Whatever the size, the basic business model is the same. The host agency acts as an umbrella for travel agents that belong to their organization. All agents under the host will use the same booking number (ARC, IATA, CLIA, TICO, etc.) and will be seen by the vendors as one agency instead of a conglomeration of agencies.
The most common business model is for the host agency to offer a commission split with the agent. There may or may not be fees attached to it and the commission level splits vary. Centre Holidays offers various commission levels of 60%, 70% or 80% depending on the membership package chosen. Based on sales, home based travel agents can earn up to 90% commission.
By far, the majority of the agents that belong to host agencies are home based travel agents but it’s not unheard of for a storefront to belong to a host agency.
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