Midcounties Co-operative Travel is to join Advantage Travel Centres from April 1.
Midcounties said joining Advantage was a “natural fit” because both organisations are exclusively owned by their members.
Midcounties chief executive Ben Reid said: “It was a bold decision to remove ourselves from the merger with Thomas Cook. We have worked hard to build the integrity of the Co-operative brand with consumers and were not prepared to give it up lightly.
“We would only lend our considerable commercial muscle to an organisation that shares our same vision and values. I am confident Advantage Travel Centres is that partner and look forward to working with ATC as an active member of the organisation.”
Alistair Rowland, group general manager of travel services for Midcounties, added: “Effective partnerships such as this will prove invaluable as we pursue our strategy to grow quickly and strongly as a fully independent travel retailer delivering the best deals to the people who trust their holiday bookings with us.
“We will work closely with Advantage chief executive John McEwan and his team to ensure that we optimise the partnership, particularly in the commercial and marketing areas led by Julie Gibson.”
Midcounties Co-operative Travel, which has overall sales of more than £80 million, runs 35 travel branches and the website www.cooptravel.co.uk.
McEwan said: “We are delighted that The Midcounties Co-operative has decided to join Advantage. Not only does it strengthen our already considerable buying power but it also provides an attractive geographical fit with the rest of the Advantage membership.”
The decision by Midcounties follows the announcement last month that Northern Irish travel group Consort, with 30 outlets, has also joined Advantage Travel Centres.