Thomas Cook was one of the oldest names in travel and one of the biggest travel companies in the world. It was the first company that offered package holidays to common people. A month ago the travel agency collapsed leaving 600 000 tourists abroad and 21 000 employees without a job. What could have happened to such a giant?
At first glance
it could appear that the company just hasn’t sold enough tours. But the main reason
is not quite obvious and the collapse is a result of many years of bad
financial decisions. At the end of its life, the company had about £3bn in
debts either to its banks or to its suppliers. Money coming from package
holidays sales was enough only for paying off an interest.
The most
direct cause of the collapse were unsuccessful “talks of the last chance” with
banks and creditors where Tomas Cook failed to obtain £200m of extra funding in
September. The funding was going to be used as backing for the winter season.
It was a demand from sponsors to have the money in order to unlock an
additional £900m of funding from their pockets.
As a result of failure, Thomas Cook started a liquidation procedure immediately, suspending all flights and sale of their tours.
The same day the company’s Polish department Neckermann claimed that it remained stable and would be functioning normally, but the next day it also announced its collapse.
As a result of failure, Thomas Cook started a liquidation procedure immediately, suspending all flights and sale of their tours.
The same day the company’s Polish department Neckermann claimed that it remained stable and would be functioning normally, but the next day it also announced its collapse.
(source: https://www.thestar.com.my/news/world/2019/09/24/thomas-cook-collapses-why-and-what-happens-now)
But that
direct cause is just a tip of the iceberg. It is said that in the long run
Thomas Cook was a victim of i.a. doubts regarding Brexit, strong competition
from other tour operators and online booking services like Airbnb or
booking.com, easy access to that kind of services and changes of consumers’
mentality. There are also such reasons as really hot summer of 2018 leading to
many people stay in their countries and also distressing political situation in
many regions around the world.
Long story short, they lost because they weren’t properly reacting to the fast changing world of travel and were left behind by its various competitors.
Long story short, they lost because they weren’t properly reacting to the fast changing world of travel and were left behind by its various competitors.
But what about the tourists?
For british
consumers there is CAA – Civil Aviation Authority – which was obligated to care
for people to come back home. People also got refunds from ATOL which is a fund
used to refund, repatriate or reimburse travellers for the cost of repaying for
the affected parts of their trip.
Regarding the
Polish Neckermann, we have Turystyczny Fundusz Gwarancyjny which is an
equivalent of ATOL in Britain. We have to pay an additional couple of złoty per
person for every tour and the money is accumulated in case of that kind of
situations. To receive help we have to contact with the Mazovian Marshall’s
Office. The fund is going to bring us back home or refund our not started
trips. In the discussed case money collected in TFG would be sufficient for
every person affected in Neckermann’s collapse. However, the company, like
other tour operators, had its own insurance which should be enough to refund all
the costs.
Summary
Thomas Cook
was an owner of 15 tour operators in 19 countries including Polish department
of Neckermann. As a result of its collapse many hotels and some other partially
connected tour operators worldwide are going bankrupt now (for example about
500 hotels in Spain have gone bankrupt). Moreover, the collapse leaded to the
largest repatriation operation in modern British history – they were to bring
about 150 000 British tourist back home.
All in all
it seems that there are no companies that are too large to fall apart.
Sources:
- https://www.thesun.co.uk/news/9987899/why-has-thomas-cook-collapsed/
- https://www.independent.co.uk/travel/news-and-advice/thomas-cook-collapse-travel-abta-corporate-finance-failure-mark-tanzer-a9146851.html
- https://www.bbc.com/news/business-46452374
- https://www.independent.co.uk/travel/news-and-advice/thomas-cook-collapse-travel-abta-corporate-finance-failure-mark-tanzer-a9146851.html
- https://www.bbc.com/news/business-46452374
1. Do you travel with tour operators
and buy package holidays or you organize your holiday on your own? Why?
2. Do you buy travel insurance while going on holidays? (either from tour operator or external company)
3. Do you know someone who was on package holidays when his/her tour operator collapsed? How did it finish?
Comments
cheaper and I have more freedom and possibilities. I traveled many
times with tour operators and this is definetly easier and very
comfortable way of traveling, but for me it's hard to "feel the place" when
I have to follow the group and strickt schedule.
2) I was buying travel insurance, but after my health problems during holidays which
were not included in insurance, I stopped.
3) Couple years ago I was on holidays when my tour operator "Sky Club" collapsed.
My parents bought 2 weeks holiday in Portugal/Spain (first half in Portugal, second half in Spain),
but we never arrived to second place. Travel agency bought a return flight,
but they didn't pay for our stay in hotel in Spain.
