Heatwave hits holiday operator profits
By Sarah Wood | 24th September 2018
Shares in Thomas Cook shares have fallen 23 per cent, following the UK's summer heatwave.
The company said many customers were put off booking holidays abroad, opting to stay at home and enjoy the sun in June and July, as reported by the BBC.
The company, which has branches in Stroud, Tewkesbury, Cirencester, Gloucester and Cheltenham, said this then led to higher levels of discounting in August and September.
Thomas Cook now expects full-year earnings of £280m, below its forecast of around £323m, which it made in July.
Following the profit warning, shares in the holiday operator plunged to 60p. The share price has halved in value since the start of the year.
The company said the impact of the heatwave is still being felt in its winter trading and will have a knock-on effect to 2019.
Thomas Cook said a return in popularity of holidays to Turkey, Egypt, Tunisia and Greece meant that total group bookings for the summer were up 12 per cent on last year, but average selling prices were five per cent lower.
There is a growing trend in the UK for late bookings, with nearly 80 per cent of holidays booked within three months of the travel date, according to Visit Britain.
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