Cook seeks to reassure customers
Thomas Cook is facing a race against time to restore consumer confidence in the brand ahead of the main booking period for summer 2012 holidays.
There are fears that yesterday's announcement by the travel giant that it is seeking an additional £100m from lenders to see it through the winter will further damage its business at a crucial time of year.
Speaking to the Financial Times, analyst Nick Batram of City broker Peel Hunt said customers might be reluctant to book future holidays with Thomas Cook for fear that it could collapse under its now highly-publicised £900m debt mountain.
“We’ve seen numerous holiday companies fail over the last few years. If one of the quality players is seen as being in financial trouble, it will make customers think twice about booking,” said Batram.
Shares in Thomas Cook plunged 75% yesterday to just 10.2p, although they recovered slightly this morning to trade at around 13p.
Interim chief executive Sam Weihagen has sought to reassure customers that there's no need to panic, insisting that all bookings made through Thomas Cook shops, including flight-only sales, are protected.
Weihagen, who yesterday announced that Cook was delaying the announcement of its end of year results until after the outcome of talks with its major lenders, said he was hopeful Thomas Cook would have additional funding in place by the end of the week.
“We are confident that we will survive,” he said. “The company has been around for a long time and we hope to be around for a long time to come.”
He said the company still expected to make an underlying profit of £320m for the year.
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airlines suspend Madagascar services following unrest and army revolt
Digital Travel Reporter of the Mirror totally seduced by HotelPlanner AI Travel Agent
Strike action set to cause travel chaos at Brussels airports