The fallout continues

By | Category: Travel news

The fallout from the collapse of Thomas Cook keeps on coming.

Rhodes in Greece – one of the many destinations that heavily relied on Thomas Cook holidaymakers

With a 20% market share of the entire overseas beach market and a similar figure of the airline business moving people to airports near those beaches, destinations, travel agents and the ublic have been strongly impacted as readers will be aware from the many stories that have appeared in Just about Travel.

The online travel agent, On the Beach, reported figures this week which showed that their profits would have been about £7.7 million higher (profits dropped by a quarter) but for having to support customers in returning to the UK, refunds and additional overheads in handling the fallout of the collapse.

Other travel agents must be similarly affected just as they were when Monarch went bust but have yet to report.

Even ABTA, the trade body for travel agents and tour operators will be affected as about a twentieth of all its subscription revenue came from just Thomas Cook.

But it is destinations that have been hurt the most. All will have courted the company realising just how many holidaymakers they could provide.

This week, the Greek Tourism Minister Harry Theoharis said that another 30 million would be allocated to tourism enterprises impacted by the collapse to cover employer contributions. The money would be used to cover employer contributions for employees working at Thomas Cook-affected businesses. It has been estimated by Greek hoteliers that the collapse of Cook has cost €315 million and affect ted 12% of the entire hotel sector.

It also will affect the promotion budget of the Greek National Tourism Organization since Thomas Cook spent €1.4 million in 2019 as its contribution on jointly promoting Greece.  It looks as though in 2020 the Greek government will replace the money that would have been committed by Thomas Cook.

Tunisia, Turkey and the Caribbean have also been significantly hit by cook’s demise.

It is plain to see that 2020 will be a difficult season for some destinations as they try to replace all the holidaymakers that Thomas Cook would have taken to them.

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