The much-vaunted switch to an online travel agency model for Thomas Cook will not be part of a fundamental review of the business triggered by a profits warning.
Shares in the London-listed PLC nosedived in trading today (down 35% in the first four hours) after the company announced profits for the second quarter of 2011 would be lower than expected, with a full-year operating profit of £320 million but almost £40 million below results for the same period in 2010.
The company's share price is now less than half its value in July 2010, with tough economic conditions in the UK and impact of political instability in its Middle Eastern destinations being blamed.
As a result of the squeeze on consumer spend in the UK hitting demand for travel, a "fundamental strategic and operation review of the business" will now take place.
The company's new division devoted to turning its web presence into more of an online travel agency model is based in the UK and is still a young operation, having only officially launched late last year.
Although the company will not disclose any figures or give any indication as to the OTA's performance so far, an official says the division will not be part of the strategic review as the OTA straddles a number of European markets.
In terms of web traffic, Thomas Cook appears to making some inroads on its OTA rivals in the UK, hovering menacingly behind Expedia in mid-June and now just 2% and o.5% behind Thomson and Expedia respectively.