Turkey and Northern Cyprus operator Lorenz Voyager Travel, trading as Green Island City Breaks, Green Island Holidays and Lorenz Voyager, was the second travel firm to collapse last week.
The London-based company had around 150 Atol-protected passengers abroad and the Civil Aviation Authority said it was working to ensure they continue their trips and return home as planned.
Lorenz had around 500 forward bookings, covering about 1,000 people.
Holidaymakers with package bookings wishing to travel will do so at their own risk as it is likely they will have to pay for their accommodation again once in resort, the CAA said.
This can be claimed back through the Atol scheme after they return and passengers not wishing to travel can also claim for a refund.
“Consumers with flight numbers beginning with ‘FHY’ are advised their trip is cancelled. Consumers with any other flight numbers will have valid flight tickets so can go ahead with their trip if they wish,” the authority said.
The Lorenz failure came as the CAA confirmed that student adventure company GBCE, trading as Student Adventures, had folded with 100 travellers overseas.
These people will have scheduled airline tickets and will be able to travel home as planned.
“We are looking into the impact on forward bookings and will publish advice for consumers who are yet to travel shortly,” the CAA said on Friday.
Student Adventures held an Atol until March 31 of this year and consumers who received an Atol certificate when booking are protected for any money they paid directly to the company.
“We are also in contact with charities that had bookings with the company. Consumers whose trips have been cancelled and want to rearrange them should contact their chosen charity,” the authority said.
“The CAA monitors companies after their Atol has lapsed or been removed to check they are not taking bookings for travel that should legally be protected by Atol.
“The CAA’s current understanding is that this particular company has not taken any bookings since its Atol expired on 31 March this year.”