News & Analysis

Consolidation: how travel's Big Four have fought it out - 15 Feb 2007

(15 February 2007)

1992: Airtours (MyTravel) makes unsuccessful bid for Owners Abroad (First Choice). Thomas Cook bought by two German companies

1993: Office of Fair Trading investigates industry consolidation amid spate of takeovers of medium-sized companies

1996: OFT refers vertically integrated groups – combining agents, tour operators and airlines – to Monopolies and Mergers Commission

1997: MMC concludes travel groups must make clear the links between tour operators and agencies

1998: Thomson floats on Stock Exchange. Thomas Cook merges with Carlson Leisure Group

1999: Airtours makes £852 million bid for First Choice as latter seeks merger with Kuoni. European Commission investigates on competition grounds and blocks bid on grounds it would leave three companies controlling 80% of UK package holidays

2000: Preussag of Germany buys controlling stake in Thomas Cook. Rival C&N Touristic proposes takeover of Thomson. Preussag buys Thomson for £1.8 billion, making it number one in UK and Germany

2001: Preussag sells Thomas Cook stake to C&N Touristic, which buys remainder of company. Preussag rebrands as TUI. C&N rebrands as Thomas Cook

2002: UK number-two MyTravel pushed to brink of collapse. Rivals foresee move to three major travel groups

by Ian Taylor (About this Author)