Host Agency vs Consortium vs Franchise: What’s the Difference?
Not sure if you need a host agency, consortium, or franchise? Antravia breaks down the key differences - with real examples and financial clarity.
TRAVEL AGENTS FINANCE
7/6/20255 min read
Host Agency, Consortium, or Franchise? What Travel Advisors Really Need to Know
If you're thinking about becoming a travel advisor, or you’ve already started and want to grow, you'll come across three terms that are often misunderstood: host agency, travel consortium, and travel franchise. These sound similar but operate in very different ways.
Each option has a different cost structure, business model, and level of independence. The one that works best for you depends on your goals, experience, and how much control you want over your business. At Antravia, we’ve worked with agents across all three structures, so here’s what you need to know before you commit.
What Is a Host Agency?
A host agency is a company that allows you to run your own travel business under its accreditation. Instead of applying for your own IATA or CLIA number, you book through theirs. You’re legally independent, but you gain access to their supplier relationships, back-office support, and often, their booking platforms and training.
Some hosts offer a lot of handholding, whilst others are more hands-off. Many also give you access to marketing tools, CRM systems, and commission tracking.
You usually pay either a monthly fee, a share of commission, or both. Some are free to join but take a higher cut of what you earn.
Good hosts provide structure, technology, and buying power — without taking away your freedom to brand and run your business how you want.
Well-known examples:
OutsideAgents, Nexion, Travel Planners International, Gifted Travel Network
What Is a Travel Consortium?
A travel consortium is a network of travel agencies that group together to negotiate better supplier terms, access joint marketing programs, and share technology platforms.
Unlike a host agency, a consortium doesn’t provide accreditation or booking tools. You need to already have your own IATA, CLIA, or ARC accreditation (or go through a host agency that belongs to a consortium). It's not something new agents usually join on their own — it's a layer of support that sits on top of a more established agency.
What a consortium gives you is scale. By grouping you with hundreds or thousands of other agencies, it unlocks higher commissions, preferred supplier deals, educational opportunities, and marketing support that would otherwise be out of reach.
Some consortia have strict requirements around sales volumes, branding, or fees. Others are more open and flexible. Larger host agencies are often members of a consortium themselves - so you may be benefiting from one without realizing it.
Well-known examples:
Virtuoso, Signature Travel Network, Ensemble, Travel Leaders Network
What Is a Travel Franchise?
A travel franchise is a business model where you pay to operate under a parent company’s name, using their systems, branding, licensing, and supplier relationships. In most cases, you’re not using your own agency name but you’re operating under theirs.
Franchises typically include:
A booking system or back-office support
Client payment protection and accreditation
Pre-designed marketing tools
National branding and training programs
You pay an upfront fee to join, which can be anywhere from $5,000 to over $20,000, depending on the company and the market. You also pay ongoing royalties, usually a percentage of your commission or revenue. It’s designed for people who want a ready-made business with full support, and are happy to trade some control for ease of setup.
Well-known examples:
Dream Vacations, Expedia Cruises, Travel Counsellors
Which Option Is Right for You?
If you want to use your own brand, operate independently, and keep your costs low while accessing tools and supplier deals, then a host agency is usually the best option. This works well if you're just starting out or you want the freedom to grow your business in your own way.
If you already have your own travel agency, accreditation, and client base, and you’re looking to improve your commission levels or gain access to preferred supplier marketing, then a consortium may be a smart next step. This isn’t a starting point but it’s something to look at once you're growing and want to expand your reach.
If you prefer a plug-and-play business with all the systems set up, the brand already established, and the legal and payment handling taken care of, then a franchise might suit you better. It does come with a much higher upfront investment, and you won’t fully control the branding or business structure - but for some advisors, the trade-off is worth it.
A Quick Example
Let’s say Maya is a former hotel sales manager in the UAE. She wants to start selling curated wellness retreats to clients in the UK and U.S.
If Maya joins a host agency, she can use their IATA and CRM tools to get started quickly. She keeps her own brand, builds her own website, and manages her own clients - but gets access to supplier deals she couldn’t negotiate on her own. She might pay $30 a month and keep 80% of her commissions.
If Maya joins a franchise, she pays a large fee upfront, gets trained by the parent brand, and uses their name and booking tools. She doesn't need to think about her website or marketing - it’s provided for her. But she gives up branding freedom and pays a royalty on everything she earns.
If Maya sets up her own licensed agency and grows, she might later join a consortium to get better supplier terms. But she’d need to have her own IATA accreditation and demonstrate real sales volume to get in.
Other Business Models Travel Advisors Might Encounter
Independent Travel Agent
This is the most basic model as you start your own travel business entirely from scratch. You apply for your own IATA, CLIA, or relevant licenses, set up contracts with suppliers yourself, and build all your systems manually. This gives you full control, but it’s expensive and slow to start.
Most agents who go this route either have strong industry experience, or eventually join a consortium for scale. If you’re new, this is usually not the place to start but it’s where you might end up once you’ve grown.
Affiliate Model
Some agents partner informally with an existing travel agency or consultant under a simple referral or revenue share agreement. You might earn 20–50% of commission on bookings you refer or help close.
This is usually unlicensed and unregulated, so it works best between friends, family, or very small teams. It can be a good low-risk way to test the waters, but there’s no real ownership or long-term value unless you formalise the business.
DMC Partnership
If you're based in a travel destination - like the UAE, Maldives, or Italy — you might operate more as a destination expert or DMC (Destination Management Company). In this case, you contract with travel agents in other countries and fulfil the travel experience on the ground.
DMCs don’t need a host or franchise, but they do need strong B2B sales and clear pricing. You’re not selling to the client - you’re selling to the travel advisor who sells to the client. It’s a different role but relevant if you're building destination-based services.
Hybrid Models
Some larger host agencies now offer hybrid structures that blur the lines, for example, giving you access to a consortium, but also offering marketing under a franchise-style name.
Travel Counsellors is a good example of this: it combines elements of a host agency, franchise, and in-house platform.
The key is to read the fine print. Ask:
Do I own the brand?
Do I have client control?
Who handles payments and liabilities?
What’s the exit strategy if I want to leave?
What We Tell Our Clients at Antravia
There’s no single right answer. The structure you choose should reflect how you want to work, what you want to build, and how comfortable you are running operations yourself.
If you’re just starting out and want support without losing control, a host agency is almost always the best first move. You keep your identity and your clients, and you can still offer competitive pricing and access top suppliers.
If you're planning to build something bigger, or already have traction, look into consortia as a way to scale smartly.
If you want structure, brand power, and full back-office coverage, and you're willing to pay for it, a franchise might make sense.
Still not sure? That’s exactly what we help with. We’ll look at your goals, your financial plan, and your client base — and help you choose a structure that works now and sets you up for what comes next.