My mums friend used to work for MyTravel and she used to think that the merged Thomson group and Thomas Cook Group had huge flaws in their business model. It was fine in the 90's to focus their flying programme around 3 points - LGW, MAN & GLA. The smaller stations such as LBA, MME, LPL, EMA etc would all have the majority of their capacity sold way before the season kicks off. MAN, GLA and LGW would not as there is only the same advance booking market as all the regionals yet they would have sometimes 10-15 aircraft based at those airports. These flights are then filled by last minute bookers at a break even price.
Where I think they have both gone wrong is, when the low costs set up shop the tour ops should have embraced them and let the lcc's dominate MAN, LGW and GLA. Thomson and Thomas Cook should have expanded regional airports in a better way than they have done. This is how Jet2Holidays and easyJetholidays are growing as there still is a huge market for FLEXIBLE package holidays from regional airports yet the big two have ignored that. Say for example a few years ago if you wanted a package holiday to the costa del sol from Leeds, the only day you could take it was on a Sunday with Thomas Cook. Alternatively you drive to Manchester any day of the week and hop an a Thomas Cook flight to Malaga. Welcome the likes of Jet2 and easyJet that changed all this, and over the last year or two MAN has seen massive Jet2 and easyJet growth along with a Ryanair base. Thomson and Thomas Cook were blind, thinking they would keep a stronghold on their main airports. This has cost them dearly and as Thomad Cook was the first one to publically admit it, that has been the best marketing tool possible for Thomson and the lcc's.
Thomas Cook will be the looser here, no matter how much money is piled in, the UK sector makes a huge loss for the group as a whole. I think the likes of LBA will be safe (albeit with a third party subcontractor airline - as mentioned Monarch? Strategic Airlines? Mint Airlines? Jet2?) but the bigger airports will suffer heavily. Jet2, easyJet and Ryanair all rubbing their hands right now!
Where I think they have both gone wrong is, when the low costs set up shop the tour ops should have embraced them and let the lcc's dominate MAN, LGW and GLA. Thomson and Thomas Cook should have expanded regional airports in a better way than they have done. This is how Jet2Holidays and easyJetholidays are growing as there still is a huge market for FLEXIBLE package holidays from regional airports yet the big two have ignored that. Say for example a few years ago if you wanted a package holiday to the costa del sol from Leeds, the only day you could take it was on a Sunday with Thomas Cook. Alternatively you drive to Manchester any day of the week and hop an a Thomas Cook flight to Malaga. Welcome the likes of Jet2 and easyJet that changed all this, and over the last year or two MAN has seen massive Jet2 and easyJet growth along with a Ryanair base. Thomson and Thomas Cook were blind, thinking they would keep a stronghold on their main airports. This has cost them dearly and as Thomad Cook was the first one to publically admit it, that has been the best marketing tool possible for Thomson and the lcc's.
Thomas Cook will be the looser here, no matter how much money is piled in, the UK sector makes a huge loss for the group as a whole. I think the likes of LBA will be safe (albeit with a third party subcontractor airline - as mentioned Monarch? Strategic Airlines? Mint Airlines? Jet2?) but the bigger airports will suffer heavily. Jet2, easyJet and Ryanair all rubbing their hands right now!
