ASSIGNMENT - RESEARCH

Do a study of the collapse of Thomas Cook and how it

affected stakeholders

Thomas Cook was a 178-year-old travel company and one of the world's oldest tour operators.
However, the company faced financial difficulties due to a combination of factors, including high debt,
changing consumer behaviour, online competition, geopolitical unrest, and Brexit uncertainties. In
September 2019, Thomas Cook collapsed, entering compulsory liquidation, leaving hundreds of
thousands of travellers stranded and causing the loss of thousands of jobs.

How it affected stakeholders

. Employees:

Loss of job : Around 21,000 employees globally lost their jobs, including pilots, cabin crew, travel agents,
and various administrative staff.

Financial Impact: the sudden unemployment led to financial strain for these individuals and their
families.

Customers

Stranded Travellers: Roughly 600,000 travellers were left stranded across the world, facing uncertainty
about their return flights and accommodation. Many had to be repatriated by government rescue
efforts.

Cancelled Bookings: Customers with future bookings faced cancellations and uncertainties about
refunds

Suppliers:

Unpaid Bills: The collapse led to unpaid bills to various hotels, airlines, and other suppliers, impacting
their revenues and operations.

Business loss: Some suppliers, especially smaller ones, suffered significant financial losses due to unpaid
invoices.

Shareholders and Investors:

Financial Losses: Shareholders faced substantial financial losses as the company's value collapsed. The
stock became virtually worthless after the liquidation.

Wider Tourism Industry:

Impact on Competitors: The sudden exit of a major player affected the tourism landscape, leading to
increased pressure on competitors and reshaping the industry dynamics.
Destinations: Some tourist destinations heavily reliant on Thomas Cook suffered from a sudden drop in
visitors, impacting local businesses and economies.

Government and Regulatory Response:

Repatriation Efforts: Several governments, especially the UK, led repatriation efforts to bring stranded
travellers back home.

Inquiries and Investigations: Governments conducted investigations into the circumstances surrounding
the collapse, seeking accountability and potential changes in regulations to prevent similar occurrences.