Host agency, franchise or consortium: what the words mean

The same arrangement gets four names in this market, and two of the names mean something specific in law. Getting the vocabulary straight is not pedantry: it decides what you own, what you can take with you, and what you are actually buying.

Homeworking: the British word

“Homeworking” is the established UK trade term for selling holidays from home under somebody else’s licences. The trade press uses it, the industry awards use it, and most of the companies in this directory use it about themselves. It describes where you work rather than the legal arrangement, so a homeworker might be a franchisee, a commission-split agent or a member of a consortium.

“Host agency” is American vocabulary that has arrived here more recently. In ordinary use the two are treated as synonyms. The difference matters mainly when you are reading advice written for the American market, where the commission norms and the consumer-protection rules are not ours.

Commission-split host

You work self-employed under the host’s licences and bonding, and keep an agreed share of the commission you earn. It is the most common arrangement here: 28 of the 42 companies listed work this way.

You are self-employed. You trade under the host’s brand or, at some companies, your own. The host holds the protection, handles the money and pays you a share. Entry costs tend to be small or nil; the money is made back on the monthly fee and the split.

Franchise

You buy the right to trade under the brand. Expect an upfront fee, ongoing fees, and a defined commission share. 5 of the companies here are franchises.

Legally this is a different animal. You are buying a licence to use a brand and a system, under a franchise agreement that will specify a term, a territory in some cases, renewal conditions and what happens when it ends. Entry costs run from a few hundred pounds to five figures, and the commission share is usually more generous than a host’s to compensate. Read the agreement itself, not the brochure: the interesting clauses are about exit, not entry.

Consortium or membership platform

You join as a member and usually trade in your own name, paying fees rather than giving up a share of commission. 2 here fit that description.

The model suits people who already know how to sell and want infrastructure rather than instruction: a trust account, card processing, booking software, buying power. You keep all your commission and pay fees instead, which flips the risk — your costs are fixed whether you sell or not. Most expect experience. Travel Trust Association against Protected Trust Services compares two of them.

The other shapes

Not everything fits the three boxes, which is why this directory also uses:

• Hybrid and mixed models (5). The company mixes models, so its fees and commission terms may not line up neatly with a straight commission split.
• Sub-affiliates (1). You join through a smaller company that itself sits inside a larger network, and trade under that network’s licences.
• Employed homeworking (1). This is an employed, salaried role worked from home rather than a host agency you pay to join.

The questions the vocabulary is really about

• Whose brand do customers see? The host’s, the franchise’s, or yours.
• Who holds the protection? And is it in the company’s own name — see ABTA, ATOL and trust accounts.
• Who owns the client list? Some companies state that you do. Most say nothing, which is itself an answer worth chasing.
• What can you sell if you leave? A franchise may have resale value; a place in a commission-split host generally does not.
• How are you charged? A share of commission, a fixed fee, a percentage of turnover, or some combination.

Which to choose

New to travel: a commission-split host with a training programme is the usual route, and the cheapest way to find out whether you enjoy the work.

Confident, with capital: a franchise buys structure, a recognised name and, at the larger packages, hands-on launch support. Explorer Travel against Not Just Travel shows what two of them include at different prices.

Experienced, with your own clients: a consortium or membership platform keeps your commission and your brand, and charges you for the plumbing.

Whichever shape you pick, the master comparison table lists every company with its model in the second column, and the choosing guide has the questions to take into the sales call.