We’re falling out of love with TUI and Thomas Cook

By | Category: Travel news

That seems to be the thought behind research from the financial group, Morgan Stanley. They contend that Thomas Cook and TUI are losing market share to newer entrants.

On the Beach is biting in the market shareof TUI and Thomas Cook

In its fourth annual survey of UK holidaymakers, taken during the new year booking period, it found Thomas Cook still has the highest market share, but it has dropped ‘significantly’ since last year.

Morgan Stanley said 36% of its survey respondents said they have or were likely to book with Thomas Cook, compared to 43% from last year. For TUI, 35% said they have or were likely to book with TUI, compared to 38% from last year.

The report suggests that the drop in support for the two tour operator giants is “likely due to newer entrants (On the Beach, Jet2), and slower capacity growth.” It says that On the Beach has made big gains, with 16% respondents either booking or looking to book with the company. When you consider the two companies across all their brands, the report says that
 TUI and First Choice combined have lost more market share (54% vs. 63% last year) than Thomas Cook and Airtours (45% vs. 50% last year).

In the list of top nine tour operators, On the Beach and Jet 2 re the only newish companies. All the others are household names so can Morgan Stanley really claim that newbies are eating into the share? Where isLoveholidays, Expedia and the like?

They appear in the top ten list according to the ATOL figures of tour operators which have bonded the most passenger numbers but don’t appear on the Morgan Stanley list. For tour operators there is support from Morgan Stanley for ABTA’s claims that younger people are more likely to take a package holiday than older people. It also seems to be that if there is a decline in booking packages, that level of decline may be levelling off.

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