Originally Posted by
gudugan
This seems almost identical to the real estate agent model. Real estate agents (similar to travel advisors) work for real estate brokers (similar to host agencies), and an agent must work for a broker to do sales. The commission is often split between the agent and the broker.
Is there a minimum amount of business (# nights per month or revenue threshold) to work for a host agency? E.g. if you live in hotels full time and sometimes book for friends would that meet a relevant threshold or is much more than that required? I was looking into being a part-time real estate agent but the required minimum number of transactions is actually substantial (i.e. hard to do part time), even if you sign up with an online broker who has less strict requirements.
You actually don’t “work for” a host agency in that you’d be an independent contractor, not an employee. In other words, travel advisors are small business owners. There’s a certain baseline of expenses — E&O (professional liability) insurance, fixed costs paid to your host agency, your own technology expenses, business license, incorporation fees, marketing expenses, educational expenses, as well as the value of the time you invest running your business. Of course, you’ll have to pay business taxes and likely have to hire an accountant and tax preparer.
Eventually, if your little agency becomes a going concern, you’ll also hire employees and incur the associated expenses.
Bottom line, you have to be all-in to be successful. Running a travel business doesn’t work as a part-time hobby.