Thomas Cook is to close its in-house bed bank Medhotels.
The move follows deals with Expedia and Webjet to take over contracting of its third party hotels.
Cook said the decision would allow it to “focus on its core offering of holidays to its own-brand and selected partner hotels”.
It says its partnership with Webjet has delivered a 51% increase in overall bedbank bookings. City and domestic hotel bookings have started to move to Expedia in the Nordic region and will switch over next month in Belgium and UK.
Cook acquired Medhotels from lastminute.com for an undisclosed sum in 2009.
Thomas Hohn, chief of complementary at Thomas Cook, said: “The closure of the Medhotels business is a natural evolution of our strategy. The transformation of our complementary hotel partnerships will simplify our processes and give customers a better online experience with more choice.
“With our new partnership with Webjet showing strong promise and our alliance with Expedia on track, we are well placed to grow this part of the business in an efficient, sustainable way.”
Medhotels will cease trading on December 31 and will continue to accept and honour bookings departing up to this time.
Cook’s deal with Expedia, announced last year, saw the online travel giant become the preferred provider of hotels for Cook’s city and domestic holiday business.
Expedia also provides its booking platform to support all city break and hotel-only sales across Thomas Cook distribution channels in Europe.
In 2016, Cook announced it was handing over 3,000 hotel contracts to Australian online travel agent Webjet as part of an outsourcing deal to cut costs.
Webjet’s European subsidiary, Sunhotels, assumed control of contracting and sourcing hotels for the British company’s complementary business.