Recently there has been a lot of bad news surrounding Thomas Cook. In fact, the company has announced that it’s cutting a number of jobs in order to stem losses. Ever since that announcement was made, people have been wondering what Thomas Cook is going to do to stay moving forward. The chief executive of Thomas Cook, Harriet Green, has released a statement to address this concern.
According to Green, Thomas Cook is going to try to boost its profits by more than £334 million. They hope to do this over the next three years. In order to do this, the company is going to count on two things. First, they will be making further cuts. Secondly, they are going to rely more on their online operations.
So far, it seems like the stock market is responding well to these announcements. In fact, these changes saw shares of Thomas Cook rise nearly 15%. This puts Thomas Cook’s shares at their highest level in nearly 19 months. This is pretty amazing considering the company recently announced that they were closing a number of stores, as well as cutting a number of jobs.
Although things at Thomas Cook have been rough, Green has done a wonderful job trying to get the company back on track. In fact, she has managed to help the company save close to £160 million by working in a number of cost saving measures. For her, however, this is not enough. She already has plans to help the company save a further £50 million.
Green also says that her company needs to move from a turnaround into a transformation. Simply hanging in there is no longer an option. Thomas Cook needs to create a simplified business plan that it can use to restructure its business. In turn, this will translate into profitable growth, which is just what Thomas Cook needs.
What Thomas Cook wants to do now is make sure that it can increase its profits. It wants to do this by focusing more on its online business. Right now a quarter of the money that Thomas Cook made in 2012 came from their online business. Now the company wants to focus on driving up more web sales to help catch up to its number one rival, TUI Travel.
In order to make this happen, Green has brought in a digital advisory board. Their goal is to help revamp what the company is offering as far as online services go. Not only that, but they are going to simplify what Thomas Cook is offering online by reducing its online brands to just three in the UK and one in Germany. This should help improve performance by giving Thomas Cook less to focus on.