Belonging to More Than One Host Agency

I'm asked from time to time if it's okay to belong to more than one host agency. The simple answer is yes. But, we all know there's a lot more to it than meets that eye when it comes to "simple" answers!

There's a reason that very few hosted advisors choose multiple host affiliation. HAR's 2024 Travel Advisor Survey found that only 5% of hosted advisor belonged to more than one host agency. So, while you can definitely align with multiple host agencies, there's a few things you might want to take into consideration before making that leap.

Here's what to consider so you can make an informed decision for YOUR business!

Don't Take No for an Answer

As an independent contractor, you have the right to belong to multiple host agencies. Period. Be wary of host agency contracts that tell you that you cannot belong to another host agency. 

Why should you be leery of that limitation? If host begins telling you what you can and cannot do, you're more likely to be consider a employee rather than an independent contractor. This risks running into IC/employee misclassification (it's a bummer for everyone involved). 

Why is this an issue? If the host agency is audited by the IRS and is cited for the misclassification, they cold be fined up the wazoo. You don't want your host agency to have to pay this (at risk they may not be able to pay you).

Multiple Affiliation: Let's Put It in Perspective

Just because you can belong to more than one host agency doesn't mean it's a good idea. If you're considering multiple host affiliation, look deep into yourself and ask yourself why. Why do you want/need to align with multiple host agencies? 

As a former host agency director, I ran into quite a few travel agents that did this and usually, I didn't quite understand why they chose that route. I'm not entirely sure they were looking at the big picture when they made their decision.

One agent explained to me the other host agency provided leads so she used them for some things. One agent said they were earning 1% more commission on a cruise line. But is that worth it? 

Let's look at a few things.

DILUTION

Using multiple hosts means you aren't going to get as much out of the host agency as you could. A few main places this will hurt you:

• Spreading your revenue between multiple hosts impacts how hosts perceive your business. Hosts rely on their internal financial records. So if you're spreading commission across multiple hosts, it will appear (in their eyes) hitting lower sales than you actually are. They won't have the whole picture. With all your revenue funneled through one host agency, the host is afforded an accurate picture of your travel agency's earning potential. This can lead to perks like access to FAMs, access to higher host commission split tiers, status, and other goodies. 
• Relationships with the host agency staff suffer. Dealing with multiple host agencies means you're working with multiple staff. This makes it harder to develop strong relationships with the people that can help you (and frankly, takes more time).

LEARNING CURVE

Have you ever read two books in the same time frame? Did you get as much out of them as you would have if you were only reading one? Probably not.

Same thing goes for having multiple host agencies. You're learning two different systems, doubles the technology program, and acclimating yourself to multiple business cultures. Chances are you're going to miss or under-utilize quite a few things that could be helpful to you. You'll have access to double the resources, but that positive becomes a negative if you don't have the time or energy to retain the information.

The Almighty Dollar

Some agents go with multiple host agencies because they can make more money on certain bookings with one host than they can at the other. In business terms, this may sound like it makes financial sense. More often than not, an agent is chooses to go with multiple hosts for just a few percentage points more from a few vendors.

But, there's a definite costs too.

Plug in some real numbers. Look at the volume you're booking with those suppliers. How much additional revenue are you actually earning with that bump? Factor in the costs of two hosts. Factor in an hourly wage to account for the extra time, energy, and challenges of aligning with multiple host agencies. Is it still worth it?

It's possible there may be better ways you could be spending your time. Way you can use that time to build your business that create more growth than you do earning 1 or 2% higher commission on a few bookings. (Maybe use your extra time to try out some tactics from our $100 marketing plan?!)

The Flip Side

All this said, multiple affiliations work for some agencies and can be a great thing. Belonging to more than one host is not a sound business decision if you're drawn to it for the wrong reasons. Multiple affiliation is not something I'd recommend for most agencies, especially newbies.

At the very least run the numbers! Compare commission splits. Get firm numbers on your earnings vs. costs of dual affiliation. 

If you've got a unique business model and think that multiple affiliation might might be a good fit for you, feel free to drop me a line via the contact us form and we can take a closer look!