Thomas Cook Airlines Seeing Better Days Soon



Thomas Cook share value is currently down, but sees brighter days just around the corner.

Thomas Cook share value is currently down, but sees brighter days just around the corner.

Shares of Thomas Cook, travel operator, are sitting at a pretty low level currently.  Actually, they are at the lowest point since the end of 2008.  Of course there was good reason for it to be low in 2008.  The banking system was near total collapse and the recession was just gaining speed.  Although the travel operator has seen tough times with weak share value, confidence in Thomas Cook is increasing for the rest of 2010.

Like other travel operators in the area, the volcanic ashe as well as having good weather here has negatively affected business.

But, one thing that has been a bright spot for the airline is that German bookings have risen 3 per cent this year.  Also, instead of low status, low margin, and short haul flights, they are opting for high status, high margin, and medium haul flights.

The average selling price for this year is up 3 per cent to 522 pounds and next year’s prices will increase another 2 or 3 per cent.  Overall, more than 70 per cent of the group’s UK customers travel medium range to destinations like Egypt, Turkey and the Canary Islands, compared with just under 70 per cent last year.

For all the UK holidays sold, almost 50 per cent are on an all inclusive bound basis, up from 40 per cent last year.  Also, up from 42 per cent last year are the 4 and 5 star accommodation summer holidays, which are holding at 44 per cent.  The company has plans to boost the proportion to 57 per cent next year.

Holiday firms have not been so successful as of late.  Sun4U closed its doors last week and left several hundred stranded in Spain.  Firms like this shutting down help Thomas Cook because it almost forces holiday goers to purchase their boarding directly from Thomas Cook and it takes capacity out of the market.

Thomas Cook looks forward to releasing its bookings for August on Sep 14.

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