Late sass – UK recession led to the decline of number of trips and time spent abroad. 11% of trips were between one and three nights. This saw an increase in the number of visits to I-J holiday resorts such as Opinions and Butting, both experienced a double digit growth in bookings in 2009 (Hughes, 2010). 2013 – Survey by Barclay, which included over half of the travel industry, suggested that they expect an increase of customers in 2014, with South America being the main attraction, possibly because of the FIFE World Cup. 1. Company Background Thomas Cook was founded in 1841 Started with passenger trains between cities in England, eventually moved on to trips across Europe and to America. Cooks son John Cook had been working with him for years, they officially became partners in 1871, changing its name to ‘Thomas Cook & Son’. Company was passed down to John Cooks three sons after his death. Renamed Thomas Cook & Son Ltd in 1924 after acquiring limited liability Their lack of success led them to sell the business in 1928. Nationalized in 1948 as part of the British Transport Commission.
After being sold and bought by a number of investors it changed its name to Thomas Cook Ltd in 1974. 2002 – German company C&N Tourist GAG bought the company and renamed to Thomas Cook GAG. 2007 – Thomas Cook GAG merged with Moderately Group Pl, renamed itself Thomas Cook Group Pl to which it is still called today. Participating in the hospitality and tourism industry where they now offer everything from flights, package holidays, cruises and hotel resorts. 2012 – reported a loss of IEEE million, however managing to reduce their debt by over OHIO lion (Thomson. Mom) Despite of this they are still the second largest travel company in Europe and the I-J, behind TU Travel (CA, 2014), making them a market leader in the industry. 2. 1 Secondary Research Most research conducted was secondary, I mostly used online sources and textbooks to find information and data about the industry and my chosen company. There were many news articles which addressed issues about the industry and key trends. Thomas Cook publishes annual reports which address multiple issues. They also publish their financial records.
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On their website they have pages which give the story of the business and key dates in its lifetime. I made a simple survey which I handed out to 20 people at Murray Library. Purpose of the survey was to find out where Thomas Cook appeared on a popularity scale and then compare it to official data of the largest travel companies. I listed 10 holiday companies and asked them to rank them from 1 to 10. Results showed Thomas Cook as one of the most popular choices, falling below the fourth choice 3 times.
Virgin Holidays was in the top 3 every time except once. However data from the Civil Aviation Authority showed Virgin Holidays to be the 10th largest in the industry. . 3 Limitations There were a number of limitations while doing my research. In regards to secondary research I found it hard to find official data in relation to the holiday industry as a whole, market share etc. I also found it hard to find data on other business in the industry. Egg I could find the Virgin Groups data, however couldn’t find any for Virgin Holidays.
In regards to my primary research I believe I didn’t ask a large enough pool of people, such as people from different age groups. Also as my sample size was fairly small, therefore the results were limited. 3) Hierarchy of Strategy The Thomas Cook Groups hierarchy of strategy is pretty straightforward, with the Thomas Cook Group being the corporate brand, and then having a number of Subs below, followed by the functional departments for each SUB. The Thomas Cook Group also has a number of businesses which they are associated with. 3. Corporate The corporate level of the business is where the values and overall aims for the business come from. They are identified and created at the very top by the executive case the corporate level is the Thomas Cook Group. The Thomas Cook Group prides themselves on having a diverse group of people on the executive committee. Coming from a variety of countries and including people from different business functions allows them to control the business and set appropriate aims, values and culture in relation to the SIBS and the business functional areas from the corporate level.
Mission Statement Exceptional service from exceptional people Values Succeed as one team – support and trust each other, work as a worldwide team Deliver for our customers – deliver the best possible customer experience Engage each other – energies and inspire each other, bringing new ides Drive for results – have the courage and determination to succeed Act with integrity – maintain the eighties ethical standards These values are expected to be carried out in everyday operations at all levels of the Thomas Cook Group, and therefore aiming to reach excellence in everything they do.
In October 2013, the Thomas Cook Group reviled a new logo and motto which was part of their transformation since bringing in Harriet Green as CEO. The ‘globe logo’ and motto ‘Don’t Just book it Thomas Cook it’ was replaced by the ‘sunny heart’ logo and the new motto of ‘Let’s go. The logo will be used by the group and a number of their SSW. Harriet Green announced that ‘it isn’t Just a logo, it’s a promise’, she added hat it will show that ‘everything through our brands is connected at every level ensuring a unification of care for our customers, through every step of their Journey with Thomas Cook (Telegraph, 2013). . 2 Business Thomas Cook is the master brand of the group and so therefore holds the most weight and importance on the groups brand image and reputation. Ata business level, Thomas Cook said they wanted to be ‘high tech & high touch’, saying that 70% of travelers want a relationship with their holiday provider that goes beyond Just booking and paying.
