Thomas Cook has collapsed. The news are now in all major medias all around the world. May tourists who booked their holidays through them are now stuck, somewhere. Flights, hotels and other travel arrangements. These days, when most of us travel, especially to countries where many have travelled before, it’s as simple as going online and booking everything. If we use tour agencies, the plus is that it’s hassle free and we can really relax because everything is ready for us from the time we board the flight to the time when we arrived at a foreign country. Here’s one summary of what happened to Thomas Cook since it first started and the last few years of strong competition from the online and budget airlines.
Here’s one news from bbc.com Thomas Cook took 19 million people on holidays in a year. It has changed ownership many times over its history. Digital age meant that travelling is changing. Internet and the rise of budget airlines made holidays more accessible and more importantly, cheaper than ever before. Customers have become price sensitive and Thomas Cook has slim profit margins. Due to it having started as a brick and mortar agency, it has hundreds of shops and thousands of staff. It was very tough to respond to the headwinds in the travel market. Thus, all these have hit it harder over the years. As at today, Thomas Cook has been around for 178 years. Many people are rooting for them. Please read the full article in bbc.com
It’s very clear that Thomas Cook did not fail because it had no customers. However, it’s also very clear that to survive the competition, it had to be more entrenched via online. It’s also very clear that one main thing which had caused it lots of cost competitiveness would be its real estate. The offices may have been huge previously because many customers meant bigger offices were needed. However, with fewer customers dropping by their offices (due to online accessibility), all these extra space is eating up lots of costs.
By the way, as at currently, there are still signs that perhaps a white knight may yet emerge. Let’s wish that we will soon have a Thomas Cook version 2 and continue to keep the travelling industry hot with competition. Good for all of us, the customers. If you ask me, one niche which Thomas Cook will be strong in will be the the family travellers. These are the people needing most help because booking for many people is a nightmare… Happy wishing.
<Featured Image is courtesy of Stock Photos from mubus7>
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