Thomas Cook

[john]

Ok, how many of you have booked a package holiday or flight only with Thomas Cook for next year? If so, has the news regarding the ONE BILLION pound debt Thomas Cook have reported got you worried?
I was one of the many caught up in the XL collapse a few years ago and it wasn't nice, but this is something on a different scale altogether. If Thomas Cook do collapse, and on the scale of those figures, i reckon the chances are very high, then what are the implications for the travel industry?
In the short term obviously it will be horrendous, especially for the millions who will have already booked their holidays. The accommodation providers will also be reeling with thousands of empty rooms.
In the long term though, we may see the return of the smaller independant operators who actually care about their customers and strive to give them what they want rather than herd them around like cattle.
I am worried about what will happen in the short term in Thomas Cook do crash but i also feel quite positive for the longer term.
Quite a thought provoking comment but what do you all think?

[samdrago]

What I cant understand is, how can a operator with the volume sales they have have difficultys when you look at the like of ryanair and easy jet who are cheap flights and less overall volume. I know thomas cook has a big wage bill etc to cover every month but when you look at differances in say Kef of rock bottom payments to the accommadation providers and a high retail value to customers, You look at the differance in flight retail value compared now to easyjet going to kef and up to 100% more mark-up to thomas cook. So either they have not managed their asset buying very well and have not looked at long term trends and over stretched themsleves. but then again who actually is thomas cook at min as it just seems to be a name thats ran by various insurance companys from outside the UK. For me personally I look at the smaller companies who I think have a greater chance of survival as no huge corporate premises to have to keep, few employees to have to find wages for and always planning ahead to see where the next pound will come from and try and get their services out quickly to get the cashflow in

[bucephalus01]

Thomas Cook made commitments to places they would offer holidays, that through no fault of theirs are available at the moment - Egypt, Thailand etc.

They have huge costs running their shops. The "merger" with Co-operative Travel means that some of these will be closing, but it's still a major cost.

Then there's the costs of all those brochures. Now add in all the advertising.

These days most plc's are effectively effectively owned by Insurance Companies or pension Funds, so why not Thomas Cook?

If a holiday package is booked through a High Street shop, then it's covered by ATOL, so if TC does go bust then you'll get your money back if you haven't travelled yet and you'll be got home if you're already at the resort. Some Flight Only are covered if booked in the shops as well. If you book on the Internet then read the small print to check what cover there is. If you have vouchers then the best advice at the moment is book quickly because they wouldn't be covered, but a holiday would.

The comparison with so-called "cheap" airlines is unfair. They are not cheap! They simply offer low headline prices and some early or late booking deals. This is clearly borne out by the rapid rise in the prices being offered by EasiJet for flights to Kef.

At the end of the day even though our holidays are very important to us, it's a commercial transaction like any other, and the age-old adage still applies - Caveat Emptor - let the buyer beware.

[Bell]

Our tour company in Kef is TC and I think that one or their problems is that they were sending planes out this summer half empty. A lot of the guests have said that their flights were half empty and they had friends who tried to book flight only on the same flight and were told that the flights were full. Obviously they are only interested in selling package holidays and not putting bums on seats. Thomson have been selling flight only tickets all summer, why haven't TC?

[suej]

was going book my flight with TC but waiting to see if Malc can get the days off as hoping to do 19 days to Kef.
will definitly wait now as our holiday in August is to Lesbos booked with TC as they are only tour operators to go there now Thomsons pulled out after last season.

[john]

I see that Thomas Cook have secured a further £200 million loan to see them through to 2013. Things look ok in the short term at least. They have a new MD and there will be a lot of cost cutting and job lossses ahead as they try and trim the deficit.
I wish them well and hope they succeed, especially for the millions of people who rely on them for their much needed holidays.......BUT, i'm sure that we haven't heard the last of this...........

[Bell]

At least it looks like we have a tour operator next year.

[jed]

Everyone should expect considerable increases in the cost of their package holiday for next year! So, why not try to go independent?

[dafydd]

I agree with jed. For those with reasonable access to Gatwick it is definitely the best option - not only for cost.

For those of us who live out in the sticks, unless we get an airline flying from Manchester or another regional airport, it is not economical to use the EasyJet flights.

regards,
dafydd.

[Rollo56]

Why do people need a tour operator? I organise our hols every year and sort out flights usually www.travelrepublic.co.uk I phone ahead to reserve the rooms when I know we are definitely going. Rent a car on arrival or grab a cab. When we drove I organised all that, so why pay someone to rip you off?

Dafydd. There is an hotel at Gatwick (Brittania) I think, £100 for a night and 2 weeks parking for the car, £32 each for a flight out and £32 each for a flight back is a LOT cheaper than any Package I've ever been offered.