How To Start A Home Based Travel Business
One of the most commonly asked questions we receive is “how can I start my own home based travel business.” In the “olden days”, it used to be very costly and difficult to open your own travel business.
It generally meant you would be investing in opening a “brick and mortar” agency (rather than working from home) and with it came all the financial burdens as well as the administrative red tape with ARC. In the past 3-4 years, a new sub-category of our industry has evolved called “host agencies.” A host agency basically allows someone to get into the travel business with a minimal investment and no store front office by affiliating with a company who is already in business and can provide you with the tools and services necessary to operate. In essence, you work under the host’s umbrella from a supplier standpoint, while you retain your own company identity with your customers.
As host agencies have grown in popularity, so have the entrants. The market has become convoluted, leaving the unsuspecting home based agent prospect to attempt to research the myriad of companies out there. And to complicate matters further, many companies now call themselves “host agencies”, however, they are not. How do you know the difference? How do you untangle the cobwebs and determine which host is right for you?
First and foremost, you should find a reputable, legitimate, established host agency. You stand to benefit from a host’s reputation, experience/advice, commission structures, technology, training, support and problem/resolution assistance if you are currently doing less than $2 million in travel sales annually. About 99% of the independent travel agents (new and experienced) fall into this category.
Selecting a host agency is a big decision. It requires doing your homework to really find a stable, established host in sync with the direction you want to take your business. When researching host agencies, some of the most important factors are intangible.
Here are some important qualities to look for:
Stability - this is without a doubt the most important factor to look for in a host. There are many host agencies out there. When you factor out the companies who have been hosts for less than 15-20 years, the field narrows considerably. Why is this important? Because you want them to be around for the long term to ensure proper commission payment and so you can enjoy the support you deserve. Your commissions may not be paid appropriately. We’ve heard our share of horror stories.
Industry Reputation - This is very important because it’s how travel suppliers view doing business with a host agency. If the host is respected by suppliers, this means the host knows what they are doing, pays their bills, etc. Supportive suppliers will go a long way in assisting to service your customers.
Size = Buying Power = Higher Commissions for you - In travel, volume equates to preferred relationships with suppliers.
Support - The host needs to have an established support system in place to handle home based agents. This includes phone and email support, technology, reservations, accounting, marketing, sales….basically, support for every area of your business.
Type of Business - Be sure the host agency aligns well with the type of business you will be pursuing such as leisure, corporate, group, honeymoon, etc.
Preferred Suppliers - Do the host’s Preferred Suppliers align with your needs?
Abilities of Staff - Will you be working with capable people? Is the host putting a “hard sell” on you to join? If so, this may be an indicator of future performance from the host.
Training - Does the host provide a program of ongoing training with suppliers, destinations, procedures, etc.? Do they provide any type of training program designed for new people to the industry?
Track Record For Paying Commissions on Time - The best way to determine this is to do a Google search with the host’s name or “travel scams” to see if they are having problems with payments. We also recommend checking with the Better Business Bureau for complaints.
These are just a few of the intangibles to investigate when selecting a host agency. If you would like to discuss this further, please contact us and we’d be happy to provide our input to you based on your needs.
Montrose Travel Overview
Founded: 1956
Annual Revenues: 110+ Million
Employees: 150
Home Based Agents: 350+
Location: Montrose, CA
Preferred Supplier Partnerships: We have strong relationships with many the leading Travel Suppliers
Affiliations: PATH, NACTA, OSSN, ARC, Ensemble, ARTA, IATA, ASTA and CLIA
