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.