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Thomas Cook-MyTravel market share in ‘low teens’
Bosses of Thomas Cook and MyTravel are confident their merger plans will not be blown off course by regulatory intervention.
Combining Thomas Cook and MyTravel in the UK will give a market share in the “low teens” with a combined total capacity of 6.3 million, according to MyTravel UK head John Bloodworth.
While the deal has to gain approval by the UK Competition Commission and the European Union, Bloodworth said: “We think the competitive pressure with all the low cost carriers and dynamic packaging in the UK really put us in a good position.”
The enlarged group will have a combined turnover of £8 billion, against European market leader TUI’s £9 billion.
Bloodworth conceded that there will be an unspecified level of redundancies amongst the combined UK staff of 19,000 but stressed that re-deployment will be offered where possible.
It was “obvious” there will be shop closures across the combined high street travel agency network of 1,030 branches – 456 Going Places and 574 Thomas Cook – but he said it was too early to tell how many would remain as the two retail brands had strengths in different parts of the country.
But unions representing agency staff are reportedly calling for urgent talks over the “spectre” of job losses.
Bloodworth, who will become head of UK for the enlarged group, indicated that MyTravel’s direct-sell arm Direct Holidays would grow following completion of the merger.
“Thomas Cook does not have a direct distribution model which we do. We have to opportunity to spread that across the brands and grow it,” he said.
The two groups’ online presence would also enable Thomas Cook/MyTravel to unseat Expedia as the top internet travel company in the UK.
“We’re not afraid of the internet and see it as an opportunity to expand another channel,” said Bloodworth
He admitted duplication between some of the 30-plus brands between the two companies, such as youth operations Club 18-30 and Escapades, could lead to consolidation but the main Airtours and Thomas Cook tour operating businesses were complementary.
“We want to respect brand equity,” he said, revealing that the two sides had been in talks for around two months as they both considered acquiring the mainstream business of First Choice – which has now been withdrawn from sale.
by Phil Davies
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