Thomas Cook planes

Incredible.

Thanks for the detailed answer.

I was thinking yesterday about the ripple effect of TC going TU. So many people involved in an operation as big as that. I think it cost like a huno milly just to get the punters who were abroad at the time home.

Imagine all the subsidiary businesses who will be holding their hands out. Without that constant flow of customers to generate the cash, surely everyone will lose big time?

I would guess in theory all those customers will still want to go on holiday, meaning that the other companies will have to expand and fill the space left?

Correctamundo.

BBC News - Thomas Cook's 555 shops to be bought by rival
https://www.bbc.co.uk/news/business-49985369

I meant providing the flights and hotels not taking over the shops!
This seems like an insane move by Hays.

Doesn't one facilitate the other though?

In my head...... (this may get a little scary)

People still want to go on holiday, so either other airlines need to grow or a new airline needs to pop up to fill the demand.
The hotels are still there so someone needs to facilitate the booking of said hotels as not many holiday makers book direct with the hotel.

So all the other providers including Hays are going to want to capitalise on helping the people who would have booked with Thomas Cook.
Some of this will happen naturally as people look elsewhere, I am sure there will be some promotions to attract them etc

However 9 out of 10 people research their holiday online, and 8 out of 10 people book their holiday online.
Those shops are expensive, rent, rates and staffing etc and are a thing of the past. I believe they were partly to blame for the demise of TC.

So I could understand Hays picking up a couple of shops in strategic areas, but to take on the cost of running 555 shops to try and obtain the small portion of holiday makers who still book in person seems crazy to me.

When I read an article about it there was mention of 'real estate'. That suggests that most of the shops are owned rather than leased.

I'd imagine they picked everything up on the cheap and it won't be long before they're selling everything off bit by bit for a huge profit.

Probably in part. Pretty sure this is also an opportunity for them to take Hayes to being one of the biggest travel brands from where they are now. They just keep the profitable shops and sell the rest....win/win.