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TC to crank up dynamic packaging capability
Thomas Cook is embarking on a 90 million euro technology project which will allow group-wide dynamic packaging.
Existing tour operating systems are to be replaced in a deal with software supplier Blue Sky and IBM which will take two years to complete.
The group-wide IT production platform will be implemented in the UK first with long haul holidays supplied by Thomas Gook Signature due to go onto the new system in October, according to CEO Manny Fontenla-Novoa.
He said: “This will enable us to offer all products dynamically and the exciting thing is that all products in all markets will be available to all.”
The development is taking place amid a forecast by Thomas Cook of further consolidation in the sector.
Fontenla-Novoa declined to be drawn on the potential for Thomas Cook bidding for the mainstream business put up for sale by First Choice, but made it clear that the group would not rule itself out of the running.
Thomas Cook, which claims an 18% share of the package holiday market in the UK, was in good shape to be involved in any future industry changes and was interested in developments.
“The difficult economic environment prevailing in the tourism industry will promote consolidation within the sector,” said Fontelna-Novoa. “Once again, Thomas Cook is in a position to play an active role in this process.”
So far only MyTravel has admitted to talks with First Choice over the package holiday business, agencies and airline, with Virgin watching the situation.
But Fontenla-Novoa described the package holiday market as “incredibly robust” having maintained its size in the UK for a decade.
Insisting that there was a great future for the package holiday, he said: “Fundamentally it offers great value and protection for the consumer.”
Fontenla-Novoa also revealed increased footfall through Thomas Cook’s 550 travel agencies in January for the first time in 13 months. He described the trend as “really encouraging” but could not give an explanation for the rise.
Despite the increased use of agencies by customers last month, he indicated that the UK retail network could reduce by up to 100 outlets over three years as part of a plan to carefully manage its real estate as leases come up for renewal.
by Phil Davies
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