When I launched Prism Premier Travel, I had absolutely no idea what I was doing.

That might surprise you, given that I spent years working in the hospitality industry — managing hotels, working alongside travel agents, watching groups roll in. I knew the business from the other side of the front desk. But what travel agents actually did? That was a mystery to me.

I knew they had IATAs. I knew they brought in wedding groups, sports teams, and the occasional one-off booking. And somewhere in the back of my mind, I always thought: I could do that.

What I didn't know — even as a hotel manager — was the difference between a travel agency and a travel management company. I didn't know the three paths into the industry. And I definitely didn't know which one was right for me.

If you're researching how to start a travel agency, this post is for you. Here's an honest breakdown of the three main business models — and why I ultimately chose to go independent.

The 3 Travel Agency Business Models

1. The Franchise Model

When I first started Googling "how to start a travel agency," franchise models were front and center. And honestly? The pitch was compelling. I had a hospitality management degree, years of hotel experience, and I spoke the industry language. One franchise was ready to offer me a serious deal.

Pros of the Franchise Model:

• Marketing and brand awareness are built in from day one
• Commissions are typically not split — you pay a flat franchise fee instead
• For high-volume producers, this fee structure can be highly advantageous
• You're niched in immediately, which can accelerate success in a specific travel segment

Cons of the Franchise Model:

• The brand will never truly be yours
• You're locked into a specialty, which limits your flexibility
• Growth outside the franchise's niche is restricted

What stopped me? I didn't want to build something that belonged to someone else. I also wasn't ready to commit to a single travel niche — though I'll admit, I see the value in that now.

2. The Host Agency Model

After walking away from the franchise conversation, I discovered host agencies. On paper, the model made sense: plug into an established infrastructure, use their IATA, access supplier relationships, and grow your own brand underneath their umbrella.

I joined four of them before I was done.

Pros of the Host Agency Model:

• Low barrier to entry — ideal for new agents
• Access to supplier relationships, training, and community
• Back-end support so you can focus on selling
• Flexibility to build your own brand within the host's framework

Cons of the Host Agency Model:

• Many hosts overpromise and underdeliver
• Technology can range from outdated to actively unreliable
• Bureaucracy and red tape can slow your business to a crawl
• Commission holds and payment delays are more common than you'd think

Here's what I actually experienced:

One host was old-school in every sense — legacy CRM, outdated tech, a workflow that felt frozen in time. Another pitched themselves as cutting-edge, with in-house engineers building proprietary technology. The reality? Their "modern" platform was no match for the legacy systems they were replacing. A third host wanted to review every group contract I wrote — contracts that were drawn on their behalf, with suppliers they had relationships with. It had nothing to do with them creatively, but everything to do with control. That red tape cost me time and money.

Then there was the host that held my commission for a full month after the supplier had already paid out. That was the moment I knew I was done.

I want to be clear: I don't name former hosts, and I won't. Some agents thrive in host environments. The problem wasn't entirely the hosts — it was that I wasn't built for that model. I needed something different.

3. The Independent Agency Model

Going independent means obtaining your own accreditation, building your own supplier relationships, and operating entirely on your own terms. No splits, no red tape, no waiting on someone else's approval to run your business.

Pros of the Independent Model:

• Complete control over your brand, systems, and processes
• Your own TRUE IATA or ARC code
• No commission splits or franchise fees (long-term cost efficiency)
• Freedom to work with any supplier, any niche, any client

Cons of the Independent Model:

• Higher barrier to entry — accreditation takes time and resources
• You're building supplier relationships from scratch
• No built-in community or support network
• Every operational decision falls on you

For me, this was the only path that made sense. I got my own code, built my own systems, and started creating the agency I'd always envisioned — not just a business, but a community of LGBTQ+ travel advisors working alongside each other, lifting each other up.

That's what Prism Premier Travel is.

Frequently Asked Questions

What is the difference between a travel agency and a travel management company? A travel agency typically serves leisure travelers — vacations, honeymoons, group trips. A travel management company (TMC) focuses on corporate travel, managing business travel programs for companies. Both may hold IATA accreditation, but they serve very different markets.

What is a host agency in travel? A host agency is an established travel company that allows independent agents to affiliate with them, using their IATA number, supplier relationships, and back-end infrastructure in exchange for a commission split or membership fee.

Do I need an IATA number to be a travel agent? Not necessarily. Many agents operate under a host agency's IATA number. However, obtaining your own accreditation — a "true code" — gives you complete independence and direct supplier access.

Is the franchise or host model better for new travel agents? The host model generally has a lower barrier to entry and is more flexible for new agents. Franchise models can be powerful for agents who are ready to specialize and produce at high volume from the start.

Why did you choose to go independent instead of staying with a host? After affiliating with four different host agencies and experiencing commission holds, excessive red tape, and inconsistent technology, I realized the host model wasn't right for my vision. Going independent allowed me to build Prism Premier Travel on my own terms — with my own brand, my own systems, and my own community.

The Bottom Line

There is no universally "right" model for starting a travel agency. The franchise model works beautifully for certain producers. The host model is a legitimate launchpad for many successful agents. And independent ownership is the path for those who refuse to compromise on brand and autonomy.

Do your research before you sign anything. Ask hard questions. Talk to agents at every level. And be honest with yourself about what kind of business you actually want to build.