The Caribbean Hotel and Tourism Association (CHTA) has rejected a unilateral move by Thomas Cook's U.K. charter division to deduct 5% from all August and September arrival invoices being issued to hotels in Cancun and other Caribbean destinations and has promised a strong collective stand against such action. The issue is not related to TCook's Canadian brands.
Hotels have reported that Tomas Cook contacted them verbally stating that their action is necessary to recoup lost earnings that Thomas Cook incurred this past summer. The hotels are stating that Thomas Cook has refused their request to send the details in writing.
CHTA noted that the Cancun Hotel Association has sent a letter to Manny Fontenla-Novoa, Group Chief Executive Officer of Thomas Cook Group in London requesting that they rescind the unilateral action of unauthorized deductions or face legal action for withholding funds agreed upon in signed tour operator contracts.
"CHTA is polling our members to find out how far and wide this unilateral policy by Thomas Cook has spread," said Alec Sanguinetti, Director General and CEO of CHTA. Sanguinetti also stated that CHTA is sending a letter to Thomas Cook on behalf of its member hotel associations expressing CHTA's concern and rejection of such unilateral actions by Thomas Cook which is outside of signed contracts currently in effect.
Sanguinetti also noted that Thomas Cook is not the only travel entity to have experienced losses in the summer of 2010 and that Caribbean hoteliers have also had the most challenging economic conditions to deal with in the history of Caribbean tourism.
Barring the cessation of this unauthorized policy of deductions for agreed upon arrivals, CHTA has stated that it supports the strongest possible actions by its affected member associations against Thomas Cook. "We can't have any company taking unilateral and unauthorized monetary deductions because they experienced a drop in their earnings, no matter how steeped in history and credibility they have accumulated over the years," Sanguinetti said. "Tour operator contracts have been negotiated and are currently in place. Contracts are to be upheld by both parties and when this breaks down unilaterally it undermines the entire contracting system," he added.
