Interesting thoughts on this thread!
I'll add my two cents as to the reasons I think they went down and thoughts on the governments decision not to bail them out:
- General long term trends like Brexit and weaker pound have made foreign travel more expensive for the last couple years. Thomas Cook mostly serves people leaving the UK, rather than coming so this will definitely effect them more than say Ryanair.
- Overcapacity in European aviation market, which is already one of the most difficult industries to operate in.
- Online services have made it super easy to book your own customised holiday and easy acess to internet/mobile abroad make it easy to find your own way around! Businesses like Airbnb make it easier to book small rental homes, which are often a lot cheaper due to less staff and the high taxes usually imposed on hotels.
- Different types of holidays. I definitely think there's been a big switch in the types of holidays people want to go on. Simple beach + party packages are less popular and due to social media and general cultural shifts, I think people prefer to say do a more sightseeing type trip with multiple destinations. Big, closed off resorts in very touristy areas such as the ones Thomas Cook would likely have invested in are less suitable for this.
- Cost of running large number of high street stores.
I think the no bailout decision is probably, like another user said, somewhat a result of a more Conservative government mentality 'if they go down, they go down'. I guess as well someone probably crunched the numbers and came to the conclusion they didn't think it would keep the business afloat for much longer and a large repatriation operation would be necessary in the future anyway. Probably not great it's happened as the main travel season tails off, but at least it's not in the middle of the summer holidays!
Saw some reports of people calling Ryanair and Easyjet's sudden price hikes 'blatant profiteering', but I think the prices are constantly recalculated automatically based on many different factors of which demand/availability is a big part. In regards to people looking to book new flights from the UK in order to continue their trips, I don't think there is anything perticularly shameful about them charging more. However I can feel sorry for those currently abroad, looking to get home who have packages or flights. I wouldn't be surprised if the prices for these though are negotiated with the CAA or insurance companies. I flew with Thomas Cook from Manchester to New York earlier this year, outside of a package as I was staying with relatives.