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Adopting an omnichannel strategy is critical, says Cook’s Green

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Adopting an omnichannel strategy is critical, says Cook’s Green

By Travolution
By Travolution

Implementing an omnichannel strategy is critical for success in today’s market, according to Thomas Cook chief executive Harriet Green.Speaking at a Travel Weekly Business Breakfast, Green said one of her first priorities when she started at the business in July last year was to integrate the websites with the rest of the business.

She said: “For reasons best known to this environment the web part of Thomas Cook and other major tour operators was completely separate.

“It had separate targets and none of the rest of the organisation worked with them – why would they, they had absolutely conflicting interests.

“The only time Thomas Cook sold anything effectively on the web was when no-one else wanted to. It was the most dysfunctional thing.

“On week 14 we said we’re going to emancipate all of you guys from the OTA and we’re going to develop the web channels in region then have this centre of excellence.”

Green said the high street was still important, despite the company’s plans to close 195 shops, but had to be used effectively with other channels.

She told delegates: “There has to be change and agility within an omnichannel environment. The web is important, but an omnichannel environment is critical.

“Retail as it was isn’t going to be with us any longer. In the UK the high street has a very important role, perhaps not to the level that Thomas Cook had penetration but on that we’ve made our plans very clear.

“It is staggering to me that Thomas Cook was the first company in the UK travel environment to put all products through all channels at the same price on the web last November. Other industries did that ten years ago.”

– See more at: http://www.travolution.co.uk/articles/2013/07/05/6875/adopting-an-omnichannel-strategy-is-critical-says-cooks-green.html#sthash.hzR8drS8.dpuf

Revenue rises, but IPO expenses put Norwegian Cruise Line in the red

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Revenue rises, but IPO expenses put Norwegian Cruise Line in the red
By Tom Stieghorst
Norwegian Cruise Line posted a $96.4 million first-quarter loss, but said accounting rules that require it to recognize some one-time expenses masked a solid improvement in its business.

Revenue rose to $527.6 million from $515.4 million.

Norwegian said that without $110 million in expenses related to its public offering in January, income would have been $12.9 million. Norwegian’s net profit was $3.3 million in last year’s first quarter.

“We had a fantastic quarter — above consensus,” said CEO Kevin Sheehan in an interview.

The expenses include costs tied to prepaying bonds and stock compensation for former executives.

Sheehan said by using the proceeds of the public offering, Norwegian was able to replace secured debt that carried 11.5% interest rates with unsecured debt that costs about 5%.

Norwegian raised $447 million in the quarter by selling 23.5 million shares for $19 each.

Excluding fuel, net cruise costs fell 1.5% in the quarter. Sheehan said the expense of introducing Norwegian Breakaway will likely raise cruise costs by 5% to 6% in the current quarter.

The New York-themed Breakaway is set to arrive before daybreak on May 7 at the Manhattan Cruise Terminal. The ship will be named the next day by the Rocketttes before starting a series of seven-day cruises to Bermuda.