The complexities of travel during the COVID-19 pandemic have underscored the value of a travel advisor’s services like never before. Current challenges have also generated a surge of interest in host agencies, according to some industry observers.
Representatives from multiple host agencies — organizations that provide support to independent travel advisors — have reported an increase in new inquiries and new members, as existing advisors rethink their business strategies and new entrants to the travel agency community look for help building their career.
“It’s been insane, the number of new members that we’re getting,” said Betsy Geiser, vice president at Uniglobe Travel Center, the home-based agency division of Uniglobe Travel USA. “We’re getting some new members from other areas of the travel industry, and we’re seeing people from other industries coming into travel right now. They realize that once things really open up, the demand is going to be high, and people are going to want to use travel agents now.”
We’re getting some new members from other areas of the travel industry, and we’re seeing people from other industries coming into travel right now.
Avoya Travel has also witnessed growth, according to Steve Hirshan, the company’s senior vice president of sales.
“It’s very clear that interest in affiliating with Avoya Travel is increasing,” he said. “We saw it first with those who were forced to leave during COVID-19 returning to Avoya, followed by agencies that are new to Avoya joining at triple the rate they did just two or three months ago. Just as we all knew there was pent-up demand to travel, there was also pent-up demand for people to get into — or back into — the business of trip planning.”
Jenn Lee, vice president of sales and marketing at Travel Planners International (TPI), said that even during the worst months of the pandemic, her organization was signing up new members.
“We were still averaging 40 new advisors per month in 2020,” she said. “I was blown away.”
Like Geiser, Lee reports that a sizeable number of new arrivals to the host agency scene are those who have made pandemic-induced changes to their career paths.
“We see people within the industry — supplier reps, customer service reps — who got laid off and wanted to stay in the industry, so they decided to start selling travel,” she said. “We also saw a lot of people who got laid off from their full-time jobs, who have always wanted to get into the industry, thinking that now is the time to do it.”
An increased interest in the host agency concept is also confirmed by Andy Ogg, co-owner of FindAHostTravelAgency.com, a site designed to help advisors research and compare host agencies.
“We’re seeing a massive increase in visits to our site by people who are looking to enter the industry,” he said. “Whether they are looking to become a franchise owner or start their own business and become a partner with a host agency, we have seen a dramatic uptick, which is exciting.”
All host agencies are different, so advisors should research their options.
Credit: 2021 Jacob Lund/stock.adobe.comAffiliation with a host agency can also help reassure clients at a time when they may be nervous about traveling, according to Joseph Fehlen, owner of Rhinelander, Wisc.-based Small Town Wanderer, a member of Nexion Travel Group (the host agency division of Internova Travel Group).
“Working with a reputable host agency like Nexion has given me the backing I need to let my clients know that I am a legitimate travel professional who is here for the long haul,” he said. “Nexion specifically has been invaluable to me because I get to talk to professionals, advisors and coaches to help make me a better advisor.”
Continued engagement with her host agency is crucial for Melinda Fortunato, owner of Best Travel, a Nexion-affiliated agency in Fairfax Station, Va.
“Through the pandemic, quarantine and the lowest times in travel, I never felt alone,” she said. “Nexion staff was incredible in connecting with us and keeping us informed and encouraged.”
Same Game, New Players
Advisors looking to align with a host agency will find some new options — albeit often founded by longtime players in the travel industry. Among the newest host agencies are Dallas-based Levarte Travel, which was launched this year by industry veteran Lori Speers, and LaMacchia Jet Stream, which debuted late last year as a new division of Kenosha, Wisc.-based LaMacchia Travel.
Long-standing host agencies, meanwhile, have made changes to how they operate. Some have changed their consortium affiliations; Uniglobe, for example, inked a new partnership with Virtuoso this year, while TPI moved from Ensemble to Signature Travel Network in December 2020.
Other companies have unveiled new products and services. Dugan’s Travels recently added two new positions to its leadership team to provide additional member support, and has also signed a contract with AgentMate, a system owned by Travel Leaders Network that manages accounting and invoicing. Jacksonville, Fla.-based Outside Agents, meanwhile, has introduced an array of new services — including a revamped lead generation program, a new marketing resource called Marketing Exchange for Travel Agents, an education and marketing feature called MAGmms Toolbox and a training and support program called Spectrum, which is designed to help advisors better serve travelers with special needs.
Meanwhile, Avoya Travel has used this time to reconsider its supplier relations, according to Hirshan.
“A ‘preferred’ vendor used to mean the obvious: higher commission levels, marketing support, preference on deals and fam trips,” he said. “What we have learned is that ‘preferred’ now means those who protected commissions, paid commissions and marketing support on time, and in some cases, even created programs to pay commissions at the time of booking, clearly understanding the difficult cash flow situations travel agencies were in. Avoya Travel is going to most heavily support those suppliers who gave our network the most help during a really difficult time.”
Host Agency or Consortium?
