Thomas Cook‘s failure

Thomas Cook’s Failure Your Name Course and Section Professor’s Name October 20, 2024 This is the business-level strategy that Thomas Cook Group sought to position itself as a significant global player in travel services due to its highly recognized brand, diversified service delivery, and extensive distribution network. As a strategic direction, the company aimed to offer customers complete hospitality solutions through the sale of package holidays and complementary services through offering travel services and others, including travel insurance. The organization's marketing plan was focused on customer service and new travel concepts as critical factors for responding to competition. However, unlike traditional tourism products, the company has also developed online tourism packages to meet the demands of the growing Generation X and Y, who prefer technological convenience. Thomas Cook used information technologies to establish friendly and easily navigable websites for booking services, accompanied by easily downloadable mobile applications to improve customer experience and a Journey App to improve the booking experience. This way, the company could gain a large portion of the share within the escalating market of online travel that was controlled by LCCs and OTA. Effectiveness of the Strategy The overall idea of Thomas Cook's strategy was best captured in the company's undertakings that sought to segment customers to offer customized vacations. The company aimed to meet different travelers' needs and expectations by providing a package tour and individual services. Apart from organic growth, strategic alliances and acquisitions were given significant importance, which broadened the scope of services and improved market reach, thus helping Thomas Cook offer competitive pricing and the best solution packages. However, Thomas Cook needs help adapting to the changing travel scenario. The operational strategies of the new LCCs are such that they changed consumers' faces and shifted their focus on affordability and flexibility. Further, the increased use of the Internet as a marketing and booking aid changed how consumers sought and made travel arrangements. Thomas Cook lost its cupid role because of technologically advanced online travel agencies (OTAs) that offered direct and easy-to-use screens with value-added options for comparison and suggestions. Some methodologies, if applied in managing organizational relations for the purpose of re...