Fallout From Thomas Cook's Demise Will Reach Far and Wide in Travel
Skift Take
Expedia, Webjet, and On the Beach all had exposure to Thomas Cook, but given their size they can probably handle it. It's the smaller tour operators and travel agents that will be the hardest hit.
One of Europe’s biggest travel companies is no more and the damage it leaves in its wake is likely to take some time to clear.
After weeks of speculation, in the early hours of Monday morning, Thomas Cook announced it was shutting down after failing to complete a $1.1 billion rescue deal. The collapse isn’t just awful news for its employees and customers but the hundreds of other businesses likely to suffer as a result.
The company was something of a throwback to a pre-internet era, operating a fleet of aircraft together with retail shops and hotels, packaging it all up and selling it to customers. This approach meant that plenty of other companies had skin in the Thomas Cook game.
Countless hoteliers, tour operators, and other travel businesses will be owed millions of dollars and are unlikely to see a full return given the scale of Thomas Cook’s debts, which total about $2 billion (£1.7 billion).
As soon as the news broke, companies started revealing the scale of their involvement.
UK-based online travel agency On the Beach said it anticipated “a one-off exceptional cost associated with helping customers t
