The company of Thomas Cook is the parent organization of Thomas Cook Ireland and United Kingdom,…

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The company of Thomas Cook is the parent organization of Thomas Cook Ireland and United
Kingdom, Condor Airlines along with other such related subsidiaries until the year 2007,
when there had been a merger with MyTravel Group PLC. The combination of this new
organization had been known as Thomas Cook Group PLC. This had also been listed under
the London Stock Exchange (Calder 2013). In the current era, it has been identified as one of
the leading travel groups across the globe, with an appropriately focused strategy, a portfolio
of brands leading the market, a flexible model of business, and a team of approximately
31,000 individuals (Ahwere 2012). The entire group shows commitment towards the
achievement of vision. The vision is to go further for making the dreams of others come true
(Ingle, 2008). The organization gives huge importance to the customers and is focused on
delivering sustainability in valuing the shareholders.
This essay will be discussing the product portfolios and relative profitability of the
organization in context with the current business model being used by the organization. This
business model will be interrogated by stating how the organization has been making money
to show the interaction amongst the market of product and the market of capital. Different
frameworks will be used for describing the portfolio of the products and services being
provided by the organization.
Background of Current Architecture and Operations
The team of management at Thomas Cook has been making robust and encouragement of
progress is being done by the organization since recent times. This focus is being created
irrespective of the weak climate of economy and other conditions that impose challenge. The
results of the group had been influenced by the challenging environment of trade and
economy, but, irrespective of this, the organization has been delivering significant
improvement in the performance of cash flow and the underlying amount of profit in
adjustment from the operations being conducted (Williamson 2012). The progress had been
made by the organization due to a number of initiatives in the strategies like management of
destination, synergies of airline and Online Travel Agent being set for all time online
Current Business Model
The organization of Thomas Cook is one of the leading leisure travel organizations across the
globe, with its operational activities in 17 different source markets. The core model of
business is that of the operator of tour that sources components of having a holiday like
accommodation and air travel. This is done either by the creation of value for the customers
by themselves or by using the sources of third parties and procuring them, and then initiates
sale in different packages or only on the basis of specific components for the customers
through channels that are present online as well as offline (Coleman 2008). The organization
has been enjoying top most positions in the market, in context with its revenues amongst the
traditional operators of package tourism in majority of the significantly related source market
based in Northern parts of Europe, Germany and United Kingdom.
The business of tour operator is given support by the airlines in- house. The airlines is
focused on providing services to the organization along with the third parties that include
individual groups and other operators of tour as well (Ingle 2008). The airlines has been
contributing towards approximately 17 per cent of the gross revenue of the organization.
The model of tour operations seems to be having some adaptations in local context within
each and every market, being dependent upon the level of integrating vertically amongst the
channels of distribution, tour operators and the airlines. This helps in linking the business
products or services with the business market. In the market of Belgium, Northern part of
Europe and United Kingdom, the model of business is that of vertically integrating the tour
operators as well that is largely based on the utilization of their own business of airlines. The
distribution of product is controlled by the call centers, websites and retail outlets. In the
market of Germany, however, a significant ratio of the requirements of air capacity being
sourced by the Condor Airline of Germany. The distribution of majority of the travel services
and products is done by the travel agents who are third parties (Ahwere 2012). In the markets
of source, where the operations are not conducted by the airlines, all of the requirement of air
capacity are being sourced from different third parties, and in general, there is lower degree
of distribution being controlled, in comparison with the markets of vertical integration.
(Fig: Product Life Cycle of Thomas Cook’s Product)
(Source: Ahwere 2012)
Effect of Business Strategy on the Business Structure
Over the past few months, the organization has been making significant progress in the
transformation their business. The organization has now been identified as being stronger
having the ability of overcoming pressures at external level like Egypt (Coleman 2008). The
organization has been successful in being diversified with an online revenue of 3 billion
Euros by increasing flexibility in their strategies.
