Thomas Cook Buys Hotels4U In £21 Million Acquisition

Thomas Cook Holidays have acquired hotel bookings website Hotels4u in a deal worth £21.8 million as part of plans to increase its presence in the ever competitive online travel market.

Thomas Cook is chasing after a larger slice of the online bookings market, which has surpassed the package holiday market over the past couple of years. Hotels4u, which was formed in 2003 has 30,000 properties in its database and currently serves more than half a million customers per year. The Egham based online booking agent for hotels, apartments and villas is expected to retain the services of its original founder and MD Haim Perry, who will also reinvest some of the proceeds from the sale.

Thomas Cook has recently confirmed that it was strategically placed within a strong position for the rest of the year, despite recording a £98 million operating loss for the last two months of 2007 – a figure roughly in line with the same period for 2006. Thomas Cook Group chief executive Manny Fontenla-Novoa said:

“This is an acquisition that fits perfectly with our strategy of enhancing Thomas Cook’s position in the independent travel sector and will also further strengthen our mainstream business.”

The Thomas Cook Group earlier this year revised its savings target to £148 million following its merger with MyTravel in June 2006. The group is 52% owned by German retailers KarstadtQuelle, the former parent company of Thomas Cook holidays, and 48% owned by shareholders of MyTravel holidays.