Thomas Cook predicting tourism to worsen in 2010

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Europe’s second-largest travel group, Thomas Cook, has revealed that it is reducing capacity as its German business chief predicts that the tourism sector will continue to worsen through 2010.

Peter Fankhauser said that 2010 “will be even more difficult than this year,” in comments during an interview at Berlin’s International Tourism Fair. The travel company wants to reduce its costs as bookings decline, Fankhauser added.

After a “very bad” January, bookings have begun to recover in recent weeks. January is considered to be the most important month for advance bookings for the summer holidays, he noted.

Thomas Cook may still meet sales targets for the summer if there are sufficient last-minute bookings, Fankhauser said.

So far this year, shares in the UK-based travel giant have gained 30 per cent, in spite of an overall bear market and declining consumer demand. After a spate of bankruptcies last year, capacity in the industry was reduced, as was the need to offer discounts.

In Germany, Thomas Cook and its larger rival, TUI Travel, extended the discount period for advanced bookings last month. Thomas Cook has now extended the discount period, with as much as 30 per cent off standard pricing, through the end of March.

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