More than 2,000 holidays ruined as British holiday firm goes bust

More than 2,000 holidaymakers have had their summer holidays ruined because a British holiday firm specialising in breaks to Greece and Cyprus has collapsed.

The closure of the company, which traded under the names of Dream Holidays, Dreams and Travel and My Dream Holidays, means that around 1,800 customers have had their holidays cancelled. A further 525 customers currently overseas are having to make alternative arrangements.

The company offered holidays to many popular resorts in Greece and Cyprus, including Ayia Napa, Corfu and other Greek islands.

The Civil Aviation Authority (CAA) confirmed that any travellers who have lost their booking are covered by the ATOL financial protection scheme, and will be able to claim a refund. Those holidaymakers still abroad will be able to complete their holiday and return to Britain as planned, although they may be forced to pay for their accommodation again and then claim a refund from the CAA when they return home.

Strikes and civil unrest in Greece have led to a sharp fall in holiday sales. Analysis of more than 130,000 holidays conducted by Co-operative Travel shows a 15 per cent decline in bookings to Greece during the last week of June, compared with the same period in 2010.

Dream Holidays was established in 2009 by Libra holidays boss Akis Kypriano. In a statement he said: 'I wish to express my sincere apologies for all the inconvenience this will cause to all the travelling public that have booked a holiday with us, to those holidaymakers who are currently in resort, as well as all our retail and overseas agents and hoteliers who have supported us over the last two years.'

Nine other ATOL protected tour operators have collapsed so far this year, including Gill's Cruise Centre, Silverbird Travel and African Safari Club.

Think holidaying at home the safest bet? Check out some of our ideas for summer staycations below.

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