Thomas Cook chief sees possible tourism recovery by 2010

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Thomas Cook’s CEO has said that although he expects the economic downturn to continue affecting the tourism industry this year, he believes recovery is possible from 2010/2011, according to a recent report in the German tourism magazine FVW.

“It will get even tougher this year and next,” said Manny Fontenla-Novoa, head of the second-largest travel company in Europe, in an interview with FVW.

He added that under certain conditions business could improve in the 2010/2011 business year – the conditions being strict cost controls and efficient fuel price hedging efforts.

Thomas Cook, owned by the German firm Arcandor, generates approximately 90 per cent of the retailer’s operating profits.

In response to deteriorating economic conditions, Thomas Cook and rival TUI Travel – Europe’s largest travel company – have cut back on the number of holidays offered for sale and increased selling prices, on average, by not offering discounts for late bookings.

Thomas Cook is anticipating sales to decline for this fiscal year, “but less than ten percent,” said Fontenla-Novoa, adding that Thomas Cook “had a chance” to meet financial targets in 2010.

Rewe, Germany’s third-largest travel operator, said on Wednesday that it had an interest in Thomas Cook, but the two companies are not in talks at this time.

Thanks to www.reuters.com for the above quotes, for more information on this article please visit their website.

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