Please ensure Javascript is enabled for purposes of website accessibility

US Electric Vehicle Tax Breaks Will Expire on Sept. 30

15 hours ago

‘Reservoir Dogs’ and ‘Kill Bill’ Actor Michael Madsen Dies at 67

16 hours ago

Eyeing Arctic Dominance, Trump Bill Earmarks $8.6 Billion for US Coast Guard Icebreakers

16 hours ago

Trump’s Sweeping Tax-Cut and Spending Bill Wins Congressional Approval

17 hours ago

Americans Celebrate Their Independence With Record-Breaking Travel Numbers

20 hours ago

US Supreme Court to Decide Legality of Transgender School Sports Bans

21 hours ago

Nvidia Set to Become the World’s Most Valuable Company in History

21 hours ago

Poll: 41% in US ‘Extremely Proud’ to Be American, Near Historic Low

21 hours ago
Perfect Storm of Change, Debt and Brexit Sank Thomas Cook
gvw_ap_news
By Associated Press
Published 6 years ago on
September 23, 2019

Share

FRANKFURT, Germany — British tour operator Thomas Cook fell victim to multiple setbacks including shifting travel habits, the rise of online booking sites, the sinking pound and even unusually hot weather that encouraged fewer Northern Europeans to travel.

“The company has struggled to adapt to a changing travel and retail environment.” Michael Hewson, chief market analyst at CMC Markets UK
Specific problems of its own, like a 1.6 billion-pound ($2 billion) debt pile, made it less able to react to change.
It all added up to a perfect storm that led the 178-year-old company to cease operations early Monday, stranding hundreds of thousands of travelers.
Analysts said Thomas Cook, which rode a package holiday boom that started in the mid-1980s, was too slow to react as consumers moved away from buying trips at bricks-and-mortar stores.
It has been overtaken by online services like Airbnb and internet travel companies who may separate or combine hotel, rental car and flight offerings, which puts pressure on prices through comparison shopping.
“The company has struggled to adapt to a changing travel and retail environment,” said Michael Hewson, chief market analyst at CMC Markets UK.
The company did push into online business, with 48% of its bookings from the internet as of last year. But not fast enough. Online rivals, meanwhile, didn’t have to bear the costs of owning 200 hotels, 500 travel agency shops and 105 airline jets, but acted as middlemen.
Thomas Cook Group PLC isn’t alone in facing such pressures. Competitor TUI Group AG, based in Hannover, Germany, has shifted its focus from tour operators to its own cruises and hotels.
But other factors laid into the British travel company.
Photo of deserted Thomas Cook check-in counters
General view of the deserted Thomas Cook check-in counters at Birmingham airport in Birmingham, England, Monday, Sept. 23, 2019. Hundreds of thousands of travellers were stranded across the world Monday after British tour company Thomas Cook collapsed early Monday, immediately halting almost all its flights and hotel services and throwing employees out of work. (AP Photo/Rui Vieira)

Heavy Debts Gave the Company Less Breathing Room to Maneuver

Company officials have cited uncertainty over Brexit, both from consumers worried about its impact on their finances and from the timing, given that one unfulfilled deadline for Britain to leave the EU fell on March 31, just days before the heavy European Easter holiday travel season this year. Travel agents had to issue guidance on what would happen in case of a no-deal Brexit. Brexit has meanwhile sent the pound lower, given British travelers less purchasing power.

“The group, like its peers, has suffered from a perfect storm of turbulence, from political unrest and terrorism at some of its most popular destinations, to unusual weather patterns seeing travelers taking ‘staycations’ and the ever present Brexit uncertainty devaluing the pound and putting consumers off from booking holidays.” — Helal Miah, investment research analyst at The Share Centre
After 2010, the Arab Spring revolts discouraged travel to previous U.K. favorites such as Egypt and Tunisia. Travel companies shifted their focus to the Western Mediterranean, such as Spain’s Canary Islands, only to see demand for some of those locations then dwindle.
The company’s reputation suffered after the 2006 deaths of two customers in Corfu, Greece, from carbon monoxide poisoning. The case dragged out for years and Thomas Cook would end up being told by a coroner it “breached its duty of care.”
As the company struggled to reshape its business in the new environment and cut costs it was hit with an unusually warm summer in 2018, which it said led travelers from the U.K. and Scandinavia to put off plans to head for warmer destinations. When they did decide at the last minute, the sector of the market that focuses on late decision makers turned out to be fiercely competitive on price.
“The group, like its peers, has suffered from a perfect storm of turbulence, from political unrest and terrorism at some of its most popular destinations, to unusual weather patterns seeing travelers taking ‘staycations’ and the ever present Brexit uncertainty devaluing the pound and putting consumers off from booking holidays,” said Helal Miah, investment research analyst at The Share Centre.
Heavy debts gave the company less breathing room to maneuver.
“While other travel groups have suffered from these factors, Thomas Cook’s pile of debt is the differentiating factor,” said Miah.
[activecampaign form=29]

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Fresno Crash Involving Unlicensed Teen Driver Sends Woman to Hospital

