Host Roundtable Part II: Hosts Tell How To Find Right Affiliation (4/13/09, Travel Trade)

In this Host Agency Roundtable discussion, some of the industry’s leading Host agencies talk about trends in the Host/Home Based segment of the industry, including: a growing number of Home Based agents, both with retail travel experience and new entrants; a thumbs up for their relations with suppliers; a very positive outlook about the future of the travel industry and surprising optimism about the business this year, even in the current downturn.

Given the Joystar bankruptcy and the never ending roster of card mill/MLMs, the Host agents discuss how Home Based agents should go about vetting Host agencies before deciding on an affiliation.

In the following Part 2 of the Roundtable, Host executives discuss the business this year, their outlook going forward and how to select a Host. In Part 1, they discussed the growth in Home Based agents and how they work with suppliers. Please visit www.traveltrade.com/6033.news.

Has there been a difference so far this year in the interest in travel/conversion to booking ratio over previous years?

Andi McClure-Mysza, president, MTravel.com:

It’s a tougher sell this year due to the economy. As long as people are employed, however, they do not want to give up their vacations. Some are cutting back. Supplier deals/pricing is helping with conversion. Corporate travel is directly affected by the industry/health of the account (e.g. travel for construction related companies is down).

What’s your outlook going forward?

McClure-Mysza: I believe it’s going to be a tough year for travel in general for 2009, but we’re busier than ever. So people are traveling. Travel will become more impacted as unemployment rises. No job, no vacation. Overall, I believe Montrose Travel (and reputable Host agencies in general) will be poised for growth in this environment. I’m very pleased with the continued growth of our Hosting business.

What should agents be aware of when searching for the “perfect” Host affiliation?

McClure-Mysza: Many agents are embarking on a thorough search for the right host travel agency. We applaud their efforts. And, like many people, they may be at the stage of becoming thoroughly confused and unable to distinguish one host travel agency from the next.

Here is a synopsis of some of the more important intangible characteristics to consider when selecting a host travel agency:

Stability - Is the host profitable, stable and in it for the long haul?
Reputation, clout, relationships with suppliers
Size and buying power = higher commissions for you
Does the host care about and support you and your business?
Does the host’s product mix match your needs – leisure, corporate, group?
Is the host ARC appointed so you can book/sell airfare to your customers?
Alignment of preferred suppliers vs. your needs
Abilities of staff – will you be working with capable people? Are they responsive to your needs?
Ongoing training with suppliers, destinations, business tools, etc.
Track record for paying commissions accurately and on time?
Do they offer you the technology you need to operate your business such as websites, booking tools, CRM, access to subscription based travel tools?
Do they offer you marketing tools and programs?
Will they actively get involved with and help with booking problems when they occur?
Do they provide unlimited business coaching whether you’re a novice learning to make your first booking or a seasoned veteran with questions about business strategy?

To properly evaluate a host travel agency, it’s far beyond cost and commission split. It’s more than transaction processing. It’s a much more complex decision that requires peeking under the covers to get the full story about the host. Do an initial review of their website, call them and ask questions (especially about information not found on their site), ask for references, check the Better Business Bureau. Even Google them.

Remember, selecting a compatible host is much like a marriage. An agent should take a long term approach and feel completely comfortable with their decision with their new business partner.