Thomson reports 'fabulous' demand as Dreamliner arrives

Thomson Airways flew its first Dreamliner into Manchester rather than London Gatwick on Friday as a mark of its support for regional airports.

Managing director Chris Browne said:  "Manchester is really an important airport for us. The Thomson airways boss told Travel Weekly: "We're a big supporter of regional airports.

"We were based in Manchester when we ordered the aircraft."

Browne hailed Tui Travel's announcement on the day the Dreamliner arrived of a deal to buy up to 150 of the latest short-haul Boeing 737s as "huge".

She said: "It's about confidence in the future. The business is doing so well. It's great we can invest so much.

"We had to place the order now to get the options on aircraft or we would have to wait. You could not get a 787 now for years."

Browne described demand to fly on the Dreamliner as "fabulous" despite the delay in delivery. Thomson had been due to start its summer flight programme to Florida and Cancun with the 787 on May 1.

However, the aircraft was grounded worldwide in January following a battery fire and only resumed flying last month.

Browne said: "It's the first time I've ever known people book a holiday because of an aircraft. The summer programme is pretty much sold up. Winter is selling fabulously."

Thomson will launch 787 flights from Manchester and Glasgow on July 8. But prior to that, "There is a serious amount of training for the crew before we begin flying," said Browne.

Thomson plans to operate 47 short-haul flights with the 787 between June 21 and the July 8 start of the long-haul programme."
Browne said: "A lot of people will be very pleasantly surprised."

She said no customer had registered concern about flying on the Dreamliner. "Customers have been very understanding. They trust Thomson and Boeing not to put an unsafe aircraft in the air."

Thomas Cook TV ad banned after consumer complaints

Thomas Cook TV advert has been banned after viewers claimed it could cause harmful copy-cat behaviour among children.

More than 100 complaints were made against the ad which showed a holidaymaker remove a valve from a wheel of one of the company's coaches with a pair of pliers to cause a flat tyre in an apparent bid to avoid returning home from a sunny destination.

The advertising watchdog ruled that the Thomas Cook campaign was "irresponsible" after it received 118 objections.

The Advertising Standards Authority upheld complaints which suggested children could emulate the potentially dangerous scene.

The ASA ruled: “Although we were satisfied that adults would not view the ad as condoning the act of removing the tyre valve, we considered that children, including teenagers, were unlikely to identify the fantastical nature of the story.

“We also noted that the scene in which the tyre valve was removed was central to the ad's narrative and, because of the risks to children in emulating that action, considered that the ad unreasonably featured that behaviour.

“We therefore concluded that the ad was irresponsible.”

Cook argued that the “horrified and outraged” reaction of the other holidaymakers in the ad indicated that the behaviour of the man letting down the tyre was not condoned.

The company said it did not consider that the ad was irresponsible because it clearly showed a comical scene and the man's actions were immediately challenged as being wrong.

Will Tui bring in single pricing? It 'could'

By Lee Hayhurst 

Will Tui Travel stay good to its word and bring in single pricing across web and offline, following the move to price parity by rival Thomas Cook?

The travel giant was early out of the traps last year in indicating this was its ultimate intention when travel distribution and online directorNick Longman addressed the Travel Convention in Turkey.

He indicated that a move to flat pricing would happen within two years as Tui rolled out its new Phoenix in-store technology system and would see agents add a service charge.

But last week his former UK boss, Johan Lundgren, now chief executive Peter Long's deputy, struck a more cautious sounding note while accepting the logic of single prices across multiple channels.

As Tui revealed plans for new generation concept stores last week, Lundgren stopped short of promising to bring in flat pricing or setting a date by which it would be implemented.

He told Travel Weekly: "It's not unlikely that this will come at some point. There is logic to the idea that there should be the same price in all channels - that is a logical evolution."

Asked for an assurance that it was Tui policy to bring it in, he said: "It could be coming," adding: "there is a logic to the fact that the price is the same in all channels.

"We should remember some of the logic about the online discount is that if the customer does the work themselves they get something for it."

In what some have seen as an audatious bid to outflank its rival, Cook announced its move to price parity with very little fanfare shortly before Christmas.

The move to flat pricing was widely praised in the trade for offering customers clarity and an attempt to move them away from the assumption that online is always cheaper.

Speaking during a filming day ahead of today's Barclays Travel Forum John Hays, managing director of Hays Travel, said the impact had been noticeable and was welcome.

"Thomas Cook seems as if they are implementing what they said they would in terms of reducing discounting online - it appears they are implementing a one-price strategy. “Tui said they needed to do that, but it's less obvious with their online discounting."

