The UK travel sector has been rocked by the collapse of several travel firms in 2025, with thousands of British travelers facing canceled holidays and disrupted plans. Among the most significant casualties is Great Little Escapes, a Berkshire-based company that had offered vacations to some of the world’s most iconic cities. The collapse of this travel agency is part of a worrying trend, with multiple firms going bust, affecting travelers who had booked flights, cruises, and packages. In this article, we’ll explore the details surrounding these closures and what travelers can do if their holidays are impacted.
Great Little Escapes: A Holidaymaker’s Nightmare
Great Little Escapes, which operated under various brand names, including Your Holidays, Tunisia First, and others, ceased trading as an ATOL holder in early 2025. The Civil Aviation Authority (CAA) issued a notice explaining that the company’s collapse left many travelers without bookings and, in some cases, without refunds. The CAA advised consumers not to submit claims for refunds yet, as they would be rejected. Travel agents who had payments for bookings with Great Little Escapes were instructed not to use those funds to refund customers until they received instructions from the Air Travel Trust. This situation has left thousands of customers in limbo, unsure about their bookings and uncertain about the process for receiving refunds.
Jetline Travel: 25 Years of Service Ends in Collapse
In April 2025, Jetline Travel, a well-established London-based company that had been operating for 25 years, ceased trading. Jetline, which also operated under the names Bargain Late Holidays and Cruise and More, was another victim of the growing number of UK travel firm bankruptcies. This collapse affected nearly 5,000 customers who had booked holidays with Cunard, Princess Cruises, and Holland America. Many bookings were canceled due to a breach of contract between the cruise operators and Jetline Travel. The CAA informed customers that flights with Jetline were still valid for their return journeys, but other services such as hotels and excursions had not been paid for, meaning travelers would need to pay again to rearrange these services. The collapse of Jetline Travel highlights the risks that travelers face when booking through smaller, independent agencies.
Balkan Holidays: 60 Years of Service Comes to an End
Balkan Holidays, a company that had been offering trips to destinations like Bulgaria, Croatia, Montenegro, Slovenia, Malta, and Northern Cyprus for nearly 60 years, ceased trading on April 24, 2025. The company had served 130,000 people annually at its peak, with departures from 17 UK airports. The collapse of Balkan Holidays has caused significant disruption for travelers who had booked their vacations to these popular destinations. Customers who had booked directly with Balkan Holidays were advised to contact the company for refunds, while those who had booked through third parties were directed to reach out to their travel agents. The company assured customers that refunds would be processed based on departure dates, though travelers were warned to expect delays. The collapse of Balkan Holidays underscores the volatility in the travel industry, particularly for niche tour operators focusing on specific regions.
What Should Travelers Do if Their Holiday is Affected?
If you’re one of the thousands of travelers impacted by the collapse of a UK travel company, the first step is to check the status of your booking. Here’s what you should do:
- Contact Your Travel Agent: If you booked through a travel agent, your first port of call should be to ensure your booking is still in place. If the booking is unaffected, your travel arrangements should proceed as planned.
- Check Directly with Airline or Accommodation: If you can’t get in touch with the travel company, it’s important to verify directly with your airline and accommodation provider. If your payment has been processed, your booking should still be valid.
- For Land or Sea-Based Packages: If you’ve booked a land or sea-based package, such as a coach holiday or cruise, with an ABTA member, your money is likely protected. If the company folds, you should be able to claim your refund through ABTA.
- ATOL Protection: If your holiday was booked through an ATOL member and the company goes bankrupt before you travel, you can apply for a full refund from the CAA. If you’re already on holiday when the company collapses, the CAA will make arrangements to get you home.
- For Unprotected Bookings: If your holiday is not ATOL protected or booked through an ABTA member, your options are limited. You may be able to claim through your travel insurance or use credit or debit card protection for payment-related disputes.
The Growing Impact of Travel Firm Collapses on the UK Tourism Industry
The collapse of Great Little Escapes, Jetline Travel, and Balkan Holidays reflects a wider trend in the UK’s travel sector. Many smaller travel firms have faced mounting financial pressures in recent years, exacerbated by global events such as the COVID-19 pandemic and the ongoing challenges posed by economic instability. This has left travelers increasingly vulnerable to travel disruptions and lost deposits. For travelers, these collapses serve as a stark reminder of the importance of booking holidays through protected channels. When booking with ATOL or ABTA members, travelers are given a certain level of protection in the event of company failure, which can significantly ease the burden when things go wrong.
This growing instability may drive a shift toward larger travel companies or more established online platforms that provide stronger financial guarantees.
The Impact on the Travel Industry’s Reputation and Consumer Trust
As these travel firm collapses continue to make headlines in 2025, they contribute to growing consumer skepticism about the reliability of smaller, independent operators. Trust in the industry is at risk, and consumers may become more cautious in their travel planning, preferring to book with major brands or agencies that offer greater protection and guarantees. This situation is forcing the travel industry to reconsider how it operates, especially in terms of financial protection for consumers and how smaller firms can stay competitive without jeopardizing the financial security of their clients. The collapse of these companies is likely to prompt more stringent regulations and oversight, aimed at ensuring consumers are better protected and informed when booking their holidays.
What This Means for the Future of the Travel Sector
The travel sector will need to adapt to these challenges by strengthening financial protections and focusing on customer satisfaction. As competition in the industry continues to intensify, customers will demand more transparency, better refund policies, and more secure booking options. The collapse of firms like Jetline Travel, Balkan Holidays, and Great Little Escapes will likely encourage further consolidation in the industry, as larger firms absorb smaller companies to offer more stability and reliability to their customers. The ATOL and ABTA schemes will likely see increased enrollment as travelers look for peace of mind when booking holidays. Similarly, the need for more robust travel insurance policies that include coverage for company insolvency could rise.
Conclusion
The collapse of Great Little Escapes, Jetline Travel, and Balkan Holidays in 2025 highlights the increasing vulnerability of travelers who book through smaller, independent travel agencies. It serves as a reminder to travelers to be cautious when booking vacations and to ensure they use ATOL or ABTA protected companies. The trend of travel firm collapses could lead to greater scrutiny of the travel industry, with a focus on enhancing consumer protection and transparency.
