Thomas Cook brand takes a tumble along with shares

A FEW SHORT months ago it must have seemed like a great idea for Thomas Cook: sponsor some of the biggest properties in sport and bask in consumer confidence when others in the sector are struggling. There was even a payback with its London 2012 sponsorship; it would help transport the visitors to the Games and recoup some of its money. Similarly, Manchester City's Champions League dream would see fans travel en masse with the company to destinations all over Europe. Sadly, neither the Olympics nor Man City's progression can come soon enough to rescue Thomas Cook's battered reputation. Confidence is everything in travel. Holiday makers must be sure that their plane will fly, their hotel will be built and their deposit is safe several months before the trip. No amount of guarantees by ATOL and the like would make them book this week and that is the problem. Thomas Cook was forced to go back to its bank for a second £100m loan inside a month leading to a collapse in its share price. Europe's second largest operator says it is fully protected and blames lower confidence for putting tourists off booking their holiday. Industry insiders fear it may be holed below the water line however.