Dream Holidays, the operator set up last year by former Libra Holidays boss Akis Kyprianou, has ceased trading.
Holidays are protected under the operator's Atol licence and the CAA is arranging for the repatriation of around 600 holidaymakers currently overseas.
Kyprianou said the company had experienced adverse trading conditions in the last month with "fierce price competition from well-established travel companies".
"This made it impossible for us to compete and to continue trading without incurring further losses and liabilities, in what we believe to be an exceptionally weak market and an unsustainable business environment."
He added: "I wish to express my sincere apologies for all the inconvenience this will cause to all the travelling public that have booked a holiday with us, to those holidaymakers who are currently in resort, as well as all our retail and overseas agents and hoteliers who have supported us over the last two years.
"Sincere apologies also go to all our devoted staff and business associates who have worked hard to establish the business over the last two seasons."
The directors of the company have appointed Alexander Lawson Jacobs as the company’s liquidator.
The Barnet-based operator, which marked its first birthday on April 1 2011, specialised in Greece and Cyprus.
Consumer advice from Which?
Atol-bonded agent bookings
You will get your money back if you haven't flown yet.
If you are abroad, the CAA will try to get you on a return flight as close to your original departure time as possible. Should you need to pay for extra nights, transport and other outgoings, these will be covered, if considered reasonable.
Contact the CAA
- Phone: 0207 453 6424
- Email: email@example.com
- Post: K3 CAA House, 45-59 Kingsway, London WC2B 6TE
Credit card payments
You may be able claim the money back from your card provider under Section 75 of the Consumer Credit Act. This covers purchases from £100 - £30,000 as long as you paid some of it by credit card (even as little as £1).
Contact your card provider.
Debit card payments
If you paid for your flight using a Visa debit card then contact your current account provider. They will then attempt to recover the money for you.
Claiming on travel insurance
Check your policy as some cover collapse of travel providers.
This is a community-moderated forum.
All post are the individual views of the respective commenter and are not the expressed views of Travel Weekly.
By posting your comments you agree to accept our Terms & Conditions.