Quick Read: Thomas Cook Collapses – What That Means
By: APOSTOLOS AMPOUNTOLAS, Ph.D.
The collapse of Thomas Cook is a sad moment for the travel and hospitality industry. Thomas Cook was not just a travel agency, but a vertically integrated company owning multiple airlines, tour operator package business, hotels, high street travel shops, call-centers, destination service agencies, just to name a few.
Unfortunately, the collapse now creates a new space in the industry, while it causes an open room to the main competitor, as a kind of monopoly on holiday packages, mainly for the UK market.
In addition, the collapse unlocks a vicious cycle with unprecedented consequences because it affects the entire travel ecosystem. It affects the employees, cooperating hotels, third party travel agencies, and any other supplier having a direct or indirect association with Thomas Cook.
There are various reasons, including management decision for a number of years, such as the Brexit uncertainty followed with a drop in the pound, high cost for fuel maintenance, the overtime increased competition from online travel agencies (OTAs), the effort to provide consumers with flexible package periods, the new type of sharing accommodation, and many other reasons.