THOMAS Cook’s plans to develop its business travel division have been put on hold following its merger with Carlson Leisure Group.
The company said it was concentrating on integrating its retail, tour operating and aviation businesses before it looks at how to take its corporate travel division forward.
Thomas Cook head of commercial relations Rod Allerton said:”The focus is on the leisure side at the moment. We are currently reviewing the business travel side but no decisions have been made.”
Industry observers said Thomas Cook’s plans to expand its business travel operation may be abandoned altogether because it is now part owned by US-based Carlson Companies, which also owns 50% of travel management multiple Carlson Wagonlit Travel.
“There would be a conflict with Carlson Wagonlit if Thomas Cook decided to go back into business travel in a big way,” said one.
The other influencing factor is Thomas Cook’s ownership links with Germany’s largest business travel agency Hapag Lloyd, which is currently looking to make inroads into the UK market. Hapag Lloyd is owned by Preussag, which has a 25% stake in Thomas Cook and is set to increase it to 50.1% in September.
Sources said Hapag Lloyd could expand into the UK through Thomas Cook.
Thomas Cook sold its business travel operations to American Express in 1994 and for four years it was unable to re-enter the market.
But in September last year, it said it would relaunch its business travel division on the back of its Global Services operation.
Global Services was launched last summer and offers customers 24hr travel, financial and emergency assistance in 30 languages, run from a call centre in Peterborough.
At that time, the multiple said it had decided against making any major acquisitions or investments in the business travel market because the margins are so low. But it said it wanted to make a tentative return through its new 24hr operation.