UK travel firm collapses putting thousands of holidays at risk - are you affected?

A Berkshire-based travel company has collapsed, potentially leaving thousands of holidaymakers facing cancelled summer breaks.

Great Little Escapes has ceased trading as an Air Travel Organiser's Licence (ATOL) holder, throwing numerous bookings into doubt.

The Sandhurst firm operated under multiple names including Your Holidays and Tunisia First, as well as various websites such as www.themaldives.co.uk, www.yourholidays.co.uk, www.thecaribbean.com and www.greatlittleescapes.co.uk.

The Civil Aviation Authority confirmed the company's failure, stating: "We are currently collating information from the company and will update this page as soon as possible."

The collapse affects customers who booked package holidays with flights through the company, which previously advertised itself as offering "the best cheap breaks in the UK" and holidays ranging from adventure trips to relaxing spa breaks.

The CAA has advised affected customers not to submit compensation claims yet, warning that "whilst waiting for further information, please do not submit a claim as these will be rejected."

Travel agents who are holding customer payments have been given specific instructions by the aviation authority.

"If you are a travel agent of Great Little Escapes LLP and you are currently holding consumer payments which you have not yet paid to Great Little Escapes LLP, you must not use these funds to refund consumers until you have received instructions from the Air Travel Trust," the CAA stated.

The authority confirmed that travel agents will be contacted individually with specific instructions for handling existing bookings. The company's website had promoted holidays to "the most iconic cities in the World" before its collapse.

The CAA has emphasised that travel agents must await official instructions before taking any action with customer funds. "Travel agents will be individually contacted by the CAA with specific instructions for these bookings," the authority confirmed.

The company, which specialised in offerings from "adventure holidays to relaxing spa holidays, beach holidays to city breaks, adults-only to fun-filled family resorts," is not connected to Great Little Breaks, a separate entity.

The collapse follows another recent failure in the travel sector. Jetline Travel, a London-based firm that operated for 25 years under various names including Bargain Late Holidays and Cruise and More, went into administration in March after ceasing as an ATOL holder.

The ATOL scheme provides financial protection for customers who book package holidays with flights when companies fail. Great Little Escapes' collapse means affected holidaymakers may be able to claim compensation through this scheme once the CAA completes its information gathering.

The timing is particularly difficult as the failure comes just ahead of the peak summer holiday season. The company's various websites and trading names suggest it catered to diverse destinations from the Maldives to Tunisia and the Caribbean.

Alan Clark of financial recovery specialist Carter Clark and Neil Bennett of restructuring firm Leonard Curtis were appointed to handle Jetline Travel's administration on 28 March.

That company had taken hundreds of thousands of people on holidays during its quarter-century of trading before its collapse.