Thomas Cook plans publicity drive

 

Ailing Thomas Cook will this week launch a publicity drive in a bid to reassure customers that their holidays are "in safe hands".

The holidays firm, which saw its share price slump by 75% in one day last week amid fears of an imminent collapse, will publish a letter from interim chief executive Sam Weihagen in national newspapers from tomorrow saying it is safe to book breaks with the group.

Thomas Cook's shares rose 30% today after it announced an extra £100 million lifeline from its banks on Friday night.

But although Thomas Cook claims it is now on a sound financial footing, fears persist that the negative headlines may have scared holidaymakers away from the company. Bookings fell 30% last week amid uncertainty over the group's future.

Rival TUI Travel has run full-page adverts for its Thomson brand that claimed: "Another holiday company may be experiencing turbulence, but we are in really great shape."

Mr Weihagen's letter will begin: "What a week it has been for Thomas Cook," adding that it is now "an even stronger and more confident company" and members of the public "can be sure that your holiday really is in safe hands".

His words will play on the 170-year-old company's history and will claim it is the "most recognised and established name in the industry".

The letter will add: "I have no doubt that we will still be in another 170 years and beyond."

The deal with its bankers, just one month after it increased its loans by a similar amount, came after it said its French and Belgium markets saw bookings fall by up to 20% in recent weeks, while a move into the Russian market had "got off to an extremely slow start".

The group has suffered from the impact of the Arab spring, which has hit bookings to Tunisia and Egypt, destinations popular with France and Russia respectively, as well as UK holidaymakers.

It is understood the firm could axe up to 1,000 jobs by closing 200 of its 1,100 UK travel shops as it slashes costs and sells hundreds of millions of pounds of assets to help reduce its debt mountain.

James Hollins, an analyst at Evolution Securities, said the new lending facility had secured its short-term survival.

He added: "The increased facility pushes current gross debt to £1.5 billion but fortunately all the bad press has come at a low point in the booking cycle and the group has the funds and time to restore partner and consumer confidence in its brand and survival."

PA

Have you tried new the Independent Digital Edition apps?
Travel
ebookHow to enjoy the perfect short break in 20 great cities
Independent Travel Videos
Independent Travel Videos
Simon Calder in Amsterdam
Independent Travel Videos
Simon Calder in Giverny
Independent Travel Videos
Simon Calder in St John's
Independent Travel Videos
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Travel

    Guru Careers: International Project Coordinator / Account Coordinator

    Circa £26,500 DOE: Guru Careers: An International Project Coordinator / Accoun...

    Guru Careers: Plumber / Maintenance Operator

    £25k + Benefits: Guru Careers: We are seeking an experienced Plumber / Mainten...

    Recruitment Genius: Travel Customer Service and Experience Manager

    £14000 - £17000 per annum: Recruitment Genius: The fastest growing travel comp...

    Recruitment Genius: Network Executive - Adrenalin Sports - OTE £21,000

    £19000 - £21000 per annum: Recruitment Genius: Are you looking for an exciting...

    Day In a Page

    Giants Club: After wholesale butchery of Idi Amin's regime, Uganda’s giants flourish once again

    Uganda's giants are flourishing once again

    After the wholesale butchery of Idi Amin's regime, elephant populations are finally recovering
    The London: After 350 years, the riddle of Britain's exploding fleet is finally solved

    After 350 years, the riddle of Britain's exploding fleet is finally solved

    Archaeologists will recover a crucial item from the wreck of the London which could help shed more light on what happened in the vessel's final seconds
    Airbus has patented a jet that could fly from London to New York in one hour

    Airbus has patented a jet that could fly from London to New York in one hour

    The invention involves turbojets and ramjets - a type of jet engine - and a rocket motor
    10 best sun creams for kids

    10 best sun creams for kids

    Protect delicate and sensitive skin with products specially formulated for little ones
    Tate Sensorium: New exhibition at Tate Britain invites art lovers to taste, smell and hear art

    Tate Sensorium

    New exhibition at Tate Britain invites art lovers to taste, smell and hear art
    Ashes 2015: Nice guy Steven Finn is making up for lost time – and quickly

    Nice guy Finn is making up for lost time – and quickly

    He was man-of-the-match in the third Test following his recall to the England side
    Ashes 2015: Remember Ashton Agar? The No 11 that nearly toppled England

    Remember Ashton Agar?

    The No 11 that nearly toppled England
    Turkey-Kurdish conflict: Obama's deal with Ankara is a betrayal of Syrian Kurds and may not even weaken Isis

    US betrayal of old ally brings limited reward

    Since the accord, the Turks have only waged war on Kurds while no US bomber has used Incirlik airbase, says Patrick Cockburn
    VIPs gather for opening of second Suez Canal - but doubts linger over security

    'A gift from Egypt to the rest of the world'

    VIPs gather for opening of second Suez Canal - but is it really needed?
    Jeremy Corbyn dresses abysmally. That's a great thing because it's genuine

    Jeremy Corbyn dresses abysmally. That's a great thing because it's genuine

    Fashion editor, Alexander Fury, applauds a man who clearly has more important things on his mind
    The male menopause and intimations of mortality

    Aches, pains and an inkling of mortality

    So the male menopause is real, they say, but what would the Victorians, 'old' at 30, think of that, asks DJ Taylor
    Man Booker Prize 2015: Anna Smaill - How can I possibly be on the list with these writers I have idolised?

    'How can I possibly be on the list with these writers I have idolised?'

    Man Booker Prize nominee Anna Smaill on the rise of Kiwi lit
    Bettany Hughes interview: The historian on how Socrates would have solved Greece's problems

    Bettany Hughes interview

    The historian on how Socrates would have solved Greece's problems
    Art of the state: Pyongyang propaganda posters to be exhibited in China

    Art of the state

    Pyongyang propaganda posters to be exhibited in China
    Mildreds and Vanilla Black have given vegetarian food a makeover in new cookbooks

    Vegetarian food gets a makeover

    Long-time vegetarian Holly Williams tries to recreate some of the inventive recipes in Mildreds and Vanilla Black's new cookbooks