Longtime industry experts are aware of the differences between a host agency and a travel agency consortium. But the influx of new advisors has made it necessary for more people to educate themselves about how each concept works, and whether it is worth joining either type of organization.
Both host agencies and consortia are powerful allies for independent travel advisors, according to Susan Ferrell, owner and president of Travel Experts, a host agency based in Raleigh, N.C.
“Each provides a different set of resources, so of course it’s beneficial to be part of both,” she said. “This is most easily accomplished by accessing a consortium by joining a host agency. Our advisors get the best of both worlds because we give access to Virtuoso.”
Such was the case for Michelle Murre, founder of Azurine Travel in St. Helena, Calif., who joined Travel Experts in 2016.
“We really benefit from being members of Virtuoso, as well as having exclusive hotel programs that we would not have if we were not part of the Travel Experts host agency,” she said.
Indeed, most host agencies belong to a consortium, allowing members to enjoy the benefits of both types of organizations. But it’s also possible for an independent advisor to join a consortium directly and skip the host agency membership entirely. To make the right choice, advisors must understand what they should expect to receive from each organization.
“A good host agency should provide ground-level, day-to-day support, whereas a consortium focuses more on supplier relationships and marketing,” Ferrell said. “A consortium may be cost prohibitive for an individual independent contractor (IC) to become a member, so aligning with a host agency that provides access to a consortium could be better.”
Host agencies might be a better choice for advisors who are new to the industry.
Credit: 2021 Prostock Studio/stock.adobe.comJoanie Ogg, co-owner of FindAHostTravelAgency.com, also recommends that newer advisors and agencies consider joining a host agency rather than directly joining a consortium.
“You can join a consortium if you know the business and have all the tools and are already operating,” she explained. “Membership in a consortium is really going to benefit you and allow you to gain higher commissions. But if you are new to the industry, or new to being a travel agent, the tools and the operational support that a host can offer are invaluable.”
For Lee, the host agency versus consortium decision should be based on a travel advisor’s overall business strategy.
“The biggest difference is scalability,” she said. “If you want to scale your business by adding employees who are taking care of your back office, adding employees who will create marketing emails, or adding employees who will chase down commissions, then a consortium is best for you. If you want to scale your business by adding more salespeople, then you want to work with a host, because a host does all your back-office accounting. You also get top-tier commissions when you are with a host, so you’re not having to negotiate or earn your way up to that.”
Selecting a Host Agency
Making the decision to join a host agency — and determining which one is the best fit — is an important step for any advisor.
“There are no two hosts that are alike,” said Andy Ogg. “You can come close; maybe they have the same consortium partners and similar technology or similar offers, but when you get down to the nitty gritty of it, there is always a difference.”
To aid in the search, Ogg’s company offers comparative reviews, as well as an agency checklist designed to help advisors see the differences between hosts.
Before deciding to join a host, Geiser recommends speaking directly with a company executive.
“Make sure that you talk to somebody; don’t just sign up online,” she advised. “Make sure that you like the person whom you’re talking to, because that’s a really good sample of what you are going to get when you sign on with them.”
Knowing that I am getting recommendations from advisors of all experiences, backgrounds and locations is really great.
Murre, for example, says she found a good match with Travel Experts.
“We have always had our own brand and appreciated that Travel Experts prefers that their ICs have independence and supports it fully,” she said. “We also loved their business model, which is women-owned and operated.”
Advisors should also do plenty of research about any host agency, according to Geiser.
“Make sure that you vet them, because they are vetting you,” she said. “Check their reviews on FindAHostAgency.com, make sure that they are a Professional Association of Travel Hosts [PATH] member, and make sure that they are a member of the American Society of Travel Advisors [ASTA].”
After joining, advisors can expect an array of changes to how they do business. Those who were previously unaffiliated or working solely with a consortium should rethink their approach to supplier relations once they have joined a host agency, according to Lee.
“Have an open mind,” she said, noting that host agency membership can make it easier for advisors to make money from selling a wider variety of suppliers. “Liberate yourself from what you know to be true, and have an open mind about selling different travel partners.”
New host agency members should also take advantage of educational and networking opportunities to make sure they get the most from membership, according to Geiser.
“Make sure that you are part of the networking group,” she said. “Some of them are on Facebook, and some of them are on another platform. Attend webinars, go to training sessions, make sure that you are connecting with the supplier partners and developing all the relationships that you can, so when you need help, you know who to go to. Take advantage of everything the host agency has to offer — don’t just come onboard, sit back and wait for things to happen. You have to engage.”
Networking has been especially helpful for Amy Fitzhugh, an advisor at Prince-Jones Travel, a member of Nexion Travel Group in Lubbock, Texas.
“For me, it’s been super helpful to have an online community forum so that I can put random questions out there,” she said. “Knowing that I am getting recommendations from advisors of all experiences, backgrounds and locations is really great. It also makes my customers feel even more secure that I have this network of advisors that I can bounce ideas off.”