What the new Cook-Expedia deal means

Thomas Cook, Expedia, deal, sell, leisure market, tour operator, OTA, hotels, resorts

Wide-ranging agreement on hotel sourcing and selling
Thomas Cook’s efforts to strip its hotel business back to its core exclusive sun and beach properties continues, Skift writes, now it has formed a strategic alliance with Expedia.
The US travel giant will supply hotels for the operator’s city and domestic holiday business. Expedia will provide the technology for bookings, while Thomas Cook will be able to offer its core sun and beach package holidays on Expedia sites globally, expanding its distribution.
Cook’s primary websites, contact centres, stores and distribution to affiliated agents will also eventually be powered by Expedia, cutting costs for the operator while giving Expedia greater scale in Europe.
As Thomas Cook refocuses its hotel product, instead of directly managing a massive range of hotels it is concentrating on a smaller number of own-brand and partner properties with the rest effectively outsourced.
Chief executive Peter Fankhauser says the deal would result in many millions in savings and also hints at an even closer arrangement in the future: “I am confident this marks the first step in a long-term and mutually beneficial relationship with Expedia.”