Following the release of Thomas Cook Group Half Year Results 2019, Johanna-Bonhill Smith, Associate Analyst for Travel & Tourism at GlobalData, offers her view:
“A whopping loss of £1.4bn for Thomas Cook six months prior to March highlights changing attitudes of consumers. Within the same respective time frame last year, the company received a loss of £303m further highlighting the financial struggles experienced. The company simply do not have the funds to cover debt and costs in adherence with their plans for further hotel development.
“Once a leading UK tour operator, the airline now holds the worst global ranking at 72nd place; blaming the prolonged heatwave of last summer, higher fuel and hotel prices followed by Brexit uncertainty that has discouraged UK travelers to book in Winter 2018. However, they are not alone as airlines that dominate the European market are struggling due to ongoing uncertainty of relations between the UK and Europe.
“Thomas Cook aspires for more control over its hotel establishments adopting a more customized approach. Having reported a rise in traveler bookings to Non-EU destinations, the operator aims to increase its product offerings. The sale of the airline seems the likeliest option for redemption in this situation, enabling further access to funds to broaden their hotel product offerings.”