Thomas Cook price parity sparks rise in indie agents' sales

By Juliet Dennis 

Independent agents have reported an increase in sales of Thomas Cook product following a move to single pricing across its in-house channels.

Cook introduced price parity across its shops, call centres and online in December. This allowed third-party agents to compete with the operator as the difference between Cook’s prices and independent agents’ narrowed.

In the coming weeks, the company plans to extend price parity to include sales through independents.

Hays Travel Independence Group has reported triple-digit percentage growth in sales of Thomas Cook holidays for summer 2013, while Advantage Travel Centres has reported a strong post-Christmas performance.

For years, online discounts have been a bugbear for independents because they could not compete on price and were forced to discount commission to win a sale.

Hays attributed its sales hike to Cook’s move towards price parity and the fact it had gained members who are strong sellers of Cook holidays.

Advantage head of commercial John Sullivan said consumers were shopping around less because prices differed “only by a few pounds”.

He added: “While price parity is not yet 100%, it’s now a lot easier for members to compete.”

It is understood Cook is also reviewing levels of commission to third-party agents.

A spokesman for Thomas Cook said: “Following the launch of price parity, we’ve received fantastic feedback and we’ve seen an increase in sales through our agent partners.

“Our commercial agreements remain confidential, but there is no intention to reduce income levels; we’re maintaining a level playing field so they can match our retail and online pricing.”

Take-off for Google Flight Search in UK

by Lee Hayhurst

Google has rolled out Flight Search in the UK as part of a first move into international markets.

The product, which is the result of Google’s controversial buyout of software firm ITA, has been live in the US since September 2011.

Its speed and ability to search for flights according to a diverse range of criteria has made it the source of much speculation, although Google has not rolled it out as quickly as expected.

However, today’s launch in the UK, France, Italy, Spain and the Netherlands with local pricing and in eight languages ends speculation that Google has reined in its ambitions for Flight Search.

The main difference between the US and UK product is the absence of a commercial unit that sits at the top of natural search results.

Google said it was assessing this before deciding whether or not to include this in its international version.

Other than that the non-US version is an exact copy, the Google spokesman saying it was aimed at people in the early stages of research when they do not know where they want to go.

Using a map-based interface, Flight Search allows users to filter their results based on how much they want to spend and flight time.

The biggest omission for the European market is the absence of Ryanair and easyJet, although Google said negotiations were ongoing.

In terms of fulfilment partners, Google has struck deals with a number of European intermediaries including Bravo Fly, Budget Air and fly.co.uk.

The Google spokesman said: “These are big markets. The plan with all our products is to go global as quickly as we can.

“With something as complex as flights there are a lot more partners to negotiate with. This is the first market beyond the US, but logic would suggest there are more to come.”

Thomas Cook reviews future of its airline

Thomas Cook reviews future of its airline

By Phil Davies

The future of Thomas Cook’s airline business is under review as part of chef executive Harriet Green’s turnaround plans for the loss-making group.

The disclosure came in the wake of moves to dispose of unspecified non-core assets to bring in as much as £150 million.

Green yesterday announced an additional £50 million of cost savings, taking the total to £350 million by 2015. This helped lift Cook shares almost 16% to 100.75p.

Part of those savings include £65 million from bringing its four airlines, which have 86 aircraft and employ 6,500 people, into one group.

Green would not rule out the disposal of all or part of the airline business.

“Does Thomas Cook need to have an airline in the future?” she told the Financial Times. “We have options. We are reviewing whether we should continue with the airlines that we have.”

The group had “over-complicated the business” through a series of acquisitions, including airlines, said Green.

“In essence, it is not a complex business that shouldn’t demand huge amounts of debt,” she said.

Green believed the group had become weak in its city break and winter sun offers, and would start to offer new products pitched at women and children.

The restructuring includes the closure of 195 high street agencies, contributing to the loss of 2,500 jobs.

New targets include 50% online sales and an earnings before interest and tax margin of 5%, both by 2015.

Cook earns about one-third of its revenues from online sales and the remainder from its outlets, according to the FT.

The group confirmed that a review of its capital structure could result in a future share placing.

“When that review is complete we will decide on what action we should take, if any, including whether to raise new debt and/or equity capital and the amount and structure of any such capital raising,” the company said.

Wyn Ellis, analyst with Numis, told the newspaper: “We wait to see how it progresses: a lot of hard work needs to be done if it is to succeed with its ‘high-tech, high-touch’ approach.”

