I don t think it will be the end of packages , I just think it signals an end to the cheap longhaul deals

While agreeing with kerry25 about the fact that long haul cheap deals are going to rapidly become a thing of the past, as Thomas Cook "heads for the exit", there are maybe other factors coming into play.

We know that four players (First Choice-Thomson/ThomasCook-MyTravel) recently became only two - yet strangely they are keeping the myth of separation by (for the moment) retaining separate brands and crazy costly duplication of high street shop fronts.
This reduction in real choice inevitably means that the two big German companies TUI and TC are easily able to ramp up prices. Indeed, they will HAVE to, to support the extra costs of duplicate brands and marketing.
And they are - if you travel regularly, it is easily possible to keep track of just how package prices are rapidly rising year on year.
Example - have a look at Thomson winter Goa prices 2009-2010-2011-2012
- I'd estimate an average annual increase of 10% each year. (killing off Portland helps them hide it!)

Secondly, the involvement of Thomas Cook with their Russian venture announced last November

http://www.dailymail.co.uk/money/article-1332897/Thomas-Cook-breaks-Russian-market-Intourist-partnership.html

might also mean that they find the rich Russian market for package holidays more lucrative than the rather financially stretched UK population.

And lastly, my (maybe twisted) mind has started wondering about "cosying up" going on between the big two, TUI and TC.
I came back recently from the DomRep on a Thomson holiday - but because Thomson had technical trouble with their aircraft - they used a Thomas Cook plane to bring us back.
Also, if you look at Thomas Cooks' website - you will see that these days they are quite happily marketing Thomson holidays. And now we see Thomson holidays using Thomas Cook airline to replace TOM planes in some of their packages.
I think that these examples - and there are others - indicate that aggressive competition is really NOT happening between the travel giants - despite what they probably promised the Monopolies Commission to be allowed to proceed with their "4 to 2" mergers back in 2008.

If Thomas Cook are going to pull out of the whole long haul market, it can only be a bad thing- well it will be for me as I've always flown long haul with them. I wouldn't be able to afford Thomson's prices

http://www.bbc.co.uk/news/business-11837857
Not sure why I wasn't allowed to post a link to the TC/Russian news item - trying again here

Just wondering when you're all having to pay your balance for your summer holiday? I've just checked and they want my payment by 28th April which is 14 weeks before we depart I think that's ridiculous. I'm sure it only used to be about 8 weeks before. How can they justify requesting payment so far in advance? I would have liked to have kept that money in my account for a bit longer.

Just wondering when you're all having to pay your balance for your summer holiday? I've just checked and they want my payment by 28th April which is 14 weeks before we depart I think that's ridiculous. I'm sure it only used to be about 8 weeks before. How can they justify requesting payment so far in advance? I would have liked to have kept that money in my account for a bit longer.

I've always had to pay 12 weeks in advance for the remainder and still is the case for my holidays in Jan 2012 ...

I've always had to pay 12 weeks in advance

My experience has been Direct Holidays (part of TC) were 8 weeks,
Thomson generally are 9 weeks (though they don't shout at you until 8 weeks),
and Thomas Cook have always asked for payment 13 weeks ahead!!

If you've booked through an agent they always used to ask for the balance long before if you had booked direct. They might still. I try to avoid agent's as much as possible (I worked in retail for a number of years, in varying capacities) and book DIY wherever it's practical.

Agents have to pay the balances now 56 to 70 days before travel to the tour op (depending on the tour operator ) . So agents will always ask for their balance 1-2 weeks before that , to allow for late payments and time to get the payment to the tour operator.

Thomson are 10 weeks before and Thomas Cook are a whopping 14 weeks before , this is why travel agents make virtually no profit the first few months of the year jan/feb (when people book and pay their deposits ) and post all their profits during these summer(busier) months when customers pay their balance then in turn pay the tour operator minus the commission earned (plus interest on the balance sitting in the bank presumably !)

shirley

I to had to pay my balance 14 weeks before departure-i was mortifield when i got the paperwork out just to check when i had to pay it and i'd missed the latest payment date by 2 days!!! Ive never payed 14 weeks before we depart or made a late payment!!! (i was convinced that it was 12 weeks before) I book most of my holidays with thomas cook. Ive also got a holiday booked with thomsons and i have to pay balance 8 weeks before we go. Wonder how thomsons can do and TC cant?

Lily. x

Are agents really paying their balances that early these days? How times change. I always loved the 'time to get it to the operator' line. Late payments, yes but the days of having to 'send' payments to an operator are long gone.
I know there wasn't a no profit situation at the beginning of the year in the agency I worked for. Between winter holidays, half terms, easter and bank holidays, there was a reasonably good spread over the year.

Yes sunaddict , thomson and thomas cook balances are due 70 days before travel which is 10 weeks , then it goes straight to cancellation charges .

We used to pay the big tour ops eg thomson ,thomas cook all by direct debit , normally on a set day however some independants using smaller tour operators will still pay by cheque!

Also depending on which systems Thomson book their holidays on , balance dates can vary , if you book on their internet based system which does the admin for you the balance date was 8 weeks , just recently changed to 10 weeks . However if they use viewdata ( a unique reservation system for ta's) and load the holiday manually into their systems it is 12 weeks balance due date.

As I mentioned Thos Cook want my balance 14 weeks before and that's an on-line booking. I haven't used a travel agent for years.

I know we always asked the customer a couple of weeks before the stated brochure time for balance payments to cover the late payers, but the tour operators never got the balances then. It used to sit in a bank account for a while before the direct debit went out.
I really don't miss working in retail sales. Things have changed so much, even in a few years, and not for the better IMO. I do miss working in admin though.

I think the Thomas cook website is slightly different as a tour op websites such as thomson , it almost is acting as a ta which is sometimes why you can get a Thomson holiday on there , so that is probably why you are being asked to pay the balance 14 weeks before in line with their retail division ie all the ta shops .

shirley

i booked in a thomas cook shop, when i phoned to apologise that i was 2 days late i did query why it was 14 weeks and not the usual 10 wks for the balance, the agent said it was certain properties that wanted to be paid earlier than others (mine was one of those i guess) It wasnt a problem to me as i have the money ready(would have been nice to have let it sit in the bank 2 weeks longer!!) although now i will always check when i make my next booking with thomas cook.

Lily. x

Hi Lily.

i booked in a thomas cook shop, when i phoned to apologise that i was 2 days late i did query why it was 14 weeks and not the usual 10 wks for the balance, the agent said it was certain properties that wanted to be paid earlier than others (mine was one of those i guess)

That makes sense and would explain it. Thanks

Thats not true , well I don t think it is . Look in the back of the brochure , it will say somewhere about cancellation fees along the lines of, booking date to 70 days before, loss of deposit , 56 -29 days 50 % charges and so on , All tour operators take their balance according to their t and c 's , ta 's pass over their money to the tour operator a couple of days (can vary ) after the date that in their(the tour op's) t and c's , a cancellation moves onto charges rather than a loss of deposit , that is when the ta's will pay thir balance . I ve tried to explain it the best I can , but i hope it makes sense

And TBH Thomas Cook will pay the hotelier probably after you have come back , possibly even at the end of the season or year ! So that is probably what they have been told to say !

I agree Kerry. The hotel does not dictate when it gets paid. It sounds like a typical agent response to a question they really don't know the answer to.