By James Mathew
Brand acquisition deal for India, Sri Lanka and Mauritius is struck for a one-time payment
Thomas Cook India (TCIL) has struck a deal to acquire the rights for the British travel services brand for India, Sri Lanka and Mauritius.
The brand acquisition deal is struck for a one-time payment of £1.5 million.
Thomas Cook India Group, one of the largest travel service provider networks headquartered in the Asia-Pacific region, ceased to be a subsidiary of the UK parent in 2012 when it was acquired by Fairfax Financial Holdings of Canada.
Travel industry sources said the proposed brand acquisition will help Thomas Cook India to build on its expansion plans on the strength, popularity and brand loyalty of the UK holiday name.
Thomas Cook India currently operates many B2C and B2B travel brands including the Dubai-headquartered Digiphoto Entertainment Imaging (DEI). TCIL acquired a 51 percent stake in DEI, an imaging solutions provider to major tourist attractions and resorts, in February.
SOTC, TCI, SITA, Asian Trails, Allied T Pro, Australian Tours Management, Desert Adventures, Luxe Asia, Kuoni Hong Kong, TC Travel, Private Safaris East & South Africa and Sterling Holidays are the other brands operated by TCIL.
Thomas Cook, which collapsed in September after efforts to save the 178-year-old holiday firm failed, is currently under compulsory liquidation in the UK. The firm’s collapse triggered the biggest ever peacetime repatriation in the UK to bring more than 150,000 British holidaymakers home.
TCIL was previously contracted to pay an annual brand licence fee of £215,883 to Thomas Cook UK until 2024 for use of the brand. The Indian entity has been operating the Thomas Cook brand name uninterrupted in India since 1881.
Post acquisition by Fairfax Financial Holdings, TCIL had entered into an agreement with Thomas Cook Group UK for exclusive use of the brand name until 2024 across India, Sri Lanka and Mauritius.
The brand licence agreement also gave TCIL the right of first refusal to acquire the brand in the event of the Thomas Cook UK Group going into liquidation before 2024.
The agreement with AlixPartners will mean that Thomas Cook India can use the brand name without having to pay any royalty.For all the latest travel news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.