Thomas Cook collapses

denphone · 23-09-2019, 05:12

Thomas Cook has collapsed after last-minute negotiations aimed at saving the 178-year-old holiday firm failed.

https://www.bbc.co.uk/news/business-49791249

Quote:

The UK Civil Aviation Authority (CAA) said the tour operator has "ceased trading with immediate effect".

Quote:

It has also triggered the biggest ever peacetime repatriation, aimed at bringing more than 150,000 British holidaymakers home.

Sadly its demise was inevitable as fashions change.

**Mick** · 23-09-2019, 06:10

This is a massive blow to travel industry. A big brand like this collapsing. 21,000 jobs in 16 countries, 9,000 in UK alone. 150,000 customers stranded abroad. Civil Aviation Authority ordered to undertake largest repatriation, in peace time history.

denphone · 23-09-2019, 06:38

No doubt about that but the writing had been on the wall for quite a few years now as the company found it increasingly hard to service their huge debt burden as well as failing to adapt to the changes in the holiday market..

Some questions are answered here below for anybody who has a holiday with Thomas Cook.

https://www.theguardian.com/business...tions-answered

pip08456 · 23-09-2019, 07:12

Quote:

Originally Posted by denphone

No doubt about that but the writing had been on the wall for quite a few years now as the company found it increasingly hard to service their huge debt burden as well as failing to adapt to the changes in the holiday market..

Some questions are answered here below for anybody who has a holiday with Thomas Cook.

https://www.theguardian.com/business...tions-answered

All explained here.

https://thomascook.caa.co.uk/

**Maggy** · 23-09-2019, 08:17

Sad news for a company that existed in several incarnations since 1881..and a blow to employees and customers.

GrimUpNorth · 23-09-2019, 09:11

We flew home from Mexico with them only yesterday and one of the stewards was saying he'd worked for them for over 20 years and when he put his uniform on yesterday morning he cried. I feel so sorry for all those who've lost their jobs this morning.

Carth · 23-09-2019, 09:43

Knock on effect, or people taking advantage to make extra cash?

Daughter is currently on holiday in Spain, not booked through Thomas Cook.

There was a meeting at the hotel this morning where they were told that, although many were not booked through TC, there would now be no return transfer from the hotel to the airport.

Awaiting further news . . as it could be , probably is, total confusion over there at this time.

Mr K · 23-09-2019, 09:45

Hate to mention the 'B' word, but it was a factor. https://speakerpolitics.co.uk/analys...ge-of-collapse

denphone · 23-09-2019, 09:49

The Thomas Cook collapse is going to have a significant ripple effect right across the industry as its collapse is going to ricochet right throughout Europe.

Many businesses are owed huge amounts by Thomas Cook.

Mr K · 23-09-2019, 09:56

Quote:

Originally Posted by denphone

The Thomas Cook collapse is going to have a significant ripple effect right across the industry as its collapse is going to ricochet right throughout Europe.

Many businesses are owed huge amounts by Thomas Cook.

What I don't understand about these companies is that the customer pays up front for the hotel, sometimes months in advance, and hotels don't get paid until weeks after their stay. Sympathy for the staff and customers, but not for their business set up. It leaves customers and hotels having holidays on a best endeavours 'promise'.

Taf · 23-09-2019, 09:57

Why is the CAA / HM Government arranging the return flights and not ATOL?

nomadking · 23-09-2019, 10:13

Quote:

Originally Posted by Mr K

Hate to mention the 'B' word, but it was a factor. https://speakerpolitics.co.uk/analys...ge-of-collapse

Link

Quote:

The firm's fate was sealed by a number of factors: financial, social and even meteorological.
As well as weather issues, and stiff competition from online travel agents and low-cost airlines, there were other disruptive factors, including political unrest around the world.
In addition, many holidaymakers had become used to putting together their own holidays and not using travel agents.
...
In May, Thomas Cook reported a £1.5bn loss for the first half of its financial year, with £1.1bn of the loss caused by the decision to write down the value of My Travel, the business it merged with in 2007.

Link

Quote:

Thomas Cook’s collapse is not because the British have stopped taking holidays. Far from it: 60% of the population took a holiday abroad in 2018, up from 57% the year before. It is how we are taking holidays that has changed, with the number of city breaks now significantly outstripping beach holidays.
...
Just one in seven of us now pop into a high street travel agency to buy a holiday, according to travel agent trade body Abta. Those who do tend to be over 65, and in lower socio-economic groups, with less money to spend.
...
Thomas Cook only narrowly survived a near-death experience in 2011. Its debt pile had already reached £1.1bn, and it stayed afloat only after an emergency additional cash injection - but it also meant even more debt to service