The Association of British Travel Agents (ABTA) has confirmed online travel agency Bookable Holidays Limited has gone into administration.
The retailer sold flights, hotels, holiday services and package holidays via its websites bookableholidays.com and bookableholidays.co.uk.
960 forward bookings have been left in limbo.
What happened?
In a statement managing director Jason Dwyer told travel agent website TTG Digital that dramatic changes in the marketplace along with new legislation had forced Bookable Holidays to cease trading.
He also blamed recent airline failures, increasing product liability insurance and the rise of ‘no-win, no-fee’ lawyers pushing ‘I think I was sick on holiday’ claims.
Dwyer added: “I apologise to all involved if this decision has caused any inconvenience but sadly we can do no more. We look forward to seeing you all soon with some exciting opportunities on the horizon.”
Compare travel insurance quotes
ATOL protection
Bookable Holidays has an Air Travel Organiser's Licence (ATOL), which means holidaymakers should be financially protected from its closure through the ATOL scheme.
The ATOL scheme ensures that should a travel firm collapse its customers will get their money back or, if they are already on holiday, receive help to ensure they are not left stranded.
Travel companies are required to give you an ATOL Certificate explaining how your holiday is protected when you make your booking, should they be part of the ATOL scheme.
However, the Civil Aviation Authority (CAA), which administers the scheme, says not every booking made through Bookable Holidays was financially protected.
Advice for holidaymakers
The CAA is currently trying to obtain more information from the firm in order to provide further advice.
In the meantime it says holidaymakers should check their paperwork to see if they received an ATOL Certificate or an ATOL Receipt confirming their holiday was protected under the ATOL licence 9785.
The CAA says if you find you're protected under a different ATOL number you should get in contact with the holder which should be identified on your confirmation documents.
Meanwhile there is further advice from ABTA.
The travel association says customers due to travel or on holiday with a flight-based booking should contact the CAA but customers that have made accommodation-only forward bookings should check their paperwork, as the accommodation may have been provided through another supplier.
If this is the case ABTA recommends checking with that company directly to confirm the booking and if there is a problem it says people should refer to its website or call 020 3758 8736 to get help claiming a refund.
Compare travel insurance quotes