More than 2,000 holidaymakers hit by Dream Holidays collapse
Some 1,800 clients have lost their holidays following the collapse of Greece and Cyprus specialist Dream Holidays.
The Civil Aviation Authority confirmed they would be refunded under the company's ATOL but they will not be able to take holidays booked through the tour opertor which ceased trading yesterday.
Dream Holidays had a bond for £265,000.
A further 525 customers were abroad when the company announced it's collapse. The CAA said they would be able to complete their holidays and fly home as planned, but it admitted some would have to pay again for their accommodation and claim refunds on returning home.
A spokesman for liquidators Alexander Lawson Jacobs said all five or six employees had been made redundant and there was no possibility of the business being sold.
The demise of Dream Holidays, which was launched just over a year ago by former Libra Holidays boss Akis Kyprianou, follows the financial failure of Gill's Cruise Centre last week.
Rochelle Turner, Head of Research for Which? Travel, said: "This is yet more bad news for UK holidaymakers and the travel industry. Dream Holidays is the second travel firm to go into administration in just four days, and the most recent in a long list of travel companies that have suffered as a result of the economic downturn."
Owner Kyprianou blamed fierce price competition from rival operators and tough trading conditions over the past month for the company's fate.
He said in a statement: "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 experienced adverse trading conditions in the last month with fierce price competition from well established travel companies which made it impossible for us to compete and to continue trading without incurring further losses and liabilities, in what we believe to be an exceptionally weak market and an unsustainable business environment."
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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