Online growth shatters myth of new entrants
Thomas Cook expects its dotcom business to make double-digit percentage profit this year after being dubbed one of the key success stories of the last 12 months.
UK and Ireland chief executive Manny Fontenla-Novoa said revenue has grown 100% in the past year with similar growth anticipated over the next 12 months.
He declined to reveal precise figures or how much the dotcom buisness contributed to the UK’s record £83.3 million profit for the year ending October 2005.
The performance, he added – which helped Thomas Cook become the fourth most visited travel website behind Expedia, Thomson and lastminute – rubbished claims that new entrants would control the online arena.
“Lots of commentators were saying the new entrants would dominate this sector and us old, traditional players would fade and die,” said Fontenla-Novoa. “But the reality is that of the top five sites, three are classic tour operators. It’s a major focus for all of us.”
He stressed the development of the website was not “growth for the sake of growth” but would have a significant impact on the bottom line.
“We’ll have a dotcom business that will nearly hit double digit profit growth this year,” he said.
Fontenla-Novoa said it was closing on lastminute in third place and should break into the top three as other dotcoms talk about a slowdown.
Thomascook.com now accounts for 18% of the operator’s summer 2006 package sales – more than MyTravel, TUI and First Choice retail networks combined.
He said there had been a 10% shift away from shops to the web.
Other areas of the business have also performed well, he said, describing the package market as “resilient” while tour operations overall enjoyed a good year. High street agencies also showed a slight improvement, fuelled by its foreign exchange business.
Report by Steve Jones
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