The UK Civil Aviation Authority has stepped in to support holidaymakers who were booked to travel with Mountain Paradise after the company, based in Altrincham, Greater Manchester, ceased trading.
The company (ATOL 6404) also traded under the names of Tatra Photography and Tatra Yoga.
Unfortunately for customers, future holidays booked with the company will not go ahead.
However, as the company was part of the ATOL scheme, customers with protected holiday bookings will be able to claim a refund for their trip.
There are believed to be no customers currently overseas.
Andy Cohen, head of ATOL at the UK Civil Aviation Authority, said: “We understand this will be concerning news for anyone who has booked to travel with the company.
“However, the ATOL scheme exists for exactly this kind of situation and we are making immediate arrangements so all ATOL protected customers can claim full refunds as quickly as possible.”
The CAA advised travellers to check the official website for further information about how to claim.
Cohen added: “So while this situation is very disappointing for the customers affected, it is also a timely reminder of the importance of remembering to check for ATOL protection when booking holidays.
“By making sure you receive an ATOL certificate when you book, you have peace of mind you will not lose your money or have to make your own way home - even if your travel company stops trading.”