Are You Losing Money by Staying with a Host Agency? Let’s Do the Math.

The Big Question: Should You Leave Your Host Agency? Over the past few months, we've had a wave of travel agents come to Antravia asking the same thing:

“I’ve built my own client base. Do I really still need a host agency?”

If you’re asking this too, you’re not alone! Below are real questions we’ve been asked, along with the financial realities we help agents uncover before they make the decision wether to stay or go.

“I’m giving up 20% of my commissions. Isn’t it better to go independent and keep 100%?”

On paper, yes, this seem sensible.. of course keeping the full commission sounds better. But suppliers sometimes reduce the commission rate when you’re not under a host. So that 100% might be from a lower base.

Example:
With a host: 15% commission × 80% split = 12%
Solo: 10% commission × 100% = 10%

Host agencies leverage collective volume to negotiate higher base commission rates from suppliers (e.g., 15% or more on bookings), which independents may not access without established relationships or consortia membership. Independents often start at lower tiers (e.g., 10%), making the net earnings comparable or lower despite keeping 100%. This is a common trade-off highlighted in industry guides. Of course, exact rates vary by supplier (e.g., cruises vs. hotels) and agent experience.

What we do at Antravia:
We run the numbers for you. We compare your actual bookings against what you’d earn both ways, so you can make an informed decision. We also have experience working directly with suppliers, so we can help review the financials.

“What extra costs should I expect if I go out on my own?”

We’ve seen agents surprised by the true cost of independence. Here's what typically comes up:

• Seller of Travel licenses (e.g. FL, CA, WA, HI, IA—all have rules)

• Surety bonds or escrow accounts

• E&O (errors & omissions) insurance

• IATA or CLIA membership

• CRM, business email, document templates

• Software for commission tracking, invoices, etc.

• Seller of Travel Licenses: Only five U.S. states require registration for travel sellers: California, Florida, Hawaii, Iowa, and Washington. Requirements include annual registration fees ($300 in FL, $100–$150 in CA) and proof of financial protection. Apart from these states, the U.S. doesn't require a federal Seller of Travel license

• Surety Bonds/Escrow: Standard in regulated states—e.g., FL requires a $25,000 bond; CA mandates a $10,000–$50,000 bond or trust account; HI allows bonds or escrow in a local bank (Accurate when article was written, double check for latest updates)

• E&O Insurance: Essential for liability protection; costs range from $300–$1,000/year for $1M coverage, depending on sales volume.

• IATA/CLIA Membership: IATA accreditation fees start at $247 for head offices; CLIA (for cruises) has similar annual dues (~$200–$400). These unlock supplier access but add overhead.

• Other (CRM, Email, Software): These are standard startup/recurring costs ($50–$500/month for tools like commission trackers or CRMs), often underestimated by new independents.

• Sales tax surprises from economic nexus: Going solo might trigger sales tax collection duties in states where you hit economic thresholds (e.g., $100K in annual sales or 200 transactions per state, per 2025 rules). Travel agents often deal with this for packaged tours or add-ons—think registering, filing returns, and remitting on top of your commissions. It's not always obvious, but ignoring it can lead to audits and penalties.

What we do at Antravia:
We walk through the exact setup and recurring costs based on your state, sales volume, and supplier mix, so you know where your money will go before you make the move.

“How does tax work if I leave my host and set up an LLC?”

When you’re no longer a W-2 or operating under someone else’s business umbrella, you take on:

• Self-employment tax (15.3%)

• Quarterly tax filings

• Bookkeeping requirements

• Tracking deductions for travel, internet, CRM, insurance, etc.

As a self-employed LLC or sole proprietor (vs. W-2 under a host), agents pay 15.3% self-employment tax on net earnings (12.4% Social Security + 2.9% Medicare), plus income tax. Quarterly estimated payments are required if owing $1,000+ annually. Bookkeeping for deductions (e.g., 50% of business meals, home office, CRM software) is crucial but often overlooked, leading to penalties.Many agents may miss out on deductions just because they don’t track things correctly.

What we do at Antravia:
We help you choose the right business structure (LLC, S corp, etc.), forecast your tax, and set up simple systems to track expenses and claim every deduction you’re entitled to.

“I don’t use my host for training or marketing. What am I really paying for?”

Even if you’re not using trainings, your host may be handling:

• Commission tracking and chasing missing payments

• Supplier relationships that grant you higher commission tiers

• Booking protection, insurance, or CRM tools

• Access to group cruise rates, consortia perks, and FAM trips

So you may not be just paying for training. Even "hands-off" agents benefit from hosts' backend support. Hosts handle commission chasing (saving 10–20 hours/month), negotiate volume-based tiers for higher rates (e.g., 12–18% vs. 8–10% solo), and provide tools like insurance, CRMs, and perks (FAM trips, consortia discounts). Switching hosts can optimize value without full independence.

What we do at Antravia:
We’ll help you assess: Are you getting value from your host? Or just handing over a chunk of money for things you don’t need? Sometimes the answer is: switch hosts, not leave them.

“At what point does going solo make sense financially?”

We usually say: the higher your annual commission, the more worthwhile independence might be. But only if:

✅ You already have strong supplier relationships
✅ You’re happy to manage back-office admin
✅ You understand your numbers and margins
✅ You’ve mapped out your cash flow and tax
✅ You have support in place (not just a logo and website)

If you’re doing under $400K in annual sales and giving up 20%, chances are you’re still better off with a leaner host and not on your own. Independence suits high-earners with established supplier ties and admin tolerance, as the 20% split becomes negligible. The $400K annual sales threshold isn't a universal rule but aligns with industry benchmarks, e.g., ASTA dues tier at $1M sales, and many hosts recommend staying affiliated below $500K to avoid setup costs eroding profits. For lower volumes, a "leaner host" (better split/tools) often nets more.

What we do at Antravia:
We model all of this. You get a clear side-by-side comparison of what you earn now, what you’d earn independently, and what risks or admin time you’re taking on.

Final Word

There’s no one right answer. But you shouldn’t make this kind of decision without knowing your real numbers.

That’s where Antravia comes in.

Thinking about going solo?

Let’s talk before you make the leap. We'll look at your commission structure, tax setup, overhead, and payout history. and help you figure out what’s smart, not just what looks appealing.

👉 Book a free call with Antravia. One honest conversation can save you thousands.

⚠️ DISCLAIMER: The information in this article reflects the complex landscape of U.S. Federal Tax Law as of the date the article was written in 2025, including recently proposed and enacted legislative changes affecting the 2025 tax year. This fact-check is a high-level overview based on publicly available IRS and FinCEN guidance as of October 2025. Tax laws are subject to frequent change. This is not legal, financial, or tax advice. Always consult with your qualified CPA or tax professional knowledgeable in hospitality real estate before making any tax-related decisions. See also our Disclaimer page