In the world of travel and tourism, Public Relations (PR) plays a pivotal role in shaping a company’s image and guiding it through periods of both prosperity and crisis. When executed well, PR strategies can elevate a brand, boost consumer loyalty, and generate lasting positive impressions. However, when PR campaigns go wrong, they can lead to disastrous consequences — especially in the travel industry, where reputation and trust are key to attracting and retaining customers. A case study of travel PR failures provides valuable lessons for the entire industry, especially when focusing on a notable example: Thomas Cook.
Once a leading British travel company with a history dating back to the 19th century, Thomas Cook’s sudden collapse in September 2019 is a significant moment in the travel industry. Despite its long-standing legacy, the brand’s fall was exacerbated by a series of PR missteps, which contributed to a loss of customer trust, financial instability, and eventual insolvency. In this op-ed, we will examine the PR mistakes made by Thomas Cook, exploring how poor communication, a failure to adapt to changing consumer expectations, and mishandling of its crisis ultimately led to its demise.
The Rise and Fall of Thomas Cook: A Brief Overview
Founded in 1841, Thomas Cook was a giant in the travel industry, providing everything from package holidays to flights and hotel accommodations. For generations, the Thomas Cook name was synonymous with travel in the UK and many other parts of the world. The company’s rise to prominence marked the golden age of package holidays, making travel more accessible to middle-class families.
However, by the time Thomas Cook went into liquidation in 2019, the company was struggling. A mixture of external factors, such as changing travel trends, online competition, and financial mismanagement, put the company in a precarious position. But it was Thomas Cook’s PR missteps in the years leading up to its collapse that played a significant role in its eventual downfall.
The failure of Thomas Cook offers a cautionary tale for companies in the travel industry, highlighting how poor PR practices can undermine even the most established and trusted brands.
1. Failure to Adapt to the Digital Age
One of the most significant PR mistakes Thomas Cook made was its failure to keep up with the changing landscape of the travel industry, especially the rise of online booking platforms. While Thomas Cook once thrived on high street retail travel agencies and package holidays, the digital age ushered in a new era of travel planning. Websites like Booking.com, Airbnb, Expedia, and Skyscanner became dominant players in the industry, offering consumers the ability to book flights, accommodations, and activities with ease and flexibility, often at lower costs.
Missed Digital Transition
The company’s PR team, rather than proactively communicating the brand’s efforts to modernize, largely failed to address the growing digital shift, allowing rivals to dominate the online space. Thomas Cook was slow to establish a strong online presence. While the company had an online booking platform, it failed to fully embrace the growing importance of online marketing and e-commerce. Consumers increasingly wanted to plan their travel independently, with greater control over their itineraries, and Thomas Cook struggled to capture this new audience.
The company was also slow to adapt its customer service practices to the digital age. As competitors such as TUI embraced social media, personalized content, and online customer support, Thomas Cook lagged behind. This digital lag meant that the company’s marketing efforts were increasingly out of touch with the expectations of modern consumers, ultimately eroding its relevance in a rapidly changing industry.
Lack of Consistent Messaging
In addition to failing to adapt to the digital age, Thomas Cook’s PR team was inconsistent in messaging and tone. For example, while digital travel agencies were capitalizing on the “experience economy,” positioning travel as a personalized, memorable, and Instagram-worthy adventure, Thomas Cook continued to market itself as a traditional holiday package provider. It didn’t sufficiently adapt its narrative to appeal to millennials and younger travelers, who are often more interested in unique and individualized experiences rather than generic package holidays.
Resulting PR Mistake
The failure to evolve in a digital-first world led to Thomas Cook being viewed as outdated and irrelevant by younger generations. The company’s PR campaign, therefore, was not in alignment with the changing preferences of consumers, making it increasingly difficult for the brand to rebuild or maintain trust with its core customer base. Even though the company made efforts to improve its digital offerings later on, these initiatives were too little, too late, and did not resonate strongly enough with customers to overcome the negative perceptions that had already been formed.
2. Poor Crisis Management During the Collapse
Thomas Cook’s bankruptcy was a significant event that brought to the forefront its failures in crisis communication and management. As the company’s financial situation worsened in 2019, customers were left in the dark about the company’s solvency, causing widespread panic, confusion, and fear. The sudden and chaotic collapse of Thomas Cook left hundreds of thousands of travelers stranded around the world, a situation that required prompt, transparent, and empathetic communication.
Delay in Transparency
One of the most notable PR mistakes made during the crisis was the company’s slow and insufficient response to the mounting financial issues. While the company struggled to secure additional funding from creditors, they failed to effectively communicate the severity of the situation to the public in real-time. As rumors and speculation spread, the lack of transparency from Thomas Cook made it difficult for customers to understand the true extent of the company’s financial difficulties.
When the company eventually went into administration, many customers were left with incomplete information about their bookings and future plans. Travelers who had paid for holidays months or even years in advance were left stranded at airports or unable to get refunds. This confusion and lack of communication worsened the public’s perception of the brand, highlighting Thomas Cook’s failure to manage a PR crisis effectively.
