Monday, 23 January 2012
Thomas Cook could be faced with fresh cash flow problems after it has been reported that it's trading in the first half of January were down 33% compared with early January 2011.
It would be unfair to claim that Thomas Cook were the only company to see a decline in bookings as other tour operator have seen a drop compared with last year with sales down around 15%. It is the further 18% difference that will be worrying to Thomas Cook after it was damaged by it's debt crisis last year. Thomas Cook's January decline is three times as bad as its main rival Tui Travel whose bookings are down 11%.
The troubled travel giant has previously been criticised for not moving fast enough into the online sector and figures show that its online bookings are down 45% from this time last year. This is indicative of them not capturing the boom in the travel industry of for people booking from the comfort of their own home.
If the liquidity crisis continues and Thomas Cook can't sell it assets fast enough it may spell trouble for the CAA who would be dwarfed by the failure of such a huge business. This is of course all hypothetical and if it were to happen it would be a disaster for customers, employees and agents alike.
Posted by Tom Warsop at 17:35