James Hollins, analyst at Investec, said: “There is no update on a potential equity issue or refinancing...Current trading is stated to be ‘progressing well’ for the key summer period and the full-year 2013 outlook is ‘encouraging’.”

Harriet Green insists 'Cook is not in decline'

Thomas Cook chief executive Harriet Green today hit out at any suggestion the group is in decline.

Green said: "Cook is a super brand in a growth industry."

Having outlined the new strategy for the group yesterday, Green insisted the company would retain a presence on the high street.

"Retail is a very important part of Thomas Cook's future," she said.

"We do not want to be an online travel agent with every piece of product out there and with no assurance.

"Everything on our website will be fully quality assured and checked by Thomas Cook."

Green said: "We have made extraordinary progress in 32 weeks. This company was not very well when I joined. Now we are into transformation. We have a credible, profitable, growth story. The company has to prove it can execute it."

She insisted: "Thomas Cook will grow and grow profitably. We have no intention of shrinking to greatness but it's about being simpler and clearer."

Cook boss Green reveals strategy for the future

By Phil Davies

Thomas Cook today unveiled long-awaited plans for a turn-around in the business involving the sale of non-core assets to raise up to £150 million.

No businesses were identified but ski arm Neilson and Preston-based luxury operator Gold Medal are thought to be among the divisions considered for disposal.

The group said the non-core disposal programme is underway with the opportunity to realise gross proceeds of £100 million to £150 million.

In a brief trading update ahead of half year results being published in May, the group described the UK turnaround as being on track.

Cook said its new profitable growth strategy was focused on “simplification, web innovation, flexible new products and services, enabled by rigorous execution and an integrated IT platform”.

Group chief executive Harriet Green said: "Our business transformation plans are ahead of schedule and already delivering substantially improved performance, which resulted in our recent return to the FTSE 250.

"We have exceeded our initial commitments and today announced a further £50 million of cost out actions, bringing the total profit improvement actions identified already to £350 million, £290 million of which is still to come.

"Stabilising the business has been our priority through addressing our cost and cash challenges, and strengthening the leadership team to create a more effective, aligned organisation focused on rigorous execution."

She added: "We are excited to now reveal our new strategy based on four cornerstone principles; delighting customers with trusted, personalised holiday experiences through a high-tech, high-touch approach.

"Based on comprehensive consumer research we aspire to occupy a unique position in the market through our new strategy, deliver industry leading margins and customer loyalty, whilst maintaining consistent quality that can be trusted.

"We will expand our already successful hotel concepts; and build a new portfolio of flexible, trusted products and services; creating a single gateway for customers to access personalised recommendations, specifically tailored to meet their needs.

"The operational credibility of this strategy rests on the success of our self-help measures to date, our trusted brand and the clear targets and KPI's against which we are ready to be judged.

"We have real options now, with the prospect of delivering improved revenues, strengthened gross margin, better cash flow and disposal opportunities, to build a strong and exciting future for the Thomas Cook Group, worthy of our customers and our heritage."

Cook said the new strategy, which includes raising web penetration to half of all sales, has been based upon extensive research and analysis including a comprehensive, in-depth survey measuring the attitudes and changing needs of almost 18,000 travellers, validated against the experiences of many of its own customers.

The group added: “Building on its trusted brand and 171 year heritage Thomas Cook will deliver personalised holiday experiences through a high-tech, high-touch approach.”

This comes a week after the company under UK boss Peter Fankhauser announced 2,500 job losses and the closure of 195 travel agency branches.

Today the group said the “thorough” UK restructuring was underway to re-shape the organisation to meet customer needs with a target to deliver UK EBIT margin in excess of 5% by 2015.

A transformed approach to hotel purchasing to utilise group scale is already delivering “tangible benefits”.

Cook described its business transformation as gaining momentum with a further £50 million of “cost-out actions” identified bringing the total profit improvement actions so far to £350 million with more to come.

The Northern and Central Europe divisions continue to build on their industry leading positions while Cook is creating a group-wide airline business to improve costs, quality, reliability and customer experience to build a stronger business.

Travel Counsellors targets Cook employees with 'discovery days'

By Phil Davies 

Travel Counsellors today reported an “unprecedented” rise in job seekers following Thomas Cook announcing the closure of 195 agency branches and 2,500 redundancies.

The homeworking agency says there is a future for “talented travel professsionals” and is organising a number of recruitment initiatives including ‘discovery days’ across the UK.

These will offer an insight to the future of travel and show retail agents that there is an alternative to life on the high street.

