This morning it was announced that Thomas Cook had agreed that its largest shareholder, the Chinese company Fosun would take over the company.
In effect Fosun would control at least 75% of the tour business and 25% of the group’s airline. It is subject to regulatory approval plus agreements with creditors and due diligence but subject to all that and by October, Fosun should be in control.
For holidaymakers both existing and future ones, this should bring some confidence that you can book although that was always there via the ATOL bonding.
What else might it mean for holidaymakers?
It depends on what Fosun does.
It already owns Club Med and Cirque du Soleil. Will it import some management ideas from those to beef up Thomas Cook?
It should clear out the existing management for a start, a group that has proved itself fairly inept in positioning the company for the future. It misread changing holiday habits by the British holidaymaker; it has failed to enter the British domestic holiday market where – according to ABTA research – 26% of Brits only take a British holiday and it concentrated on digital when a proportion of its traditional customer base were more cautious.
Sharper footed companies such as Jet 2, On the Beach and Love Holidays have quickly grown their businesses with Jet 2 overtaking it in size and the two online travel agents being both rivals and a source of business for it.
Fosun, having been a shareholder for at least four years should have an idea what it needs to do to turn the company around.
