Thomas Cook (TCG.L) said on Wednesday it was managing to hold onto market share, rebuffing claims by TUI Travel that it has been benefiting from its arch rival's financial difficulties.
The British firm, which secured a rescue package from lenders last November, said it continued to be adversely impacted by economic uncertainty across Europe and political upheaval in the Middle East andNorth Africa and expects 2012 to be challenging.
But the world's oldest travel company said that it had been encouraged by trading in its home market as per a reuters report.
"I have been encouraged by how our bookings have developed, particularly in the UK where our market share for both the winter and summer seasons remains broadly stable," acting Chief Executive Sam Weihagen said in a statement.
Shares in the company were up 5.8 percent at 13.75 pence by 0948 GMT, when shares in TUI Travel were up 0.4 percent at 6.43 euros.
TUI Travel, which owns Thomson and First Choice, had said on Tuesday it significantly outperformed rivals in Britain during January, highlighting the uncertainty surrounding Thomas Cook.
On a conference call with reporters, Thomas Cook's Weihagen challenged that assertion, noting that TUI Travel was referring specifically to January, in which he said Thomson and First Choice had ramped up promotional activity.
The impending exit of Thomas Cook from India has sent ripples across the travel industry. While consumers may not be impacted significantly by the development initiated by the 170-year-old travel company, the pertinent industry can expect much action in the coming days.
The sale of the India business of the British giant is likely to offer an opportunity to several players keen on entering this market. “Getting a strategic partner will bring gravitas to the company. In that, it is a good step,” a senior travel industry executive said today. “However, in the current form, no one will buy the company. Forex and travel will have to be sold separately.”
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