Lack of Proactive Crisis Communication
Crisis communication requires not only responding to the crisis itself but also setting the tone for how it is handled. In Thomas Cook’s case, the company failed to manage its crisis with a clear and empathetic voice. Rather than proactively communicating with customers, providing regular updates, and offering assistance to those affected, the company’s PR team failed to create a cohesive strategy that instilled confidence in their ability to resolve the situation.
The absence of an authoritative and consistent message during the collapse of Thomas Cook allowed rumors and misinformation to spread. Instead of being seen as a company that was taking immediate and appropriate action, Thomas Cook appeared to be floundering, further damaging its reputation and trustworthiness in the eyes of consumers.
Resulting PR Mistake
The failure to manage the crisis effectively during Thomas Cook’s final days led to a massive loss of customer loyalty. The company’s inability to address customer concerns in a timely and professional manner contributed to its decline in both consumer trust and financial stability. A well-executed PR response could have softened the blow, minimizing the damage to the brand’s reputation and providing a more seamless experience for those affected by the collapse.
3. Inadequate Handling of Employee Relations and Stakeholder Communication
Another significant PR misstep for Thomas Cook was its lack of attention to internal communications, particularly with its employees and other key stakeholders. Throughout its financial struggles, Thomas Cook was often criticized for failing to communicate effectively with its staff, leaving many employees in the dark about the future of their jobs.
Internal Communication Failures
When companies face financial difficulties, it is crucial to maintain open and transparent communication with employees to reduce uncertainty and anxiety. In the case of Thomas Cook, employees were often left without clear answers, making it difficult for them to plan for their own futures. There was also a lack of communication with suppliers, partners, and other business stakeholders, which caused confusion and resentment.
In terms of PR, Thomas Cook’s failure to manage internal communications resulted in a loss of morale among its workforce, and in some cases, employees felt alienated and unsupported during the crisis. When news of the company’s bankruptcy broke, employees were not only shocked but also faced the difficult task of managing customer concerns without having the full information or support they needed.
Failure to Communicate with Key Stakeholders
While Thomas Cook’s public-facing communication with customers was inconsistent, its communication with key stakeholders, such as creditors, airlines, hotels, and government officials, was equally poor. In times of financial difficulty, keeping these stakeholders informed is critical in ensuring that the company can negotiate support and make arrangements for affected parties.
In Thomas Cook’s case, the lack of coordination and communication with suppliers, partners, and even the government led to additional challenges during the crisis. For example, while the UK government eventually became involved in repatriating stranded travelers, Thomas Cook’s PR efforts were so ineffective that it appeared the company had done little to prepare for such an event, despite warnings of financial strain for months.
Resulting PR Mistake
Poor internal and stakeholder communication added to the public perception that Thomas Cook was not prepared for its eventual collapse. Customers, employees, and business partners felt blindsided and betrayed, leading to an overall sense of mistrust in the company’s management. A better strategy for managing both internal and external communications could have reduced the overall impact on the brand’s reputation.
4. Lack of Brand Differentiation
Lastly, Thomas Cook’s PR strategies failed to differentiate the brand sufficiently from its competitors. While the company had an established reputation, it no longer stood out in a market where there were numerous other travel providers offering similar services.
No Clear Brand Identity
As the travel market became more competitive, particularly with the rise of online agencies, Thomas Cook’s brand identity became muddled. The company struggled to define what made it unique in a crowded marketplace. Its PR campaigns continued to promote package holidays and “family-friendly” vacations, but they failed to tap into the growing trends of experiential travel or provide a compelling reason for customers to choose Thomas Cook over other options.
The lack of brand innovation and an unclear sense of what Thomas Cook stood for beyond traditional travel packages ultimately hurt the company’s long-term prospects. A PR strategy focused on innovation, customer experience, or unique offerings might have helped the company to remain relevant and competitive.
Resulting PR Mistake
By failing to effectively communicate a unique selling proposition or demonstrate its value to customers, Thomas Cook’s PR efforts were increasingly ineffective. The company’s inability to stand out in a crowded market led to declining market share, further fueling the perception that Thomas Cook was a brand in decline, incapable of adapting to consumer preferences or industry changes.
The downfall of Thomas Cook serves as a powerful reminder of how travel PR mistakes can lead to the erosion of customer trust, brand reputation, and ultimately the collapse of an organization. From its failure to adapt to the digital age and its poor crisis management during its financial collapse, to the mishandling of employee and stakeholder communication and lack of brand differentiation, Thomas Cook’s PR missteps played a significant role in its demise. For travel companies and brands in any industry, the key takeaway is the importance of adaptability, transparency, and proactive communication in maintaining customer trust and navigating periods of uncertainty.
In an era where travel companies are increasingly reliant on social media, digital marketing, and real-time customer engagement, Thomas Cook’s story serves as a cautionary tale about the risks of ignoring the evolving expectations of consumers and failing to address crises with clarity and empathy. The failure to innovate and effectively communicate in the modern travel landscape ultimately led to the end of a brand that had once been a household name.
