Can Tui Take Advantage of Thomas Cook's Demise?

Tui is expected to benefit from rival tour operator Thomas Cook's collapse - but the industry is more interconnected than investors realise

James Gard 24 September, 2019 | 11:12AM

Tui plane

Shares in FTSE 100 travel firm Tui have spiked after its biggest rival, Thomas Cook, collapsed on Monday, but it is also involved in the rescue effort to bring back stranded travellers. Investors often assume that less competition in a very crowded marketplace is a good thing, but the industry is more interconnected than many think – and all operators are subject to the same pressures.

This is not just altruism on Tui’s part: it sold Thomas Cook flights and holidays through its Tui-branded shops, and is working with the Civil Aviation Authority to bring back affected customers. Thomas Cook also sold Tui holidays in its shops, which the latter company will honour.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
TUI AG316.00 GBX-3.36

About Author

James Gard  is content editor for Morningstar.co.uk

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