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There is probably a different Host Agency model for
every Host Agency. However, there are certain basic characteristics that you can
rely on that exists with all Host Agencies. Here are a few of the most obvious.
IATA/ARC appointed Host Agencies.
Just about all Host Agencies, particularly the National Host Agencies are IATA
accredited. There are two types of accredidation, ARC and TSI. ARC, the oldest,
which stands for Airlines Reporting Corporation allows the agency to use one or
more of the GDSs (Global Distribution System). The more popular are Sabre,
Amadeus, Apollo and WorldSpan. ARC agencies may have contracts with one or more
of these suppliers. The ARC accredited agencies was once the standard for all
store front operations. About 30 % of all Host Agencies use GDS while others are
using web based booking engines. The GDS is an important booking tool for
Corporate agents and agencies because of its flexibility to book air. Many of
the older travel agents still prefer the use of a GDS.
IATA/TSI appointed Host Agencies
Many Host Agencies preferred to eliminate their ARC appointment or just elected,
if a new agency, to eliminate the ARC and the GDS. Reasons include the cost of
these programs, the chaotic style of the GDS, little or no commissions, the
constant threat of airline debit memos and the increased activity of credit card
fraud. If air is an important factor for making a choice between ARC and TSI,
then its ARC for you. Of course you can still book air through 3rd party
suppliers and air consolidators. There is no difference between the two IATA
accredidations as to benefits and the IATAN photo ID card.
CLIA accredited Host Agencies
CLIA which stands for Cruise Line International Association is the marketing arm
of its major cruise line members. Their accreditation is used by many Host
Agencies who specialize in selling cruises. The CLIA Host Agency is also able to
book other travel, however, it is not as widely accepted as IATA with suppliers.
All of the National Host Agencies belong to both IATA and CLIA.
TRUE and TRAVEL SELLER Only Host Agencies
Although gaining some respect with the newer Host Agencies, these providers of
ID numbers, maintained by IATA, fall short of being able to provide a full array
of suppliers. These are more suited for agents who primarily use suppliers
accepting these IDs.
TRAVEL Franchises
Most travel franchises are cruise oriented franchises but also provide other
forms of travel. There are usually royalty fees involved and they tend to be very
structured in their training, technology and marketing programs. Franchises
are really another Host Agency model and should be considered when
selecting your Host Agency.
NON-TRADITIONAL Host Agencies
In order to complete the more popular business models of Host Agencies, it would
be prudent to say a few words about these non-traditional or more popularly know
as MLMs (Multi-level-marketing) or card mills. These agencies are primarily
focused on selling the business opportunity such as recruiting agents, selling
websites and other non-travel products as opposed to selling pure travel. A
small percentage of their gross revenue is attributed to travel commissions.
Agents seeking to sell travel should avoid these Host Agency models unless they
also enjoy being a network marketer.
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