Tough summer season ahead of the two biggest tour operator in Europe

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The two biggest tour operator in Europe – Thomas Cook and TUI, are facing tough summer season against the backdrop of recent terrorist attacks, British referendum and the events in Turkey.

After the terrorist actions in France and Belgium this year, the two companies have reported an outflow and a number of canceled reservations of their clients. In parallel, the shares are still depreciating and forecasts in the short term don’t include positive results, writes Independent.

Even before the vote in Britain indications were not good. In May from Thomas Cook announced that their reservations for the summer months were 5% down compared to the previous year.

Since the beginning of the year, the company’s shares have lost 47% of their value, while those of TUI – 21,5%.

After the referendum, there is a more noticeable withdrawal of British consumers. Due to the depreciation of the pound against the euro, holidays in Europe come more expensive for the British.

Last week, from TUI, said that they have sold 70% of holidays booked from Britons earlier. 30 percent, however, still are not paid.

The largest outflow is from Turkey, as from May the demand for tours to destinations there sharply declined. Both tour operators have already seriously reduced the number offers for tours in Turkey.

 

About the Author

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Stefan Kachakov
My name is Stefan Kachakov and I’m working as content writer at Business News Feeds. I'm writing for business news, finance statements and business management for North, Central and South Americas and Europe.

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