Greece, Cyprus and Egypt specialist Dream Holidays has collapsed.
Managing director Akis Kyprianou issued a statement saying the fledgling operator had been unable to survive "fierce price competition" from the travel giants.
The statement said: "It is with great sadness that I announce today that Dream Holidays Ltd has ceased trading this afternoon Tuesday 19 July
"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 company is fully protected under its ATOL licence and the Civil Aviation Authority is arranging the repatriation of some 600 holidaymakers currently abroad.
Dream Holidays said it had experienced adverse trading conditions in the last month and fierce price competition from 'well-established travel companies' which had made it impossible for it to continue trading without incurring further losses and liabilities in "an exceptionally weak market and an unsustainable business environment".
Alexander Lawson Jacobs has been appointed as the company’s liquidator.
By Linsey McNeill
