The failure of Thomas Cook “should not be confused with the demise of the package holiday”, market research firm Mintel has concluded.
Instead, Mintel suggests Thomas Cook “lost out to rivals”, with research in April finding Thomas Cook “lacked clear differentiation in the market” despite “having a good reputation”.
Mintel dismissed media claims that the collapse reflected a decline of the package holiday. It noted: “The volume of overseas package holidays taken by UK residents continues to grow year-on-year, albeit at a slower pace than pre-referendum levels.
More: Analysis: What brought down Thomas Cook?
“The number of overseas package holidays taken grew by 19% between 2013 and 2018.
“Mintel predicts package-holiday market volume will grow by 1.4% in 2019, whereas the number of independently booked holidays will decline by 0.5%.”
However, Mintel research in April found Thomas Cook “lacked clear differentiation in the market” despite the company “having a good reputation”.
The research firm reported Thomas Cook “was not seen as particularly innovative or cutting edge, or as offering good value.
“Experience rates and recommendation levels among its customers remained well behind its nearest competitors’.”
Following the collapse, MIntel argued: “Tui and Jet2holidays look well-positioned to increase market share.”
It suggested: “Tui is more likely to persuade those looking for a well-known, good quality travel company. Jet2holidays is likely to appeal to former Cook customers who are predominantly price and service driven.”
Mintel noted its research in February found “uncertainties around Brexit” made 43% of holidaymakers “more cautious about booking holidays” and concluded: “The domestic holiday market is expected to prosper.”