On Thursday (23 September), the CAA said around 20% of businesses "of a variety of different sizes" were still yet to apply to renew their licences just a week before the 30 September deadline.

The CAA has previously warned there could be delays to the process if too many applicants leave it late, and it is understood the authority is seeking more stringent financial assurances from firms owing to the pressures placed on the industry by the Covid crisis.

Applicants risk temporarily, or permanently, losing their ability to sell Atol-protected packages if their application is late or insufficiently detailed.

“We appreciate the challenges the travel industry has faced over the past 18 months and thank those travel businesses that have already submitted their application and supporting information for renewal in good time," said Michael Budge, head of Atol licensing at the CAA.

“We are continuing to work closely with many businesses to support them with their licence renewal. However, applications must be thoroughly assessed and where licence conditions are required these must be met before the new licence can be granted.

"Therefore, it is very important that those businesses that have not yet submitted their applications do so as soon as possible to avoid delays to their ability to sell package holidays.”