News

Thomas Cook mounts campaign as market picks-up

Thomas Cook unveiled a multimillion-pound marketing campaign this week amid a general pick-up in summer 2019 bookings and renewed confidence in the group’s future.

Industry analyst GfK reported summer bookings in the week to last Saturday (July 20) up 3% on the comparable week a year ago following “a huge turnaround” the week before.

Podcast: Thomas Cook – future secured?

The growth was not due to a poor comparison week a year ago. Sales in the same week in 2018 were up 2% on 2017, making July a strong month so far following 7% growth in bookings year on year in June. However, the June surge was in comparison with weak bookings last summer during the World Cup and a record-breaking heatwave.

Bookings this summer do remain weaker on price, leading easyJet chief executive Johan Lundgren to downplay talk of a turnaround last week despite reporting “a robust performance” by the airline in the three months to June. He said: “The environment remains challenging.”

Lundgren told Travel Weekly: “We’re pleased with the late-booking environment. Bookings are coming through, but I would not go so far as to say bookings have picked up for beach.

“There are some amazing deals out there. We have 120,000 seats available in August at under £50. Demand is good, but we have Gatwick-Alicante, Luton-Alicante available in August for £36 or £42, so there is tremendous value.”

However, GfK’s latest figures left bookings for the summer 2019 season to date up 1% on the same point last year, with revenue 2% ahead.

Thomas Cook’s campaign across TV, radio, online and print is “a reminder we’re here and a mark we’re confident”, said a group spokesman, who added: “It’s reassuring our customers as we plan for the future.”

Thomas Cook cut its marketing spend early this year. But the group confirmed on July 12 that it is in talks about a takeover by Chinese group Fosun and its creditor banks, with a deal due by September. The spokesman said: “There is more to come. We have a great summer ahead.”

The new-found confidence came despite industry concerns about the exchange rate. The pound was priced at $1.24 as Travel Weekly went to press on Tuesday following confirmation that Boris Johnson will be the new prime minister.

The exchange rate was only just above its lowest point since the Brexit referendum of June 2016 due to concern that Johnson could take Britain out of the EU without a deal. Johnson has insisted he will deliver Brexit by October 31, “do or die”.

MoreChinese group would retain Thomas Cook name [June 19]

Comment: What now for Thomas Cook? [July 5]

Comment: Can Thomas Cook survive? [May 19]

Share article

View Comments

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.