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Thomas Cook collapses, stranding 150k UK holidaymakers

theguardian.com

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Re: Thomas Cook collapses, stranding 150k UK holidaymakers

#11

Post by parsimo2010 »

CaliforniaKarl wrote: post #7

I don't think "stranding" is the right word. For some time now, UK companies selling "package holidays" (with hotel, air, etc. all from one vendor and with one bill) are required to put up funds that the government uses to repatriate those who are already traveling when a company goes under: https://www.caa.co.uk/atol-protection/ Note that it does not cover trips that people put together themselves; in that case, I e…

“Temporarily stuck until they can get a flight scheduled” is better, but wordy.

These vacationers are in safe countries with good infrastructure. They definitely aren’t stranded like Tom Hanks in Cast Away. However, the other airlines can’t magic up 150,000 seats, so it might mean that some people will take a while to get home.

Re: Thomas Cook collapses, stranding 150k UK holidaymakers

#12

Post by shkkmo »

CaliforniaKarl wrote: post #7

I don't think "stranding" is the right word. For some time now, UK companies selling "package holidays" (with hotel, air, etc. all from one vendor and with one bill) are required to put up funds that the government uses to repatriate those who are already traveling when a company goes under: https://www.caa.co.uk/atol-protection/ Note that it does not cover trips that people put together themselves; in that case, I e…

Why does only cover "package holidays" and not all round-trip air tickets? That distinction doesn't make sense except as a subsidy of package deal providers...

Re: Thomas Cook collapses, stranding 150k UK holidaymakers

#13

Post by craz8 »

craz8 wrote: post #9
Waterluvian wrote: post #6

Earlier quoted context omitted.

Yes. What other people are saying is also true. Many nails in the coffin. Brexit apparently caused Britons to hang on to their money more and vacation abroad less. So if you're a travel company on the ropes, Brexit could seal your fate.

It probably doesn’t help that their revenue is in pounds and their biggest costs are in Euros and Dollars when your local currency crashes due to Brexit For a business with small margins, just this currency swing is a disaster

It’s possible to hedge some of this risk, but eventually you’d have to raise your prices in Pounds, which will decrease demand and if you’re already on the edge with debt payments, it all falls apart

Re: Thomas Cook collapses, stranding 150k UK holidaymakers

#14

Post by CaliforniaKarl »

parsimo2010 wrote: post #11
CaliforniaKarl wrote: post #7

I don't think "stranding" is the right word. For some time now, UK companies selling "package holidays" (with hotel, air, etc. all from one vendor and with one bill) are required to put up funds that the government uses to repatriate those who are already traveling when a company goes under: https://www.caa.co.uk/atol-protection/ Note that it does not cover trips that people put together themselves; in that case, I e…

“Temporarily stuck until they can get a flight scheduled” is better, but wordy. These vacationers are in safe countries with good infrastructure. They definitely aren’t stranded like Tom Hanks in Cast Away. However, the other airlines can’t magic up 150,000 seats, so it might mean that some people will take a while to get home.

Thomas Cook was more than just a travel agent. They were also an airline…

https://en.wikipedia.org/wiki/Thomas_Cook_Airlines

… and a hotel chain …

https://en.wikipedia.org/wiki/Thomas_Cook_Hotels_&_Resorts

I would not be surprised if the UK has laws in place, and/or are using ATOL funds, so that the existing Thomas Cook aircraft can be pressed into service for the return journeys.

For example, return arrangements have already been confirmed for those traveling from Croatia on the 23rd:

https://thomascook.caa.co.uk/customers/if-you-are-currently-...

The return flight details are identical to the original Thomas Cook flights (other than the flight numbers, which are similar).

Re: Thomas Cook collapses, stranding 150k UK holidaymakers

#15

Post by untog »

shkkmo wrote: post #12
CaliforniaKarl wrote: post #7

I don't think "stranding" is the right word. For some time now, UK companies selling "package holidays" (with hotel, air, etc. all from one vendor and with one bill) are required to put up funds that the government uses to repatriate those who are already traveling when a company goes under: https://www.caa.co.uk/atol-protection/ Note that it does not cover trips that people put together themselves; in that case, I e…

Why does only cover "package holidays" and not all round-trip air tickets? That distinction doesn't make sense except as a subsidy of package deal providers...

The OP implied that it would cover round trip tickets. It just wouldn't also cover hotels etc before the return flight.

Re: Thomas Cook collapses, stranding 150k UK holidaymakers

#16

Post by wp381640 »

Reminder again to never hold gift cards. I had a family member who was gited a $3,000 travel voucher with an agency - I told them to exchange it in for flights asap as you can book up to a year out, change the tickets later and it's better to be a creditor with a national airline than a likely-going-out-of-business-because-of-online travel agency

Re: Thomas Cook collapses, stranding 150k UK holidaymakers

#17

Post by Scoundreller »

HenryBemis wrote: post #8

I was always wondering about the profit margins of these companies. From their prices I always felt that I am paying a portion of the previous guy's vacations. I'd call it a pyramid scheme, only everybody loses.

Taking less money now for higher expenses in the future isn’t that unusual.

It’s basically the cornerstone of insurance companies (especially life insurance).

Re: Thomas Cook collapses, stranding 150k UK holidaymakers

#18

Post by nabla9 »

wp381640 wrote: post #16

Reminder again to never hold gift cards. I had a family member who was gited a $3,000 travel voucher with an agency - I told them to exchange it in for flights asap as you can book up to a year out, change the tickets later and it's better to be a creditor with a national airline than a likely-going-out-of-business-because-of-online travel agency

Additionally, buy flights using credit card.

If you used a credit card, you get your money back in the case of bankruptcy. If you used cash you may not unless you bought bankruptcy insurance.

Re: Thomas Cook collapses, stranding 150k UK holidaymakers

#19

Post by tomglynch »

wp381640 wrote: post #16

Reminder again to never hold gift cards. I had a family member who was gited a $3,000 travel voucher with an agency - I told them to exchange it in for flights asap as you can book up to a year out, change the tickets later and it's better to be a creditor with a national airline than a likely-going-out-of-business-because-of-online travel agency

This is literally an Airline going out of business, the opposite to the point you're making.

Re: Thomas Cook collapses, stranding 150k UK holidaymakers

#20

Post by barsonme »

Does this mean Condor Airlines is shutting down as well?

Their website[1] says they're continuing to fly, but I'm wondering if there any sort of precedent for what happens to child companies when the parent becomes insolvent.

Having just returned just last week from Europe via Condor Airlines, I'm glad I don't have to worry about this mess.

[1]: https://www.condor.com/us

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