Thomas Cook collapse means headaches for Transat as partnership deal dies | The Star

The repercussion of a collapse of a business of this magnitude is sure to bring about several changes in the short term and long term.

In the short term, the needs of the stranded passengers need to be addressed. The inconvenience caused to the stakeholders and loss of reputation of affiliated businesses are some of the obvious repercussions. Travels insurance companies would be footing claims in hundreds of millions of dollars. In the short term, to recoup the losses future travel insurance cost could go up. On the positive side, competitors of Thomas Cook, are expected to have an immediate increase in business.

The ease of online bookings of cheap flights, low cost accommodation and designing your own tours have been attributed as the main reasons for the collapse of Thomas Cook.

Does that mean other similar businesses would continue to see a similar fate befalling them?

Not really so. The introduction of tv and the brief collapse of cinema comes to mind. Businesses do adapt quickly sometimes.

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