Will Thomas Cook & easyjet tie up be a good package?

Written by Nolan Mortimer

Thursday, 13 September 2012 09:20

Thomas Cook and easyJet Join Forces - Good News For Customers? Once you've fought your way past the hype relating to iPhone 5, you may have seen in the news in the last few days that Thomas Cook are set to enter a partnership with easyJet. The deal, which is not yet confirmed, will apparently mean that upto 80,000 Thomas Cook customers could be flying with easyJet next summer. It would be the first time that easyJet have sold seats on this scale and is a significant shift from its usual direct to consumer business model. However, it seems like it will suit both businesses quite well. Thomas Cook Have Hit Hard Times in Recent Years Thomas Cook are infamously debt ridden and the second largest tour operator in the UK is trying to reduce it's £1bn debt. They have made some progress so far by selling off some of its airline, at least 5 hotels and its Indian operation. The position at easyJet is less clear, with the long running arguments between the board and founder Sir Stelios Haji-Ioannou overshadowing the performance of the business. But most importantly, what will it mean for the consumer? Will there be benefits, or will it just be the big businesses who benefit? The full details of any deal aren't yet clear. However, there could be benefits because easyJet offers 500+ routes. This could mean more choice and if easyJet deliver on their promise to introduce allocated seating for their flights, the experience could be less stressful too. I can see a definite advantage. But - there's always a downside. Again, I don't know the detail, but my guess is that Thomas Cook will try to sell these holidays outside of the Package Travel Regulations, which means there will be less consumer protection. Will Customers be Protected Without going into the detail, the typical package holiday has to be sold at an all-inclusive price and include accommodation and flights. It has been common in recent years for holiday companies to try and avoid being caught by these regulations by invoicing for each part separately and claiming that they are purely an agent. If they are correct, that means that the holidaymaker only has recourse to the provider of the specific service. So for example, it may mean that a holidaymaker is left having to sue a hotel in Spain rather than being able to sue Thomas Cook in the English Courts. I won't go into the practical or financial implications here, but the holidaymaker is nearly always worse off! If you've looked at other pages within this site you may have seen details of previous cases. Some of these holiday compensation claims will be brought via these regulations. Obviously, only the unlucky few have an accident abroad or illness abroad, but many people have other contractual issues and need to rely on the Package Travel Regulations. Where a holiday company has avoided them, it makes things more difficult and you have less rights. Whilst I can see that there is an advantage to the consumer because they will get more choice, until we know about the way that Thomas Cook will package the holidays, I would recommend caution. For more information you can contact us via our website at: www.accidents-abroad.com