Incentive Connection Travel, Inc
602 867 9606
Email: harvey@ictravel.com
Choosing the Right Host Agency
Choosing a host agency remains one of the most
daunting tasks faced by home-based agents. Indeed, if you're looking for the
one key decision that can affect your business substantially, it's what host
agency to affiliate with. But there are
specific issues you should examine when making such a decision.
Joanie Ogg, president of the National Association of
Commissioned Travel Agents (NACTA), a subsidiary of ASTA, says the number one
feature any homebased agent and independent contractor (IC) should look for in
a host agency is whether that agency already works with successful independent
agents. "In other words," she says, "there's a track record and
a willingness to communicate their strengths to a potential IC."
In addition, Ogg says, agents should look for a host
that does not have any unresolved complaints against their agency, as well as
one that is committed to developing a professional independent agent network.
"There needs to be a commitment to make a successful program for both
parties," she says. Ogg also cautions against those host agencies that
tout a "travel agent recruiting" program or "travel agent ID
cards" to obtain travel discounts. "This is not in keeping with being
a professional travel counselor," she says.
Incentive Connection Travel has been a respected Host
Agency for 26 years. Our average agent
has been with us for over 9 years. We
have no complaints against us and offer the industry recognized IATA and CLIA
cards, based on current requirements by these two organizations. We are members of IATA, ARC, CLIA, NACTA, OSSN,
PATH (Member of Board of Directors).
A qualified host also should offer meaningful
commissions and overrides, and be competitive in the host agency market. Active
membership in a professional agency organization, such as ASTA, ARTA, NACTA or
OSSN, is also a good place to start your search.
Our
overrides are the best in the industry.
We are Key Accounts with every major supplier receiving the highest
industry commissions and overrides.
According to Ogg, it needs to be clear from the
outset what you are getting for your investment. "If there is a start-up
or training fee, or even a monthly fee, the independent contractor should be
getting benefits and support for this payment or service," she says. A
good host agency also should offer ongoing support where it makes money if the
agent makes money. "There should be continual improvement of their system
and continual communication between the host and the IC," she says.
We
have no start up fee, no monthly or yearly renewal. We are available 7 days per week, including
holidays, to help and assist. Our communication
and support is the best in the industry.
You are kept abreast daily of all industry events, changes, promotions
and all pertinent information to help you grow your business. This is of paramount importance to us since
we have no retail trade and rely solely on the business growth of our
agents. We are truly “partners in
travel”.
Host agencies have become very savvy in their technology
offerings over the past couple of years. While most homebased agents are using
the Internet and perhaps either GDS or a system offered by their host, many
host agencies have taken it a step further, offering specialized intranet
access for their home-based agents. These systems can lead to high productivity
for those same agents.
Our
Agents Only web site contains over 5000 pages of information on how to grow
your business, including over 200 Videos on Demand to teach you how to improve
your selling techniques and destination knowledge. Our state of the art Confirmations system,
allows you to enter your Confirmation Number and immediately have your booking
confirmation to print, fax, email or save.
Of course, getting paid remains a prime consideration
when choosing a host agency. While a commission split is still the most popular
method of payment for a host agency and home-based agent or independent
contractor, many host agencies have devised inventive pay scales, with some
offering pay-per-transaction and higher commission levels. Others offer a
percentage per transaction. "Hosts often tell me their independent agents
are making more money now than ever before, and some inside agents have asked
to move home and be independent," Ogg says.
We
do not offer a flat fee per month program.
We have been in business for 26 years and feel a commission split is the
only way to remain in business and still be fair to our agents. Our split begins at 70% and goes to 80%. Because this split includes our overrides,
our agents average over 13%.....their share.
We will not give away 100% of commission and close our doors next year. This is an unsound business practice.
Home-based agents should look for hosts with a
strong support system, and the more that is done with technology, the more
cost-efficient and time-efficient it is for both parties. Nevertheless, Ogg
says there are still some challenges. "Agents are becoming better at
making these choices all the time, as are the hosts at choosing who they wish
to partner with," she says. "Both sides take on risks and liabilities,
so it is very important to have mutual respect and understanding of each
party's responsibilities."
Our
support includes 2 free websites, free client booking engine, free Trams ClientBase
Plus. affiliation with the superior Consortium, Ensemble, free Select Traveler
Amenities Program, free Agent Port, Agent Access, a very active Agent Help
Program, choice of Amadeus, Sabre or Galileo/Apollo…..and much more.
Despite the risks, Ogg says host agencies are still
the best way for many homebased agents and independent contractors to go.
