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Host agencies and 'exclusivity'
You should be aware that some host agencies will try to tell you that you and they have an "exclusive" relationship -- that is, that you must book all your travel through them. This violates both the spirit and the letter of your independent contractor agreement, which you undoubtedly signed. The agency wants you to be an independent contractor so they don't have to carry you on their rolls as an employee, withhold taxes on the money they send you, and be liable for unemployment insurance and a lot of other inconveniences. But when they insist they are your "exclusive" agency they are attempting to control you as they would an employee. In other words they are trying to have it both ways and that is not fair. It's also probably not legal but, not being a lawyer, I won't try to call that one. If your agency tries to claim "exclusivity," you have a number of options. You can refuse, perhaps even insist that the offending language in the agreement (if it is there) be changed. Or you can simply let them know that you disagree with their position and tell them that you reserve the right to make strategic alliances with whomever you choose, as befits your standing as a true independent contractor. Or you can say nothing, figuring (a) they'll never know of your other dealings anyway and (b), even if they do, there's nothing they can do about it. Of course, you can choose to deal only with one agency, turning away offers from tour operators to deal direct or routing hotel reservations through your agency even when it's not absolutely necessary. You might do this just because it's easier or because you receive a great deal of support and training from the agency for which you feel they deserve your unswerving loyalty. However, you should know that you are not bound to do so. In most cases, the outside sales rep's relationship with the host agency is arm's length. The agency has little contact with the rep unless and until a booking is made and little direct knowledge of the rep's activities. Most outside reps I've talked to don't make much of issue of the matter of exclusivity. Rather they choose a line of least resistance. They go about their business, dealing as they wish, with whom they wish, figuring it's nobody's business but their own. I think they're right. But let's say push comes to shove. Let's say your agency doesn't like the fact that you are maintaining direct relationships and makes an issue of it. I would recommend simply pointing out that, since you're an independent contractor, they cannot make such demands on you -- unless they want to start paying your health benefits and withholding taxes like they do for their other employees. They are unlikely to want to do that, although who knows? If you have proven yourself a valuable asset, they may be willing to change the basis of the relationship. And you may be willing to entertain that possibility. Of
course, if the agency is really annoyed with you, they can always
decide not to do your ticketing. Most agreements give them the right
to terminate the arrangement for whatever reason they choose. Even
if you had a basis for legal action in a case like this (and you'd
have to review the individual facts with a lawyer to find out), it
probably would cost you more to mount a suit than it's worth. It's
far easier to simply move to another agency for the ticketing you
need.
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