Updated 11.30am, 14 February
Agents have been left in limbo following the collapse of Preston Travel, parent of Longwood Holidays and Amathus Holidays.
The Civil Aviation Authority and ABTA have stepped in to help 144 holidaymakers currently overseas and those due to leave imminently.
The CAA says it is making arrangements for consumers due to depart the UK on holiday from now until February 28 to be re-protected by Fleetway Travel Plc.
While ABTA has made arrangements to pay hoteliers for those currently overseas, as well as those travelling out for the weekend commencing 14 February, on non-flight based holidays and accommodation only bookings.
But the CAA website adds for forward bookings: "Agents are advised to refrain from cancelling ATOL protected bookings until further instructions are issued by the CAA."
With Preston Travel’s collapse leaving 4,500 customers with forward bookings, agents are confused by the advice they are getting.
Wayne Dennett of the Lincolnshire Co-op Travel wrote on Facebook: "Information is still a little sketchy for anyone travelling after February. Assuming that we need to wait for an update before booking customers with alternative suppliers?"
Preston Travel, with offices in Barnet, traded as Med Beach Holidays, Amathus Holidays, Egypt Travel Service, Longwood Holidays, Peltours Holidays, Preston Holidays and Value Breaks.
It specialised in holidays to the Channel Islands, the Isle of Wight and Isle of Man under the trading names Guernsey Travel Service, Isle of Man Travel Service, Isle of Wight Travel Service, Isles of Scilly Travel Service and Jersey Travel Service.
Preston Travel has been an ABTA member since 1966 and employed 30 staff in the UK and overseas.
John de Vial, ABTA’s Head of Financial Protection said: "Preston Travel is a well-known, long-established company and we are sorry to announce that they have ceased trading.
"ABTA will be arranging swift refunds for anyone who has booked a non-flight based package or accommodation-only booking."
ABTA pointed out that the Member that has ceased trading has no connection with Preston Travel Centre Limited in Preston, Lancashire, which is a completely separate ABTA Member.
The CAA has since told agents that all holidays from March 1 must be cancelled.
