Why Thomas Cook failed

[fridi]

This was discussed the other day, but let's reiterate, and dig a little deeper, as I've got a personal interest in the story, having worked in the tourism sector for almost two decades now.

Thomas Cook failed, and fail he did spectacularly. There were several factors that created the perfect storm for this. One was the changing habits of travelers. The other, the hegemony of online booking websites. Also, the slump of the British pound. And not least importantly, the unusually warm summer which made a number of regular travelers from Northern Europe cancel their trips south. Other problems that were closer to home included the company's 1.6 billion pound debt, as well as their inherent sluggishness in terms of adaptation to changing tendencies. Oh, and the Brexit of course (the pound took a, well, pounding exactly because of that).

It does sound like the perfect storm, no?

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