Chinese-Owned Thomas Cook Reborn as Online Travel Agent

Noble Horvath

Photographer: Chris Ratcliffe/Bloomberg Photographer: Chris Ratcliffe/Bloomberg Thomas Cook relaunched Wednesday as an online travel firm that will initially sell holidays to destinations on the U.K. government’s safe travel corridor list. The company, bought by China’s Fosun Group for 11 million pounds ($14 million) after collapsing last year, has a new […]

Thomas Cook Group Plc Collapse Leaves More Than 150,000 Stranded As Rescue Fails

Photographer: Chris Ratcliffe/Bloomberg

Thomas Cook relaunched Wednesday as an online travel firm that will initially sell holidays to destinations on the U.K. government’s safe travel corridor list.

The company, bought by China’s Fosun Group for 11 million pounds ($14 million) after collapsing last year, has a new website through which customers can design their trips with add-ons including car rental and travel insurance, according to a statement.

“We are launching now clearly aware of the short-term challenges posed by the pandemic,” U.K. Chief Executive Officer Alan French said in the statement. “We and our Fosun backers are taking the long view.”

The collapse of Thomas Cook, a travel brand that dates back to the 1840s, led to 9,000 job losses in the U.K. and left 150,000 tourists stranded overseas. The revamped company has created a trust to protect payments and will only receive customers’ money once they return from vacation. Holidaymakers won’t be charged fees to rearrange their trips if government rules change, French said.

“There’s no denying that this will be a challenge for the travel brand. Its name and recent history won’t help,” said Peter Knapp, chairman of branding consultancy Landor Associates. “But if it is able to confront this opportunity, learn the lessons from its past and tap into its heritage and pedigree in holiday destinations, it may stand a fighting chance.”

Thomas Cook’s brand and online assets were acquired in November by Fosun, owned by Chinese billionaire Guo Guangchang. The Shanghai-based group’s other assets include Club Med SAS and English Premier League soccer club Wolverhampton Wanderers. Fosun operates various businesses under listed units Fosun Tourism Group, Fosun International Ltd. and Shanghai Fosun Pharmaceutical Group Co.

Fosum Tourism shares regaining ground after 43% slump in first quarter

Fosun Tourism rose 4.8% in Hong Kong on Wednesday, its biggest gain since Aug. 13. The stock has fallen 25% since Nov. 1, when the deal to acquire Thomas Cook acquisition was reached.

(Adds consultant’s s comment in fifth paragraph, adds shares, adds chart and updates share price)

Source Article

Next Post

Explore Munich, the Zugspitze and more from home

Borders may be closed to Americans and Oktoberfest festivities cancelled, but we’re heading for Bavaria anyway — virtually, that is, with walking tours of Munich, video festivals, an Alpine summit and some delicious beer, bites and blue-checkered fun. Of course, Munich’s boisterous Oktoberfest, which originated in 1810 as a wedding […]