"It really does depend on the agent," she says. "Some agents are
quite experienced and don't require a great deal of support, while others find
the host program enables them to grow their business by offering the back end
support."
For Gary Fee, president of the Outside Sales Support
Network (OSSN), selecting the right host agency is an important ingredient in
your road to success. "There are over 38,000 travel agencies to choose
from in the
Below are some of Fee's specific tips on selecting
the right host travel agency:
Avoid new or
very small agencies
With some notable exceptions, new agencies have less
experienced personnel. Since you may be learning a new trade, you're better
off working with the most experienced people you can find. Small volume
agencies usually qualify for fewer travel benefits.
ICT
has over 1000 agents with a volume of close to $100,000,000. The average per agent is $100,000. This speaks volumes for the support we give
and the quality of our agents.
Choose an
agency with a successful outside sales program
Seek out only those agencies that have an
enthusiastic attitude about their outside sales program. Try to contact one of
their existing outside salespeople to ask them questions about their level of
satisfaction with their agency. By making appointments with only those
agencies that have ongoing sales programs, you will save much time and effort.
Interview the owner or
manager
During
the course of your interview, ask the manager/owner the following questions:
Do
you have, in writing, an "Outside Sales Agent Procedure Manual"
outlining the commission splits
and what is expected of this relationship?
Our Manual is
on our web site for your perusal: http://www.ictravel.com/courtesy.htm
What,
if any, are the expense items that are covered by the agency?
As in
Independent Contractor, your operating expenses are yours. We pay your fees for the above listed
programs, but not for your phone, Internet…..
Do
you have, in writing, a list of preferred vendors and their override
commissions?
We do and a
sample listing is in our Manual. Many
are private contracts and we cannot list those or we would be violating the
Confidentiality clause of those contracts.
These include airline commissions as high as 15%.
Are
you a member of a consortium or franchise?
If so, which ones? An agency that
is a member of these types of organizations can mean higher income
possibilities for
you.
We are members
of Ensemble and are one of their 10 most productive agencies.
What
industry organizations does your agency belong to (ASTA, ARTA, NACOA, ARC,
IATAN, OSSN, CLIA)?
We are members
of ASTA, ARC, IATAN, OSSN, CLIA, NACTA, PATH
Will I have an inside contact, liaison person, or outside sales supervisor to
work with to assist my clients and me?
Of course.
Do
you have a contract for me to sign as an independent contractor? Make sure the
contract
has everything spelled out exactly.
It is on our
web site at: http://www.ictravel.com/courtesy.htm
Is the development of an outside sales force part of
your marketing plan?
It
is and has been so for 26 years.
Interview the inside staff. If you feel positive about your interview
with the agency owner, take time to meet the staff members. Make sure they also
have a good attitude about outside sales people.
Since
we have no retail trade (very important to you to insure that there is no
conflict of interest), our staff is devoted and dedicated to IC’s.
Does the travel agency have a specialty? If the travel agency has a specialty that
they promote, and you have decided to concentrate on selling one facet of the
travel, such as corporate business travel or cruises, this can be a plus for
you. For instance, if the travel agency you are contemplating to associate with
specializes in cruise sales, it will most likely have additional override
commissions and discounts for you and your clients to share. This can mean more
money for you, the outside salesperson, and more savings for your clients-a
win/win proposition. The same holds true for an agency that may concentrate
its sales efforts on serving the needs of the corporate travel community.
We
do not have a particular specialty. ICT
is large enough that we have agents specializing in every niche from Corporate
to cycling to Wedding Planning, to Scuba, Cruise, Tour……..The owners have 7
years experience in Meetings and Incentives.
Fee tells agents to keep in mind that, while the
home-based market is growing exponentially, it is still a relatively new
field. "Everything has changed over the past couple of years in terms of
these agents' needs," says Fee. There is more technology and tools of the
trade, more host agency networks, and full supplier recognition. With the
notable exception of Marriott Corp., Fee says, "The home-based agency
community is now recognized as a serious group of sellers of travel." For
instance, he says, OSSN members alone will provide a cruise supplier like
Norwegian Cruise Line with $50 million in sales this year. "That is a
hefty number coming from the homebased community," says Fee.
Like many self-employed businesspeople, Fee says
one of the most frustrating aspects of being a home-based agent is keeping
track of your pay. "Getting paid on a timely basis is still a challenge,
as is identifying a good host agency." But this is where groups such as
OSSN come in. "With 6,800 members in our network, the word gets around
very fast as to who is and who is not providing good back up and support for
independent contractors," says Fee.