Thomas Cook-MyTravel – the online travel reaction
TravelMole guest comment by John Kent, CEO and founder youtravel.com
All online travel businesses geared towards offering dynamic packages, including ourselves, will be following today’s news very closely.
I’m sure very shortly that we will see more consolidation in the online
accommodation sector as well.
Thomas Cook’s strength has been in the package holiday market and Manny has done a fantastic job. I know that he’ll make this deal a success.
He has already said that Thomas Cook still love package holidays. I think there’s a high possibility that the First Choice deal could also still be on the cards.
Clearly there is still a market for the package holiday. But it’s not a market that’s growing and consolidation makes absolute sense.
But dynamic packaging is where the growth opportunity is. Not just in the UK but also in Europe.
As the traditional travel companies start moving more aggressively into dynamic packaging I think there’s likely to be consolidation amongst the “newer” online brands.
Tui UK has been ahead of the game with its online distribution and its UK operation has lead the way within Europe. And it appears Tui will continue down
“component holiday” track.
Thomas Cook – and certainly MyTravel – have lagged behind with their online offering.
The deal will of course bring cost savings and efficiencies with their distribution, overseas operations and back office.
But once the implementation of the merger is concluded the opportunity for growth in the dynamic packaging sector would seem an obvious way to
go.
Phil Davies
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