Host Agencies owe their Independent travel agent affiliates 100% support in all areas of the travel business i.e. marketing, technology, training and general business advice. This does not mean the Host must have its own in- house programs covering all these areas. Most Hosts outsource one or more of these programs. In any event the Host must be in a position to either offer or recommend these sources to their affiliates. Many Hosts, despite their claims as having original programs, offer the same product branded in their name or copy someone else's program and sell it as proprietary. There is nothing wrong with any of this except a little distortion of honesty or integrity which really isn't necessary.

Host Agencies do owe their affiliates honesty and integrity as well as paying commissions on time. It has become noticeable with our segment that some Hosts are beginning to "nickle and dime" their affiliates in an attempt to become more profitable. A major part of the reason for this is because, as the segment has become more competitive, more Hosts believe that they need to offer better deals to attract affiliates. This has created a "musical chair" effect with the experienced travel agents as many of them wander from Host to Host for that extra 5% commission. The whole scenario makes no economic sense.

Another reason for the added fees by Hosts is because of the various programs they promote. An example of this is the offering of a 90/10 commission split with zero startup,zero monthly and zero renewal fees. Unless the Host has another way to bring in revenue, the program is doomed to fail. Host agencies will remain in business as long as their business model and programs remain economically feasible. Once a Host begins to add fees particularly without notice, I would question why and look at what is happening to the business model.

I mentioned above that some travel agents play the "musical chair" game with Host Agencies. The reasons are not always for better commissions, but rather, a very small percentage of agents are using this opportunity to scam the Host and the consumer by utilizing unlawful credit card transactions. The Hosts most affected by this are the ARC appointed Hosts. ARC appointed and probably all Hosts should begin to request background or credit checks.

As the Host Agency segment continues to evolve, I'm sure there will be some merges, shake outs and unfortunately, even some failures. Today it is vitally important that any travel agent, new or experienced, do their due diligence when seeking a Host.

If you are already working with a Host Agency, look for the following warning signs and ask tough questions of your present Host.

• A sudden change in their business model without an explanation that makes sense to you.
• Charging you for new fees much like a bank without proper notice or explanation.
• Commissions that are paid more than 60 days after the client's trip was completed. There are some vendors that don't pay the Host until 2-3 weeks after the trip. Many hotels and small suppliers are just slow in paying out commissions. Determine if it's the supplier problem and not the Host's problem. Don't jump when a commission falls through the crack. We all make mistakes. It is the same consistency of slow paying by your Host to watch carefully. Most Hosts pay out commissions within 30 days of receipt of same from the vendor except individual cruises that may be paid earlier by the cruise line but held by the Host pending last minute cancellation recalls.
• Sudden and frequent changes in your Host's personnel should raise a red flag.

Ask your Host how they handle unclaimed commissions. Ask about their policy regarding paying out earned commissions even after termination. If you have earned your commission, you should receive it even if you left that Host.

There are many profitable Host Agencies out there that operate their business with honesty and integrity. As in any business or industry there are the "bad apples". The better ones hang out at www.path.travel.