The Great Little Escapes travel company collapsed in the UK earlier this year, affecting thousands of customers.
In June 2025, Great Little Escapes LLP, a UK-based travel company operating since 2002, collapsed after losing its Air Travel Organiser’s Licence (ATOL). This development left hundreds of British holidaymakers stranded and uncertain about their travel plans.
Great Little Escapes Travel Company Background and Services
Great Little Escapes, headquartered in Sandhurst, Berkshire, specialized in offering package holidays to iconic cities worldwide. The company operated under several brand names, including Your Holidays, Tunisia First, and maintained multiple travel-related websites such as themaldives.co.uk and greatlittleescapes.co.uk. For over two decades, it catered to travelers seeking curated city breaks, often focusing on destinations in Europe, the Caribbean, and the Indian Ocean.
Loss of ATOL Protection
On June 13, 2025, the UK Civil Aviation Authority (CAA) announced that Great Little Escapes had ceased trading as an ATOL holder. The ATOL scheme is a financial protection program managed by the CAA, ensuring that travelers are refunded if their tour operator goes out of business. The loss of this license meant that customers booking package holidays with the company no longer had the financial protection previously afforded to them.
Reasons for Great Little Escapes Travel Company Collapse
The immediate cause of the collapse was the company’s failure to maintain its ATOL status. Reports indicate that Great Little Escapes faced financial difficulties, including a reported loss of £77,000, which contributed to its inability to meet the requirements for ATOL protection. The company cited “ongoing challenges in the travel industry” as factors influencing its decision to cease operations.
Impact on Customers
The collapse left numerous customers with canceled holidays and uncertain travel plans. The CAA advised travelers to check the status of their bookings and informed them that claims for refunds would be processed through the ATOL scheme. However, travelers who paid by credit card were advised to contact their credit card issuer directly for potential refunds.
In total, approximately 141 customers were affected by the company’s sudden closure. Many had booked holidays for the summer months, anticipating trips to destinations like the Maldives, Tunisia, and various Caribbean islands. The abrupt cancellation of these holidays caused significant inconvenience and financial strain for the affected travelers.
Industry Context
The collapse of Great Little Escapes is part of a broader trend of financial instability within the UK travel industry. Several other travel companies have faced similar challenges, leading to bankruptcies and closures. These incidents highlight the vulnerabilities within the sector, particularly for small and medium-sized operators who may struggle to absorb financial shocks or adapt to changing market conditions.
Customer Guidance and Next Steps
For those affected by the collapse, the CAA has provided guidance on how to proceed with refund claims. Travelers who booked package holidays with Great Little Escapes and are ATOL protected should submit claims through the ATOL scheme. The deadline for submitting claims is June 12, 2026. Travelers who paid by credit card are encouraged to contact their credit card issuer directly, as they may be entitled to a refund under Section 75 of the Consumer Credit Act.
Additionally, the CAA has advised travel agents holding customer payments to await further instructions before issuing refunds. The Air Travel Trust, which manages the ATOL scheme, is in the process of collecting information to facilitate the claims process.
Conclusion
The collapse of Great Little Escapes serves as a cautionary tale for travelers booking package holidays. While the ATOL scheme offers a layer of protection, it is essential for consumers to remain vigilant and ensure that their bookings are covered. Travelers are advised to verify the status of their bookings, understand their rights under the ATOL scheme, and take prompt action to secure refunds where applicable.
As the travel industry continues to navigate post-pandemic challenges, the stability of travel companies remains a critical concern for consumers. The case of Great Little Escapes underscores the importance of financial transparency and consumer protection in maintaining trust within the travel sector.
