TCIL stands for Thomas Cook India Limited which is a brand name in India, it has decided to acquire the existing UK Brand Thomas Cook UK for Rs 14 Cr. This news was announced by Madhavan Menon Chairman and Managing Director of TCIL. It was said that TCIL had a contract with the UK Company to pay Rs 2 Cr as Annual brand license fee until 2024 for use of the brand name.
The UK firm which is 178 years old, British Tour Operator filed for bankruptcy on 22nd September 2019.
Thomas Cook India is altogether a different identity, it was acquired by Fairfax Financial Holdings which is Canada based investment Company in August 2012
It was a big decision for the company regarding acquiring the brand, it had to do a survey and consult its Stakeholders, Customers, experts before taking the decision.
From the business point of view, Abraham Alapatt, President of Group Head, Marketing, TCIL said that the company generates Rs 300 Cr, Rs 14 Cr would not be something they will need to think too much before investing. He said they would have to spend close to 20 to 30 Cr every year if they had to go for a new brand.
Downfall of TCUK was because it tried to compete with Expedia which is an OTA (Online Travel Agency). We know that OTA have money to spend unlike TCUK
TCUK also did not have the awareness of the market they were operating in which lead to their downfall.
Mr. Menon also said that TCIL get 30% of their revenues from the Holiday season, he plans to bring it up by about 50% by FY 2021.