Thomas Cook Group has put running an international online travel agency business at the heart of its long-term growth plans. Europe’s second biggest leisure travel operator told the City yesterday: “We are restructuring our independent business and targeting significant long term growth in the European online travel agency (OTA) market”. Talking to journalists, chief executive…
Thomas Cook targets European OTA market
Thomas Cook Group has put running an international online travel agency business at the heart of its long-term growth plans.
Europe’s second biggest leisure travel operator told the City yesterday: “We are restructuring our independent business and targeting significant long term growth in the European online travel agency (OTA) market”.
Talking to journalists, chief executive Manny Fontenla-Novoa added: [In two to three years’ time] you will see a much larger e-commerce based business. About 25% of our web bookings are coming from the internet but you will see that increase to about 35-40%.
“You’ll also see Thomas Cook competing with Expedia, Priceline and lastminute in their space as well, and we’ll have a much bigger presence in that market.”
He ruled out acquisitions as a means of increasing its web presence, talking instead about “building partnerships and competing successfully.”
A spokesperson told Travolution that a dedicated online travel agency model was “a space we are looking to enter because we don’t have an OTA in that pure Expedia-type business.” She added that Thomas Cook would leverage its existing selling platforms to develop its presence.
“We have always positioned ourselves as a retailer as well as an operator, so we see the online travel agency model as a retailing opportunity,” she said.
The OTA project is part of the revamp of its independent travel operations. During the year to end-Sept, “independent travel passengers increased by 18% through investment in dynamic packaging capabilities, significant focus on our ecommerce operations and expansion of our product offering.”
Thomas Cook has planned a strategy day for spring 2010 when more details about its international OTA are likely to be revealed.
For the year to end-Sept09, Thomas Cook has reported a pretax profit before exceptional of £308m on sales of £9.3bn.
