As more independent contractors (ICs) continue to enter the
industry, more hosting services -- especially smaller operations with a single
lead agent hosting one or more subagents -- are also coming online.
Most recently, Liberty Travel introduced a network,
Independent by Liberty Travel, leveraging its strong retail brand to attract
ICs. Meanwhile, other hosts continue to see increasing numbers of ICs in their
ranks and to attract their interest, particularly from those new to the
industry.
"If you look at every definition of a host agency,
there are definitely more popping up because there are more and more agents who
want to get into the business, whether it's full time or part time,"
Nexion president Jackie Friedman said.
There are fewer "pure hosts" coming online,
Friedman said, defining a pure host agency as one that exists only to host.
However, more agencies are now hosting ICs, and existing businesses, like
Liberty, that are adding hosting components are also becoming more common.
"I call them a kind of hybrid," she said of retail
agencies with host components. James Bovino, who is heading Independent by
Liberty Travel, said the network, which will benefit from relationships with
its sister brands, was created to accommodate a changing industry. Liberty
Travel is a division of Flight Centre Travel Group, which was No. 7 on Travel
Weekly's 2017 Power List.
"While we'll always have our brick-and-mortar presence,
and we'll always have our traditional travel consultants in those businesses,
many travel consultants, they live an adventurous lifestyle," he said. "They
don't want to work in a store. They want to work on their own terms but still
provide that same level of service and professionalism that our customers are
used to in a Liberty Travel retail store."
Independent by Liberty Travel will also benefit from the
strength of the Liberty Travel agency brand, Bovino said. As of last week,
about 60 agents, ranging from beginners to industry veterans, had signed up for
the hosting service.
Meanwhile, other hosts in the industry continue to enjoy
increasing interest from ICs.
Oasis Travel Network, for example, saw membership increase
by 35% year over year in January, according to president Kelly Bergin. Sixty
percent of new members are new to travel, while 20% previously worked
independently and 20% came from other hosts, she said.
Similarly, Friedman estimated that more than 50% of those
inquiring about joining Nexion are new to the travel industry.
The Professional Association of Travel Hosts has seen a "slight
uptick" in applications to join, said Bergin, who is a member of group's
board.
The resurgence of consumers using travel agents is creating
a need for more agents as well as a need for hosts for those agents, Bergin
said. Bringing on ICs also helps boost revenue and meet sales goals. And,
Bergin said, hosts are getting a small bump from agents who previously worked
independently but are seeking the marketing and technology tools offered by
hosts.
"I think many smaller agencies are realizing that the
independent travel professionals can be a real asset to their business,"
she said.
Jenn Lee, vice president of sales and marketing at Travel
Planners International (TPI), agreed. Many TPI agents, she said, are hosting
their own agents, referred to as subagents. She said TPI does not call these
agents "hosts," but the scenario is becoming more and more common.
"It doesn't surprise me that brick-and-mortar agencies
are realizing there is a strong pull to the entrepreneur or small-business
owner who wants to create their own identity while still having the safety of a
company behind them," Lee said. "We recognized this a few years ago
and [completely] rebranded and messaged, as well as altered our offerings to
support the small-business owner who wants to have their own identity, brand
and business."
Friedman said agents are also expanding their operations by
hosting ICs with different specialties.
"They kind of look at the skills and interests that
they have and they figure out what they need," she said. "Sometimes
it's as targeted as looking for agents who could fill a certain area of
specialization, but more and more agents are interested in setting up -- it's
almost like hosting within a host, and having two, three, sometimes even 10 or
more independent contractors."
Others are interested in mentoring new-to-travel agents, and
still others are bringing on ICs as a succession plan or exit strategy if they're
interested in retiring, she said. In the latter category, agents are looking
for a replacement to take over their customer base.
Friedman posited that more hybrid hosts than pure hosts are
coming online because of the sheer amount of work it takes to get a host
operation running.
"If you think about it," she said, "if you're
starting a pure host and you're brand new, you're starting from scratch. You
have to build up an infrastructure, and you have to build up your volume from
zero. It's the whole, 'If you build it will they come; how do you build it if
they don't come?' That whole catch-22."
The industry is crowded with hosts, but Friedman said there
is still room for new operations, especially smaller niche specialists or those
who want to create a host in their local market.
"I definitely think that there's no one right host
agency for everybody," Friedman said. "If I were new coming to the
business as a host agency, I would really want to pay attention to what is
missing versus what is there. Is there a specific type of travel that could use
a new host? What would get an agent to look at [my hosting service] versus
somebody else?"