by Mia Taylor
Last updated: 2:30 PM ET, Tue November 27, 2018
Thomas Cook Group is having a difficult year.
A new report from Bloomberg reveals that the UK tour operator has lost about one-third of its stock value in large part because of a poorly handled summer season.
The news organization says Thomas Cook did not plan properly for what shaped up to be one of the hottest European summer travel seasons on record.
The company expanded its jet fleet and optimistically blocked hotel rooms during a time when many travelers decided to stay home when faced with soaring temperatures, according to Bloomberg. That resulted in Thomas Cook having to offer dramatic discounts to sell its vacation packages.
Bookings are also down for this winter, about three percent.
During a recent conference call, CEO Peter Fankhauser also said the company had underestimated what he described as "transformation costs" or the price of streamlining its business.
"We have to get the balance right between capacity and demand, which is not as easy as it looks, especially when you have shock after shock," Fankhauser said. "It's been an absolutely disappointing year-end. We have evidence that we are delivering, but we have to speed it up and be more vigorous on the execution."
The company has warned that its annual profits are likely to be substantially lower this year, according to BBC.
Fankhauser noted however during the conference call that bookings for the coming summer are higher than a year ago.
Despite the suffering holiday bookings, the company's airline business recorded profit growth, and its future bookings are 11 percent ahead of last year.
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