Host Agencies Earn Mostly High Marks From Advisors

Travel advisors are mostly satisfied by their partnerships with host agencies, according to a new study by TravelAge West, part of its Need to Know research series.

In a survey of more than 200 advisors, 68% are satisfied with the support and resources provided by their host.

“Support and resources are often a deciding factor when advisors choose a host,” said Shayna Zand, managing director of Host Agency Reviews. “While the number is strong, it also shows there’s room for hosts to further differentiate themselves through training, marketing tools and community engagement.”

The majority of respondents (68%) are affiliated with both a host agency and a consortium. The top methods for finding their hosts include industry research (40%) and a referral from another agent (36%).

Advisors indicate that there are several important elements in choosing a host agency. The top factor is commission splits/earning potential (27%), followed by education and training (24%) and access to preferred suppliers (22%). 

Beyond the business tools, it’s the guidance, encouragement and community that really keep advisors in the game for the long haul.

The size of the host agency is generally not a major consideration as half of the advisors (47%) describe their host as “big, just how I like it.” 

Interestingly, while revenue growth is important in choosing a host, a sizable number of respondents (46%) say their affiliation has not impacted their sales numbers — although 30% feel it has significantly increased revenue and another 19% say it has slightly increased it.

The majority of advisors (73%) feel their commission split is fair. 

“It’s encouraging to see that most advisors feel their split is fair,” Zand said. “Transparency and trust go a long way here. In our experience, advisors often value the right mix of earnings and support over simply chasing the highest commission.”

Respondents cite a wide range of benefits from working with a host. From the top reason down, these include exclusive supplier access; training/certification programs; peer networking; marketing tools/customer relationship manager (CRM); higher commission rates; legal/administrative support; and client lead generation.

Advisors are also evenly split on the top host agency tools they use, with data systems (61%) leading the way, followed by CRMs (52%), email tools (48%) and E&O insurance (46%). 

RELATED: Why Relying on Your Host Agency’s E&O Insurance Is Risky

When it comes to areas for improvement, advisors cite developing sales leads (51%), promoting travel advisor use to consumers (45%) and technology and tools (41%).

Still, a majority of advisors are not planning to switch hosts in the next year, and only a small number are actively exploring alternatives. More than three-fourths of respondents feel their host agency is “important” (32%) or “absolutely essential” (46%) to their long-term success. 

“I’m not surprised by this one,” Zand said. “Hosts play such a big role in helping advisors thrive. Beyond the business tools, it’s the guidance, encouragement and community that really keep advisors in the game for the long haul.”