Cook staff facing job losses are being invited to annual mini-conferences being held in Manchester, Birmingham and London on April 15-27. A special webcast will also be held.

Travel Counsellors who have previously worked on the high street, and for Cook in particular, will be attending the discovery days and will host the webcast.

Some existing Travel Counsellors have offered to open their homes to those interested in joining so they can see how the company works and answer questions.

“This will give potential recruits the chance to speak directly with people who have been in their position before, and hear why they took the leap to run their own business,” Travel Counsellors said.

The company believes its impressive sales for the start of the year is proving a “compelling reason” for Cook employees to express interest in joining Travel Counsellors.

Average earnings for UK Travel Counsellors are up to £21,000 in the past year, with the top 100 earning £59,871.

Head of global recruitment Simon Burke said: “We have had to reprint a new batch of our information packs as the demand has outstripped our normal supply.

“We are mindful that this is very difficult time for Thomas Cook employees and we want to give them as much support as possible, so this is why we’re going to lengths to ensure they see that there is light at the end of the tunnel.”

Travel Counsellors quoted former Cook employee Donna Horner who said the idea of working from home had worried her but "it really has been the best thing I’ve ever done".

“I’ve never known support like it, not in all the years I worked on the high street. I feel far from isolated, in fact that couldn’t be further from the truth – I felt more isolated when I was working on the high street. 

"Importantly, I do earn decent money. I can understand why some Thomas Cook employees may feel anxious about taking the leap and may want to try to find a job on the high street, but all I can say is taking the step to work for Travel Counsellors have allowed me to truly enjoy working in travel again.”

Thomas Cook job cuts are necessary, says expert

By Melanie Hall 

Thomas Cook Group’s decision to cut 2,500 jobs and close 195 stores has gone down well in the City as a much-needed restructuring following its “dismal” financial performance, said a leading analyst.

Douglas McNeill, investment director at stockbrokers Charles Stanley, told Travel Weekly that the move, although sad for those at risk of losing their jobs, was necessary.

“The City is pleased to see restructuring taking place,” said McNeill. “No-one is ever keen to see other people losing jobs so the restructuring that is underway is tempered by thoughts about those losing jobs, but it’s beyond question that things needed to change at Thomas Cook.

“I would say that the City has thought something like this was on the cards for quite some time. The management has led the City to expect cost savings without being particularly specific.”

“lt hasn’t required much imagination to realise that a lot of reductions was on the way,” said McNeill, as it is doing less business than it used to.

“Capacity is down this summer season, 4% down at the last count,” he said. “That’s not the first such reduction. Reduction in the winter season was greater than that. Sooner or later, you are going to conclude that you are going to need fewer staff.”

McNeill said that Thomas Cook’s chief executive Harriet Green was instilling confidence because of her plans to cut costs.

“Financial performance has been dismal for quite some time and the share price tells you that the City is confident in Harriet Green’s ability to restructure," he said.

Thomas Cook saw its share price drop by more than 4% yesterday in the wake of the travel group’s mass jobs cut announcement a day earlier.

Shares in the company were down 3.5p to 82.5p but this was more than 15% below its 52-week high of 97.38. At yesterday’s rate, the group’s market capitalisation was £787.92 million.

Cook is to cut 2,500 jobs and close almost 200 agency branches as part of a financial turn around plan. An update on the business transformation plan and new strategy for the group is due to be given by chief executive Harriet Green on Wednesday.

A brief trading update will be given ahead of first half results to be announced in May.

Thomas Cook staff talk of shock and anger at store closures

Thomas Cook staff who have been told their shops have been earmarked for closure have spoken of their shock at Wednesday's announcement.

The company revealed that 2,500 jobs were under consultatation, more than 900 of which will be from the retail estate. The rest will be back office roles at its premises in Accrington, Peterborough, Preston and Egham.

One staff member who wanted to remain anonymous and who was told her shop would soon be closing told Travel Weekly:

"We feel we've been treated absolutely appallingly. We are an A performing store and we were told categorically by our regional sales manager that no shop closures were imminent.

"We have very long-standing staff in our store. We have worked so hard during peaks, including Sundays and evenings with no extra pay, just to make the shop a success.

"We've been told not to tell any customers or staff who aren't in today about the closures, we just have to smile and get on with it. The staff have been left reeling, we feel shocked and sick."

Another staff member wrote on travelweekly.co.uk: "How sad and unfair, I have two kids, rent and I feel like my life has just been put in to overload, what will I do?"

