School groups tour operator European Connections has ceased trading.
The Essex-based company ran accompanied educational tours, mainly to areas of musical, cultural or historical interest.
It was licensed by the Civil Aviation Authority to carry 1,040 passengers a year, but it is understood it had just 18 forward bookings and no customers abroad when it ceased trading.
The CAA said another operator, Halsbury Travel, had contacted the schools concerned and offered replacement travel arrangements if the schools were willing to hand over their claims for refunds to them.
A spokesman said: "It is of course up to the schools to decide if they want to accept this offer."
European Connections was founded in 1980 by former teacher Ted Higham, who was later joined in the business by his sons and his daughter.
In addition to ATOL-protected air-based holidays, the company also organised holidays by coach.
