This archive report was first published on 24 September 2019.
September 24, 2019, marked a significant day in the travel industry as Thomas Cook, a 178-year-old company, collapsed, leaving millions of travelers stranded worldwide.
The collapse of Thomas Cook has highlighted the need for travel agents to adapt to the changing market, where consumers are increasingly booking their own travel arrangements online.
According to Jean-Pierre Mas, head of the trade association for French travel agencies, the younger generation is organizing their travel for themselves more and more, and those who travel in a more classical way are also seeking a more personalized experience.
"We need to offer some flexibility," Mas added.
Didier Arino, head of the Protourisme consultancy, noted that Thomas Cook failed to move with the times, citing its inability to embrace the web.
"Thomas Cook failed because it didn't move with the times," said Markets.com analyst Neil Wilson.
The collapse of Thomas Cook has left millions of travelers stranded, with Britain starting the repatriation of an estimated 150,000 travelers on Monday, with the first batch of about 15,000 arriving in London on Tuesday.
Europe is facing a more daunting predicament, with over 600,000 of its nationals at various destinations across the world.
One couple, who had booked a surprise wedding with Thomas Cook, may not be able to go ahead with their plans as the company was sponsoring the entire package.
"The real structural problem for them -- and this is probably the biggest management failure - is the fact that since the early days it didn't foresee that the internet was going to be such a strong and dominant force and it did not invest enough in that," said investment research analyst Helal Miah at The Share Centre.
Market players are now keeping a close eye on another giant in the sector, TUI, which is also facing difficulties, particularly due to the grounding of its fleet of Boeing 737 MAX aircraft.