DON'T MISS

Madre Fire Burns More Than 52,000 Acres in San Luis Obispo County

DON'T MISS

RIP John Harris: Fresno County Rancher, Racehorse Breeder Was a Visionary Leader Who Leaves a ‘Profound Legacy’

DON'T MISS

Valadao, Costa Spar on What Passage of Trump’s Bill Means for Medicaid Recipients

DON'T MISS

US Military Says 200 Marines Being Sent to Support ICE in Florida

DON'T MISS

Boeing Secures $2.8 Billion US Satellite Contract

DON'T MISS

Kaweah Health Names Its New Chief Nurse. She’s From Texas

DON'T MISS

Clovis Police Say At-Risk Missing Woman Found Dead in Mariposa County

DON'T MISS

Over 100 Former Senior Officials Warn Against Planned Staff Cuts at US State Department

DON'T MISS

US Electric Vehicle Tax Breaks Will Expire on Sept. 30

UP NEXT

Eyeing Arctic Dominance, Trump Bill Earmarks $8.6 Billion for US Coast Guard Icebreakers

UP NEXT

Colombia President Recalls Ambassador to US

UP NEXT

US-Backed 60-Day Gaza Ceasefire Envisions Gradual Return of Hostages, Official Says

UP NEXT

Americans Celebrate Their Independence With Record-Breaking Travel Numbers

UP NEXT

US Paves Way to Resume Ethane Exports to China Amid Trade Truce

UP NEXT

US Imposes New Sanctions Targeting Iran Oil Trade, Hezbollah, Treasury Dept Says

UP NEXT

Poll: 41% in US ‘Extremely Proud’ to Be American, Near Historic Low

UP NEXT

Poorest Americans Dealt Biggest Blow Under Senate Republican Tax Package

UP NEXT

From Victims to Perpetrators: Israeli Soldiers’ Nazi Comparisons and the Unfolding War Crimes in Gaza

UP NEXT

Iran Enacts Law Suspending Cooperation With UN Nuclear Watchdog

Valadao, Costa Spar on What Passage of Trump’s Bill Means for Medicaid Recipients

13 hours ago

US Military Says 200 Marines Being Sent to Support ICE in Florida

14 hours ago

Boeing Secures $2.8 Billion US Satellite Contract

14 hours ago

Kaweah Health Names Its New Chief Nurse. She’s From Texas

14 hours ago

Clovis Police Say At-Risk Missing Woman Found Dead in Mariposa County

14 hours ago

Over 100 Former Senior Officials Warn Against Planned Staff Cuts at US State Department

15 hours ago

US Electric Vehicle Tax Breaks Will Expire on Sept. 30

15 hours ago

‘Reservoir Dogs’ and ‘Kill Bill’ Actor Michael Madsen Dies at 67

16 hours ago

Fresno Police Recover Some of the $40,000 in Fireworks Stolen From Bullard High Team

16 hours ago

Eyeing Arctic Dominance, Trump Bill Earmarks $8.6 Billion for US Coast Guard Icebreakers

16 hours ago

Fresno Crash Involving Unlicensed Teen Driver Sends Woman to Hospital

A two-vehicle collision sent a woman driving one of the vehicles to the hospital with a head injury Thursday afternoon in Fresno. Fresno pol...

12 hours ago

A crash causes a traffic jam in northwest Fresno on Thursday, July 3, 2025. (GV Wire/Paul Marshall)
12 hours ago

Fresno Crash Involving Unlicensed Teen Driver Sends Woman to Hospital

The Madre Fire near New Cuyama has burned 52,593 acres with 5% containment, prompting evacuation orders in several San Luis Obispo County zones as of Thursday, July 3, 2025, afternoon. (CalFire)
13 hours ago

Madre Fire Burns More Than 52,000 Acres in San Luis Obispo County

13 hours ago

RIP John Harris: Fresno County Rancher, Racehorse Breeder Was a Visionary Leader Who Leaves a ‘Profound Legacy’

13 hours ago

Valadao, Costa Spar on What Passage of Trump’s Bill Means for Medicaid Recipients

An ICE agent talks with migrants about their scheduled appointments with U.S. Immigration and Customs Enforcement (ICE) on Father’s Day, to learn about their immigration status, in Chicago, Illinois., U.S., June 15, 2025. (Reuters File)
14 hours ago

US Military Says 200 Marines Being Sent to Support ICE in Florida

Boeing logo and miniature satellite model are seen in this illustration taken, March 10, 2025. (Reuters File)
14 hours ago

Boeing Secures $2.8 Billion US Satellite Contract

14 hours ago

Kaweah Health Names Its New Chief Nurse. She’s From Texas

Clovis Police are searching for Pathmani Goonawardena, 82, who went missing nearly three weeks ago and was last seen driving a white Volvo near Copper and Auberry, possibly en route to Coarsegold. (CHP)
14 hours ago

Clovis Police Say At-Risk Missing Woman Found Dead in Mariposa County

Help continue the work that gets you the news that matters most.

Search

Send this to a friend