The efforts of the strategies are focused towards the reinvention of itself as an agent of travel
in the retailer of travel. There is an essence in the efforts of reinvention that is the
organization is not willing to sell products of third party, and change its focus of being the
middle agent (Williamson 2012). The organization has been showing willingness towards the
creation of products under their own brands, by exclusively building those and becoming a
The organization has 30 number of brands in the United Kingdom but is looking towards
culling that down. Hence, the strategy of the organization is now focused towards branding
itself with a new tagline and new logo (Doyle 2007). This will result in the creation of a new
organizational structure. The new strategy of branding has been outlined as well and this will
help the business organization to transform its structure by unification (Ahwere 2012). This is
an appropriate strategy and hence, must not be changed as with the help of this strategy the
organization will be having a unified and new brand that will be capturing the essence of the
Appropriateness of Organization Structure
The current structure of the organization is focused towards the inspiration of personal
journeys for their base of customers. The organization has transformed its structure that
involves a number of different phases (Ingle 2008). The organization has transformed
towards the improvement of better and unique model of business and has been delivering a
number of significant milestones (Farrell 2014). The organization has successfully been
building its digital and online presence in the market for the future context.
A differentiated and new portfolio of product have been developed by the organization for
inspiring the personal journeys and tours of the customer. Quality is being assured for the
sake of the customers.
With the current structure of business in Thomas Cook, a methodology has been made
available for further professionalizing the business. There is clarity in the strategy for the
initiation of growth with appropriate profitability and has availed the momentum to deliver
the targets being set (Chisholm 2010). The current structure of the organization is highly
appropriate. However, there is an increased need for translating its essence in a better way.
The promise must be made to each and every stakeholder and for the customers as well
reflecting the values in an appropriate manner. Hence, the structure must be supported with a
strategy that is high- touch and high- tech across each and every touch points of the
customers (Coleman 2008). Hence, if the brands are unified, it will simplify the process for
the customers for understanding the complete strength along with the end to end value of the
whole organization.
Impact of Technology on the Business Model
The evolution of technology has resulted in transforming the business structures and models
of organizations in the travel industry. This evolution has been increasing the rate of
profitability for the organizations (Jobber 2007). Turning around the organization with a
radical trend in technology had resulted in overhauling a number of great challenges within
the business processes and structures of the organization. Since recent times, the organization
has been taken over by the organization of Germany which had been less than happy with the
figures of performance. The program of transformation involved three different stages (Ingle
2008). The first was focused on restructuring and reducing the cost. The second phase is
focused on the enhancement of performance that is still under its way. The third stage is
related to the initiation of growth.
Product Market Conditions and Strategies of Thomas Cook
Thomas Cook has been weathering the general slowdown within the market of travelling due
to the planning of future and innovations of products for targeting the niche markets (Kim
2006). The organization has been showing hope towards sustainability in growth by creating
a focus on these products of niche market, and promotion of them within the markets being
targeted (Williamson 2012). When there are challenges faced in the market, the challenges
can be used as significant opportunities.
Niche Segments
As stated by Menon, Thomas Cook has been focusing to roll out the products for each and
every segment being targeted. There have been a launch of a number of different packages
for the convenience of the customers being targeted. Therefore, the organization should be
offering a number of different experiential itineraries for this particular segment that include
the capitals of stay in party related to the global industry (Weiermair 2003). Glacier and
alpine trekking, and fissure snorkeling. Learn and travel had been another significant product
that had been tailormade for the population of youth, specifically students of university or
schools (Mae 2011). The interaction of the product with the market is being done with the
experiences of learning. These newly developed product will be launching different
itineraries for travelers who are women, for luring the niche segments for inspiring them.
Travel Products for the Audience of Region
Another extremely important story of success in Thomas Cook is the introduction of tailor
made itineraries for the markets based on different regions. These had been itineraries for the
success and its fast speed. The launch had been made with the help of the sponsorship being
presented by actors, actresses and models from different cinematic industries (Ahwere 2012).
The tour managers who spoke to the languages of region, getting prints of brochures in the
languages of different regions, and these products also served cuisines of different regions
being involved in the trips (Ramaseshan 2004). It has been found that if the brands are
unified, it will simplify the process for the customers for understanding the complete strength
along with the end to end value of the whole organization.
Advantage of Thomas Cook
In the initiative of uniqueness, the organization of Thomas Cook has started the company for
the management of destination conducting operations for the continent Europe. In this
initiative contract has been made with a number of hotels with different ranges for the
initiation of different options in the place of market (Armstrong 2009). This will help in
simplifying the efforts being put in by customers for looking for what they want and what
will give the best return on their investment.
Other Verticals
The organization of Thomas Cook had previously not been a player in the sector of banking.
