Hotel Outsourcing Deal by Thomas Cook

August 24, 2016 5:40 pm | Updated 2 months ago.

Thomas Cook recently decided to outsource around 3,000 hotel contracts in a step to remodel its travel offerings. This decision will result in paying  $28 million (£21 million) by the Australian company Webjet via their European subsidiary Sunhotels to take over the majority part of Thomas Cook’s complementary business.

Thomas Cook commented that this move will now help them to concentrate on the holiday offering which is their core business. The competition in this sector is increasing regularly as they are struggling to compete with the new online travel agencies in terms of price or benefits.

Thomas Cook has targeted to achieve EBITA of up to $158 million by 2018 and this deal with Webjet will help Thomas Cook to save at least $13-$16 million (£10-£12.5 million).

Thomas Cook CEO Peter Fankhauser has said, “Entering this new relationship with Webjet will transform the way in which Thomas Cook offers a wide choice of hotels to customers. It provides us with a low-cost production platform for our complimentary offer across all our source markets, enabling us to streamline our systems and processes while at the same time ensuring greater certainty over the quality of hotels that we offer our customers. This frees us up to focus on growing our differentiated holiday offering, the area where we know Thomas Cook can really make a difference.”

Earlier in 2013, Thomas Cook signed an outsourcing deal with Collette Travel Service, Inc. to see their UK’s business processes.


Date of Publication: Aug 19, 2016