Following the Right PATH (4/01/07, ModernAgent.com)
By James Shillinglaw
Published on: April 1, 2007 - www.modernagent.com
The Professional Association of Travel Hosts offers new standards for host agencies.
One of the most challenging decisions you make as an at-home agent is choosing a good host agency. Nearly every agency in the United States works with outside agents or independent contractors these days, and so it can be difficult to discern which one can best serve as a host.
Now a new organization is emerging that says it wants to become the “Good Housekeeping Seal of Approval” for host agencies. The Professional Association of Travel Hosts (PATH) actually held its initial organizational meetings more than a year ago, but it only recently began an active campaign to attract more host agency members. Earlier this year it also launched a dedicated website (www.pathonline.travel).
PATH President Peter Stilphen, who is also president of host agency Coral Sands Travel, says PATH was formed to create a community for host agencies. “We needed a body where we could speak to each other and do things as a group,” he says. “We needed to do something to separate us from others that may not really be host agencies.”
PATH President Peter Stilphen, who is also president of host agency Coral Sands Travel, says PATH was formed to create a community for host agencies. “We needed a body where we could speak to each other and do things as a group,” he says. “We needed to do something to separate us from others that may not really be host agencies.”
Currently PATH has 20 host agency members, but its goal is to have roughly 50 by year’s end. Stilphen and McClure-Mysza believe there are somewhere between 100 and 200 host agencies that could meet the group’s criteria for membership.
PATH’s membership fee is $300 annually and first-time members must pay an additional $50 for an independent civil and criminal background check that is mandatory before any host agency is accepted. The group has set up an intricate system of bylaws and standards to ensure the integrity of host agency operations. It also wants to help at-home agents understand the value of host agencies as they investigate choosing the most suitable one. Finally, it wants to bring educational and training opportunities to its members and their affiliated outside agents, though a program is still very much in the planning stages. It also will be building out its website to provide more information that can help independent agents evaluate a host.
PATH members must abide by several bylaws and a code of ethics. For example, they must not market their service by emphasizing travel agent discounts and benefits; they must be a member in good standing of ARC, CLIA or IATAN; they must have a minimum of three years in travel operating primarily as a host agency; and they must have a minimum of 10 independent contractors under written contract. Members also must not market their services as part of a consumer recruitment process with benefits resembling a multilevel marketing scheme, and they must certify that there are no pending travel-related lawsuits concerning the payment of agent commissions and/or fraudulent practices.
Once PATH achieves critical mass of host agency members, according to McClure-Mysza, it will open up a supplier category of membership. PATH intends to offer itself as a conduit for supplier training of independent agents. It believes many suppliers will find it more efficient to provide webinars or other training to the independent agents affiliated with its members rather than separate training sessions for individual host agencies.
In addition to setting standards for host agencies, PATH also serves as a business forum to address issues common to member agencies. For example, one of the first things its members initially addressed was the issue of background checks, not only for other prospective host agency members but also for independent contractors themselves. Many hosts are extremely wary of being hurt financially by “rogue” independent contractors, just as many outside agents remain concerned about hosts that do not deliver on promises of business support and commissions.
Anita Pagliasso, president of home-based host agency Ticket to Travel, who is also the elected secretary on PATH’s executive board, believes at-home agents can benefit from PATH’s effort to create standards for the host agency business. “Coming from the home-based arena myself, I’ve heard so many different horror stories about the experiences that a lot of the agents have had with various host agencies,” she says. “It’s useful to have some unified thoughts that would help people who are looking for a good, qualified, supportive host agency. We’ve been fighting for so long to have that type of recognition in the industry.”
Will PATH duplicate some of the roles taken on by such organizations as ASTA, OSSN and NACTA? McClure-Mysza says definitely not. “Ultimately we want to forge good relationships with them,” she says.
For his part, Gary Fee, president and founder of OSSN, believes PATH has a role to play in the distribution system. “There’s a niche there for them,” he says. “Where PATH comes into play is [in providing a] gold seal of approval’ for finding a good host agency. I don’t see us as being competitive. I think we can harmonize. They are not going after the independent contractor, since their focus is host agencies.”
Stilphen insists that PATH is inviting every host agency to apply for membership. “Anybody can apply…as long as they fit the criteria,” adds McClure-Mysza. “We’re going to be evaluating it based on some pretty strict criteria.”
Some host agencies, however, have indicated that they are not interested in joining PATH and see little purpose in the group. Bill Alverson, president and CEO of host agency Joystar, says he believes PATH was initially formed to figure out ways to stop his agency’s aggressive marketing tactics in attracting independent agents from host members of the group. He also questions why another industry group is really necessary.
“Joystar is a member of ASTA, OSSN, CLIA, ARC and NACTA,” he says. “Why do we need another trade association? We have all the coverage the industry needs between all the existing associations.” Alverson says ASTA is already engaged in policing “rogue” host agencies engaged in multilevel marketing. “I would also be very concerned about the potential pitfalls for antitrust violations and compliance between members of PATH,” he says. “These guys are trying to set standards and have some kind of Good Housekeeping Seal of Approval.’ There are problems with that. That is not their job.”
For his part, Stilphen admits he has been critical of Joystar in his own host agency’s newsletter, but he maintains that PATH was not created to counter Joystar. “I’d like them to apply, though it’s not up to me who becomes a member. It’s a board decision,” he says. Adds McClure-Mysza, “PATH is bigger than Joystar. We’re an organization that’s trying to attract quality companies. They are just one of the host agencies out there. If they are qualified, we’d love to have them.”
Another major host agency that is taking a wait-and-see approach to PATH is America’s Vacation Center (AVC). “I think the host agents who are involved in it all have the industry’s best credibility in mind,” says Brad Anderson, AVC’s co-president. “It seems like they are trying to develop a program that will help independent agents determine what they should be looking for in a host. But we’ve chosen not to get involved at this point because we’re so busy growing our own business. We’re actually getting more involved in ASTA with its new Premium program. I think we would never say no to joining, but right now it’s not active on the table.”
Another major host agency that is taking a wait-and-see approach to PATH is America’s Vacation Center (AVC). “I think the host agents who are involved in it all have the industry’s best credibility in mind,” says Brad Anderson, AVC’s co-president. “It seems like they are trying to develop a program that will help independent agents determine what they should be looking for in a host. But we’ve chosen not to get involved at this point because we’re so busy growing our own business. We’re actually getting more involved in ASTA with its new Premium program. I think we would never say no to joining, but right now it’s not active on the table.”
Host agencies interested in joining should call Nancy Peklo-Nosal of Design Travel at 847-577 7930, ext. 202, or email nancy@dtmgi.com. Suppliers interested in prospective membership should contact Andi McClure-Mysza at 626-821-0343 or email andi@montrosetravel.com.
“People who are shopping for a host can now have a group of companies they can feel comfortable with,” McClure-Mysza says. “It’s not simply just send in your money and you can join. We are taking it to the next step both as host agencies enter our organization and once they are in. And we have a code of ethics that everybody needs to follow.”
Tags: home-based-agent-news
