Thomas Cook collapses, stranding 150k UK holidaymakers
theguardian.com
Thomas Cook collapses, stranding 150k UK holidaymakers
1–10 of 285 posts
Re: Thomas Cook collapses, stranding 150k UK holidaymakers
#2Is this brexit related?
Re: Thomas Cook collapses, stranding 150k UK holidaymakers
#3Is this brexit related?
not completely...booking.com, tripadvisor, trivago, expedia and all these online hotel booking sites are what really did this company in.
i suppose it didn't help that folks were probably less interested in travelling due to financial uncertainties around brexit but it definitely isn't the main reason
Re: Thomas Cook collapses, stranding 150k UK holidaymakers
#4Is this brexit related?
Not really. As noted in the article, Thomas Cook merged with MyTravel Group in 2007, which almost collapsed in 2011 and left them with a lot of debt. Brexit came years later.
Possible causes would be long term trends in the types of holidays people want, increased competition, mismanagement, etc. But the problems started long before Brexit.
Re: Thomas Cook collapses, stranding 150k UK holidaymakers
#5Is this brexit related?
not completely...booking.com, tripadvisor, trivago, expedia and all these online hotel booking sites are what really did this company in. i suppose it didn't help that folks were probably less interested in travelling due to financial uncertainties around brexit but it definitely isn't the main reason
That’s a very good point. Travelers have shifted over the years from an all-inclusive package booking process to a DIY piecemeal approach and it’s hard for package sellers to compete against the OTAs.
Re: Thomas Cook collapses, stranding 150k UK holidaymakers
#6Is this brexit related?
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.
Re: Thomas Cook collapses, stranding 150k UK holidaymakers
#7I 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 expect they'd only have to arrange for a flight home (as they paid for the other parts themselves).
The CAA (the UK's Civil Aviation Authority) already has a site up for Thomas Cook customers:
Re: Thomas Cook collapses, stranding 150k UK holidaymakers
#8I 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.
Re: Thomas Cook collapses, stranding 150k UK holidaymakers
#9Is this brexit related?
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
Re: Thomas Cook collapses, stranding 150k UK holidaymakers
#10Is this brexit related?
The exchange rate decline was likely the biggest Brexit-related factor.