THOMAS COOK BANKRUPTCY AND ITS IMPACT ON HOTEL AMENITIES SECTOR

THOMAS COOK'S BANKTRUPCY AND ITS CONSEQUENCES WITH HOTEL AMENITIES

Thomas Cook, the first travel agency in history by this English entrepreneur who inadvertently invented the combined travel package by chartering a train from Leicester to Loughborough with a group of people for an anti-alcohol congress.

This agency, with more than 170 years, announced its bankruptcy on September 30, 2019, on Monday, which so far today it could have a turnover more than 10 billion euros a year, with 105 aircraft and 200 hotel complexes as property.

Spain was the main destination for the clients of this travel agency, which leaves in the tourist sector of this country a huge debt, where hotel establishments probably will reduce costs with more secondary elements, such as hotel supplies.

By reducing the number of tourists traveling and contracting less hotels, apartments or rural houses, it will cause amenities to be less demanded likely from hoteliers and therefore may be decrease the variety and quality of these amenities products and varieties.

This can result in a decline in purchases of equipment, amenities and textiles by hotel establishments. Since more of these hotels, even if it is seasonal, may end in closing, so the supply of for instance amenities will be affected and even may cause default payments to the company of these supplies.

So as less as the people who book in tourist accommodations less amenities may be demanded and used, so unconsolidated companies may break up offering these products of welcoming in their hotels.

Mainly these consequences will be seen in the Canary Islands and the Balearic Islands, the destination preferred by the English tourists for their winter holidays. The causes of this collapse are blamed on the bankruptcy of the cited company, which could not know how to adapt to the new times according to the specialists of the tourism sector, a time in which the internet, social media, low-cost flights and online bookings are the order of the day and Thomas Cook failed to take into account by not renewing and implementing new strategies. Before the bankruptcy, the banks came to the rescue, but this loan only increased the company's debts.

In these times, travel agencies increasingly have less place in the market, are replaced by the internet, and the tourists do seek their destinations on their own. They want to get out of overcrowded tourism and create their own journey.

Do you think that by time the agencies will be able to renew themselves or will they end up as Thomas Cook? Will be very negative on what amenities and services the hotels offer us? The questions which we will discover and know over time, as well as the real consequences that this will bring up.