Thomas Cook Whips Up a Storm of Spanish Hotelier Legal Protests
Angry hoteliers in Spain have begun legal action against travel operator Thomas Cook after it decided unilaterally to impose a 5 per cent cut in payments to hotels worldwide.
The company made the announcement last month, saying that there would be a 5 per cent reduction in its summer payments for all unpaid invoices to hotels for August and September. The Spanish Confederation of Hotels and Tourism (CEHAT) said today that it has filed a complaint "for illegal practices carried out by the operator" with the national and EU competition authorities.
CEHAT made the decision after meeting the governments of the Spanish regions most affected by the cuts – including Benidorm, the Costa del Sol, Ibiza, Lanzarote, Las Palmas, Majorca, Menorca and Tenerife. Hoteliers in Benidorm and Costa Blanca have also asked their regional governments to stop co-operating with Thomas Cook, shelving any joint marketing and partnership agreements with the operator.
In a statement CEHAT said: "From the outset we have expressed strong opposition to this requirement, since it unilaterally breaks contract terms and represents a dangerous precedent for the Spanish hotel industry. We will provide legal advice for all the affected hoteliers with the aim of recovering the owed and unpaid amounts".
The Hoteliers Association in Benidorm and Costa Blanca (HOSBEC) president Antonio Mayor added: "Hoteliers from Majorca, Ibiza, Menorca, Tenerife, Gran Canaria, Lanzarote, Fuerteventura, Costa del Sol and Salou are also in support of taking legal action and calling for the relevant European authorities to act against Thomas Cook".
Thomas Cook insists that it is forced to implement the cuts to deal with financial losses suffered from the volcanic ash attack in April and May, which cost it some £82 million in cancelled bookings. A Thomas Cook spokesman insisted: "We continue to discuss the matter with hoteliers who largely remain positive about the move".
Travel Industry News posted by 
on 21 October 2010
