Thomas Cook and Expedia sign strategic alliance

Thomas Cook has signed a strategic alliance with online travel giant Expedia.

The deal sees Expedia become the preferred hotel provider for Thomas Cook’s city and domestic holiday business.

Expedia will also provide its booking platform to support all city break and hotel-only sales across Thomas Cook distribution channels in Europe, including its website, stores and contact centres.

Thomas Cook said the agreement will enable it to ‘significantly reduce the cost and complexity of its city breaks and hotel-only business’.

Up to 200 Thomas Cook staff across Europe will lose their jobs as a result of the move and consultation has already begun.

The deal will also allow Thomas Cook to sell its core sun and beach package holidays on Expedia sites globally, broadening its distribution reach.

Thomas Cook chief executive Peter Fankhauser said: "The combination of Expedia’s portfolio of hotels and best-in-class online technology will transform Thomas Cook’s city breaks and hotel-only offer for customers while helping the business take an important step forward in delivering our strategy for profitable growth.

"Joining forces with a company that has the global reach and expertise of Expedia will allow Thomas Cook to further simplify our systems and processes. At the same time, this will free us up to focus on holidays to our own-brand and selected partner hotels in sun and beach locations where we know we can really make a difference to customers. I am confident this marks the first step in a long-term and mutually beneficial relationship with Expedia."

Expedia brand president Aman Bhutani said: "We’ve always had profound respect for the Thomas Cook brand and we believe that our coming together will enhance our abilities to help more people to get out and see the world, while enhancing each of our competitive positions in the European market.

"Expedia’s Global Partner Solutions business brings to life the ability to leverage the strength of our technology and operations for our partners, powering leading brands with private label booking engines, agent tools, web services and operations for all travel products, including lodging, flight, package, and car rental."

This deal follows the announcement in August 2016 of a hotel sourcing deal with Webjet Limited, covering the bulk of Thomas Cook’s sun and beach hotel offering.