The world’s oldest travel brand has a new home.
Polish travel platform eSky Group has signed agreements with China's Fosun Tourism Group to acquire Thomas Cook, according to Reuters. eSky said the move will pave the way for the company to grow in Western Europe’s most developed markets.
Fosun earlier said the value of the deal would be CAD$53.50 million. It does not include Thomas Cook's business in China, eSky said.
Thomas Cook, which was founded in the UK in 1841, collapsed in 2019 due to heavy debt. It was then taken over by China's Fosun Tourism Group for roughly CAD$20million.
In Canada, the Thomas Cook portfolio of brands was purchased by TravelBrands in 2013 for an undisclosed amount. In 2019, TravelBrands was sold to Japan’s H.I.S. Group.
“For eSky, Thomas Cook's storied brand offers a shortcut to recognition in Western Europe. Or at least that's the wager of eSky's new private equity backer MCI Capital,” Skift reported in a story on the deal. “As for Fosun, what will it sell next? Club Med?”
Fosun owns Club Med and many hotels and resorts, including Atlantis Sanya in China.
“ESky is aiming to expand its package holiday business in Western Europe,” Skift said. “The deal fits the brand’s strategy of diversifying beyond flights into vacation packages across its existing markets in Central and Eastern Europe and Latin America via its eSky and eDestinos brands.”
In a report on its website, Denton’s law firm said eSky Group “uses advanced technology to enable travellers to purchase airline tickets, book accommodation, rent cars and purchase travel insurance. The group sells products in over 50 countries worldwide and is a market leader in the CEE (Central and Eastern Europe) region and a leading player in South America.”
Alan French, Thomas Cook's CEO, noted that eSky's expertise in flights complements Thomas Cook's hotel sourcing capabilities, presenting a promising opportunity for growth in the maturing package holiday sector, according to avitrader.com.
"The online travel agency business in the United Kingdom...does not align with the core competencies and strategic focus of the group," Fosun executives said in a filing to the Hong Kong stock exchange, Euronews reports.
