The association bonded around 2,000 of the 4,200 affected clients, with the remainder being flight-inclusive packages covered under Atol. An Abta spokesperson said it would take four to six weeks for all payments to be made.

“This is a relatively straightforward collapse, it will be covered by the bond that ALG had,” she confirmed.

She added that Abta had paid out more than £20 million following collapses in the last decade but said that fewer than 20 members had gone out of business since 2014.

A CAA spokesman said that ALG’s Atol liability was still being assessed. “Once we have all the claims in we will know, but a lot of passengers will be covered by credit cards,” he added.

When ALG collapsed on January 4, it comprised only two brands, Swan Hellenic and Voyages of Discovery.

This followed the sale of Travelsphere and Just You to G Adventures on December 30, 10 months after they were put on the market.

All ALG’s tour operating staff were taken on by G Adventures, but another 50 employees at ALG’s Market Harborough office were made redundant, together with 100 cruise ship workers.

Accountants Grant Thornton said an administrators report would be ready in late February or early March.