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Thomascook story

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  • 1. Thomas Cook Our Past & Present
  • 2. The UK & Ireland travel business has a history of over 160 years, and has recently been shaped through a series of mergers & acquisitions 1996 1997 1998 2000 1999 1995 1841 2001 2002 Acquired Sunworld, Neilson and Airworld Acquired Sunset, Club 18-30 and Flying Colours Created JMC brand for tour operations and airline Developed three-brand strategy for mass market tour operations Sold Global & Financial Services (a £47m-profit business) Founded Thomas Cook Achieved financial turnaround Thomas Cook Travel acquired by C&N Touristic AG Merged with Carlson’s UK Leisure Group travel interests Thomas Cook in 1995 travel retailer & niche tour operator 2003
  • 3. Ownership Structure
    • C&N Touristic AG renamed as Thomas Cook AG
    • Sales within Thomas Cook group 1 :
      • Germany 47%
      • UK 33%
      • West Europe 19%
      • International 1%
    • 12.5m passengers carried
    • 28,000 employees
    Source: Thomas Cook AG Annual Report & Accounts for year-ended 31 October 2003
  • 4. Business: Thomas Cook UK & Ireland Thomas Cook UK & Ireland
    • 615 high street shops
    • 736 foreign exchange bureaux
    • 7 travel warehouses
    • 3 call centres
    • Thomascook.com
    • Thomas Cook TV
    • Large ‘Affinity’ business
    • No.1 or 2 in each, except .com
    • 3.0m pax in FY 2003/04
    • Dedicated Yield Management team
    • Featuring all major destinations world-wide
    • Focussed flight-only business
    • Mass-market (80% of pax) & specialist businesses (20% of pax)
    • Rebranded as Thomas Cook Airlines UK in April 2003
    • 24 aircraft
    • No.1 ‘on-time’ charter airline (AUC)
    Sales ~6,600 FTE Tour Operations ~2,600 FTE Airline ~1,800 FTE
  • 5.
    • Cheaper Holidays
    • Better quality holidays
    • More control over what is sold
    • Less dependency on other suppliers
    • Guaranteed line of supply
    • Discounted products
    • Increased profit for the company
    • Career opportunities/job swaps
    • Increased incentive payments
    • Less dependency on other suppliers
    VERTICAL INTEGRATION Benefits to the Customer Benefits to us
  • 6.
    • “ To Perfect The Personal Leisure Experience”
    Our Mission Statement
  • 7. Sales: Recent Developments
    • Thomascook.com
    • Video clips of hotels and apartments on selected properties
    • Main website further enhanced in Dec ‘04 for greater speed & usability
    • Direct-only businesses launched in Jan and Sep ’04 respectively
    • “ Weddings” is growing market
    • Thomas Cook TV
    • Now available on Freeview and at selected times on and
    648 857 20 Channel Channel
  • 8. Spec. Business: Recent Development
    • Launched December 2004
    • Targeting independent leisure travel market
    • Direct booking channel
    • Thomas Cook Airlines carry ~700,000 seat-only passengers per annum, most of whom are booking through 3 rd party travel agents
    • Additional trade website to be launched shortly
  • 9.
    • Launched 30 November 2004
    • The first true dynamic “one search” from “one place” fully bonded package supplier to enter the market
    • Focused on allowing agents to tailor-make value-driven packages in front of customers
    Spec. Business: Recent Development
  • 10.
    • Launched 1 June 2004
    • Targeting independent leisure travel market via the trade
    • 10,000 hotels & apts. to choose from in ~700 destinations
    • From Croydon to Niagara Falls, basic properties to luxury 5 star resorts
    • Sourced from Thomas Cook contracts plus stock from consolidators
    Spec. Business: Recent Development
  • 11. Thomas Cook Airlines UK
    • No.1 ‘on-time’ charter airline (Air Users Council)
    • Voted best ‘on-time’ airline by Holiday Which? readers
    • Operated 86% of departures ‘on-time’ (S03)
    • Average delay time of only 10.7 minutes (S03)
    Officially the UK’s best performing charter airline!
  • 12. Meet the family - including our Specialist Brands
  • 13. Tour Operations: Three-Brand Strategy for Mass Market Quality holidays for those who expect more Fun holidays at great value, hassle free   The best family holidays From fourth to second and closing the gap with market leader
  • 14. Tour Operations: Specialist Businesses Defined as being clearly differentiated by its customer base - that difference being clearly valued by that customer base
    • Specialist holiday businesses catering for prestige, active, skiing, party and many other market segments
    • Volume is lower than mass market
    • Average sales value and margin can be significantly higher
    • Opportunities for growth (e.g. Neilson BeachPlus)
  • 15. Spec. Business: Recent Development
    • Launched 20 December 2004
    • Ultra-quality market
      • Personal travel advisor assigned with first-hand experience
      • Uncompromising quality & exceptional service
      • Distinctive holidays, entirely personalised to cater for individual requirements
  • 16. P R O U D Pioneering Our Future Results Orientated Obsessed With Customer Service United As One Team Driving Robust Decisions