I'd say that sometimes it's easy and convenient for me to buy package holidays cause oftentimes there are really good prices as well but oftentimes i also plan my own vacations.
2. Do you buy travel insurance while going on holidays? (either from tour operator or external company)
Sure, it just an small expanse of a couple of zlotys but you'll always have the insurance.
3. Do you know someone who was on package holidays when his/her tour operator collapsed? How did it finish?
No i don't anyone who had such issues.
2. Health is the most valuable thing that we have. So yes, of course. If something happens with you the insurance company will help.
3. No, I didn't hear anything about it
2. When I visit countries that are members of Europen Union are generally don’t because the EKUZ card gives me basic medical support. On the other hand, when I travel out of EU I definitely consider buying even the basic health insurance packet, just to have clear mind, as the medical services in different countries sometimes are horrendously expensive.
3. I don’t know such a person, but I remember when I was on a package holiday in secondary school and the tour operator who served my travel, went bankrupt just after I landed back in Poland.
2. Yes, I do. In my opinion it is not only worth it price but also, I feel safer. Many of us think that it is unnecessary, but I believe that it protects us against a holiday disaster which can happen everytime.
3. No, I don't know anyone who was in such situation, but I am sure that there is a possibility to win a trail and receive full compensation.
I actually do both of those and decision is made mostly on the price and the date of possible tour. It's nice to organize your own tour as you are free to do the seeing at your own pace and go to places you really want. The advantage of going on a tour is that you learn more about the place you are going to.
2. Do you buy travel insurance while going on holidays? (either from tour operator or external company)
Yes of course better safe then sorry, though only once i bought insurance from tour operator - LOT.
3. Do you know someone who was on package holidays when his/her tour operator collapsed? How did it finish?
Yes, the tour was cancelled because it was too risky as the war started in the area. They where given a choice either go to different place and pay the difference or get half of the price returned.
2. Yes, it's usually a small additional cost that could be useful. You never know.
3. I don't know anyone who was on holiday when his tour organization collapsed but a friend of mine was in Turkey during 2016 coup attempt. Fortunately, everything settled down fast.
2. Yes, I always buy an insurance policy because it's good to be insured. The advantages of such insurance are inversely proportional to the costs, so it would be stupid not to decide to buy. For a relatively low price, we are safe in almost every aspect and time of travel. We don't have to worry about anything because someone always has our back. I hardly recommend (before buying the insurance and before travel) carefully read the rules of purchase of insurance, and study, what we are really insured from.
3. No, unfortunately I don't know anyone, nor have I heard of anyone who would end up in such a situation, so I'm unable to answer this question.
2. Yes, I do. I want to feel safe during my trip and don't have to think about possible problems with health insurance or no possibility to get back home.
3. No, I don't know anyone.
On the other hand, planning a vacation on your own can save you some money. Find new places, monuments - which have not yet been discovered by the masses. What's more, you are not addicted to anything and to someone's plans. If you want to stay somewhere longer, you just do it.
2.Yes, I always buy additional insurance, even if I have one from the tour operator, and even if insurance is not mandatory . Thanks to this I feel more confident.
3. I don't know anyone personally, but I've heard various rumors and stories of this type of problems. But all them ended happily, except for the loss of money and the forced reduction of holidays. In dramatic situations, tourists could report to the Polish embassy and help the government.
I organize my holiday on my own, because it is more free and convenient, time schedules can be adjusted at will, and you can change your mind on the itinerary. Since there are no shopping and self-funded projects, my money can be spent on the most important things. Where is the most worthwhile sight, then where to go, and I don’t have to wake up by the guide every morning.
2. Do you buy travel insurance while going on holidays? (either from tour operator or external company)
Yes, I think it is necessary to buy travel insurance, it is not expensive, but it protects us, so why not?
3. Do you know someone who was on package holidays when his/her tour operator collapsed? How did it finish?
Tour operator collapsing is already rare, so I don't know anyone who was in this situation, anyway, I think agencies should pay for the loss.
2. No, I do not buy travel insurance while going on holidays, but I should. So far, nothing has happened to me, but it's better not to tempt fate. Next time I will rather buy this insurance.
