Not to be outdone by TUI - Thomas Cook drops too much do buy hotels4U

Seemingly in permanent catch up with TUI, Thomas Cook has shouted "look at me, I now get it online" in announcing that it has bought bed bank hotels4u.com for GBP21.8mm (Telegraph story here) - and there are more to come they insist (according to e-tid).

Very limited stats and info behind the deal:

• management to be retained. Haim Perry will stay on as MD (retaining 25% of the company as part of an earn out); and
  
• Hotels4U has 500,000 customers a year and "access to" 30,000 hotels.

Thomas Cook's website was the biggest travel site in the UK (in terms of traffic) from 1998-2002 (or thereabouts). This was despite a dismal site, lack of inventory and a general disregard from the management. At this time, Thomas Cook had the opportunity to look at Amex's missed chance in ruling the US online market and solidify its online lead in the UK. Instead it followed the well trodden offline dinosaurs strategy of being trapped in the headlights of the incoming online meteor shower. Another great BOOT mixed metaphor meaning that Thomas Cook stuffed up at the turn of the century in ignoring all of the advice and opportunity to establish UK online dominance. Now they have to play catch up by overpaying for a small provider.