Thomas Cook swoops for Medhotels – UPDATED
Thursday, 08 Jan, 2009
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Thomas Cook is strengthening its position in the bed bank sector with the purchase of Medhotels from lastminute.com.
The deal, for an undisclosed sum, will make Thomas Cook the UK leader in accommodation-only following its purchase of Hotels4u.com almost a year ago.
The sale of Medhotels follows industry predictions of further consolidation in the bed bank sector (see previous TravelMole stories).
The Medhotels acquisition, due to be completed next month, includes Hoteltransfers, Holiday Hotels and its German business.
Lastminute bought Medhotels in a deal worth £16.1 million in 2003.
Paul Riches, sales and marketing director at rival youtravel.com, said:“The long-awaited completion of the Medhotels acquisition by Thomas Cook represents a step-change in the accommodation-only sector as another player is taken over by one of the big conglomerates.
“There is now a very clear divide in the industry between those bed banks which are owned by a large corporate parent and those who retain their independence.
“For us, as the UK’s largest independent accommodation supplier, Cook’s acquisition of Medhotels represents a great opportunity to work even more closely with independent agents.
“Independent agents are the backbone of the bed bank sector and I don’t believe that they will be happy to push a large proportion of their accommodation-only sales into the hands of one group.
“They will be looking more than ever towards established independent accommodation suppliers to redress the balance of their sales split which will shift as a result of this acquisition.”
On Holiday Group said it welcomed consolidation in the accommodation only sector.
The company believes it will bring more sensible margin levels for bed banks and hence secure the long-term health of the sector.
Sales director Brian Young said: “This move clearly makes Holiday Brokers the UK’s largest independent accommodation only bed bank which is not only independently owned but also built on a base of profit over the last three years.
“Travel agents are key to our business and our relationship with our partners is therefore key to our mutual success, and given the changes brought about by Thomas Cook we feel now is the time to move these relationships to the next logical level which is strategic partnerships.”
by Phil Davies
Phil Davies
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