In order to do so Thomas Cook at a business level identified here main values which they would need to focus on: Be Trusted – Trust, consistency and a strong brand are the key factors of customer choice Be Innovative – Continue to improve their online offers with leading digital innovations Be Personal – 50% of travelers fell overwhelmed with the amount of information and choice, 66% of travels want help in picking the right holiday for them (Thomson. Mom) Thomas Cook introduced the Thomas Cook Business System, where they identified the customers being at the heart of the business and then identified goals which are At a business level, Thomas Cook have ensured that everything they do from now, is entirely based on and around making sure the customers gets what they need and expect. 3. Functional Each functional department will have different aims and objectives; however they all need to work in conjunction in order for the business as a whole to operate efficiently. A) Finance The finance department can be seen to be the most important department of a business, because without money and resources, the business wouldn’t be able to operate. New product revenue of Emma by the end of 2015. Save Meme on aircraft costs including fuel and ground handling. Gross Margin improvement of 1. 5% b) Marketing
Target segments Increase presence online/social media Promote the ‘sunny heart’ c) Informational Technologies Consistent Omni-channel Be ‘high-tech, high touch’ d) Customer Service Provide excellent customer service Ensure customers get perfect trip e) Human Resource Management The role of the Human Resource Management department is to recruit and train employees, but also to monitor their progress. Right people who fit the business values Train all employees to work at a high standard Increase the productivity amongst their airline crew 4) Trends in the Holiday industry 4. 1 GAP and Inflation
The industry and the UK in general have had a bumpy ride, with a recession lasting 6 quarters in 2008/09 and then entering a double dip recession for 3 quarters in 2011/12. However data shows that the GAP has been increasing. (Office for National Statistics). This shows potential for the industry and the I-J in 2014. In addition to this, the Auk’s inflation rate (Consumer Prices Index) fell to 2. 0% in December 2013, the first time it has reached the governments set target of 2. 0% since November 2009. 4. 2 Industry Trends At the end of 2008, TU Travels projected trends in the industry for 2009.
They adding that it allows people to budget in advance, as their food, drinks and entertainment are included in the price. The suggested a number of destinations which they predicted would be the most popular in 2009. A) Long Haul – Mexico and Florida b) Mid Haul – Greece, Turkey, Cyprus and Egypt c) Short Haul – Spain, Italy, the Alger and Mandarin A number of experts spoke to The Metro (2011) and made predictions for 2011. The Association of Independent Tour Operators suggested that people would visit places that appear ‘off-limits’, adding that destinations such as North Korea, Libya and Iran eave seen an increasing in visitors.
Adding that ‘a top destination for the year would be Zanzibar’. Other experts predicted that people will visit the middle-east, but also countries were they ‘can soak up the culture’. Another key trend which was predicted for 2011 was that people would become ‘Journey Junkies’. Justine Francis said We have seen a 20 per cent year-on-year increase in the number of travelers enquiring about railway Journeys’ suggesting that flights were not the only travel method people were interested in.
A survey by Thomson (2012) showed that 58% of Bruits traveled with heir parents over the past year and 38% of them also taking their children along, suggesting that 2012 was a year of third generation family holidays, and predicting that 2013 would follow this pattern. 4. 3 Internet The growth of the internet has allowed customers to search for a holiday in depth and also allows them to access a wider choice and availability of holidays. Research by Thomson and First Choice showed that an average holiday maker will spend 8 hours researching online, with 35% saying they spend over 24 hours online looking for the perfect trip.
The research also suggested that Social Media was a huge factor n people decisions on holidays. With 30% saying pictures from friends are a key influence, and 7% saying they ask people on social networks for holiday advice, figures which they predicted would be likely to grow. 5) Thomas Cooks Marketing Strategy and Value Creation Process 5. 1 New Logo and Slogan The new ‘sunny heart’ logo and ‘Let’s go’ slogan was introduced in 2013 and was the start of the companies transformation. The logo is used for the group as well as the SSW. It was placed on all their fleet, brochures, ads and everything to do with the business.
They released TV ads showing the logo and showing customers making earth shapes with their hands. They believe the new logo shows customers that they are putting them at heart. 5. 2 Moving Online Thomas Cook announced their plan to achieve 50% of all their bookings to online; therefore they would develop their online presence. They announced they would be closing 195 stores moving from 1069 to 874 (Thomson. Com). They have recently – an interactive tool where customers can talk to travel experts and get information as if they were in a store or on the phone. ) Destination Discovery – a online tool where customers answer a few questions and the tool will recommend and give them loudly packages matching the answers they gave. Thomas Cook stated that they already have strong digital credential and therefore not starting from scratch, claiming to be the first high street travel agent to offer online booking and stating that they had mm viewers on their website in 2012(Thomson. Com) They also stated that they wanted to create an Omni-channel saying that they want to be wherever the customers want us to be.
Stating they will have a presence on EPIC Laptops, Mobile, Stores, Phone, Destination reps as well as having their own TV channel Thomas Cook TV which is available on Sky and Virgin Media. They have created a presence in as many ways as they can in order to be able to have an extensive reach to their target audience. They have also started to optimize a mobile website, where customers can and view and book holidays. In addition to this they have developed a tablet application so that they are accessible no matter what type of device a potential customer has access to.