Thomas Cook to overhaul operations in UK

The travel retail group Thomas Cook recently announced it will overhaul its U.K. operations to extend its reach into overseas markets. Through the new plan, the retailer plans to improve U.K. profits by £110 million over the next three years, while only spending an extra £60 million.

Travel Weekly reported Cook is working to refocus its product strategy, improve yield management and rationalise distribution of its offerings at its more successful branch locations. The retailer will close its under-performing travel agency branches throughout the country, while providing travellers with better quality hotels and more incentives to book travel plans through the company's ecommerce site.

Thomas Cook recently merged with Co-op Travel, and will work with the new partner to enhance its online offerings to combat the £400 million in losses the retailer reported in 2011. 

"There's no silver bullet to turning around the U.K. business but I'm confident that the measures will improve the profitability in years to come," said Sam Weihagen, interim chief executive of Thomas Cook. "Thomas Cook is a very strong brand in the U.K. and it has enormous possibilities to make sure it becomes a profitable business."