Host agency vs franchise: what's the difference?

When you research ways to build a travel business, you will come across two models that are easy to confuse: the host agency (or travel group) model, and the franchise model. They can sound similar, because both give you support and a way to sell travel. But they work quite differently, and the difference affects your costs, your independence and how you run day to day. This guide compares them clearly.

The franchise model

A franchise is a business arrangement where you buy the right to operate under an established brand's name and system. Typically, a franchise involves:

• Trading under the franchisor's brand rather than your own.
• Paying a franchise fee, often followed by ongoing royalties or a percentage of turnover.
• Operating within fairly tight rules set by the franchisor about how you run the business.

Franchises can suit people who want a highly structured, branded model and are comfortable with the fees and constraints that come with it. The trade-off is usually less independence and higher ongoing costs tied to your revenue.

The host agency / travel group model

A host agency or travel group works differently. Here, you run your own self-employed travel business, but you plug into the group's infrastructure — supplier access, technology, training, compliance and support. Instead of paying franchise royalties, you typically pay a joining fee and a monthly fee for access to everything the group provides.

Key features of this model include:

• You run a standalone, self-employed business, often building your own reputation.
• You sell under the group's Package Travel Regulations arrangements.
• You keep an agreed share of commission rather than paying a percentage of turnover as a royalty.
• You have more independence in how you find and serve customers.

Travel Business Partners is not a franchise

This is an important point to be clear about: Travel Business Partners is not a franchise. You run a standalone, self-employed travel business, selling under the Group's Package Travel Regulations (PTR) arrangements. There is £0 franchise fee — you are not buying into a franchise system or paying franchise royalties on your turnover.

Here is how the costs actually work:

• A one-off joining fee of £1,750.
• A £35 monthly fee.
• A 1.3% card transaction fee on card payments.
• £0 franchise fee.

On earnings, you can keep up to 85% of eligible commission, with the Group retaining 15% to fund the systems, supplier relationships and support. Commission varies by supplier, is not guaranteed, and can be clawed back if a customer cancels. You can read more about this on our commission and earnings page.

What you get for that

Rather than a franchise package, membership gives you the tools to run your own business:

• A professional website.
• Booking software and itinerary software.
• An AI marketing assistant and social media manager that write and schedule your posts.
• PTR compliance and financial protection for customer money through a Trust Account with Protected Trust Services (PTS).
• Access to all our global suppliers, plus an in-house bedbank.
• Dedicated support.

You can see the full picture on our why us page and browse how trips come together on our packages page.

Why the fee structure matters

The difference in how you pay is one of the clearest ways to tell the two models apart, and it has a real effect on your business.

In a typical franchise, ongoing royalties are often tied to your turnover. That means as you sell more, you pay more to the franchisor, regardless of your margins. With the travel group model, the ongoing cost is a fixed monthly fee, and your earnings come from an agreed share of eligible commission. Once you understand your fixed costs, you can plan around them.

It is worth being realistic here. Whichever model you choose:

• There are costs to cover before you profit.
• Income is never guaranteed and depends on your effort and market.
• You are responsible for your own tax and finances as a self-employed person.

Being clear-eyed about the numbers from the start helps you avoid unpleasant surprises and build sensibly.

Comparing the two side by side

• Ownership: Franchise — you operate the franchisor's brand and system. Host / group — you run your own self-employed business.
• Fees: Franchise — franchise fee plus ongoing royalties. Group — joining fee and monthly fee, with £0 franchise fee.
• Earnings: Franchise — often a share of turnover paid to the franchisor. Group — you keep an agreed share of eligible commission.
• Independence: Franchise — tighter rules. Group — more freedom in how you build and market your business.

Independence and how you build your reputation

Another meaningful difference is whose name you build. In many franchises, you are growing recognition for the franchisor's brand under their rules. With the travel group model, you are building your own standalone business and your own reputation with customers, while drawing on the group's supplier access, technology and compliance framework behind the scenes.

For a lot of people, that independence is the deciding factor. It means:

• You have more freedom in how you find and look after customers.
• The relationships and goodwill you build are your own.
• You can shape your business around your strengths and the customers you connect with.

That freedom comes with responsibility too. As a self-employed person, finding customers and delivering great service is down to you, and there are no guaranteed customers or income. But for many, owning that outcome is exactly the appeal.

Which is right for you?

There is no single right answer — it depends on how you want to work. Some people like the tightly branded structure of a franchise. Others prefer the independence and cost structure of running their own self-employed business within a supportive group. What matters is understanding the difference so you can choose with your eyes open.

Whatever model you consider, remember that this is self-employment. There are no guaranteed customers, income, discounts or fam trips, and results vary depending on the time and effort you put in. To understand the day-to-day of the group model, our how it works guide is a helpful next step, and this guide sits alongside our wider package travel regulations explained piece for the compliance side.

This guide is general information to help you learn about the travel industry. It is not legal, tax or financial advice, and it does not guarantee any particular result. Building a travel business is self-employment: results vary depending on the time, effort and approach you bring.