Killed the Internet. Why collapsed the oldest tour operator

Убил интернет. Почему рухнул старейший туроператор

Thomas Cook went bankrupt

Unsuccessful mergers, huge debts and the Internet revolution destroyed the once respectable company.

British travel company Thomas Cook, is considered the oldest in the world in this segment, on September 23 announced its bankruptcy and liquidation. It affected more than 600 thousand tourists, whose trips were cancelled. Корреспондент.net tells details.


Hundreds of thousands of tourists were left without a ticket home

One of the largest travel holdings in Europe and the main rival TUI Group was created on the basis of the British company founded by Thomas cook in 1841 and the first in the world to offer its customers an organized tourist trip – a day trip by rail.

Thomas Cook as it stood, the business was structured in 2007. According to information on the website of the company, the year she served 22 million tourists, its fleet consists of 105 aircrafts, also it owns over 200 hotels in 40 thousand rooms.

The global business Thomas Cook have struggled. From March to September 2019 capitalisation of the group on the London stock exchange fell from 439,6 million pounds to 69,1 million pounds.

To remedy the situation, the largest shareholder in Thomas Cook Chinese Fosun, whose share was 18 per cent, suggested shareholders and creditors to invest in the company of 950 million pounds, of which 450 million would be invested by itself.

This would allow them to survive the winter season 2019/20 the year. Subsequently, Thomas Cook had to get rid of tour operators and aviation units and focus on hospitality.

Recapitalization meant that the share of China’s Fosun amounted to 75 percent of the tour operator and 25 percent of the airline group. Accordingly, the shares of all other shareholders was to fall that devalued their investments.

Over the weekend, the company continued discussions of the terms of the recapitalization and reorganization with key shareholders, but the negotiations came to nothing lead, said in a statement.

As noted by Thomas Cook CEO Peter Funkhauser, the deal was basically agreed upon, but one of its conditions proved to be insurmountable.

The elimination took effect immediately, early in the morning was canceled booking of tickets more than 600 thousand tourists around the world. Vivacom vacationers will be engaged in the subsidiary, but they will not be able to pick up all the rest.

Many people go on holiday vouchers Thomas Cook, reported that the hotels they put up a huge bill, and, in fact, tourists were being held hostage.


What has ruined Thomas Cook

According to Guardian, the company’s business suffered after a “catastrophic convergence” in 2007, and finished off her debts and the Internet revolution in booking vacation.

In may of this year the company announced losses of £ 1.5 billion because of the merger with MyTravel, better known for its brands Airtours and Going Places.

It was expected that the merger will be the European giant, the annual savings of 75 million pounds and a springboard for dealing with new online competitors. In fact, the deal backfired huge debts: new partner Thomas Cook over the past six years made a profit only once.

Also, according to the newspaper, tourists stlae odyhat otherwise – to replace the beach came the tours. This benefited Ryanair, easyJet and Airbnb, customers who book travel online.

Lost companies package deals that are bound to offices in the trendy locations. One Thomas Cook of such offices as much as 560.

Убил интернет. Почему рухнул старейший туроператор


According to the British Association of tour operators services travel agencies uses only one-seventh the British. As a rule, it is clients over 65 years of age and representatives of the socio-economic bottom, expects to save.

Couldn’t impact global warming. Heat waves that swept Europe in may 2018, hurt the tourism industry, since many customers simply decided to stay home.

In 2019 Thomas Cook explained the low demand for summer tours aggravation of uncertainty around the exit of Britain from the European Union and fall in the purchasing power of the pound abroad.

Even 70 years ago it was different. Thomas Cook was considered so integral to British life that after bankruptcy during the Second world war the company was nationalized immediately, the newspaper said.

In the hands of the state company remained until 1972, as part of British Railways.


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