To reach its profit forecasts, British travel agent Thomas Cook has decided to sell a part of its activities. Next to the 170 million euro the sale should produce, Thomas Cook is also preparing extra cuts to generate another 230 million.
Thomas Cook has already set a plan in motion to save 350 million euro by 2016. That target has been raised to 400 million euro, of which 70 million has already been realised. Harriet Green, CEO of Thomas Cook, said that saving costs will remain a top priority for the company.
Green also announced that the transformation plans of Thomas Cook are proceeding faster than expected. The company is expecting to make 570 million euro through the sale of new products, mainly online bookings, by 2015.
Share lost 92% of its value
Since consumers in the UK started travelling less in 2011 because of the economic crises and the turbulent times in the North of Africa, the Thomas Cook share lost 92% of its value. The company was saved by an emergency loan and since then the share has been recovering. In 2012 the value tripled and since the beginning of 2013 it rose another 81%
Thomas Cook is planning on turning its entire organisation inside out and based on the results the company will devise a plan of action. The issue of bonds or stocks are part of a possible scenario.