Thomas Cook India Group (TCIL) has acquired ownership of the Thomas Cook brand name in India, Sri Lanka and Mauritius recently.
The brand ownership deal was agreed for a one-time payment of £1.5 million (AED 7.2 million), reported sister-publication Arabian Business.
Prior to the agreement, TCIL was contracted to pay an annual brand license fee to Thomas Cook UK until 2024. This license fee was set at £215,883 (AED 1.04 million). With the new deal, TCIL doesn’t have to pay any royalty for using the brand name in the three countries.
By taking ownership of the Thomas Cook UK brand name in three countries, it is predicted TCIL can work on expansion plans and building a strong international reputation, said Arabian Business.
TCIL has operated the Thomas Cook brand name uninterrupted in India since 1881. However in 2012 TCIL was acquired by Fairfax Financial Holdings of Canada, during which it entered a ‘Brand Licence Agreement’ with Thomas Cook UK.
TCIL operates B2C and B2B travel brands including SOTC, TCI, SITA, Asian Trails, Allied T Pro (ATP), Australian Tours Management (ATM), Desert Adventures, Luxe Asia, Kuoni Hong Kong, TC Travel, Private Safaris East & South Africa, Sterling Holidays and Digiphoto Entertainment Imaging (DEI), with strategic investments in Ithaka by Travel Junkie Solutions.
Thomas Cook went into compulsory liquidation in the UK during September. In May, the company reported a debt of £1.25 billion, citing Brexit-related scepticism as a contributor to the decline in holiday bookings. More than 21,000 employees in 16 countries were left jobless.