Hoteliers furious at Thomas Cook axe on invoices for August, September

The news has prompted a furious reaction from hotels around the world, who have also threatened with lawsuits.

Fighting legal cases brought by hoteliers could cost Thomas Cook more money than it will gain from the 5% price reduction it has imposed on hotels around the world, according to leading travel lawyers.

Spanish and Caribbean hoteliers have confirmed that they will take legal action if the cuts are imposed, while hotels in other countries, including Greece and Malta, are understood to be examining their legal options.

Hoteliers could be forced to push prices up next year to protect themselves against Cook taking the same action again, or cut service levels to maintain profit levels, according to lawyers.

Leading travel website TTG live quoted Berrymans Lace Mawer solicitor Dafydd Pugh saying: “Cook will have to consider whether, when faced with potentially costly litigation, pushing ahead with this proposal will achieve the savings it anticipates.”

Lee Hills, Mayo Wynne Baxter Solicitors’ head of travel, warned: “There could be a knock-on effect hitting quality to the customer. If hoteliers are trying to maintain profit, they might have to cut back on service.

“There may be short-term financial benefits for Cook, but what will the long-term effects be if the quality of the product is diminished?”

A Cook spokesman said: “It’s a better solution than reducing capacity and the majority of hotels have been supportive.

“We are continuing to negotiate with some hoteliers on an individual basis and are committed to our partners.”

Meanwhile Tui Travel has said that it is not planning to follow Cook’s strategy.

Christian Cull, Tui UK’s communications director, said: “We want to stand by our key suppliers. If they are going through difficult times, we want to work with them, not issue mandatory discounts on them.

“I do not think, in the long-term, it is the way to establish a good partnership.”

Antonio Mayor, president of the Benidorm and Costa Blanca Hotel Association, has hit out at Cook’s move for the second time. 

“The Spanish hoteliers see the current crisis as a time not for company profits, but for maintaining operations and keeping jobs,” he said.

Meanwhile, the Caribbean Hotel and Tourism Association promised a “strong collective stand” and the Cancun Hotel Association has written to Cook chief executive Manny Fontenla-Novoa, telling him to drop “unauthorised deductions” or face legal action.