Thomas Cook has confirmed it is going to cut further costs of £50 million and lift as much as £150 million throughout the disposal of non core businesses as portion of a large-ranging option to return the tour operator to health.
It comes because the tour operator outlines plans to focus its resources on online sales because it seeks to come back to profitability.
New chief executive, Harriet Green, is targeting sales growth of at the least 3.5 per cent a year by 2015 as element of the turnaround, with a view to see the vacation giant adopt a “high tech, high touch” approach.
“Building on its trusted brand and 171 year heritage Thomas Cook will deliver personalised holiday experiences through a high-tech, high-touch approach,” explained an announcement.
Green added: “Our Business Transformation plans are prior to schedule and already delivering substantially
improved performance, which led to our recent return to the FTSE 250.
“We have exceeded our initial commitments and today announced one other £50 million of cost out actions, bringing the entire profit improvement actions identified already to £350 million, £290 million of that’s still to come back stabilising the business have been our priority through addressing our cost and cash challenges, and strengthening the leadership team to create a greater, aligned organisation serious about rigorous execution.”
Thomas Cook didn’t provide any longer detail on disposals but analysts have mooted brands including Luxury travel agent Elegant Resorts, long-haul specialist Gold Medal and Neilson as possible candidates on the market.
The new strategy could be certainly one of simplification, concentrated on delivering trusted, personalised holiday experiences delivered through a high-tech, high-touch approach, Thomas Cook said.
This have been in accordance with extensive research and analysis including a comprehensive, in-depth survey measuring the attitudes and changing needs of virtually 18,000 travellers, validated against the experiences of lots of Thomas Cook’s own customers.
Green continued: “We are excited to now reveal our new strategy in response to four cornerstone principles; delighting customers with trusted, personalised holiday experiences through a high tech, high touch approach.
“Based on comprehensive consumer research we aspire to occupy a novel position available in the market through our new strategy, deliver industry leading margins and customer loyalty, whilst maintaining consistent quality which might be trusted.
“We will expand our already successful hotel concepts; and build a brand new portfolio of flexible, trusted services; making a single gateway for purchasers to access personalised recommendations, specifically tailored to satisfy their needs.”
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