It has been painful to watch Thomas Cook’s latest troubles unfold, but heartening to hear of the trade reaction.
Thomas Cook’s poor results last week took investors by surprise and the resulting media coverage compelled the group to reassure consumers it won’t go bust. Unfortunately, that seldom puts doubts to rest, so it is a blessing that Atol provides an ultimate guarantee.
Goodness knows the market was difficult enough. The reason for Thomas Cook’s headline losses – a write-down of the value of the MyTravel business with which Cook merged 12 years ago – will be lost on consumers. Let’s hope the support of Cook’s banks proves enough to ward off further speculation.
This is not the first time Thomas Cook’s existence has been called into question and it has survived. It may well be the group goes forward in changed form if it succeeds in selling its airline. In the end, the banks will be decisive, but it’s important Cook has support. Many agents have rallied to promote Thomas Cook as we report, and attendees at The Advantage Travel Partnership conference in Cadiz at the weekend were clear in their desire to see the group continue operating.
As Alan Cross, trade sales boss of Jet2holidays – now one of Thomas Cook’s greatest rivals – told a Travel Weekly Business Breakfast in March: “I would not like anything to happen to Thomas Cook. It would be bad for the industry and for consumer confidence.”
All at Travel Weekly share that view.
Comment from Travel Weekly, May 23 edition