Thomas Cook looks to Russia for expansion

Thomas Cook has confirmed it is in discussions with two Russian partners in a bid to enter into its market to improve profits. Russia is currently experiencing high demand for holidays as incomes in the country increase.

Thomas Cook, which is Europe’s second-largest travel firm, said a deal could be completed by the end of the year.

The company, which merged with MyTravel last summer, said the economic slowdown in the UK has meant that it is seeking faster-growing markets overseas.

Its rival TUI also admitted that future growth will come from fast-growing markets like Russia.

Thomas Cook’s chief executive, Manny Fontenla-Novoa, said it is also seeking acquisitions, as rivals are grappling with soaring fuel costs and a slowdown in consumer spending. Oil prices passed $135 a barrel last week.

Mr Fontenla-Novoa believes there will be some big opportunities out there as when fuel was $80 a barrel last year, many were struggling back then.

However, despite a slowdown in consumer spending, recent surveys show that many people are reluctant to sacrifice their annual summer holiday.

The company said that British holidaymakers had suffered because of the strength of the euro against the pound.

Mr Fontenla-Novoa concluded by saying that once Britons have experienced the weakness of the pound on their holidays, demand for non-euro countries will soar.

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