Customers holding forward bookings with Preston Travel should cancel or go ahead with the holiday ‘at their own risk’, says the CAA.
The authority has advised agents to cancel holidays with Preston Travel and its affiliated tour operators after the company ceased trading last week with around 4,000 forward bookings.
It warned holidaymakers who hold airline tickets and decide to go ahead with their trip could be charged for their accommodation again.
The CAA has said: "Customers due to travel from 1 March onwards are advised their trip has been cancelled, although they will receive full refunds through the ATOL scheme.
"Customers holding valid airline tickets may choose to use these and go ahead with their trip, but they do so at their own risk."
It explained that some accommodation providers may not have been paid and may charge customers again. Holidaymakers would then have to re-claim the money.
The CAA has made arrangements with Fleetway Travel to provide protection for holidaymakers leaving between now and February 28.
But customers booked to travel from March 1 with Preston Travel, Amathus Holidays, Longwood Holidays, Peltours, Guernsey Travel Service and JerseyTravel Service should cancel and apply for a refund through the ATOL scheme, it says.
Further advice and information on how to make a claim for a refund is available here.
Customers with packages not including flights are advised to contact ABTA for advice on their financial protection arrangements.
