Thomas Cook, one of the market leaders in the UK travel sector has reported that the company’s performance remains disappointing. Also, the company announced 2,800 jobs loss and may reach 15% of company’s staff due to the merger with MyTravel which will result in cost savings of £2.8bn and it is thought to achieve over £94.8m predicted in the merger.
The firm also assured that it will support many affected employees and will offer redeployment within the company.
As the holiday market has changed, more of its clients plan their holidays through the internet. Therefore, the package holiday market has suffered significantly. The fusion of Thomas Cook and MyTravel has generated second biggest travel company which owns 35% of the package holiday market in the UK which will strengthen the company’s position.
Cost saving integration with MyTravel resulted in substantial improvements in the UK and Continental Europe market.
In order to solidify its position in the travel sector, newly formed Thomas Cook Group bought hotel bookings website Hotels4u.com which has over 500,000 customers a year and offers 30,000 properties in a £21.8m deal.
Furthermore, to make the most of growing leisure market Cook, has acquired luxury holiday firm Elegant Resorts in an undisclosed deal. Elegant Resorts offers customised trips to the Caribbean and African safaris.
The firm also agreed to buy French tour operator Jet Tours for £56m founded from its current finances.
Expanding business also said it was planning to acquire an independent travel wholesaler, TTH in Canada for a maximum sum of £57m
The company informed that it expects to achieve significant benefits from the mergers of the above companies.