It is prohibited\nby intellectual property law or in any way illegal use of this article, with\nheavy civil and criminal penalties for the offender.<\/em><\/strong><\/p>\n\n\n\n But, factors such as the excessive over indebtedness of the group, which was the result of the non-timely changes and adjustments of the business model keeping the operating costs soaring, have been involved in the causes of the bankruptcy of the group.<\/p>\n\n\n\n However, main and unique source of all the causes was the\napplication of the purely personalised holiday type of “Do it Yourself\n-DIY” which was offered online by all other competitors in an increasingly\nlarge part of the world traveler population who are highly skilled or achieved\nto be skilled with digital technology.<\/p>\n\n\n\n The unsophisticated product<\/strong><\/strong><\/p>\n\n\n\n So, given the ever increasing rates of worldwide travelers using online platforms\nto reach affordable and low-cost satisfactory housing abroad including cheap\nair tickets for the time they were interested in, were as a point to be\nexpected for companies like Thomas \nCook to be forced to go out of\nthe market.<\/p>\n\n\n\n The organized holiday package consists of three main axes. The hotel cost,\nair tickets and any other services of tour, entertainment, sale, etc., plus the\nprofit margin that the company derives from all these services which should be\nhigher than the corresponding total costs.<\/p>\n\n\n\n In the area of hotel catering internet platforms such as Expedia, Booking\nHoldings etc. make very difficult the competition for companies such as Thomas\nCook which specialized in the mass tourism industry and organized holiday\npackages.<\/p>\n\n\n\n In addition, digital platforms in focus such as Airbnb give users and\nvisitors of their websites the ability to design their own vacations at a very\nlow cost without having to undergo the restrictions on the organized travel\npackages. <\/p>\n\n\n\n The prices offered by Airbnb for the focus via its digital platform are on\naverage 15% to 20% lower than those of the same quality hotels and always for\nthe same area. In this way, Airbnb\nmanages to guarantee low-cost accommodation to 1 million people-travelers a\nday. A number that the world’s largest hotel chain cannot achieve.<\/p>\n\n\n\n Combined with guides to Google maps that are in the app and with everything\nelse on their mobile phones, these travellers are at all times able to see\nwhere they are and how they will navigate to museums, monuments, restaurants,\nentertainment venues, etc. and making use of companies like Uber for their\ntransportation.<\/p>\n\n\n\n Low cost airlines such as Ryanair, easyJet, Jet2 continually set the\nconditions for ever lower-cost air tickets since their bookings were online,\nand as a result, Thomas Cook’s airline was unable to compete with them.<\/p>\n\n\n\n On the other hand, Thomas Cook and until the last day before its official\nbankruptcy continued to base its business model mainly on its sellers and\noffices demanding from the customers their physical presence in them. <\/p>\n\n\n\n Globally, its offices exceeded the number of 600, maintaining in this way its operating costs at the highest levels, while its revenues were reduced on a constant basis due to the excessive pressure that the company accepted in its profit margins both in the hotel and on the airline part of the offered product.<\/p>\n\n\n\n The management of the company<\/strong><\/strong><\/p>\n\n\n\n The continuous over-indebtedness of Thomas Cook, which took place over the\nlast ten years, shows that the management of Thomas Cook was forced to enter\ninto a price subsidy strategy for the offered package holidays to retain its\nmarket shares in the long term. In fact, the management knew that its product\nwas not competitive and that it was constantly creating deficits covered only\nby borrowing. <\/p>\n\n\n\n The direct question arises as to why the management of Thomas Cook did not\nanticipate these developments to change and adapt to the new digital era its\nbusiness model and its offered product to become profitable, since they knew\nthat deficits were being created. <\/p>\n\n\n\n Quite possibly, an English company like Thomas Cook (which gives great\nweight to the historical tradition) whose “spine” for all these years\nfrom 1841 until today (178 years of existence) was its offices and its sellers\nin them-who are considered as \nprofit centers & \ncost centers equally at the same time-to believe that on\nthe one hand cannot “empty” all these people by firing them who for\nyears constituted the locomotive of the company and on the other hand that in\nthe last ten years any situation they faced would be manageable and that at\nsome point the company would overcome the problem.<\/p>\n\n\n\n The fact that the rescue plan announced through the Chinese company\nFosun (28\/08\/2019) in which the Thomas \nCook Group would receive funds-\u00a3450 million in cash in exchange for 75%\nof the stake in its package of tour division and 25% of the stake in its\nairline segment concerned shows that the management of the group did not want\nto change and adapt to the new digital era both the company\u2019s business model\nand its offered product\/service. <\/p>\n\n\n\n We can therefore conclude that any company that wants to be competitive\nshould always adapt its product\/service and generally its business model if\nnecessary, in the technological and all kinds of developments that take part in\nthe market that is active. Otherwise sooner or later this company will be\ndriven out of the market.<\/p>\n","protected":false},"excerpt":{"rendered":" The most historic group-founded 1841-all emblematic and benchmark for the global tourist industry of mass tourism and package holidays, Thomas Cook group, last week,…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[620,946],"tags":[1114,1115,1118,1117,1113],"class_list":["post-1288","post","type-post","status-publish","format-standard","hentry","category-business","category-companies","tag-airbnb","tag-booking-com","tag-easyjet","tag-ryanair","tag-thomas-cook"],"_links":{"self":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/1288","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1288"}],"version-history":[{"count":2,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/1288\/revisions"}],"predecessor-version":[{"id":1292,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/1288\/revisions\/1292"}],"wp:attachment":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/www.liberalglobe.com\/wp-content\/uploads\/2019\/10\/Thomas_Cook_Airlines_A321_G-TCDE_lands_Bristol_22.6.14_arp.jpg\")
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Photo by Wakuwaku99, https:\/\/en.wikipedia.org\/wiki\/Public_domain<\/figcaption><\/figure><\/div>\n\n\n\n