19 May 2015

Calls for Thomas Cook boycott over Corfu deaths

Holiday tour operator Thomas Cook is under fire for its muted response to the deaths of two children who died of carbon monoxide poisoning on holiday in Corfu in 2006.

The parents of two children who died while on a family holiday to Corfu booked through travel company Thomas Cook have said they were not consulted over a £1.5m donation the company made to Unicef.

Yesterday Thomas Cook CEO Thomas Fankhauser said the travel firm had donated a compensation payout it received following the deaths of Bobby and Christi Shepherd to the children’s charity.

Labour MP Mary Creagh said the children’s parents, Neil Shepherd and Sharon Wood, have a particular children’s charity they have been supporting since the deaths and think the donation to Unicef is “once more all about Thomas Cook”.

She said: “Their feeling is that this once more about them, it’s about Thomas Cook. Thomas Cook have not contacted them about this.”

Substantial damages

Yesterday Mr Fankhauser confirmed that the company received a substantial payout to cover costs, expenses and loss of profits from the hotelier where the children died due to a faulty boiler.

He said: “In late 2012, we brought a claim against the hotelier for breaching their contract to provide safe accommodation to our customers and to comply with all applicable laws, which was decided in our favour.

It feels like they have hidden behind a line of suits and decided that not admitting liability was key to their response. Deborah Watson, PR expert

“Today I have made arrangements for the full amount – £1.5m – to be donated in full to Unicef, the world’s leading children’s organisation.”

Unicef confirmed they have accepted the donation. In a statement to Channel 4 News, they said they had been given assurances that the family would be made aware of the donation before it was made.

“This is a tragic case and we offer our sympathies to the family of Christianne and Robert Shepherd. Thomas Cook has confirmed it will be donating £1.5m to Unicef and we will use this money to help keep vulnerable children safe around the world. We asked that Thomas Cook inform the family before the donation was made and were given that assurance.”

‘Breached duty of care’

Last week, a jury at the inquests into the deaths of the youngsters found that the company had “breached their duty of care” to the family and that its health and safety audit of the hotel was inadequate.

The hearing was told that Bobby and Christi died due to multiple flaws in the installation and maintenance of the hot water boiler in an outbuilding next to the bungalow where they were staying.

They were on a half-term break with their father and his partner at the time, who were found unconscious next to their bodies.

During the inquests a number of former Thomas Cook staff exercised their legal right not to answer questions, a move that further dismayed Mr Shepherd and Mrs Wood.

Two Thomas Cook employees were cleared of manslaughter in a trial in Greece four years ago, while four Greek nationals were convicted of offences relating to the deaths of the children and jailed but they were released pending appeal hearings.

I will bet there will have to be a few people falling on their swords – the opinion is such that the public will expect someone from management to take responsibility. Deborah Watson, PR expert

James Bevan, of CCLA Investment Management, told BBC Radio 4 that here has been the best part of a 20 per cent reduction in Google searches for Thomas Cook holidays this week, and there are indications that the company share price has taken a tumble as fallout from its response to the tragedy continues.

Across the vast social media landscape there are multiple calls for boycotts – currently there are nine separate groups on Facebook calling for families to punish the company for their treatment of the family of Bobby and Christi, and an online petition has been gathering momentum.

‘Hidden behind a line of suits’

Public relations expert Deborah Watson told Channel 4 News Thomas Cook’s handling of the tragedy will be held up as a disaster warning for other companies for years to come. She said the company took a massive gamble in having its response led by “the legal suits, the insurers and following the corporate line” and it has clearly not paid off.

“With social media, the share price can plummet immediately in instances such as this,” she said. “Decisions are formed instantaneously.

“It feels like they have hidden behind a line of suits and decided that not admitting liability was key to their response, instead of taking a more humane approach by meeting the family directly.”

Ms Watson said it had made several critical failures as a business in not acknowledging its responsibility, and had underestimated how the public would react – particularly when such a substantial part of their business is built around families.

‘Too little too late’

She predicted that the company would pay heavily for the mistakes it has made.

“The way they are playing it out now is completely shocking and it will take a long, long time to build creditability and respect back. I will bet there will have to be a few people falling on their swords – the opinion is such that the public will expect someone from management to take responsibility. Whatever happens, though, it will be the case of too little, too late.”