Choosing the Right Fit

Not that long ago, if you had decided you wanted to be a travel advisor, your career began in a traditional brick-and-mortar travel agency. Today, you have more choices available to you, and you have some decisions to make. Will you choose to work in a brick and mortar or open your own business? Will you join a host agency or franchise?

If you are starting or restarting your business, you do have choices. Will you choose to open your own storefront (brick and mortar)? Or would you like to be an independent contractor (I.C.) operating your own business but working in conjunction with a storefront? Or do you prefer to operate your business out of your own home? If this isn’t already confusing enough, you’ll have more decisions to make. If you are choosing to start your own business, will you join a host agency or will you choose to buy a travel agency franchise? To help you decide as to what kind of business you want, let’s look at these choices.

Traditional Brick and Mortar

In a traditional travel agency in the past, travel advisors were paid a salary and only a salary. That has changed, unless you prefer to work in a corporate travel agency booking only business travelers. Today, very few traditional leisure travel agencies offer their agents a straight salary. Rather, it usually is a combination of both salary and commission.

However, more and more traditional agencies want independent contractors to join and bring with them an existing book of business (their clients or potential clients). The compensation for this is a commission split. That split can vary depending on the agency you are bringing your business to and the number of its resources you are using, such as a place for clients to meet with you and/or the back-office accounting or airline ticketing the agency can provide.

Travel Agency Franchise

Buying a travel agency franchise can be like buying other types of franchises. For instance, if you had decided you wanted to open a Subway or a Dunkin, you would buy a franchise. The advantages to buying a franchise are that you still own and operate your own business, but you are buying an already established brand. Clients or potential clients will recognize the brand name. Buying a travel agency franchise could get your business up and running faster because you will spend less time figuring out all the components of running a business, such as creating a business plan, operational procedures, and a marketing plan. With a franchise, all of this is done for you.

However, buying a franchise can be expensive. There are upfront costs of the initial purchase plus ongoing costs, such as marketing fees, a percentage of your gross sales, and so on. Depending on the type of travel agency franchise you decide to purchase, your business could be either a traditional brick and mortar or completely home-based. Like all businesses, buying a franchise doesn’t guarantee success; you will still need to work your business.

Host Agency

Belonging to a host agency will give you the freedom to build and market your own brand. You do you! There are costs for joining a host agency, but they are considerably less than buying a franchise. A host agency provides ICs resources, such as access to their accreditations and affiliations—like membership in a consortium—as well as offering a support system or help desk and technical, operations, or marketing support.

A host agency also can provide you with an airline ticketing desk. Most importantly, it will provide you with access to the buying power of a host agency and to the relationships it has cultivated with travel suppliers, such as cruise lines, tour operators, and hotels. As an independent contractor with a host agency, you can choose which of the services it provides that you want to take advantage of.

Going It Alone

If you have decided you are just going to go it alone—i.e., you don’t want to be an independent contractor for another agency, buy a franchise, or belong to a host agency—here is a suggestion: join a consortium. Like a host agency, a consortium can provide you with services to help you with your business, such as website hosting, booking tools, access to its preferred suppliers (e.g., cruise lines, tour operators, and hotels), and marketing support.

You may be thinking, “Then why should I join a host agency if I could just join a consortium?” Consortia require independent contractors to have a minimum sales threshold to meet the requirements for joining. Like a host agency, there are costs involved with joining a consortium, whereas, with a host agency, membership in the consortium the host agency belongs to is included in the host’s fees.

One final piece of advice: if you have decided to become a travel advisor, at the very minimum, you should consider turning to The Travel Institute for guidance. The Travel Institute will give you access to the education, training, and accreditation you need to start your own business!

Welcome to the travel industry!