PEST Analysis of Thomas Cook Essay

August 17, 2017 General Studies

Plague Analysis is chiefly used to scan the environment. Plague refers to political. economical. societal and technological factors. Therefore Pest is used to analyses and scans the general environment environing Thomas cook. It is through PEST that the company will be able to observe every bit good as proctor the weak signals in order to acknowledge the breaks which shape the environment.

Political Factors

The UK travel and touristry industry has faced huge force per unit area from the authorities as it has introduced touristry revenue enhancement and has said to impact all the travel and touristry concern including Thomas Cook. The travel agents had opposed to the proposal of bed revenue enhancement which the authorities had levied ?1 per caput per dark from the visitants remaining in the local hotels. The proposed bed revenue enhancement is said to increase the domestic monetary value and maintain the foreign visitants from vacationing in UK ( The Guardian. 2012 ) . The possible revenue enhancement of approximately 5 % to 10 % would do England the proposed bed revenue enhancement is said to increase the domestic monetary value and maintain the foreign visitants from vacationing in UK ( The Guardian. 2012 ) . It is one of the highest taxed vacation finishs in whole of Europe ( BHA. 2012 ) . Therefore with the rise in revenue enhancement. concern like the local stores. the eating houses and the travel bureaus are said to be affected.

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Economic Factors

During the past few old ages the touristry sector have faced difficult times due to disputing economic times and have mostly impacted the planetary travel market but nevertheless there are marks of recovery within the consumers. The travel and the leisure sector were impacted chiefly due to the consumer’s disposable income. unemployment rate. fluctuation in the rate of currency and the oil monetary value. All these thrusts have enormously impacted the travel and leisure industry. The GDP declined by 6 % in the twelvemonth 2009. the rate of unemployment has increased to approximately 2 % . the monetary value of oil continued to be extremely volatile. In add-on to the above factor. there are other factors which have impacted the planetary travel market. Global terrorist act has impacted the assurance of the consumers from going along with the swine grippe in Mexico which had likewise affected the travel planes along with an increased revenue enhancement the economic conditions seems to acquire worst. Therefore due to these disputing economic conditions. the travel market over the past few old ages has significantly declined in the travel market ( Thomas Cook Group Plc. 2009 ) .

Social Factors

The economic system of UK is one of the strongest economic system in Europe where the disposable income of the consumers are at a rise and therefore the outgo made on leisure is turning at approximately 6 % and therefore has higher degree of outlook from the travel and touristry sectors. Most of the people will at least travel for one vacation to abroad. therefore increasing the demand of the travel and touristry industry. In add-on one of the of import markets in travel and touristry is the Grey market which chiefly comprises of older people who are healthy and fit and as such has plentifulness of clip along with financess to pass on traveling.

Technological Factors

Technological factors refer to the usage of cyberspace which has allowed the people the chance to go much more independent and do programs harmonizing to their desire. Thomas Cook aims to be among the top online service supplier and it can be done through modified and advanced engineerings.

SWOT Analysis of Thomas Cook

A concern analysis of Thomas Cook Group PLC. a leisure travel company which offers bundle Tourss and holiday constituents. is provided. concentrating on its strengths. failings. chances for betterment and menaces to the company. Strengths include benefits derived from its strong trade name acknowledgment. plus light concern theoretical account and merchandise mix. Weaknesses include its overdependence on European markets. Opportunities for betterment include acquisitions. strategic planning and tendencies in independent travel concern. Menaces to the company include impact on its operating border due to volatility in the fuel cost and intense market competition.


Thomas cook has a strong trade name name and image and is one of the prima leisure travel bureaus in the universe. It offers assorted bundle Tourss and other vacation constituents and other services. The group has recorded gross of about ?9. 808. 9million during the fiscal twelvemonth 2011 The company has managed to demo an addition of about 10. 3 % from the old fiscal twelvemonth 2010 ( Research and Markets. 2012 ) . The group continues to construct upon the strengths which the company has created over the old ages which include strong fiscal place. trusted trade name portfolio and the ability of the company. with its flexible theoretical account. to pull off the concern so that the group is able to run into the demands of the clients in the hereafter ( Thomas Cook Group Plc-c. 2009 ) .


