Tag Archives: summer Holidays

Thomas Cook to cut 2,500 jobs

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Thomas Cook to cut 2,500 jobs

Thomas Cook Group is to cut 2,500 jobs across its back office and retail network.

The group also plans to close 195 stores as part of the restucture of the UK business.

A 90 day consultation begins today over the future of 2,500 jobs, both back office and retail. The group currently employs 15,500 people in the UK.

The back office roles will include staff at the head offices in Peterborough and Preston. The consultation also includes the proposed closure of the Accrington office.

Stores will close which do “not meet the performance targets of the business” and are in areas where Thomas Cook has more than one retail outlet.

Peter Fankhauser, chief executive Continental Europe & UK, said:  “It is never easy to make decisions that impact directly on our people, but we also owe it to our customers to shape the business effectively and ensure that, when they book their holiday with us, our administrative costs are as low as possible.

“As we improve and develop our online capabilities, maintaining a strong presence on the High Street is an important part of our omni-channel strategy. Even after these changes we will still have one of the largest retail networks in UK travel.

He added: “It is essential that we operate with the right number of people as we move forward into the next era for our company, allowing us to meet the future needs of our customers more effectively.

“These proposals will mean a stronger Thomas Cook that continues to be a major employer in the UK dedicated to providing excellent holiday experiences to our 23 million customers. We are in consultation with our unions and employee representative bodies to minimise the impact of these changes and I am speaking personally to all employees today to provide information and support through this period of consultation.”

Research finds two thirds of holidaymakers will book online

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Research finds two thirds of holidaymakers will book online

By Ian Taylor

Research finds two thirds of holidaymakers will book onlineThe latest TNS consumer insight for Travel Weekly underlines the popularity of digital channels. Ian Taylor reports

Two thirds of UK adults planning an overseas holiday or break intend to book online this year, according to research for Travel Weekly.

A survey of more than 2,000 adults by TNS in early February suggests up to 20 million could book their travel online, compared with more than eight million with a high street agent or by phone.

Researchers found that 42% of respondents (including those not planning an overseas holiday) said they would book online, 12% on the high street and 5% by phone.

Of course, booking online does not have to mean going direct or buying from someone outside the trade. Few high street retailers fail to sell online; Tui Travel reported 37% of its summer 2013 bookings were made online up to early February and expects this proportion to increase this year.

However, the results confirm consumers are increasingly at ease booking all kinds of holidays – including package holidays – on the internet.

Young adults are clearly most at ease: 55% of 16 to 34-year-olds said they would book a holiday or break online, against 25% of over‑55s. The proportion of student online-travel bookers (60%) was three times higher than those of retired age (20%).

More than half (54%) of adults in better-off households expected to book online, as did a similar proportion (52%) of those with children living at home.

Londoners and those in the southeast showed a similar propensity to book on the internet (54%), while less than one-third did so in Yorkshire, the East Midlands and Scotland and just 36% across the north – suggesting a digital divide.

However, the greatest variation in the survey results was in the proportion planning to take an overseas holiday, rather than how they would book it.

TNS found more than one third (36%) of respondents did not expect to go overseas in 2013 and a further 4% were undecided.

That suggests 60% intend to have a holiday abroad – a healthy market in light of previous research showing less than half the adult population (44%) are likely to go away in any year.

It is important to note people often express an intention to go abroad at this time of year but subsequently fail to do so – the young being especially prone to this.

February’s TNS survey found three-quarters of 16 to 24-year-olds planned an overseas holiday (and 56% intended to book online). Yet previous TNS research which asked 16 to 24-year-olds whether they had a holiday abroad in the past 12 months found 60% had not.

Almost half (48%) of adults over 55 said they were not planning an overseas holiday this year; neither were half the adults in less well-off households (47%).

Most adults with children did plan a holiday (68%), compared with 56% of those with no children. But the former appear more dependent on finding a cheap holiday – 38% of those with children identifying price as an important factor in whether they go away, against 28% of those without children.

TNS group director of travel Tom Costley noted “significant age variations” in online booking habits but said: “The proportion choosing to book via a high street agent does not vary to any significant extent, irrespective of age.”

He added: “It’s evident that being able to access a cheap price allows some to go on a holiday which might otherwise not be available to them.”

Tui reduces losses and grows share in Q1

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Tui reduces losses and grows share in Q1

By Phil Davies

Tui reduces losses and grows share in Q1Tui Travel’s underlying operating loss was cut by 15% in the three months to December as the group’s ‘unique’ holidays continue to drive increases in UK market share.The operating loss reduced by £16 million to £93 million to give an underlying first quarter operating loss of £116 million.Issuing first quarter results for the period ending December 31, Tui Travel reported “significant” continued growth in UK cumulative market share with summer 2013 up 4% and the key January booking period up 2%, gaining on the 7% increase in the same period last year.

Unique holiday bookings in the UK, Nordics and Germany increased by 15%, 10% and 6% year-on-year respectively for summer 2013.

Direct distribution sales in the UK for summer 2013 grew to 90% from 89% with online sales accounting for 37%, up by 1% over the same period a year earlier.

Tui claims its accommodation wholesaler business “continues to build a global leadership position” with total transaction value up by 9% for this summer, driven by Latin America and Asia where TTV is up by 23%.

The group reported strong current trading with winter 2012/13 83% sold with higher margins and average selling prices in key source markets.

Summer 2013 bookings in the UK and Nordics are up 9% and 10% respectively with margins ahead of the prior year in key source markets.

Chief executive Peter Long said: “We are pleased to report that our strong trading momentum has continued with particularly encouraging growth in the UK and Nordics.

“Our leading position in the UK has further benefited from increased market share as a result of higher demand for our unique holidays. Across all our key markets demand for the overseas holiday remains strong, despite the overall economic environment.

“We are confident that our customer focused strategy is driving performance and based on current trading we expect to be towards the top end of our roadmap guidance of 7 to 10% underlying operating profit growth for the 2013 financial year.”

Tui said: “Positive trading momentum continues for summer, with a third of mainstream summer holidays sold to date.

“Customer demand for our unique holidays has allowed us to increase capacity in the UK, Nordics and Germany. In the UK we have again increased our market share year on year as a result of increased demand for our unique holidays.”

Tui Travel will issue a pre-close trading update on March 27.