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Tour Agency Thomas Cook Turns to Investors for Help

Tour Agency Thomas Cook Turns to Investors for Help
Jennifer Billock

Tour agency Thomas Cook has been struggling with revenue and is now talking to shareholders about a rescue deal to help it continue operations. If you have a trip booked through Thomas Cook, don’t worry. The company is confident that travelers will continue to be able to take their vacations.

Tour operator Thomas Cook has been struggling to keep revenue up where it needs to be, and the situation recently came to a head. The company is now in talks with banks and its largest shareholder, Fosun International, to have the investor buy the business. Fosun International is a Chinese investment company and not the ideal solution for Thomas Cook, but CEO Peter Fankhauser told BBC it was the most “pragmatic” option.

Customers with vacations booked through the service don’t need to be concerned, Fankhauser said.

“They can book with us without worries,” he told BBC. “We have enough resources to operate our business so they can enjoy their holidays with us.”

The company is protected by the Air Travel Organiser’s Licence, a program for UK travelers that stops them from losing their money or getting stranded if the company they booked through goes belly-up. They also won’t be forced to pay more to fly home with a different company or airline.

Hopefully, the influx of cash from a deal with Fosun will keep Thomas Cook operating at least through the end of 2020. The company has cited a few reasons for the recent drop in revenue, including increased online competition and a heatwave that truncated bookings.

 

[Featured Image: Thomas Cook]

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