Advantage member Sandy Travel has ceased trading, Abta has confirmed.
The agency in Normanton, Wakefield opened in 1992 and was a specialist in cruise and long-haul tailor made holidays.
Owner Sandra Murray is well-known in the industry and organises Abta's Yorkshire Ball each year.
John De Vial, Abta head of financial protection, said: “Everyone at Abta was very sad to hear about the problems at Sandy Travel. Sandy Murray has given exceptional service and a great deal of her own time to Abta and the Yorkshire and North Midlands Region over the years.
"All would agree she is an exceptionally nice person. The Abta claims team is busy working with Sandy to ensure that her customers are not affected by the problems at her company and that their holiday arrangements can continue with the minimum of inconvenience."
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