Around 20 families who booked bargain breaks over the Queen's Jubilee bank holiday have had their holidays cancelled by Pontin's - which then sold the holidays for 16 times the price.
Customer Scott Foster took advantage of a bargain deal for £33.07 for his family back in January. He received booking confirmation and the money was taken from his account.
But three months later, he received an email saying his booking was cancelled due to "unforeseen circumstances", reports the Daily Mirror.
The company told him that the holiday park was overbooked, although he later discovered that there was availability for the same holiday - for £550.
A self-catering break at Brean Sands in Somerset was booked for Scott, his fiance Claire and children aged 11 and six months.
But Pontin's has now cancelled the trip, and it is believed that around 17 other families who booked the bargain breaks are in the same situation.
A Pontins spokesman told the Mirror that the cheap deal should never have been available, and blamed a computer glitch.
She said: "We apologise that our computer booking system didn't not work in this case and the cancellation was issued as soo as we realised the problem."
AOL Travel contacted Pontins but no one was available for comment.
The news comes less than a fortnight after Pontin's was fined for the death of a holidaymaker from Legionnaires' disease contracted while staying at the Pontin's holiday Centre in Blackpool.
In 2010, the holiday company entered administration, but was bought in January 2011 by Britannia Hotels.
Have you been affected by these cancellations, or experienced a similar story? Tell us below!