Tour company Thomas Cook collapses; global bookings for more than 600,000 canceled

Nothing to do with Brexit. The firm has been struggling for years.

Trouble is people (most people?) can book everything themselves on line. These travel agencies are yesterday's companies which are not really needed anymore. The collapse is nothing to do with BREXIT as thinking people will understand. Very sad though, this siuation. So many other comapanies and jobs depend on TC.

Actually I am wondering why the UK government didn't bail out TC?? TC needed 200 million but it will cost an estimated 600 million to bring all stranded tourists home!

@Umbrella

I may be slightly wrong on this one case, but I believe EU regulations prevent the British Government from providing a bail-out.

This was certainly the case for British Steel, earlier this year.

OK thanks Tangerine, I didn't know that!

I may be slightly wrong on this one case, but I believe EU regulations prevent the British Government from providing a bail-out.

Not what I read. My understanding is it was a decision not to rather than being prevented to by EU regulations. They were not strictly bound by these regulations although they would have made it more difficult and maybe even embarrassing.

I'd be more worried about all those with Thomas Cook Travelers Cheques, will they be honoured or not.

Poor people. Sucks to be stranded in a foreign country, knowing you’re suddenly in a queue with 150,000 other people, and the company to whom you complain won’t be answering your calls.

I wonder if we’ll see more of this with Brexit.

I guess Brits are just becoming more 'european' hey ;). They used to love their 'package holidays'! I still remember hordes of British tourists (on their all-inclusive holiday) in spain, italy, portugal, turkey, south france etc in the 80s & 90s (very much like today's chinese i.e buses, tour guides, same markets/shops etc). back then I used to think 'what's the point of traveling if you're not going to talk to the locals & other euros?!'

Camping grounds were full of Dutch, German, belgian, french, Italian, scandinavian tourists but very few brits. I think they loved their comfort (more than euros did) and knew/feared most locals wouldn't speak much english and just didnt want the hassle I guess. Euros on the other hand all spoke (or tried to speak) 'some' spanish, italian, french etc i mean enough to get by.

Euros & brits all mingling together in bars & clubs though. Those were the days!

RIp thomas cook.

I may be slightly wrong on this one case, but I believe EU regulations prevent the British Government from providing a bail-out. This was certainly the case for British Steel, earlier this year.

It's not so clear. In the British Steel case, it was the UK government that said it was restricted by EU rules, but that wasn't really tested. There seemed to be no issue when the UK government bailed out the banks. From what I understand of EU State Aid rules, the general purpose is to prevent subsidies that will favour one company over others. But aid is allowed to enable a company to restructure itself and get back into a stable position. Aid in such cases should be on commercial terms.

I wonder how many of the employees voted to Brexit because of immigrants taking their jobs.

Maybe the board of executives shouldn't have paid themselves £20 million in bonuses as the company was losing money over the last 2 years, then, eh?

Standard robber-baron economics...plunder a company then let the taxpayer sort out the chaos.

Collateral damage from Brexit?

200 % It's not that Thomas Cook would have survived 2020 as an independent business. Merging, selling, downsizing it's the game. Bankrupcy is not. The Chinese were in the process of buying them smoothly. They had acquired half before that referendum. The delay was due to Brexit uncertainty. They can't predict if there will still be slots for UK flights to EU airports in 2 years so how can they sell ? A no-deal totally unprepared means a likely technical disruption of travel to/from UK. An additional loss TC couldn't take. The last straw that broke the camel's back.

 I believe EU regulations prevent 

Sure EU caused the Brexit... It's well known.

Trouble is people (most people?) can book everything themselves on line.

They book what ? They buy from operators, includinf Thomas Cooks. Many that reserved online are on canceled flights today.

Travellers cheques are issued from a bank.

You'll cash your cheques, but worry for the banks. For the hotels, the airlines , everybody. It's bad time for air industry now. 2 French companies fell this month already. Ryanair could fall soon.

Camping grounds were full of Dutch, German, belgian, french, Italian, scandinavian tourists but very few brits.

The UK campings were just as full of Brits... and the others are just as fond of packages. Club Med is French. Neckerman is German.

Sad demise but entirely caused by economics not brexit.

The EU rules on state subsidy are stringent and complex, would be hard to justify that saving a travel company was in the National interest, hardly a strategic asset.

I've only used a travel agency twice - in the '80s for a cruise, and about eight years ago for my first trip to Japan. Every other trip has been planned and executed online. There are still plenty of travel agencies in business, and I think there will still be many of them, in the future. We're all different, with different needs and senses of security. I feel for those stranded people, but I'm sure they'll be taken care of.

Actually I am wondering why the UK government didn't bail out TC?? TC needed 200 million but it will cost an estimated 600 million to bring all stranded tourists home!

I believe the Air Travel Organiser's Licence (ATOL) is funding the repatriations. It's essentially a travel insurance program run by the government and funded by travellers. UK passengers pay a £2.50 surcharge on most tickets to fund ATOL and cover exactly this type of situation. ATOL will probably be able to recover some of the costs when it comes time to distribute whatever remains of Thomas Cook's bankruptcy assets. In any event, hopefully ordinary UK taxpayers won't be stuck with the bill (as they would be with a bailout).