HotelConnect has collapsed leaving hundreds of holidaymakers and tour operators potentially out of pocket.
The bedbank group sold accommodation to tour operators and directly to holidaymakers but ceased trading this week with 6,400 forward bookings.
About 400 of these were made by travellers via HotelConnect’s website, which was bonded by ABTA.
However the remaining 6,000 reservations were made by tour operators, who could be forced to pay for replacement accommodation unless their insurance policy covers travel company failures.
Any holidaymakers who booked with an agent acting on behalf of HotelConnect, rather than a tour operator, could also be liable.
A spokesman for ABTA advised travellers and tour operators to contact their hotel to confirm their booking. Customers who booked using a credit card should contact their card provider to arrange a refund.
London-based HotelConnect, which was established in 1994, was the eighth ABTA-bonded company to collapse this year, and follows Travel Junky, Selsdon Travel, Silverbird Travel, Complete World Travel, African Safari Club, Global Travel Agency and Grus Travel.