Host Agency Web

NACTA   

Over the years NACTA has received many requests for Host Agency referrals.   There are recurring questions we hear over and over again.  To help you make decisions regarding host agencies following are some of the more common questions answered for you.
 

Why do I need a host agency anyway?

Most Independent Travel Agents find it necessary (and desirable) to associate with a host agency for the purpose of obtaining domestic airline tickets, override commissions, marketing support, expertise, automation, quality control, clout, operational support and many other reasons that may be a combination of the above.

How do I know which host agency to choose?

Long before you choose your host agency you should develop a business (and marketing) plan so that you understand the nature of the business you intend to develop If you plan to specialize in selling cruises you will probably want to find a host agency that specializes in working with cruise specialist.  Conversely, if you plan to specialize in handling corporate accounts, you will want find a host agency with the expertise and support mechanism, to make you successful.  It is highly unlikely that a cruise specialist can help you if you want to sell corporate accounts, and visa-versa.   You should read and digest "How to Start a Home Based Travel Agency" by Tom and Joanie Ogg, CTC, MCC before making this decision.

Why does one host agency charge $7,500.00 and the next charge $300.00?

Host agencies are just like other businesses.  One may specialize in recruiting brand new agents and have a heavy concentration on training and start up integration into their network.  The very next may simply recruit experienced agents and offer no training or integration support whatsoever.  Common sense should lead your way through this maze.  If the host agency you are looking at is charging $7,500.00 and giving you nothing but simply paying for their marketing cost of finding new agents, then look somewhere else.  But, If you can easily see the value in a host agency charging even say, $10,000.00, then that may be a wise decision to make concerning your future.

What is the best computerized reservation system (CRS) or GDS to use?

Many new agents think the sun rises and sets on access to the CRS in the travel industry.  Their first concern is "what computer software do I need to book travel".  For the most part, CRS (Computerized Reservations System) or GDS access is not really necessary unless you are going to be booking a lot of domestic airline tickets.   Tours, cruises, hotels, resorts and so on are best booked over the telephone (especially for a newer agent).  Many host agencies offer Internet access to their CRS or GDS and others may offer dial up access via modem.  The decision on which host to pick should not be based on the type of CRS access they offer, but on the level of support and overrides they offer as it pertains to your business plan.

What should I look for in a host agency?

There are quite a few things to look for as a host agency pertains to your business plan.  Generally, however, these are the things that NACTA looks at.   How long have they been in business?  Does the host agency carry Errors and Omissions Insurance?  What is the average sales volume per independent agent?  How many independent agents belong to the network?  Are there any unresolved complaints against the agency with the Better Business Bureau?  The State Attorney General's Office?  The FTC?  Agencies appearing on these links have all passed these standards.

What about these $495 instant travel agency benefit deals?

Think about it.  If all anyone had to do was pay $495 and then fly first class, stay in suites for free, and take cruises for $10 per day, who would pay full fare?   If you really believe you can do all of this for $495, then you probably deserve to lose the money anyway.  The truth is that when these operations first started they were able to fool some of the suppliers with phony ID cards and intercept travel discounts, but the industry is wise to them now and it is going to be difficult (if not impossible) to fool anyone into accepting phony ID cards. There are some host programs that do charge a start up fee of around the $495 amount but what they include or offer can be on the up and up. Check carefully....If it sounds too good to be true, it probably is!

What about the travel benefits?

Sorry, you are not going to fly first class. that is unless you pay for a first class ticket!  You are not going to be invited on fabulous familiarization trips all over the world, you are not going to cruise in suites for free.  The raw fact is that most travel benefits have gone the way of the Dodo bird.  If you are productive in your market niche, then you can expect to be rewarded with certain benefits and your host agency may be able to help you in certain ways but as a rational person might imagine, suppliers are in the business of making money and offering casual discounts to non-productive agents isn't compatible with their objectives.

How much income can I earn?

Just like any business, you can earn as much or as little as you want.   Certain areas of the travel industry are more productive than others.   Specializing in cruises, international travel, group travel or other niches will be far more rewarding than just trying to be everything to everyone.  If your idea is to start an agency specializing in domestic airline tickets, forget it.  Many NACTA members that specialize and are able to focus their efforts are making incomes in the mid to high five figures operating from home as an entrepreneur.

When should I join NACTA?

If you are just starting out, now is the time to join.  NACTA will offer you many resources that will make your search much easier.  You can ask other independent agents for their opinions in the NACTA Member Chat Rooms and you can generally find every bit of information you need to successfully negotiate with host agencies in the NACTA Members Web. Click here to Join NACTA as an agent member.