Thomas Cook

[Dr House]

So. I have a package booked with love holidays. Out with easy jet but back with TC. They have refused to book my on another airline back. Only offered me a full refund or refund only the fair I paid for the flight back so I have had to fork out £1.5k for flights back.

I could have cancelled but Coordinating time off work for more than a few days is normally next to impossible

 

[HEADRAT]

So it seems that Hays Travel has picked up Thomas Cook's store network, I was just watching an interview with John and Irene Hays (Managing Director and Group Chair of Hays Travel). They seem like such nice people, I'm going to book my next holiday through Hays

 

[Rotty]

I've known about this for a week but was asked not to say anything, my sister who was a TC manager with 3 stores has been training with them since start of week

 

[dowie]

its not even profit margin... more additional profit margin. So on a hotel for a week say costs £3000 All inclusvie. about 7-15% of that ( depending on the supplier ) would be commission. IF you booked that product direct then you would pay £3000... however there is anything up to £450 commission on that. Me as an agent for that supplier if there was £450 commision on that would sell that to you with say £250 discount on it. the buisness I work for then would get £200 profit out of that and you would get the product for £250 cheaper that what it would be to book direct.

Sounds like you're undermining the system a bit tbh... like presumably the supplier themselves have agreements to not undercut their own agents when selling direct but if some agents then decide to work on a budget model and essentially offer a rebate/discount then that sort of abuses the whole set up - someone who you've not necessarily sold to or done anything to warrant the sale might want a specific holiday, shop around and choose to book with you rather than directly (that's perfectly logical from their perspective but I'm surprised if the suppliers themselves are cool with it).

 

[Rroff]

So it seems that Hays Travel has picked up Thomas Cook's store network, I was just watching an interview with John and Irene Hays (Managing Director and Group Chair of Hays Travel). They seem like such nice people, I'm going to book my next holiday through Hays

I hope they've thought this through - doesn't seem the wisest move in the current conditions when Hays is only just stable. Does seem like they are better managed than TC though.

 

[413x]

I hope they've thought this through - doesn't seem the wisest move in the current conditions when Hays is only just stable. Does seem like they are better managed than TC though.

Seems crazy to me.
Mike Ashley has even been caught out on his last spending spree

 

[Rroff]

Seems crazy to me.
Mike Ashley has even been caught out on his last spending spree

Depends a bit how many of the stores are owned or rented which isn't really clear in the articles - makes a bit more sense if they can acquire a lot of the estate but otherwise landlords are no doubt going to try and gouge them on rent agreements.

 

[413x]

Depends a bit how many of the stores are owned or rented which isn't really clear in the articles - makes a bit more sense if they can acquire a lot of the estate but otherwise landlords are no doubt going to try and gouge them on rent agreements.

In the general retail sector I don't get what landlords are playing at. The rent they charge is surely going to leave them with nothing eventually ?

 

[Rroff]

In the general retail sector I don't get what landlords are playing at. The rent they charge is surely going to leave them with nothing eventually ?

Hah I was going to comment on that but it was a bit of a tangent - there seems to be a vicious circle of "market rate" rent increases. One of the shopping parks near me half the premises are empty because the landlord keeps just increasing rent massively (I know someone who has a shop there) and then tries to squeeze the shortfall in rent out of the existing tenants when some of the shops are sitting there empty which is just going to see the whole complex empty eventually as leases run out and you just wonder what is going through their minds especially at a time like this when retail is struggling anyhow. It is also making business more challenging for those that are still there as footfall has decreased with the loss of several big name shops.

 

[Scania]

So it seems that Hays Travel has picked up Thomas Cook's store network, I was just watching an interview with John and Irene Hays (Managing Director and Group Chair of Hays Travel). They seem like such nice people, I'm going to book my next holiday through Hays

Seems a very bold thing to do, doubling the workforce and taking on a huge number of high St shops bearing in mind I've read of £10M profit last year on a turnover of £379M which isn't the best of margins, given its large property portfolio played a significant if not deciding part in the demise of TC I really wonder if buying that portfolio is the right long term move for Hays...

I hope it is, they sound like a well run and respected company but I fear this could end in tears.

