Alan Bowen, legal advisor to the Association of Atol Companies, said: “One of my clients had about £70,000 in packages with Monarch flights. It’s their responsibility to replace the flights but the prices have been hiked by the other airlines so the fares have tripled or quadrupled. Even if you have Safi [Scheduled Airline Failure Insurance], the insurers can limit the amount of liability for each airline.”

International Passenger Protection (IPP), the largest provider of Safi, said it had received “unprecedented claims” following the failure of Monarch.

Paul Mclean, managing director at IPP, said: “This is one of the largest airline collapses that I can remember in the UK… The airline industry, specifically in Europe, is going through tough competitive times. Sadly, this will not be the last collapse, so agents should ensure they have protection.”

Elsewhere, agents were warned to ensure they had signed agency agreements in place, amid concerns some agents may have sold Monarch Holiday packages without them.

Speaking at the Online Travel Training conference on Monday, Abta senior members services manager Julie Jones said: “If you booked a Monarch [package] and don’t have a signed agency agreement in place, the CAA won’t pay for your claim.”