However, a new launch has been made by the organization for improving the convenience of
the base of customers. With high degree of security and features for the switchover of
currency, this is the card for making prepaid payments for the services and products being
provided to them (Ingle 2008). This has been a favorable act for a number of customers
across the globe and this has resulted in improving the level of satisfaction amongst majority
of the organizations. The organization has been leveraging their online space for the
empowerment of customer and giving them an option of purchasing foreign exchange,
packages, and online mode of prepaid cards.
The department of management at Thomas Cook should be focused on endeavoring the
effective interrelation with the involvement of employees at each and every related level of
the business organization for sharing of information with highest potentiality in order to
maintain pertinence in the changes being involved in the policies and strategy of the business
organization (Williamson 2012). The carrying out of communication and interrelation should
be done by the department of management as well as the physical and web sphere with
respect to electronic mails, online chat, and the ways to circulate the internal magazines in an
effective manner. The organization of Thomas Cook seems to be working on the basis of
integrated model of business. However, the application of this model must be done by the
incorporation of design for packaged tours and individual tours and should also be providing
assistance to the customers with respect to insuring and financing their activities of tour and
tourism. In the similar manner, the business organization should work to gain enhancement in
the base of customer by carrying out the business operations through the sources of retail.
Conclusion and Recommendations
Considering the internal analysis of the business organization, it is important for reflecting
the engagement of employees within the organization. The engagement of employees should
be done in a manner where there is involvement of people in alignment with the related
activities and showing concern towards the culture inherited and the values being followed by
the business organization. Therefore, it can be stated that the engagement of employees is
showing high consciousness towards values and culture of the organization. As a significant
point of recommendation, it can be stated that it is extremely important for the effective
achievement of objectives and goals set by the business organization (Williamson 2012). This
enhancement will contribute in bringing enhancement in the degree of relatedness that his
held by the employers in front of the groups of employees. Hence, it can be stated that all of
these recommendations will help the organization of Thomas Cook for being more successful
at a significant rate and in a better way in alignment with the needs of the industry as well
Drawing together with the capabilities of the technology, the organization must be focused on
bringing consistency in the platform that will help to extend the dynamic packaging
capabilities of the group (Scuffham 2009). There is a need for bringing assistance in yielding
the management, and creating a multiple channel, unified and seamless experience of the
customers while interacting with the organization through the products and services being
presented by them. Hence, the organization must show consideration towards making larger
investment within the market of technology (Williamson 2012). This will definitely result in
proving better systems and capabilities that already involve existence within the organization
and extending these all across the globe. In the overall context, it can be stated that the
organization has more scope for aligning the business strategies with the generation of
profits. This will definitely result in boosting the success of the organization in the industry of
travel and tourism and amongst the customers.
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Edition. London: McGraw-Hill.
Armstrong, G. 2009. Principles of marketing. Chapter 1, 8th edn, Prentice-Hall.
Calder, S. 2013. Thomas Cook's European Rail timetable reaches end of the line. The
Independent. Retrieved 2 July 2013.
Chisholm, H. 2010. Cook, Thomas. Encyclopædia Britannica (11th ed.). Cambridge
University Press.
Coleman, K. 2008. Millennium. Transworld Publishers. pp. 231–233.
Doyle, P. 2007. Building successful brands: the strategic options. Journal of Marketing
Management, 5(1), pp. 77–95.
Farrell, S. 2014. Thomas Cook shares crash amid shock departure of Harriet Green. The
Guardian. Retrieved 26 November 2014.
Ingle, R. 2008. Thomas Cook of Leicester, Bangor: Headstart History
Jobber, D. 2007. Principles and practice of marketing. 5th edn, McGraw-Hill.
Kim, H.J. 2006. The impact of co-branding on postpurchase behaviors in family restaurants.
International Journal of Hospitality Management, 25(2), pp. 245–261.
Mae, J. 2011. Thomas Cook and Co-operative merger given provisional go ahead. Marketing
Magazine. Retrieved 5 October 2013.
Ramaseshan, B. 2004. An investigation of the antecedents to cooperative marketing strategy
implementation. Journal of Strategic Marketing, 12(2), pp. 71–95.
Scuffham, M. 2009. Arcandor banks launch Thomas Cook share placement. Reuters.
Retrieved 5 October 2013.
Weiermair, K. 2003. “Product improvement or innovation: what is the key to success in
tourism?,” In: OECD Conference on Innovation and Growth in Tourism. 135.
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