Thomas Cook’s decision to cut payments to hotels by 5% could damage relationships between rival travel firms and hotel suppliers, travel bosses fear.
The vertically integrated operator announced last month that payments to all hotels featured by Thomas Cook UK for August and September would be cut by 5%. Although the operator has claimed some hoteliers have accepted the move, others have pledged to fight it.
Now, some travel bosses are concerned the cuts will lead to deteriorating relationships with overseas hoteliers.
David Speakman, chairman of Travel Counsellors, said: “The action of Thomas Cook in reducing hotel payments unilaterally is a worrying change in convention that could affect every business that deals with these hoteliers and their perception of the UK industry.
“While each business must do what it thinks is right in terms of its commercial relationships, there is a need now from other major buyers in the industry to reassure these hoteliers this is not a practice that others will follow, otherwise we may all be damaged in the process.”
Derek Moore, Aito chairman, said: “It is to be hoped that hoteliers who have been affected by Thomas Cook’s actions will understand that not all operators will break contracts when it suits them.”
The Caribbean Hotel and Tourism Association pledged this week to fight the move. It said the Cancun Hotel Association had sent a letter to Manny Fontenla-Novoa, chief executive of Thomas Cook Group, threatening legal action for withholding funds agreed on a signed operator contract.
A Thomas Cook spokeswoman said: “We are talking with hoteliers and the feedback remains positive.”