Thomas Cook Undertakes Cost Cutting and Consumer Confidence Measures
In line with the announcement that tour operator Thomas Cook is to close 200 shops due to under performance, the company is now aiming to recover profits by shifting their retail focus online.
Thomas Cook is set to relaunch its brand websites with the target of driving 50% of its bookings online (in comparison to the current 25%). This move is part of a range of cost cutting tactics that are designed to save £110m per year and restore investor as well as consumer confidence.
A wider strategy to turn their downward spiral around will also entail the closure of 500 hotels and a slimming of their airline fleet from 41 to 35.
In addition, they will be investing in modernising their remaining outlets to ensure the "brand retains customer appeal".
Thomas Cook also secured emergency funding from banks last month to cover their sharp dip in UK performance. While confidence in the company has been damaged in recent months due to their financial troubles, the YouGov Brand Index has shown that consumers' impression of the brand has recovered since news of this financial rescue package emerged.
He adds: "For over 170 years Thomas Cook has provided customers with fantastic holiday experiences and we will continue to do so."
The company said operating profit fell 16% to £304m in the year to 30 September, blamed on a fall in income from its UK business. Revenue was flat at £9.8bn.
By contrast, main rival TUI Travel reported a "record" £471m operating profit for its full year last week.