Thomas Cook is set to return to European ownership after Chinese Fosun agreed to sell the UK travel company to Polish travel platform eSky. Fosun will sell Thomas Cook, excluding its Chinese operations, to eSky for up to £30 million.
Thomas Cook, established in 1841, went bankrupt in 2019 after failing to secure a £1.1 billion rescue deal. This collapse caused significant global travel disruption, leading the UK government to repatriate 150,000 stranded customers. Fosun acquired Thomas Cook’s brand and intellectual property later that year for £11 million.
Fosun has decided to offload the UK online travel agency business, stating that it does not fit with its core strategic focus. Following Fosun’s investment, Thomas Cook was relaunched in 2020 as an online-only holiday brand. Meanwhile, rival Hays Travel bought around 550 of Thomas Cook’s high street outlets.
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. Thomas Cook posted a reduced pre-tax loss of £3.6 million in 2023, down from £13.5 million the previous year, and French anticipates a full-year profit for this year.
The sale to eSky comes amid strong post-pandemic travel demand, despite inflation and the cost-of living-crisis affecting consumer spending. Fosun, having aggressively expanded overseas before the pandemic, is now focusing on selling non-core assets to manage its highly leveraged structure and reduce debt to around RMB 60 billion (£8 billion).
Founded in 2004, eSky aims to expand from being an online flight aggregator to a comprehensive holiday provider, combining flights and hotels, and operates in over 50 countries. The acquisition is expected to enhance Thomas Cook’s access to eSky’s flight inventory and support its growth.
(£1.00 = US$1.32 at time of publication).