One major failing lies is that with a economic lag the travel bureaus have experienced a immense interruption down in the figure of consumers going from one topographic point to another. This has impacted Thomas Cook Group.


With a rise in the disposable income of the consumers a immense chance lies with Thomas Cook to spread out itself into assorted other states and assist the consumer experience the pleasance of going. Technology being an upper manus for the travel bureaus. the on-line market is said to boom which makes it easier for the consumers to choose from assorted options made available from the travel bureaus.


Menace lies from the other rivals which has been making every bit good in the travel and touristry sectors. With many travel and touristry bureau. the customer’s gets a broad assortment to take from the best options and this tends to increase the competition among the travel and touristry industry. Besides displacement in the consumer behavior besides poses a menace for Thomas Cook.

Major Challenges of Thomas Cook

Thomas Cook has been confronting some tough challenges which include fiscal consolidation every bit good as curtailing. The Chief executive officer of the company. Manny Fontenla-Novoa resigned which took the company as a surprise. Another set of challenges is the growing of the company through acquisition. Growth by manner of acquisition was one of the nucleus strategies together with rigorous cost in order to better the net income borders. In recent old ages Cook had sealed its market entry in Russia by a bulk of interest in circuit concern operator. But at the same clip. both internal every bit good as external jobs have increased in Thomas Cook and it becomes a immense challenge for the company to undergo its operation when the environment is non healthy. The demand has slowed because of the weak economic system of UK and besides its strong focal point on cost film editing. UK invested small in IT and merchandise which left Thomas Cook positioned ill in the market ( FVW. 2011 ) . The oldest travel bureau has besides seen a bead in summer vacations by about 10 % which is one of the nucleus concerns of Thomas Cook of directing the households off to finishs like Balearics and Canaries. The portions of Thomas Cook have besides slumped to about 86 % but still many of the jobs of the company tend to persists.

Future programs

Thomascook. in be aftering to concentrate more on domestic touristry & A ; B 2 B section Portal presently offers flights. rail. hotels. sails & A ; other installations TCIL planning to add more finishs online
Aiming to concentrate on B2B section for travel agents & A ; corporates.
Planing to sell flight tickets online
Planing to sell tour bundles online


Thomas Cook is one of the most successful travel bureau which meets the travel demand of the clients. Thomas Cook is the taking travel groups with flexible concern theoretical account and besides focused scheme and has a squad of more than 31000 people who are every bit committed towards the vision of the company. It can be said that the company has been executing good in the fiscal twelvemonth and programs to make good in the close hereafter but with altering market environment along with the demands and demands of the clients Thomas Cook needs to accommodate to new engineerings and serve or provide its clients with the wants and demands.

Thomas Cook has been confronting few challenges as mentioned and it should take the necessary stairss to avoid jobs which could halter the concern of the administration. Over the old ages Thomas Cook has been able to make a repute of being the universe taking travel group and therefore have been able to accomplish the trust and trueness among its clients. Although there are many rivals in the market but with its competitory advantage and good service it still remains to be the best travel group across the universe.


Based on the above findings and analysis it can be said that Thomas Cook remains to be the top taking travel group across the Earth but still faces few challenges. It is recommended to take attention of the challenges in order to guarantee a better service to its clients. Thomas Cook should supply respond to the feedback to those clients who make reserve online ; it can supply price reduction on its holiday’s bundles in order to pull more figure of clients as with the recent recession people has become more careful on passing their money so valid and proper strategy which says to salvage money would certainly pull more clients.

It can offer the clients with exciting bundles so that the clients feel satisfied of the sum paid by them and bask the pleasance of going with Thomas Cook. In add-on it should undertake the alterations in demand along with the displacement in the consumers demand and demands. This manner it will be able to derive trueness among the clients and remain in front of its rivals.


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