Thomas Cook Streamlining

Thomas Cook

Thomas Cook

Troubled holiday travel agent Thomas Cook has found its shares have surged 14% after it announced details of its turnaround strategy.

Thomas Cook are hoping to save £350m by 2015, mainly through cutting store numbers and focusing more on internet sales.

The travel group have said they would cut 2,500 jobs in the UK and close 195 of their 1,069 High Street stores.

Unveiling its strategy update, the firm said it would deliver “personalised holiday experiences through a high-tech, high-touch approach”.

The BBC have reported that:

“Thomas Cook has struggled over the last couple of years with a slump in sales, triggered by the unrest in the Middle East and North Africa in 2011 that affected its extensive operations in Egypt and Tunisia.

The company has since struggled with high debt and the wider downturn in the global travel sector.

Last year, it secured a £1.4bn refinancing package, giving it a further three years to repay its debts, and was also forced to sell and lease back 17 planes.”

Online Focus

The company said it is hoping to raise up to £150m through the disposal of non-core businesses.

It also expressed its ambitions to expand online.

“A key priority of the group is to become the leading online tour operator with a digital platform that will host a full portfolio of digital products and services,” it said, adding that it would reduce the number of customer-facing online brands and websites to three in the UK and one in Germany,

You can read the full BBC article here.

Both comments and pings are currently closed.

Comments are closed.