Thomas Cook

[chrisd]

I've just watched the news of the possible demise of Thomas Cook. What they said us that they need another £200m to satisfy the banks that they can last through the winter with a new deal. They also said that the Government will probably payout £600m to repatriate holiday making abroad now if they go under - wouldn't it pay to support them as they haven't even costed the job losses of some 900 staff?

 

[fundy]

more to it than that, the 200m is on top of a reported 900m refunding from the banks that will all but wipe out existing shareholders and still to be voted on! Theres talk of there been upto 200,000 UK holiday makers that would have to be repatriated if (or when) they do go under, close to 10,000 UK jobs at risk too!

 

[Deleted member 18121]

As harsh as it seems, I don't think they should be bailed out without there being a really good plan in place for how they are going to improve.... Otherwise it could be throwing good money after bad.

They've been on the demise for a long time and it's a failure at management level with bad decision making.

It's a really tough one as I don't want to see staff lose their jobs.

 

[Hobbit]

I'd like to think its ABTA that will recover the holiday makers rather than the tax payer.

 

[Lord Tyrion]

I'd like to think its ABTA that will recover the holiday makers rather than the tax payer.

Is that not what is supposed to happen?

 

[Hobbit]

Is that not what is supposed to happen?

Maybe its the govt that has the clout and infrastructure to organise getting them back, and they make the claim to ABTA??

 

[Lord Tyrion]

Maybe its the govt that has the clout and infrastructure to organise getting them back, and they make the claim to ABTA??

Hopefully. My understanding was always that ABTA provided the ultimate insurance but maybe that belief is misplaced.

 

[Deleted member 15344]

So how much has the drop in pound had to do with their issues ? Less people going abroad - room prices the same but need to charge more in the UK to pay for the rooms so Holiday prices increased but the take up was less so offering loads of cut price deal , but that wasn’t enough to the prices. Holidays in Europe has dropped whilst UK holidays have increased - shame for all those workers both home and abroad.

 

[chrisd]

I'd like to think its ABTA that will recover the holiday makers rather than the tax payer.

The news report said that the government paid out when the last big holiday company (forget who) went bust but didn't say whether they recovered the outlay from ABTA

 

[Hobbit]

So how much has the drop in pound had to do with their issues ? Less people going abroad - room prices the same but need to charge more in the UK to pay for the rooms so Holiday prices increased but the take up was less so offering loads of cut price deal , but that wasn’t enough to the prices. Holidays in Europe has dropped whilst UK holidays have increased - shame for all those workers both home and abroad.

If you check Reuter's articles you'll see that Brits are still holidaying abroad. However, the continued trend is for people to go to the cheaper options like Turkey and Tunisia + more are going further afield as the world gets 'smaller.'

 

[robinthehood]

Oof I used to have quite a lot of shares in TC.! Sold up a while back though. They used to be a decent enough earner
.

 

[Lord Tyrion]

If you check Reuter's articles you'll see that Brits are still holidaying abroad. However, the continued trend is for people to go to the cheaper options like Turkey and Tunisia + more are going further afield as the world gets 'smaller.'

As you well know the rate against the euro is really stinky. That doesn't help the traditional European holiday.

 

[fundy]

The news report said that the government paid out when the last big holiday company (forget who) went bust but didn't say whether they recovered the outlay from ABTA

Monarch i assume

 

[Captainron]

I’ve never booked a package holiday through a tour company and I think millions of others are doing the same online. Flights, hotels and car hire all separately sorted to suit me and the trip I am after.

Makes sense that these guys are struggling.

 

[Deleted member 15344]

If you check Reuter's articles you'll see that Brits are still holidaying abroad. However, the continued trend is for people to go to the cheaper options like Turkey and Tunisia + more are going further afield as the world gets 'smaller.'

Yes but they aren’t going to the EU countries as much because of the pound against the Euro - people going to EU countries through dropped by 10% - Thomas Cook have suffered since the Referendum - a lot of jobs going to go and fair amount of money out of the coffers.

 

[Hobbit]

Yes but they aren’t going to the EU countries as much because of the pound against the Euro - people going to EU countries through dropped by 10% - Thomas Cook have suffered since the Referendum - a lot of jobs going to go and fair amount of money out of the coffers.

Think you’ll find the trend has been going on a lot longer than the Brexit argument. And the GBP ‘v’ Euro is higher than it was 3 years ago.

Brexit will have had an impact but it isn’t the sole cause by any stretch of the imagination.

TUI UK’s profits are up by over 3%, and up by 25% in the cruise market. People’s choices are changing and TC didn’t respond quickly enough to accommodate those changes.

 

[Blue in Munich]

Yes but they aren’t going to the EU countries as much because of the pound against the Euro - people going to EU countries through dropped by 10% - Thomas Cook have suffered since the Referendum - a lot of jobs going to go and fair amount of money out of the coffers.

It's dropped against the dollar as well Phil, but I'd wager people are still going to the States. If you're going to try and blame it on Brexit why notsay so outright? And if it is Brexit, why only Thomas Cook; why not Jet2 or some of the others?

 

[Deleted member 18121]

Yes but they aren’t going to the EU countries as much because of the pound against the Euro - people going to EU countries through dropped by 10% - Thomas Cook have suffered since the Referendum - a lot of jobs going to go and fair amount of money out of the coffers.

Thomas Cook has been in demise since 2008, they didn't get in well over £1bn worth of trouble in the last couple of years. It's been a succession of bad decisions by management. Ok the weakening £ isn't ideal, but it's not a patch on the money they've wasted on their airline business.

 

[Hobbit]

It's dropped against the dollar as well Phil, but I'd wager people are still going to the States. If you're going to try and blame it on Brexit why notsay so outright? And if it is Brexit, why only Thomas Cook; why not Jet2 or some of the others?

Stop it! It’s suits Phil conscious to blame everything on Brexit. U.K. holidaymaker numbers to the US rose by 1%, because of Brexit.

 

[Blue in Munich]

Stop it! It’s suits Phil conscious to blame everything on Brexit. U.K. holidaymaker numbers to the US rose by 1%, because of Brexit.

Are you sure Brian, I hadn't noticed...