For an independent agent, joining a consortium is a common way to get supplier terms and services that are usually only available to large chains, such as higher commission, override commission, marketing funding, technology, training and compliance support. The term has no legal definition.

Some consortia and agency groups also offer routes for meeting the regulations, such as membership of an ATOL Accredited Body that they run, selling as an agent for an ATOL holder or trading as a managed branch of an ABTA member.

What a consortium is not

• A franchise. A franchisee trades under the franchisor’s brand and systems for fees, while consortium members normally keep their own brand, although some groups offer both.

• An Accredited Body. That is a legal status under the ATOL rules that some consortia hold. Consortium membership on its own gives no ATOL or ABTA protection.

• A multiple. Multiples and miniples are chains of agencies under one owner.

Worth knowing

Buying together is lawful in principle, and the CMA’s guidance recognises that joint purchasing can give members buying power they would not have alone. But members must still set their own selling prices independently. The CMA warns that a joint purchasing arrangement used to fix selling prices can be an unlawful cartel.