of its members and will continually expand the program, he said.
For more information, call (888) 582-2150 or visit www.cruiseagents.com

‘Take Stock in

a Profitable Company’

Peter Coloyan, a 28-year travel industry veteran, established the host agency HomeBasedTravelAgents.com (HBTA) in 2000 as part of a new strategy for his travel agency business, which once included five brick-and-mortar, ARC-appointed agencies in South Florida.
With the demise of airline commission, Coloyan struck out on a new path emphasizing cruise and tour sales, technology and home based travel businesses.
Currently host to 30 independent contractors, HBTA offers a qualified lead program, which provides consumer leads direct to its agents, on a commission-split basis, courtesy of its unique Web presence of 160 Web sites, including TravelNewsletter.com and CruiseNewsletter.com, with a combined subscriber base of over 530,000 travelers. Coloyan plans to grow this area even larger.
“With over 2,200 quality travel related domain names under company ownership and available to be developed into productive Web sites, less than 8% of our current online Internet potential has been tapped.”
HBTA has also added what Coloyan calls “the final piece to the host agency puzzle” by announcing its new Affiliate Stock Ownership Program, which will soon take effect, and will benefit HBTA agents back to the first day of their affiliation.
“Productive agents will be able to earn shares of stock based on their sales. HBTA wants our affiliates to grow, and profit with us and to enhance their business and our company through that affiliation,” said Coloyan.
For more information, call (866) 546-2929 or visit www.homebasedtravelagents.com

‘Old School Values’

Travel Planners International, based in Winter Park, FL, has specialized in working with professional independent contractors and travel agencies supporting their hosting needs since 1988. According to Anthony Gagliano, CEO, the host agency embraces “old school values.”
“Travel Planners International is family owned and operated and bases its foundation on integrity, commitment, loyalty and honesty. These values consistently carry down to its staff, thus providing the highest quality of service to affiliates, ensuring that their success is our success,” he said.
Travel Planners offers affiliates — there are 1,057 — a wide variety of services, including an exclusive agent-only Web site, a consumer Web site called AgentHub, giving affiliates a 24-hour Internet presence; a choice from all four GDS systems; after hours Reservation Center 24; a fully staffed help desk seven days a week; sales and marketing support; direct mail opportunities; ongoing training via conference calls and seminars at sea; E&O insurance coverage for all travel run through TPI; an online commission and reporting system and more.
TPI offers commission split of 70/30 with an option to build 80/20 based on annual sales. The initial contracting fee and annual renewal (both $169) includes E&O insurance and 24/7 support.
For more information, call: (800) 631-3636, ext. 217 or visit www.travelagentfromhome.com