In an industry shift, some travel agencies are dropping their consortium membership to affiliate with a host agency. And those who have made the leap say it has helped reduce administrative and financial burdens while offering access to highly sought-after hotel programs, group space and higher commissions.
The move from consortium to host is not the norm, however.
Karryn Christopher, president of Signature Travel Network (a member-owned travel agency cooperative) said no members have opted to drop their membership for a host agency affiliation. Much more common, she said, is for an independent contractor or a branch of an agency to grow enough to stand alone.
But for some, the move makes sense.
Beth Miles is the owner of Houlahan Travel in Evanston, Ill. At the end of July 2024, she affiliated with host agency Departure Lounge (No. 47 on Travel Weekly’s Power List), a shift from her agency’s longtime standing as a Virtuoso member. (The ties remain, as Departure Lounge is a Virtuoso member).
“It started out as a hard decision for me,” Miles said about moving to a host. “I was worried that I was going to lose some autonomy. I was worried that I was going to lose some control over how I ran the business.”
She said it had gotten to the point where being part of a consortium “didn’t make sense” for her business or her clients.
“Those things I was worried about have not come to pass in any way, shape or form,” Miles added. “This really has been a great move for us personally.”
Her Departure Lounge affiliation has saved her money compared to being a Virtuoso member, she said. While she does remit a portion of commissions to the host, on balance, Houlahan is coming out ahead of where it had been.
Departure Lounge has also given her access to hotel programs, like Belmond Bellini and Marriott Stars, that Houlahan didn’t qualify for on its own. Those programs are increasingly important because of the level of service they offer member agencies, she said, but with dozens of programs, it’s hard for small agencies to qualify for them all based on sales.
Miles also found herself spending much of her time on administrative tasks, keeping her from working with clients or proactively marketing the agency.
“After running all the numbers and looking at it, she decided that it would be more profitable and less headache,” said Departure Lounge founder Keith Waldon, who called Houlahan a “great addition” to his roster of affiliates. “I think that’s going well for them.”
Beth Butzlaff, Virtuoso’s general manager of the U.S., said members affiliating with hosts isn’t a widespread trend at the consortium, but “often reflects a strategic shift in how an advisor or agency wants to operate.”
Virtuoso is supportive of whatever structure best fits its members and advisors, she said. In most instances where agencies have affiliated with hosts, like Houlahan, they have chosen hosts that are themselves Virtuoso members.
“Our network is dynamic, and we support members through transitions that align with their business goals,” Butzlaff said.
Indeed, Virtuoso’s membership continues to grow steadily year over year, she said.
Houlahan’s move, she added, “is a great example of the flexibility and strength of the Virtuoso community. Even when a member agency changes structure, staying within the network ensures continuity of access to Virtuoso benefits and allows them to continue building the relationships they’ve formed. It’s a win-win-win.”
Vickie Everhart, CEO of Krouse Travel in York, Pa., made the jump from Ensemble to Travel Planners International (No. 35 on the Power List) in 2020. While TPI was a member of Ensemble, the host agency joined Signature around the same time that Krouse affiliated.
For Everhart, TPI offered some key benefits she wasn’t getting as a standalone agency, like additional amenities for clients as well as group space on supplier products. She misses having dedicated supplier representatives, but the benefits of the move outweigh that for her.
“We came to TPI with a book of business that qualified us for 100% commission and no fees,” she said. “That’s not to say that’s for everybody, but for us — and then we get the consortium membership for free as part of the benefits for being part of TPI.”
For many standalone agencies with large books of business, overrides are a big benefit, but neither Miles nor Everhart said these were a significant part of their businesses before they transitioned to host affiliates.
