A trading statement from the holiday operator Thomas Cook (TCG) reported a tough fourth quarter in Germany excess market capacity combined with a drop in consumer confidence caused the current impasse with Russia over the Ukraine.
But chief executive Harriet Green is adamant the "transformation" of Thomas Cook is not over. The number of web bookings, for example, is still growing. In the UK online package bookings have risen 10 per cent via desktop, 60 per cent via tablet and 216 per cent on mobile since the end of May - when the new website launched. But summer capacity in the UK is 92 per cent sold (flat on this time last year) and average selling prices are under pressure, being 4 per cent lower year-on-year.
Despite a tricky fourth quarter in Germany, management says all business units should deliver results ahead of last year. As such, the 2014 operational performance is still expected to show a material improvement over last year.