 

[LeeUK]

Seems a very bold thing to do, doubling the workforce and taking on a huge number of high St shops bearing in mind I've read of £10M profit last year on a turnover of £379M which isn't the best of margins, given its large property portfolio played a significant if not deciding part in the demise of TC I really wonder if buying that portfolio is the right long term move for Hays...

I hope it is, they sound like a well run and respected company but I fear this could end in tears.

Hays don't have a fleet of planes and hotels to deal with unlike Thomas Cook, they just book holidays.

 

[Scania]

Hays don't have a fleet of planes and hotels to deal with unlike Thomas Cook, they just book holidays.

Yes quite, which is why I said the property portfolio played a part but not a deciding one in the ultimate demise of TC.

just not convinced that such a huge expansion into bricks & mortar retailing in an age where frankly you’d be daft to not book online or at least check online prior to making your choice is the right move...

To sell many products you need shops and staff to do so realistically - a holiday isn’t such a product these days.

I’ve not booked a holiday via a high St agent in years and don’t know of any friends who have either, it’s all online.

 

[LeeUK]

Yes quite, which is why I said the property portfolio played a part but not a deciding one in the ultimate demise of TC.

just not convinced that such a huge expansion into bricks & mortar retailing in an age where frankly you’d be daft to not book online or at least check online prior to making your choice is the right move...

To sell many products you need shops and staff to do so realistically - a holiday isn’t such a product these days.

I’ve not booked a holiday via a high St agent in years and don’t know of any friends who have either, it’s all online.

They probably will end up hitting problems by over stretching themselves and end up downsizing/restructuring in a few years time. Happens all the time when companies more than double in size over night from buy outs.

 

[Andrew_McP]

In the general retail sector I don't get what landlords are playing at. The rent they charge is surely going to leave them with nothing eventually ?

I used to think this too, but I believe they're betting on eventual redesignation and redevelopment as multiple residential flats which will generate plenty of more stable income (averaged out) in a market where demand for accommodation is only going up.

 

[jpaul]

just not convinced that such a huge expansion into bricks & mortar retailing in an age where frankly you’d be daft to not book online or at least check online prior to making your choice is the right move...

they mentioned they/hayes have 6 months to re-negotiate leases on the properties and will then decide on the future of the branches.
Will no one think of the childrenpension-fund ? or .. guess, they have avoided that liability by engaging now.
so - hope it's not like debenhams.

 

[LeeUK]

they mentioned they/hayes have 6 months to re-negotiate leases on the properties and will then decide on the future of the branches.
Will no one think of the childrenpension-fund ? or .. guess, they have avoided that liability by engaging now.
so - hope it's not like debenhams.

From what I saw on the news, Thomas Cook only employed blonde bimbos and shouty type wimin in their stores who probably don't care about pensions as long as they have their job back.

 

[Rroff]

I used to think this too, but I believe they're betting on eventual redesignation and redevelopment as multiple residential flats which will generate plenty of more stable income (averaged out) in a market where demand for accommodation is only going up.

Couple of places in town I just moved from I'm pretty sure did that - but in the case I posted about above the land is unsuitable for housing for several reasons.

 

[IceWind]

Sounds like you're undermining the system a bit tbh... like presumably the supplier themselves have agreements to not undercut their own agents when selling direct but if some agents then decide to work on a budget model and essentially offer a rebate/discount then that sort of abuses the whole set up - someone who you've not necessarily sold to or done anything to warrant the sale might want a specific holiday, shop around and choose to book with you rather than directly (that's perfectly logical from their perspective but I'm surprised if the suppliers themselves are cool with it).

if they were not cool with it then they would not let us sell their product.

This is the business model that travel has been for decades. Suppliers dont want to have the overheads of hundreads of shops or call centers or staff in general to deal with the general public. By doing it this way they can keep their overall costs down and profits up

 

[Ahleckz]

No idea what Hay's are thinking, they must have a plan but can't fathom what it is. I can't see how this is going to be anything but a massive failure for them. They'll get a short bump but the high street travel agent business is dying.

 

[Rotty]

Thomas Cook only employed blonde bimbos and shouty type wimin .

That's a bit of a generalisation, my sister was a TC branch manager

Oh hang on, she fits both of those descriptions