Joel Abels, Editor and publisher of Travel Trade publications, points out that years ago agencies were joining Consortia because of the advantages of being a member were so great, and similarly, today ICs are reviewing host agency options and working with various hosts – because the advantages of doing
so are so great.
While there are many factors to consider when evaluating potential hosts, I believe none are as important as the technology host agencies employ that enables them to best work with their ICs - to support them, to market with them, to offer them the best deals, and to pay them on a timely basis.
Why Technology Enables Hosts to Offer the Best Programs
How does the technology employed by a host enable them to offer the best programs, including the highest commission and IC profits? The answer is simple. The best technology enables host agencies to run the most productive and successful marketing programs. The best technology also enables hosts to generate more electronic reservations – both of which result in higher yields to the supplier which translates to higher commission and better deals to the host, which are then passed on to the ICs of that host.
Additionally, today’s IC-Host technology enables hosts to run their businesses far more efficiently and to have better data; again points that enable them to offer the best programs and deals to their ICs.
IC Technology
The IC side of technology is primarily the CRM (Customer Relationship Management) piece. Any IC using the proper CRM tool successfully becomes the primary candidate for the best host agencies – as well as consortia, suppliers, and every other potential ally.
By using the proper CRM tools, ICs have the database to successfully target segmented markets. Those ICs participating in our marketing programs that use their clients’ travel history in combination with their clients’ travel preferences, generate closing rates of 70% and more. Hosts and suppliers alike, find these ICs very attractive marketing partners.
IC CRM technology manages contacts, manages reservations, integrates with booking engines, provides inventory, and links to the Internet to help with marketing programs. All help with individual sales as well as broader marketing efforts.
And perhaps best of all, ClientBase, providing full-function CRM technology, starts at only $15 per month for ICs – with many of the best host agencies including it in their IC relationships.
Many home based ICs want to manage their own accounting. They may work with multiple hosts. They may very well even act as host to other ICs. TRAMS for IC Back Office provides complete accounting and management reporting – all totally integrated with ClientBase CRM.
Host Technology
Hosts require both the CRM and Back Office (accounting) functionality. To work efficiently and profitably, they need to be able to process reservations electronically. Regardless of where or how the original booking was made, complete management, marketing and accounting reports have to be generated. Their system must include the flexibility to produce IC reports and analyses.
Additionally, hosts can enable their ICs to have their own databases. Hosts can offer consolidated marketing programs to ICs who, by their participation, have their databases 100% supported and paid for by preferred suppliers.
Hosts need the industry standard for back office processing, TRAMS, to insure they provide their ICs with complete reporting and analysis quickly, efficiently, and accurately.
IC - Host Technologies Working Together
The exciting evolution has been the integration of the IC and Host technologies enabling a better system for all involved.
ICs make reservations directly via a supplier’s website, in the host’s GDS, or on the phone. TRAMS Back Office and ClientBase combine seamlessly to enable reservations to be made and recorded efficiently by whatever means is employed. Those records can then be moved and merged as needed between Host, IC, bookkeeper, and marketing manager.
Consider a common scenario. An IC makes a reservation on a supplier’s web site. Using ClientBase’s exclusive “Live Connect,” that reservation is made noting the ICs affiliation with a particular host agency, and when the reservation is confirmed, a complete and detailed record is imported into a ClientBase Res Card. It becomes a permanent part of the customer’s record and the IC’s sales history. The IC can invoice the customer, record money received and then transmit the sale and commission due information to the Host.
Further, the complete integration of ClientBase with GDS technology, permits an IC to make reservations in the Host’s GDS and still import the sales record into a ClientBase Res Card, while simultaneously and without duplicate data entry, sending the sales record via normal interface means to the Host agency.
Conclusion
Technology is changing the IC–Host relationship. ICs can “have their Crème Brule and eat it too.”
They can have their own database, controls and reports, and still work efficiently with one or more hosts to integrate selected data ensuring that the IC participates in the best marketing programs and the best deals.
As an IC, you must make sure you are working with the right technology. Your software must use industry standards and communicate with the widest range of other tools currently being used by Hosts, suppliers and service providers.
We at TRAMS work with over 11,000 agencies including most of the leading host agencies. Over 40,000 agents use ClientBase. We see both Hosts and ICs benefiting by integrating their technologies, and that the exchange and sharing of information is enabling ICs to do remarkable things – and make more money than ever.
Thanks for reading,
Lee
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