Thomas Cook Essay

739 Words2 Pages

Thomas Cook Tour Operation UK Ltd

Introduction

Thomas Cook Tour Operation UK Ltd is the third largest travel group operating in the UK travel industry, owning it’s own travel distribution channels, tour operation and airline. The company believes that they have earned their position through consumer recognition for their quality and expertise in providing package holidays. The instability of the market caused by high sensitivity to economic change and the intangible and perishable nature of the products sold, forces companies competing within the travel industry to constantly seek new and imaginative ways to create demand and maintain or strengthen their position. A combination of economic downturn, a lack of consumer confidence, …show more content…

Increasing fear amongst consumers afraid to fly and a downturn in the world economy caused a drastic decline in the demand for both business and leisure travel causing passenger numbers to plummet. Thomas Cook tour Operations, like it’s competitors experienced high profit losses as a result of falling passenger numbers, added security costs, falls in their share prices and increased insurance premiums in which occurred I the aftermath.

Prior to September 11th the travel industry experienced a dynamic growth between 1995 to 2001. During 2001 20.6 million package holidays were sold to the British Consumer, 1 growth of 2.6%. However the deterioration of the industry’s success came immediately after the terrorism attacks. Thomas Cook Tour Operations were as a result forced to develop a new strategy in order to save their rapidly falling profits. In order to develop their new strategy, the company carried out a SWOT analysis. This is a technique that involves identifying a company’s strengths and weaknesses in the business, the opportunities presented by the trading environment and any threats opposing the company. The below information is adapted from the Thomas Cook Tour Operations’
Chief executive

Open Document