A stream of comments, many purporting to be from staff, on Travel Weekly's original story revealed the depth of anger among many employees who are either facing redundancy or changes to their current terms of employment, as Cook confirmed to Sky News yesterday.

Recruitment consultants have suggested some Cook staff may become homeworkers, while others may be forced to leave the industry.

Thomas Cook to cut 2,500 jobs

The back office roles will include staff at the head offices in Peterborough and Preston. The consultation also includes the proposed closure of the Accrington office.

Thomas Cook Group is to cut 2,500 jobs across its back office and retail network.

The group also plans to close 195 stores as part of the restucture of the UK business.

A 90 day consultation begins today over the future of 2,500 jobs, both back office and retail. The group currently employs 15,500 people in the UK.

Stores will close which do "not meet the performance targets of the business" and are in areas where Thomas Cook has more than one retail outlet. 

Peter Fankhauser, chief executive Continental Europe & UK, said:  "It is never easy to make decisions that impact directly on our people, but we also owe it to our customers to shape the business effectively and ensure that, when they book their holiday with us, our administrative costs are as low as possible.

"As we improve and develop our online capabilities, maintaining a strong presence on the High Street is an important part of our omni-channel strategy. Even after these changes we will still have one of the largest retail networks in UK travel.

He added: "It is essential that we operate with the right number of people as we move forward into the next era for our company, allowing us to meet the future needs of our customers more effectively.

"These proposals will mean a stronger Thomas Cook that continues to be a major employer in the UK dedicated to providing excellent holiday experiences to our 23 million customers. We are in consultation with our unions and employee representative bodies to minimise the impact of these changes and I am speaking personally to all employees today to provide information and support through this period of consultation."

Research finds two thirds of holidaymakers will book online

By Ian Taylor 

The latest TNS consumer insight for Travel Weekly underlines the popularity of digital channels. Ian Taylor reports

Two thirds of UK adults planning an overseas holiday or break intend to book online this year, according to research for Travel Weekly.

A survey of more than 2,000 adults by TNS in early February suggests up to 20 million could book their travel online, compared with more than eight million with a high street agent or by phone.

Researchers found that 42% of respondents (including those not planning an overseas holiday) said they would book online, 12% on the high street and 5% by phone.

Of course, booking online does not have to mean going direct or buying from someone outside the trade. Few high street retailers fail to sell online; Tui Travel reported 37% of its summer 2013 bookings were made online up to early February and expects this proportion to increase this year.

However, the results confirm consumers are increasingly at ease booking all kinds of holidays – including package holidays – on the internet.

Young adults are clearly most at ease: 55% of 16 to 34-year-olds said they would book a holiday or break online, against 25% of over‑55s. The proportion of student online-travel bookers (60%) was three times higher than those of retired age (20%).

More than half (54%) of adults in better-off households expected to book online, as did a similar proportion (52%) of those with children living at home.

Londoners and those in the southeast showed a similar propensity to book on the internet (54%), while less than one-third did so in Yorkshire, the East Midlands and Scotland and just 36% across the north – suggesting a digital divide.

However, the greatest variation in the survey results was in the proportion planning to take an overseas holiday, rather than how they would book it.

TNS found more than one third (36%) of respondents did not expect to go overseas in 2013 and a further 4% were undecided.

That suggests 60% intend to have a holiday abroad – a healthy market in light of previous research showing less than half the adult population (44%) are likely to go away in any year.

It is important to note people often express an intention to go abroad at this time of year but subsequently fail to do so – the young being especially prone to this.

February’s TNS survey found three-quarters of 16 to 24-year-olds planned an overseas holiday (and 56% intended to book online). Yet previous TNS research which asked 16 to 24-year-olds whether they had a holiday abroad in the past 12 months found 60% had not.

Almost half (48%) of adults over 55 said they were not planning an overseas holiday this year; neither were half the adults in less well-off households (47%).

Most adults with children did plan a holiday (68%), compared with 56% of those with no children. But the former appear more dependent on finding a cheap holiday – 38% of those with children identifying price as an important factor in whether they go away, against 28% of those without children.

TNS group director of travel Tom Costley noted “significant age variations” in online booking habits but said: “The proportion choosing to book via a high street agent does not vary to any significant extent, irrespective of age.”

He added: “It’s evident that being able to access a cheap price allows some to go on a holiday which might otherwise not be available to them.”

Tui reduces losses and grows share in Q1

By Phil Davies

Tui Travel’s underlying operating loss was cut by 15% in the three months to December as the group’s ‘unique’ holidays continue to drive increases in UK market share.

