Just as holidaymakers were preparing for summer breaks, the UK travel industry has been hit by a major disruption. Several travel firms, including Great Little Escapes, Jetline Travel, and Balkan Holidays, have collapsed, leaving thousands of travellers in disarray.
With the busiest travel period of the year just weeks away, customers are scrambling for clarity, refunds, and reassurance. If you’ve already booked a holiday or are considering one, you may be wondering: Is your summer getaway now at risk?
This blog unpacks the reasons behind these collapses, how travellers are affected, and the steps you can take to protect your plans.
What Caused the Collapse of Major UK Travel Companies in 2025?
The year 2025 has exposed deep financial fragilities in the UK travel sector. Despite a strong recovery post-pandemic, multiple travel companies have struggled to stay afloat amidst a cocktail of economic, operational, and regulatory pressures.
Key causes of collapse include:
- Mounting operational costs: From fuel surcharges to accommodation prices, rising inflation has squeezed profit margins.
- Over-reliance on credit: Many firms operated on thin cash reserves, relying heavily on supplier credit and customer deposits.
- Economic instability: Reduced disposable income and cautious consumer spending have slowed down bookings.
- Poor financial planning: Some operators failed to restructure post-COVID and could not manage outstanding liabilities.
- Intense competition: Major online travel platforms with global reach and automation have absorbed market share from smaller agencies.
These pressures created a perfect storm. Great Little Escapes, Jetline Travel, and Balkan Holidays are just a few names among a growing list of casualties.
How Are British Holidaymakers Being Affected by the Travel Firm Bankruptcies?
For travellers, these collapses bring more than just inconvenience, they can lead to lost money, broken plans, and limited recourse.
Thousands of customers have reported:
- Cancelled holidays with no immediate refunds
- Scrambled last-minute bookings to replace planned trips
- Partial holiday losses, like flights still valid but hotels unpaid
- Communication blackouts from failed companies
- Disrupted honeymoons, family trips, and special events
Great Little Escapes had marketed a wide range of trips under various aliases, which expanded its customer base, and potential exposure.
Their collapse affected bookings made through:
- Your Holidays
- Tunisia First
- TheMaldives.co.uk
- TheCaribbean.com
- GreatLittleEscapes.co.uk
Travellers have also reported confusion around ATOL claims. Currently, the CAA has paused all compensation claims, instructing consumers to await further guidance.
Is Your Summer Holiday at Risk After the Collapse of Great Little Escapes and Others?
It depends on how and where you booked. If you’ve made a holiday booking through any of the collapsed firms or their associated websites, your travel plans could be impacted, especially if the package included flights.
Recently Collapsed UK Travel Companies
| Company Name | Date of Collapse | Brands/Operations |
| Great Little Escapes | April 2025 | Your Holidays, Tunisia First, Online travel portals |
| Jetline Travel | March 2025 | Jetline Cruise, Cruise and More, Bargain Late Holidays |
| Balkan Holidays | April 2025 | Specialised in Eastern European and Mediterranean trips |
If you’re unsure whether your holiday is at risk:
- Check your booking reference and provider.
- Confirm if you received an ATOL Certificate.
- Contact the airline or hotel directly to see if your reservation is still valid.
What Should You Do If Your Trip Was Booked With a Collapsed Travel Company?
If your trip was booked with a travel company that has collapsed, don’t panic, but act swiftly and smartly. Knowing what to do in the right order can save you time, money, and stress.
Immediate Steps to Take if Your Travel Firm Collapses
- Check your booking status: Try contacting the travel agent or check online for updates. If they are unreachable, contact the airline or hotel directly.
- Look for ATOL protection: If you booked a flight-inclusive holiday, locate your ATOL certificate. Make sure it covers all components of your trip.
- Avoid filing claims too soon: The CAA advises against early claim submissions. Premature claims will be rejected until official instructions are issued.
- Wait for Air Travel Trust guidance: Travel agents have been told not to issue refunds yet. Any early refund may violate legal procedures and lead to penalties.
