Leader: Is this the end for Thomas Cook travel?

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.