The operating loss reduced by £16 million to £93 million to give an underlying first quarter operating loss of £116 million.

Issuing first quarter results for the period ending December 31, Tui Travel reported “significant” continued growth in UK cumulative market share with summer 2013 up 4% and the key January booking period up 2%, gaining on the 7% increase in the same period last year.

Unique holiday bookings in the UK, Nordics and Germany increased by 15%, 10% and 6% year-on-year respectively for summer 2013.

Direct distribution sales in the UK for summer 2013 grew to 90% from 89% with online sales accounting for 37%, up by 1% over the same period a year earlier.

Tui claims its accommodation wholesaler business “continues to build a global leadership position” with total transaction value up by 9% for this summer, driven by Latin America and Asia where TTV is up by 23%.

The group reported strong current trading with winter 2012/13 83% sold with higher margins and average selling prices in key source markets.

Summer 2013 bookings in the UK and Nordics are up 9% and 10% respectively with margins ahead of the prior year in key source markets.

Chief executive Peter Long said: “We are pleased to report that our strong trading momentum has continued with particularly encouraging growth in the UK and Nordics.

“Our leading position in the UK has further benefited from increased market share as a result of higher demand for our unique holidays. Across all our key markets demand for the overseas holiday remains strong, despite the overall economic environment.

"We are confident that our customer focused strategy is driving performance and based on current trading we expect to be towards the top end of our roadmap guidance of 7 to 10% underlying operating profit growth for the 2013 financial year.”

Tui said: "Positive trading momentum continues for summer, with a third of mainstream summer holidays sold to date.

"Customer demand for our unique holidays has allowed us to increase capacity in the UK, Nordics and Germany. In the UK we have again increased our market share year on year as a result of increased demand for our unique holidays."

Tui Travel will issue a pre-close trading update on March 27.

Transformation plan starting to have impact, says Cook

By Lee Hayhurst

Thomas Cook said its business transformation plans were starting to have an impact as it announced higher margins in its first quarter to December.

The travel operator and retailer saw  revenues of £1,724 million in the three months to the end of December. And it achieved gross margin of 21.9%, up 1.3 percentage points over the comparable period last year, it said in a trading update.

The group said plans to achieve annual savings of £100 million over the next two years to 2015 were on track and a further £60 million of savings had been identifed.

Harriet Green, group chief executive, said she was particularly pleased with Cook’s UK performance.

“As we continue to strengthen Thomas Cook and determine our profitable growth strategy for the future, the power of our brand remains key to the transformation.

“We have seen stronger operating performances in our major markets - the UK, Germany and the Nordics. I am particularly pleased with the improved performance in the UK as the benefits of the turnaround plan are reflected in its operating results.

“Our business transformation is firmly on track. We have further strengthened our leadership team and the pace at which we are driving change gives me confidence that together we will achieve our near term objectives and much more.

“The business has generated higher gross margins than we did last year and this will remain an area of focus for us through the financial year.

“Our cost-out initiatives and improved cash management will be important contributing factors to the Group’s future performance and continue to receive strong focus in all parts of the business.

“Although global economic conditions and consumer confidence remain challenged, our business transformation is firmly on track.”

Cook said its Business Transformation programme was “firmly on track” to deliver on its three key elements:

• building an effective organisation: high quality executives, bringing a wealth of experience, appointed to the Thomas Cook leadership team;
• addressing costs and cash management: on track to execute announced £100m of cost reductions with a further £60m identified;
• profitable growth strategy: undertaken rigorous, and independently verified, market and customer research, to ensure strategy and future resource allocation is based on extensive and fact based information.

Cook said higher gross margins and lower overhead costs were reflected in the Group’s improved underlying operating which saw losses of £70 million compared to £93 million in 2012

It reported lower net debt of £1,559m, which had been reduced by £86m year on year and higher liquidity headroom of £290m, up £72m over the prior year due to improved cash management disciplines

In a statement it said: “Winter and Summer bookings are robust, in-line with expectations as our strategy of improved capacity management results in higher sale prices and improved margins."

Cook also revealed the completion of the first phase of “one of the largest customer surveys undertaken in the sector” involving nearly 18,000 consumers from the UK, Sweden and Germany. The survey results have been combined with in-house data from Cook’s 23 million annual customers.

“The results, along with a profitability analysis of the industry by internal and external experts, will be used to shape our business model and future strategy, as well as accelerating our web transformation to create a web centre of excellence with channel ownership in each of our market segments,” the group said.