Lowcost Travelgroup is in administration affecting 27,000 holiday makers in resorts and 110,000 with bookings, it was reported.
Smith & Williamson and CMB Partners UK have been appointed joint administrators to Lowcost Travelgroup.
The group, in a statement on its website, said it ceased trading on 15 July 2016, following exhaustive attempts by the group’s directors to rescue the group.
It said it has been “hampered by the recent and ongoing turbulent financial environment”.
The group operated a travel agency business from headquarters in the UK and offices in Spain, Switzerland and Poland.
The group mainly sold hotel accommodation through its wholesale (Lowcostbeds) and retail (Lowcostholidays) businesses.
It also sold holidays to consumers in Europe and Scandinavia using technology that enabled customer to choose from a variety of flights and hotels for their chosen destination.
The failure will affect many customers who have purchased flights or holidays, some of whom are on holiday in resorts and some of whom have not travelled yet.
A statement said that all flights involving people currently in resorts have been paid for and hence customers will be able to fly home when their holidays are over.
It added that, “unfortunately, as regards customers who have not travelled as yet a small number will have problems as regards their flights not having been paid for and many will have problems as regards their hotel rooms not having been paid for”.
* Do you have a holiday booked with the firm? Contact The Yorkshire Post newsdesk on 01132 388501.