Hays’ move for Cook’s entire retail network was warmly welcomed last week, with terms struck just 24 hours after the deadline for bids closed – scuppering some independents’ plans to take over Cook shops in their local areas.
Founder John Hays though was unapologetic: “It was a really good deal for the government,” he said. “The fact we could take all the shops was really appealing. Others could have bid for all of them the way we did.”
The deal guarantees jobs for former Cook staff in the near future. “We are definitely opening all the shops,” said Hays. “We’ve paid the rent for all of them at least until 24 December, and we are trying to get leases for all of them as well – that is a sign of [our] commitment.”
Hays has a nine-month “licence to occupy” period in which it can negotiate lease extensions. And while Hays admitted there would be duplication in some areas, he said it was “far too early to know” what would happen with these shops.
He added that while there was an opportunity to grow Hays’ in-house tour operation, the firm “was not interested in the Thomas Cook name”.
Several agents told TTG of their shock upon hearing Hays Travel was taking on all of Cook’s shops, but were full of praise for the Hays’ efforts to save hundreds, if not thousands, of jobs.
Simon Morgan, chief executive of Tailor Made Travel, had been negotiating directly with landlords to take over some of Cook’s shops before the Hays deal was announced.
“John has pulled out a real corker,” Morgan told TTG. “We have Cook shops in our towns, and we welcome the competition.
"John will be a formidable competitor but I think he will be sensible in the peaks and not offer huge discounts. The trade is going to adjust to this. It’s exciting times for the industry.”
Miles Morgan, managing director of Miles Morgan Travel, added: “It’s yet another vote of confidence for the independent agent based in bricks but thriving by adding clicks.
"The omni-channel and high street combination is a very strong one. Good luck to John and Irene and great news for so many retail travel agents.”
Julia Lo Bue-Said, chief executive of the Advantage Travel Partnership, said: “Instead of having a multiple with 550 shops on the high street, they are being replace by the Hays brand. While Hays is independent, it’s ultimately like-for-like.
“What it demonstrates is the complete faith in the high street – that gives confidence to our members and shows there’s a future.
“There’s a heartwarming element to this. While nobody makes a business decision purely on the human factor, it’s fantastic that so many ex-Thomas Cook staff will be taken on in new roles.”
