That is fair enough, but considering either ATOL, or the CAA or HM Govt, are going to be paying the bills, there should be a possibility to use the existing fleet in order to save money. It's common sense really, there just need to be agreements in place for such eventualities.
Thomas Cook travel - original edition collapsed in 2019
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Yes! Come visit me MS!
Wow, I didn't know that. Even more mind boggling. Firstly how that many people use a service like that and secondly how they still managed to go bust!
There just isn't the time. It would take days or weeks to get all the paperwork right but passengers are stranded today. Far easier to hire aircraft ready to go immediately.
No, what I mean is that there should be agreements in place for all airlines so that in such eventualities, automatically, the existing fleet would be utilised to get passengers back to their original destinations.
Impossible, you're not going to get all the contracts in place for all the old staff to operate them at the flick of a switch which is what ATOL need. That's why the concept of hiring the existing aircraft works so much better in scenarios like this. Plus given that ownership of the existing fleet may not be with Thomas Cook then it's quite complex at a time of businesses going into voluntary liquidation.
Old people...and planes be expensive, even Lewis Hamilton sold his private jet in these uncertain times.
I imagine that number will include a lot of people using just their flights, which were really good.
That's sort of what the ATOL fund is for. Its being misreported that it will cost the taxpayer 100m to repatriate everyone, the fund that every airline and passenger pays into covers it.
I think I heard that ATOL covers £60M and the rest the government picks up the bill.
The fund is about 170m at the moment according to the CAA.
A great example of poor management. The main reason is pointed as lack of adaptation to the new technologies, but their daily client waves were still amazing numbers wise. There were days they would had waves about 1M clients.
And they already had their own plane fleet, which in a well managed business would be an amazing competitive advantage.
And they already had their own plane fleet, which in a well managed business would be an amazing competitive advantage.
Thomas Cook India is still running (different owners). So if any of you is feeling nostalgic you can accompany Glaston on his next trip here
Why did the original form go broke
New
Bumping (for good reason)
Does anyone know what was flawed in Thomas Cook's business model? Or was it anomalous factors that triggered the collapse of the company?
Appreciate direction towards any news articles or journal articles that do deep dives into the collapse.
Does anyone know what was flawed in Thomas Cook's business model? Or was it anomalous factors that triggered the collapse of the company?
Appreciate direction towards any news articles or journal articles that do deep dives into the collapse.
Gracias senor!
cos it was shit
This is very helpful
If you could expound a bit (not on the variant of shit, moreso details of how they were shit) that would be helpful
They had debt they could never pay off from revenue sounds like the cause. I think that article said they needed to sell 3 million holidays a year just to cover the interest.
The Package holiday business is very volatile and TC's competitors were much better at predicting / reacting to changing holiday trends. TUI and jet 2 spend a lot of time analysing customer behaviour and trends such as "what food are people buying from Tesco?" in order to predict peoples aspirations ahead of booking a holiday. So if people are buying up lots of Mexican food from Sainsburys, they can anticipate increased demand for Mexican holiday destinations. If people are buying Greek food then there may be "spike" in Greek holidays.
I know it sounds ridiculous to make decisions based on Tesco clubcard data, but they actively want to hear about what OTHER destinations people are looking at to get ahead of the game. Jet 2 are particularly strong on their IT and Analytics. TC was also trying to maintain a large physical network of shops which undoubtedly added bigger costs and potentially hindered their ability to adapt / change systems to better capture customer behaviour.
These new or emerging destinations may have limited accommodation resources and if you can get in and secure the majority of rooms at a hotel in a sought after location early, then your competitors have less slice of the action. Sometimes a destination can be a flash in a pan / flavour of the month type thing and they will just look to utilise existing accommodation. If they think a destination has longevity they may get into partnership / borrow money to build new accommodation but that can be higher risk as TC found out.
Thomas cook had invested VERY heavily in Turkey and events in 2016 in the country meant Turkey plummeted in popularity overnight. Jet 2 had a huge presence in Turkey too but they seem to have been able to extricate themselves from this quicker / cheaper than TC did.
I also think that TC took a wrong turn around this time due to cost cutting. we had used TC for several holidays but all of a sudden the seats got smaller / less cabin room. The accommodation on one holiday we took was absolutely filthy (TC had just sacked the Cleaning team that had created previously excellent reviews) and they didn't respond to my complaints about cockroaches in our room.
The resort staff were just really bad as well - looking totally disengaged - something I'd never seen before on a TC holiday. We started using Jet 2 and I wasn't surprised to hear when TC went under a year or so later. Things were clearly in a big decline.
I know it sounds ridiculous to make decisions based on Tesco clubcard data, but they actively want to hear about what OTHER destinations people are looking at to get ahead of the game. Jet 2 are particularly strong on their IT and Analytics. TC was also trying to maintain a large physical network of shops which undoubtedly added bigger costs and potentially hindered their ability to adapt / change systems to better capture customer behaviour.
These new or emerging destinations may have limited accommodation resources and if you can get in and secure the majority of rooms at a hotel in a sought after location early, then your competitors have less slice of the action. Sometimes a destination can be a flash in a pan / flavour of the month type thing and they will just look to utilise existing accommodation. If they think a destination has longevity they may get into partnership / borrow money to build new accommodation but that can be higher risk as TC found out.
Thomas cook had invested VERY heavily in Turkey and events in 2016 in the country meant Turkey plummeted in popularity overnight. Jet 2 had a huge presence in Turkey too but they seem to have been able to extricate themselves from this quicker / cheaper than TC did.
I also think that TC took a wrong turn around this time due to cost cutting. we had used TC for several holidays but all of a sudden the seats got smaller / less cabin room. The accommodation on one holiday we took was absolutely filthy (TC had just sacked the Cleaning team that had created previously excellent reviews) and they didn't respond to my complaints about cockroaches in our room.
The resort staff were just really bad as well - looking totally disengaged - something I'd never seen before on a TC holiday. We started using Jet 2 and I wasn't surprised to hear when TC went under a year or so later. Things were clearly in a big decline.
apologies I can't, my memory doesn't go that far back apart from remembering it was shitThis is very helpful
If you could expound a bit (not on the variant of shit, moreso details of how they were shit) that would be helpful
I always just assumed it was one of those companies that didn't adapt to online quickly enough and got left behind, that combined with RyanAir offering flights all over europe for about 20 quid
@buchansleftleg @Tarrou thanks guys