There’s a long list of criteria to consider when choosing a host agency. No doubt about it though, commissions are key. Here’s an overview of the commission structures offered by six top host agencies. We also look at contracts and consortium affiliations.
THE DESTINATION EXPERTS
Commission Structure
The commission structure varies depending on the total amount of sales confirmed during a certain time period. “The more travel packages an agent sells, the higher their commission goes with performance bonuses and many other perks included for top performing agents,” says The Destination Experts’ President Deanna Byrne. “All members of our team are provided with full service head office support staff along with several ground managers as well to assist them in growing their sales and achieving their goals.”
Contracts
New agents are placed within a one-year Independent Agent Agreement that is under an automatic renewal. This is an exclusive agreement between the agent and The Destination Experts to ensure the agent meets the requirements of their blanket E&O Insurance protection. “Due to the fact that we contract primarily agents with no previous experience as a travel agent, we do have a no-compete clause,” says Byrne. “We are not a recruiting company. We are a travel agency and the financial resources we spend to develop our agents and design our comprehensive training programs requires a no-compete clause because it has to be protected. We have a lot of loyal agents and their families that depend on us to protect their home-based travel business and we will not let them down.”
The no-compete clause and commission structure is negotiated with agents that contact The Destination Experts from other agencies. This is based on experience and previous sales volume, says Byrne.
Consortium Affiliations
Vacation.com (President’s Circle)
FLIGHT CENTRE ASSOCIATES
Commission Structure
“New Associates start out at 80% for first six months. They can continue earning that percentage on a rolling six month basis with an average of $3,000 in sales per month,” says Lee Zanello, Brand Leader, Flight Centre Associates.
After six months, if that average is not achieved, associates move to a tiered structure earning 70%, 75% or 80%. Year-end bonus incentives backpay annual earnings up to 85% and 90%. “All details are on the website,” says Zanello.
Consortium Affiliations
Affiliated with Ensemble and Flight Centre’s own preferred product network.
Contracts
No contract duration and no non-compete clause. “We require 60 days written notice only to terminate the contract,” says Zanello.
