Birmingham based travel agency Sun4U last week went bust, leaving over 1000 British holidaymakers stranded abroad. With the flight ban imposed by volcanic ash earlier this year and Sun4U’s main tour operator – Goldtrail – also going into administration in July, it had been a difficult few months for the company, leading it to announce it would be unable to continue.

So, what does this mean for travellers who have booked with Sun4U? This depends on what exactly was booked with the company. Those customers who booked a package holiday through Sun4U will have some protection from ATOL (Air Travel Operators’ Licensing) and can claim for a refund (www.atol.org.uk). However, for those who only have booked flights with the company, they may not be protected – if the payment was taken directly by the airline then passengers should not have a problem, but if payment was taken by Sun4U, they will have to contact the airline to find out where they stand.

For anyone stuck abroad, contact the CAA (Civil Aviation Authority) on 08445 717 260 to find out what alternative arrangements will be made. Anyone affected by the collapse of Sun4U should also check their travel insurance policy to see if they are covered for such circumstances.

While news of this collapse adds to an eventful summer for the travel industry, travellers shouldn’t give up on their holidays. With bookings not as high as expected for many companies, there are some great deals available. Our advice would be to shop around, see who is offering the most competitive rates and also make sure that the company is ATOL protected and double check what your insurance policy covers you for.