It’s a daunting task deciding which partner to choose to help you to start your own travel business. There are many options out in the marketplace, but when comparing each offer you will discover that not all partner companies are equal.
At face value, a partner offering the highest commission split might look most appealing and look like a really good deal, but delving deeper…what are the consequences of only relinquishing 05-15% or 20%?
Something that is often overlooked is the hidden costs associated with this type of partnership. There might be an initial financial benefit to the ITC when considering a partner offering a higher commission split, but what about;
After hours ticketing
Credit card charges costs
Huge admin overheads?
Are you protected from ADM’s?
Do you have to pay for your own web design and monthly hosting fees to keep your website current and updated?
Do you have the skill and the time to develop your own travel app?
What will happen if your laptop crashes, gets stolen?
Are you PCI compliant?
The POPI Act is in force. Are you compliant?
Are you BEE accredited?
When it comes to training and upskilling – have you considered where you will get the training from and how much this could cost?
The list of considerations are endless.
As you do the comparison it will quickly become clear that it’s not just about issuing tickets – the host model should nurture its ITCs business in all areas from admin to IT, from marketing and PR to customer relations, to tech…and…
The relative merits of a service-only (DI) concept vs. a full support model needs to be carefully weighed up.
And where does the other 15% or 20% go? Rather than re-investing that money back into making the ITC more successful, it may be used to strengthen current or future competitors. It may seem like a cheap option but if the partner you choose already has a business that is in direct competition with your new business – is it wise to partner with them?
With this in mind, potential ITCs need to consider whether they can truly trust the host company to do what is best for their business, or whether ultimately, the business model could lead to their demise.
Every day we speak to travel professionals who like yourself are considering starting their own travel business. You like them, might have loads of questions and not sure how it all works. Why not give me a call and I can explain how it all works. You can also sign up to attend an online demo. We love being able to help professionals like yourself reach their potential, both with their businesses and in their personal lives!