You must have heard it in the news this morning – Thomas Cook has collapsed.
Mr Thomas Cook founded the business in Leicestershire in 1841 it was for more local excursions…. with this as the first poster for the first excursion!
It’s been a roller coaster of a ride for the company which had such humble beginnings.
I’m not going to take you through the history – but the biggest problem has been, the management not waking up and reacting too late to the Digital World.
As on expert on this morning’s radio put it…
It’s an Analogue Company competing in a Digital World.
Why is it so analogue? they’ve got a website haven’t they?
Firstly, they were late to the game. When they saw everyone else with websites and apps – they were late. Then on top, they were still (until recently!) relying on their shops.
They have 500+ shops around the country. Each one of those needs to pay rent. The problem was, the money they were generating was not enough to pay the rent. So the money was coming from elsewhere. Which means, they had a business model which was not working.
The worse thing is – the management a few years ago decided to expand their shop network… this was during a time, when more and more people were going on-line to book their holidays!
Then you have the low-cost airlines. They’ve come on board and offering package deals – which are very good. And the packages being offered… Thomas Cook was still offering the ‘Fly and Flop’, where you fly and then just sit/rest by a beach or resort. People’s habits have changed – people want to explore, walk around, do tours/visits, etc…
It’s sad to see that the company couldn’t embrace the Digital World. They should’ve expanded their online and digital presence.
With this in mind – I’m helping organisations to Get Digital! – To ensure they’re embracing the Digital World… and don’t end up like Thomas Cook! If you’d like more information – get in touch… you can email me, you can reply to this blog, you can find me on Twitter… there’s various ways you can get hold of me.
It’s a real shame… and a very sad story, to see this great company (which it once was)… start with such a great idea… for it to ignore the Digital World.
So, from the first poster… to the last hand out from Thomas Cook…
2 replies on “178yrs… and that’s it!”
It is such a shame.Its been going so long. i too was like most, shocked how they couldn’t make money when everyone goes on holiday, but i think you have nailed it. With so many cheaper flights out their of course people will be using it. I too “google” the cheapest flights and its never them.
Its always online also, and like you say thats what the problem is. Perhaps they will respawn online only, like Woolworths (now part of Very), HMV (more online), Zavvi, etc.
Agree – but the business model and delay embracing digital let them down.