Two of biggest tour operators in Ireland, MyTravel and Thomas Cook, are to merge in a move that will shake up the market for package holidays here.
MyTravel, which operates in Ireland as Panorama, Airtours and Direct Holidays, and Thomas Cook, which uses the Sunworld Holidays brand, yesterday announced plans for a €4.2 billion global merger. The newly-combined group will operate under the Thomas Cook banner and the merger is expected to be completed by June.
The merger announcement has raised the prospect of redundancies at the Irish operations. In a joint statement to the stock market, MyTravel and Thomas Cook said they intended to achieve annual cost savings of €112.5 million a year, raising the prospect of job cuts among its 33,000 staff globally.
The two groups are thought to employ about 75 staff in their Irish operations. In addition, Thomas Cook has two retail shops, on Talbot Street and Grafton Street, that handle corporate accounts and long-haul travel.
About one million package holidays are sold in Ireland each year. According to industry sources, Budget Travel, which is owned by German group TUI through its Thomson operation, is currently the market leader with a 34 per cent share, followed by Falcon/JWT, which are owned by First Choice.
MyTravel's three brands are estimated to have a 17 per cent market share, while Sunworld has about 11 per cent. The two combined should therefore take second spot behind Budget.
MyTravel, however, has previously estimated its market share as 25 per cent. On that basis, a merged entity would be the market leader.
A spokesman for MyTravel said it was too early to say what impact the merger would have on the Irish businesses. "No decisions have been made about specific brands or geographies," he said.
The combined business will be 52 per cent owned by KarstadtQuelle, owner of Frankfurt-based Thomas Cook, and 48 per cent by shareholders of MyTravel, a UK company. The new business will be listed in London.
