Thomas Cook Finds Niche

With the introduction of the euro about to impact its currency conversion business, Thomas Cook Group is carving out a new strategy.

With the introduction of the euro about to impact its huge currency conversion business, the United Kingdom's Thomas Cook Group is carving out a new strategic niche — one that plays to its strengths as a trusted consumer brand while acknowledging the seismic changes reshaping the travel industry.

The euro's arrival means that Thomas Cook's lucrative foreign exchange operations across much of continental Europe will shrink dramatically, as travelers no longer need to convert between the franc, the mark, the lira, and a dozen other currencies. The company is moving quickly to offset that revenue loss with new products and services.

On the travel side, Thomas Cook is doubling down on its package holiday business while also exploring opportunities in the emerging online booking space. The company's brand recognition and retail network give it assets that pure-play internet competitors lack — but the challenge is translating those advantages into a sustainable digital strategy before the window closes.