Preston Travel had around 1,700 Atol protected forward bookings, covering around 4,000 people when it collapsed yesterday.
Confirmation came from the Civil Aviation Authority which said around 130 holidaymakers are currently abroad.
People overseas on air-based holidays with Preston Travel will be able to complete their holidays.
The regulator has also acted to make sure some clients with forward bookings can go ahead with their holidays.
The CAA is making arrangements for customers due to depart the UK on holiday until February 28 to continue with their planned holiday, with Fleetway Travel providing protection for the trip.
Customers due to travel this month are being advised to contact Fleetway Travel for further advice.
Travel agents with queries about the arrangements can also contact Fleetway Travel on 0844 571 5406.
People booked to travel from March 1 have had their trips cancelled but 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,” the CAA said.