3. No, I don't know anyone like that. And luckily. It is good that my friends and friends did not have such troubles.
2. Yes, I do, because such insurance is ridiculously cheap. Recently, I paid something around twenty zlotys for about four days of holiday in London, but maybe it would be more expensive if I travelled somewhere far away. I have never had to actually use such insurance, but if I didn’t buy one, I would probably need it 😊
3. No, unfortunately I have never heard such story from any of my friends.
I always have insurance. Considering the fact that I am a foreigner, not Polish, I have to buy insurance every year. I advise everyone to buy insurance when travelling. For example, if you rent a car, I advise you to take full insurance. Moreover, to the countries that need a visa you will have to buy it, because insurance can be checked and it is one of the key requirements.
Luckily, I don't know about such situations. But I think that if the trip was cancelled/collapsed because of the operator, there should be a refund or help.
Could you say something more about your problems with your insurer?
About insurance - like you said, we don't know what would happen with us so it's also better to have some kind of insurance. I like to buy an insurance external to my tour operator as it is often the same price or cheaper but on better conditions.
However, I disagree with the part that you don't have a chance to do what you want on such a trip. This year, for example, I was on package holidays and I was able to choose every place I visit and if I didn't have meals in a hotel I could also choose in which restaurants I'd like to eat - so you are not forced to anything on package holidays :)
Yes, the insurance is something that could protect us from many bad things that could happen during our stay.
Wow thankfully it ended up well with your friend.
The package concerned just the hotel, meals, flight and transport from and to an airport.
It's exactly like you said - you probably never see more than just that top layer of beautifulness of a place until you become more like a citizen that a tourist. But everyone has different needs and we should choose what's best suited for us.
I hope you never have to use that insurance :-)
2. I don't buy travel insurance, because I don't see such need for myself, even though I know it's rather important thing.
3. Probably, but can't think about someone like that at the moment.
2. Yes, I always try to have insurance.
3. None of my friends had such a situation.
I never did but after i've seen that nowadays it's really cheap I think I will start buying it.
Fortunatelly I don't know anyone who was in this situation
It’s always different, sometimes we ordered a tour package with a package of services from a tour operator. It is very convenient and of course, it allows you to relax at 100%, but it is not always interesting, especially for young people who are in eternal search for unforgettable travels. In the second case, I would advise myself to plan my trip, and possibly even without a plan, but according to the so-called freestyle.
2. Do you buy travel insurance while going on holidays? (either from tour operator or external company)
For some reason, it seemed to me that insurance is always an attribute of the trip. Absolutely any trip abroad, especially one that requires a visa, because in some cases a visa cannot be issued without an insurance policy. Well, in general, this is a safety measure, it is certainly worth the extra cost, but it allows you to feel somewhat more confident.
3. Do you know someone who was on package holidays when his/her tour operator collapsed? How did it finish?
Honestly, I have not encountered such a situation, I have not met such people. But there is another story related to studying in another country. One of the companies paid 4 years of study in another country to one student, under the terms of the contract on arrival, he was obliged to work in this company for 5 years. But in the third year of study, this company crashes and closes. As a result, the guy just got a free education and the opportunity to work wherever he wants.
2. Yes, I always travel with insurance. In addition, I also make an EKUZ card from NFZ.
3. No, luckily none of my friends or family had any negative adventures with a travel agencies.
2. When I organize holidays on my own within Poland I do not buy any insurance as I do not really see a need. However if I were to spend holidays abroad I'd definitely purchase one.
3. From what I know, no. I've never expereinced such thing nor know anyone to. I hope everybody who experienced such things didn't face any major inconveniences.
2. It is generally good idea to buy insurance abroad. You never know what can happen. It also isn't that expensive so I don't see why you shouldn't buy one.
3. No but I imagine that it must be very stressful and irritating. I feel like bankruptcy of travel agencies happen so often, it is becoming to be very risky to buy holidays there.
I always travel on my own, thanks to which I am able to find the best offers for myself. In this prognosis I went alone to Colombia and Mexico, I made a total of 7 flights to several cities and I paid funny money for it.
2. Do you buy travel insurance while going on holidays? (either from tour operator or external company)
Yes, if anything happened to me, I'm prepared for it. In case I travel to such distant countries, an insect bite can be dangerous. Therefore, in my opinion, it is worth buying such insurance.
3. Do you know someone who was on package holidays when his/her tour operator collapsed? How did it finish?
I don't know such a person, so I can't comment on that.
2) Yes, only if I'm going on holiday to country that is not a member of EU though.