Take a deep breath and follow official updates from the Civil Aviation Authority. Acting patiently and correctly ensures your rights are protected
Are You Protected by ATOL If Your Holiday Has Been Cancelled?
If your holiday has been cancelled, you may be protected, but only if your trip is ATOL protected. The Air Travel Organiser’s Licence (ATOL) scheme offers financial protection to UK travellers booking flight-inclusive holidays through registered travel firms.
ATOL protection includes a full refund if your trip is cancelled before departure, repatriation if you’re already abroad, and assistance from the CAA to arrange alternative transport. It mainly applies to package holidays sold by UK-based travel companies, and in some cases, flight-only bookings.
The Civil Aviation Authority (CAA) manages ATOL claims when travel firms collapse. If your issue relates to poor service or delays, the Ombudsman or Alternative Dispute Resolution (ADR) may be responsible.
Always check for the ATOL logo on the travel company’s website. By law, you must receive an ATOL certificate as soon as your booking is confirmed to ensure your protection.
Which Other Travel Firms Could Be at Risk in the Current UK Travel Industry?
While it’s impossible to predict every failure, analysts are warning that more collapses may be imminent.
Potential Warning Signs
- Delays in issuing travel documents
- Sudden, aggressive promotions with limited availability
- Negative reviews about poor customer service or unreturned payments
- Companies removing ATOL licence details from websites
In recent months, Jetline Travel ceased trading after failing to meet payment obligations to cruise operators like Princess Cruises and Cunard. Bookings made under “Cruise and More” were left partially unpaid, despite valid flight tickets.
Balkan Holidays, operating for six decades, folded despite offering specialist packages to destinations like Croatia, Bulgaria, and Malta, revealing even well-established firms are not immune.
How Can Travellers Safeguard Future Holidays Amid Ongoing Industry Uncertainty?
While the current market is volatile, travellers can still book securely by following some smart practices.
Tips to Protect Yourself
- Book with ATOL or ABTA protected companies only for safety
- Use a credit card for Section 75 consumer protection and refund rights
- Buy travel insurance with supplier insolvency cover included for emergencies
- Keep a copy of all booking documents including the ATOL certificate safely
- Stay updated on the travel company’s status via the official CAA website
- Check travel firm reviews and recent updates before making any bookings
These simple steps can save you from the stress of having to rebook or recover funds later.
Conclusion
The collapse of multiple UK travel firms in 2025, Great Little Escapes, Jetline Travel, and Balkan Holidays, has highlighted a harsh truth: the travel industry is still vulnerable. For holidaymakers, this means more than just inconvenience, it could mean lost money and shattered plans.
The lesson? Never take your booking protection for granted. Always confirm ATOL or ABTA affiliation, read the fine print, and pay with secure methods.
As consumer trust wavers and industry regulations tighten, it’s likely that only the strongest and most transparent travel firms will survive. For travellers, staying informed and cautious is the best defence.
FAQs About UK Travel Firm Collapses
What signs indicate that a travel company might be in financial trouble?
Slow refunds, lack of communication, aggressive discounting, and negative reviews may signal financial instability.
Can travel insurance cover trip cancellations due to firm insolvencies?
Only if your policy includes “end supplier failure” or “travel firm insolvency.” Always check your cover details.
How long does the ATOL refund process typically take?
Once open, ATOL claims can take 4–12 weeks, depending on the case volume and documentation accuracy.
Are package holidays safer than independent bookings during industry instability?
Yes. ATOL and ABTA cover package holidays, offering stronger legal and financial protection than DIY bookings.
What is the role of the Civil Aviation Authority (CAA) in such collapses?
The CAA manages the ATOL scheme, processes claims, and ensures stranded customers are repatriated safely.
How does insolvency affect employees of collapsed travel firms?
Employees may lose their jobs immediately. Administrators handle redundancy and payout procedures under UK insolvency law.
What lessons can consumers learn from recent travel firm failures?
Book through protected providers, avoid deals that seem too good to be true, and never skip reading terms and conditions.
