Thomas Cook collapse

0200 this morning 178-year-old travel company Thomas Cook went bust.

Over the weekend zombie travel company Thomas Cook kept afloat by the banks had been desperately trying to obtain over £200 million to stay afloat.

Up until the crash senior management had been happily pocketing hefty bonuses and massive salaries.

The crash came as no surprise.

Thomas Cook, outdated businesses model, package holidays.

Last week the failing Cyprus industry looked to tour companies to come to their rescue. It beggars belief they are still operating in the 1960s, failing to obtain direct bookings.

UK government has mounted a rescue exercise. But why charter planes, why send out CAA and Foreign Office staff? Why not use the grounded Thomas Cook planes and crew, the staff located overseas? It would have been cheaper.

A moot point should the government have bailed out Thomas Cook, would have been cheaper than the rescue, on the other hand sends out the wrong message and creates a dangerous precedent to bail out bankrupt companies, as they then become reckless, knowing taxpayer will pick up the tab.

Strange no mention why Thomas Cook found itself in this parlous state, saddled with massive debt with no hope of repaying, unable to service the debt, or criminal behaviour of a former chief executive.

Holidaymakers being threatened by their hotel, money demanded, should not pay. The claim of the hotels is against the administrators of Thomas Cook not holidaymakers who have already paid for their holiday.

With the collapse of Thomas Cook, tui will have a monopoly, they will screw clients, screw hoteliers, not that they have not been doing that for years. Tui must be broken up.

Hoteliers should grasp the opportunity Thomas Cook collapse offers for innovation, move to direct bookings, cut out the middle man who is screwing everyone, receive payment end of stay not end of season, but need to move fast otherwise companies like tui will step into the void and exploit the situation.

Already airlines are profiteering from the collapse, hiking air fares.

 

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