3) I don’t know anyone who was in such situation and I'm happy with that :)
2. Yes, I do buy travel insurance. It usually doesn't cost much, but it can protect you from potential big expenses.
3. Luckily, none of my friends were involved in such accident.
2. I only buy travel insurance when the destination country is not in the EU.
3. I do not know anyone who had this kind of situation, but I can imagine that it is a dramatic experience. But actually I had a similar situation, although related to flight overbooking. On September I had a flight from Skopje to Valletta, but the flight was overbooked so I did not know if i eventually get on the plane. I was told that the chances are 50/50... Luckily 5 minutes before the planned take off I was informed that I can fly, avoiding many hours spent on Macedonian airport. I always knew that cheap airlines do that, but somehow I just completely did not expect that it could really happen until that day.
I travel on my own as I like to organize everything by myself and have that comfort that everything is up to me, wherever I go, whenever I get up or whatever I do during a particular day. I know that plans can change during a trip and going on your own is more comfortable in these situations rather than going with tour operator.
2. Do you buy travel insurance while going on holidays? (either from tour operator or external company)
Yes, I do. I haven’t had any situation that forced me to use my insurance but you never know when is the first time.
3. Do you know someone who was on package holidays when his/her tour operator collapsed? How did it finish?
My friend was in Portugal at that time and in the end she returned a week later but nothing serious happened if I remember correctly.
2. So far I haven't bought it, but in next time I will
3. I don't know anyone, but I heard that in Barcelona they closed the airport due the protests (not the same, but similar situation). Protests everywhere...
I prefer to organize my holidays myself so i have full contorl of it.
2. Do you buy travel insurance while going on holidays? (either from tour operator or external company)
I haven't bought it but maybe in the future.
3. Do you know someone who was on package holidays when his/her tour operator collapsed? How did it finish?
I don;t know anyone.
2. I don't buy insurances. My holidays are based just by going out with friends to mazury or somewhere else in Poland, so there is no much need for us to buy insurance.
3. I don't know anyone who was on package holidays when this situation occured
2. No, I never buy insurance. It seems unnecessary to me. In addition, they usually have many law tricks.
3. No, I don't know such a person. I only read on the internet. It must be scary and I would not like to be in this situation.
2. Yes, I do. I use the service provided by Revolut, which allows me to take out insurance only for the duration of my stay abroad. In the EU, I use the EHIC card issued by the National Health Fund.
3. No, I don't.
It depends.. Sometimes I don't want to mess with all the details. I just want to get a ready-made solution for a vacation. But I don't want any extra markups, so sometimes it's much more profitable to organize everything myself.
2. Do you buy travel insurance while going on holidays? (either from tour operator or external company)
Yes.
3. Do you know someone who was on package holidays when his/her tour operator collapsed? How did it finish?
No.
2. I have a permanent insurance against extreme sports. With my frequent trips and training it seems to be a better solution.
3. I don't know anyone like that. I don't have many friends who go on organized trips.
2. No.
3. I don’t know anyone who was in such situation. I myself had a flight cancelled once, I got another one for free and a refund.
2. Yes, why not. It doesn't cost much and it can be really helpful. However i never used it (and thats good).
3. No, I don't
I prefer organizing my holidays on my own. It gives me more freedom and I can enjoy my stay more. I don't like having everything planned or not being able to choose some things.
2. Do you buy travel insurance while going on holidays? (either from tour operator or external company)
Usually I don't since I don't buy holidays from travel companies.
3. Do you know someone who was on package holidays when his/her tour operator collapsed? How did it finish?
Sadly I don't know anyone who was in such situation so I can't answer this question.
Sometimes i do sometimes i forget to buy.
I have never met someone whos holidays were canceled.
I used to buy package from tour operators for holidays, the same have done my parents. If you choose a good tour operator it will help you to skip a lot of problems. Using packages from tour operator for me was saving my time, because all I was doing were accepting or declining propositions and paying for a package.
2. Do you buy travel insurance while going on holidays? (either from tour operator or external company)
Yes, becuase it could be a problem solver in some unpredictable situation. It doesn't cost a lot, but it surealy saves a lot of nerves.
3. Do you know someone who was on package holidays when his/her tour operator collapsed? How did it finish?
I haven't heard about such situations from my friends/relatives, so no.
2. I was until realized that they can't help with my health problem. Since then, I think this is just a waste of money and paper.
3. No, I don't know anyone who had such problems.
2. No. I choose carefully and don't build my plans so far into the future that get into such troubles. I suppose
3. Fortunately no
No. I prefer to plan it all alone. I just buy charter tickets because they are cheaper.
2. Do you buy travel insurance while going on holidays? (either from tour operator or external company)
Yes I do. Many travel companies broke up which only suggest that buying such things is really important.
3. Do you know someone who was on package holidays when his/her tour operator collapsed? How did it finish?
No i don't know.