The budget tour operator, "Lowcostholidays", has gone into administration with no prior warning to guests:- their administrators have stated this could affect around 27,000 people already on holiday and potentially 110,000 with bookings. Around 55% of the company's customers are from the UK.

A statement by the administrators has been issued warning customers already on holiday that they could be asked to pay their hotel bills again on arrival or during their stay. Potentially this could result in tens of thousands of Britons yet to travel having their holidays cancelled.

The company has issued a statement on their website informing Holiday-Makers that their flights home would be still be valid, but warned that hotel owners as well as companies offering services such as airport transfers may ask them to settle their bills before leaving, even though these cost have already been paid to Lowcostholidays prior to arrival.

Customers have been advised to claim for any extra payments that they are asked to make to their travel insurer, credit card company or the government of the Balearic Islands which licensed Lowcostholidays.

In 2013, the Civil Aviation Authority issued a warning to avoid booking with Lowcostholidays after the company relocated to Spain, as its holidays were no longer protected under the Atol scheme run by the CAA. The Atol scheme ensures that Holiday-Makers can return home and get their money back if a company goes into administration. Lowcostholidays disputed the remarks stating that holidaymakers had protection under a Spanish scheme.

Lowcostholidays have been used by other tour operators to provide a budget overseas holiday. The advice being given is to ring the company you have booked with:- and ensure your holiday still remains valid even if it was booked elsewhere. As this news breaks it is obviously causing chaos for many holiday companies with a sudden increase in calls, so be patient if you cannot contact them immediately!

The administrators have issued a statement confirming that they are planning to meet with the appropriate Spanish regulators and authorities to investigate what compensation may be available to customers who have lost money due to the collapse. 

This has happened at the start of the busiest holiday season, with most schools about to break up for the summer holidays.

Lots of guests will now be left with no alternative but to forgo their planned break away completely or to try and re-book elsewhere, with very little time left to plan. 

Some of the ETK Owners still have last-minute summer breaks available and although the weather can't be "guaranteed", your holiday can! So do take a look through the listings and grab that summer date before the availability changes, as it is likely that thousands of Holiday-Makers will now be looking to book alternative UK holidays....