Company - - Feb 10,2017
Thomas Cook revealed that it plans to retail more upmarket holidays this summer, with the price of an average getaway increasing by 9%.
The famous online holiday planner, Thomas Cook, has blamed the rising competition in the market as the prime reason for this sudden shift in approach leading to mounting holiday prices.
This decision comes as Thomas Cook stated a loss of £49.1m in the first quarter, regardless of rising demand for holidays in Greece.
The firm said it was being “cautious” regarding the visions set for this year, and its shares dropped close to 10% in morning trade.
At present, Thomas Cook has six million customers in the UK. The company explained its move by saying there had been a revival in interest in Spain last year, as less tourists visited Egypt, Turkey and Tunisia following a wave of terror attacks.
In response, Spanish hotels have pressed the prices upwards as much as 8%. In addition, rival airlines and holiday companies have also lifted their services to hotspots such as the Canary Islands and Majorca.
Thomas Cook said, in this context, and stable with the strategy, the firm has taken a deliberate decision to stress on quality holidays, higher margin, rather than hunt volume growth.
In spite of reporting a loss, the company said revenue in the quarter had surged 1% to reach £1.6bn.
In reference to the results, chief executive Peter Fankhauser commented that the firm had made a strong start to the year, even though with the "backdrop of continued uncertainty".
On Thursday afternoon, Mr. Fankhauser experienced a stressful situation over his pay deal, when the company faced shareholders during its annual general meeting.
In all, around 22% votes of the shareholders were against the group's remuneration policy, whereas 23% stood against its remuneration report, even though both were passed.