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Leader: Is this the end for Thomas Cook travel?
Wednesday 14th December 2011, 12:30PM GMT.
The current economic storm has no respect for even the biggest names in business.
Today the world’s oldest travel agency, Thomas Cook, announced a £398 million loss.
Anyone who has shares in the firm has seen them shed over 90 per cent of their value since March.
Thomas Cook has become a holiday disaster, hit by unrest which has made holidaymakers stay away from some popular destinations, and the relentless rise of the internet, with many people now choosing to book their holidays online.
It is yet another example of how the internet is changing the way we live. Traditional High Street travel agents are facing the white heat of online competition. People are on the lookout, not just for holidays, but for holiday bargains, and they are prepared to go down the DIY route to shave off the pennies.
Thomas Cook’s troubles are particularly sad because this is the firm which led a revolution many years ago which brought to the masses vacations which were once the preserve of the privileged and wealthy few.
Losses as big as these inevitably bring with them the stigma of failure which will make holidaymakers nervous when choosing with whom to book.
They may not be entirely reassured that Thomas Cook retains the confidence of the banks, is taking decisive action to cut its debts and, surprisingly, still delivered an underlying profit of over £300m, according to chief executive Sam Weihagen.
With everything else that is going on on the economic front, it will be understandable if people choose safety-first holiday options next year – going to places where they know that if the worst happens, they will be able to get home.
Britain is not renowned for its sunny weather, but the sun may shine for the domestic holiday market next year.
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Its seems a shame they failed to see the warning signs.
thomas cook did not become great by not looking at inovating ideas at the time of there rise,
the internet is for all. wether they have shops on the high st or not,
lets face it shops placed in a position where people dont have to pay for parking is going to be a winner, (internet)
i must admit our last holiday was booked in a travel agent in the town,and we got our holiday money there and then for a good rate,
So it just goes to show all retailers should be looking at overheads and marketing value for money… and access,
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Poorly managed from the top. Job for the boys mentality meant that the management skill level was low and has eventually led to their demise.
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Utter rubbish bob, it’s nothing to do with jobs for the boys mentality!! where on earth are you basing these assumptions??
The reason why they are dying is because of the expense, the Internet onine booking is cheaper and the online method of finding your hotel and booking your own flights is miles cheaper. DIY booking for two people will save you approx 4-500 pounds easily. Try it and find out, it’s easy!
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work in the industry Bemused, have done for a long time. Writing was on the wall.
Flythomascook, medhotels, hotels4u, are but a few companies owned by Thomas Cook to get into the online market. Through trade bookings as well as direct customer.
They more or less offer the best rates on beds so most people who book online use Thomas Cook anyway. So they have cornered part of this market anyway.
Booking online and saving 4-500 is only if you are spending a lot of money on a holiday, the majority of business is through the bucket and spade brigade who want to pay £200 on an all inclusive holiday. They won’t be saving £400 quid doing that. Cheap holidays demanded by the consumer is the main reason for the demise of many travel companies. TCX and TUI have gone out and driven contract rates down in every major resort around the world, which has then left hotels and certain resorts as ghost towns and in a complete mess. Some Hotels are paid less than £5 per person per night for an All Inclusive holiday, they have hotels have no choice other than to accept this. As we have a major blame culture in the UK, the customer then goes on holiday and says the hotel, food etc wasn’t up to standard, compensation is then given out as the travel companies don’t want to get bad publicity, losses are made. It’s just not sustainable.
I’ve sat in a bar overseas and listened to a group of people, they said the hotel has been fantastic, we’ve had a great time, but what shall we complain about to get our money back.
Let’s look at Thomas Cooks sponsorship of the premiership, i’m sure that doesn’t come cheap. A few million can be shaved off there.
Just a few points.
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Any company which is running at a loss of £900 million has proved it’s incompetence ,deserves no ‘bailout’,should be closed down and all it’s assetts seized immediately
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No business which runs up debts of £900 million should be permitted to continue trading.
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I disagree with the editor’s assumption that we may see an renewed interest in UK holidays. The letting market St Ives, which regularly wins industry awards, is flatter than ever. Perhaps it’s over-priced. By the way if you negotiate with letting agents rather than book online there are some good discounts to be had.
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