THOMAS Cook’s collapse “will leave the competitive space in package holidays clear for Tui”, according to a travel expert.
And travel analysts at Bernstein say that Tui is a “far more resilient business” than Thomas Cook, thanks to stable cash flows from its cruise and hotels arm. But will Tui holidays be impacted by the turmoil?
Is Tui part of Thomas Cook?
No, Tui and Thomas Cook are completely separate companies, a spokesperson has confirmed.
According to its website, Tui UK and Ireland, part of Tui Group, is the business behind the Tui, First Choice and Marella Cruises brands, as well as Crystal Ski Holidays and Tui Lakes & Mountains.
Sub brands include Tui Sensatori, Tui Family Life, Tui Sensimar, First Choice Holiday Villages and SplashWorld Resorts.
Its airline, Tui Airways – formerly Thomson Airways – has 64 aircraft operating to over 88 destinations in 30 countries.
Tui says it was the first airline in the UK to take delivery of Boeing’s 787 Dreamliner and in 2019 became the first UK registered airline to take delivery of the new 737 MAXs to its fleet.
Tui UK and Ireland has a team of more than 10,000 employees and serves over six million customers each year.
Could my Tui holiday be affected by the collapse of Thomas Cook?
Holidaymakers hit by the collapse of Thomas Cook, the world’s oldest tourist firm, have been desperately scrambling for information today on how to get home, as Britain mounted its largest repatriation effort since the Second World War.
From job losses to cancelled honeymoons, the demise of the package tour pioneer has wreaked a heavy human cost and left an estimated 600,000 people stranded worldwide.
Prime Minister Boris Johnson has pledged to get stranded British travellers – 150,000 in total – back home.
In regards to the impact on Tui holidays, a spokeperson said: “We really feel for everyone affected by the collapse of Thomas Cook.
“We offer a small selection of Tui holidays featuring Thomas Cook flights, as well as a small number of Thomas Cook holidays through our stores.
“We are now working alongside the Civil Aviation Authority (CAA) to assist affected customers and help them to find alternative holidays or organise cancellations and full refunds.”
They added: “We’ve unfortunately had to cancel Tui and First Choice bookings featuring Thomas Cook flights for any customers due to travel from Monday 23rd September until 31st October.
“Customers can call us on 0800 009 3833 or 0203 636 1994 to discuss their upcoming holiday booking.
“For customers currently on holiday and due to fly home on a Thomas Cook flight, our teams in resort will be in touch to update you as more information becomes available.
“We would advise customers continue to enjoy their holidays and visit https://thomascook.caa.co.uk/ for further updates.”
Tui gets a boost
Professor John Lennon, director of the Moffat Centre for Travel and Tourism at Glasgow Caledonian University, described the fall of Thomas Cook as, “a major failure in the travel sector.
“It will leave the competitive space in package holidays clear for Tui.”
Thomas Cook’s collapse sent shares in closest rival Tui and listed airlines soaring as they received a boost from its demise.
Tui today saw shares rise more than six per cent in the FTSE 100 Index as it is expected to fill the gap left by Thomas Cook in the short-haul holiday market.
Bernstein travel analysts pointed out that Tui is a “far more resilient business” than Thomas Cook thanks to stable cash flows from its cruise and hotels arm.
They added: “This year it has even decided to be more aggressive on volume and price to try to aid market consolidation – a tactic showing some vindication.”