Thomas Cook’s web business picks up
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Thomas Cook has announced a boost in its UK web business as it benefits from the late booking trend.
The transformed travel company said package bookings have increased 10% via laptops and desktops while sales through tablets and mobiles are up 60% and 216% respectively.
The increases come after the release of a new website in the UK which is soon to be rolled out to other markets. In full-year 2015 the group expects half its bookings to be taken through its website, from the current 38%.
Thomas Cook has particularly benefited from the last minute booking market which has pushed its UK summer capacity to 92% sold, the same as last year. Prices are lower in the UK due to higher market capacity and a change in product mix.
Its concept hotels are driving bookings with sales in these hotels up 43% year-on-year, while partner hotels have seen an 11% boost in bookings for the summer.
Prices in winter 2014/15 are slightly higher with 29% of its capacity currently sold, while forward bookings for summer 2015 are ‘encouraging’.
The group is said to be ahead of delivering the first wave of cost cutting initiatives which will see it save more than GBP360 million in full-year 2014. Its second wave is ‘already progressing well’ and its target for full-year 2015 is to be extended as a result.
“The successful transformation of our company continues. We are also very encouraged by the progress we are making against our most important strategic targets and KPIs. In particular, we have delivered more Wave 1 and Wave 2 cost out and profit improvement benefits, a higher rate of web bookings and importantly, given the encouraging customer demand for our exclusive Concept and Partnership hotels, more opportunities for profitable growth. We expect our operational performance in this second year of our transformation to show a material improvement on FY13, notwithstanding the impact this year of economic and geopolitical factors on our customers,” said Harriet Green, group chief executive officer. “Our achievements over the last 24 months demonstrate the impact of a transformed team capable of delivering significantly greater shareholder value in the future. I look forward to sharing more progress on our targets and opportunities for sustainable profitable growth at our full year results in November, when we expect to report a ninth consecutive quarter of improved profitability.”
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