The CAA said there were no holidaymakers abroad at the time but that the company had 1,200 forward bookings with around 2,700 passengers affected.

In a statement the company said: "The directors of Jewel in the Crown Holidays Ltd (also trading as Jewel of Turkey and Jewel of Goa) would like to apologise to both our UK and overseas staff, our loyal clients, our UK travel agents, our hoteliers and our overseas agents, and thank them for all their help over the last 29 years."

Jewel in the Crown Holidays had been in business for 29 years and took around 18,000 passengers a year to Turkey. It also specialised in holidays to India.

According to CAA the company was authorised to carry 19,265 passengers in the year to the end of September 2016.

A CAA spokesperson said: "All passengers who have an Atol protected booking with Jewel in the Crown Holidays Ltd will receive a full refund, following its collapse.  

"More information about how passengers can claim their refund will be published on the CAA website in the coming days.

"Any travel agents holding consumer money that has not yet been passed to Jewel In The Crown Holidays Ltd, will be contacted directly by the CAA with instructions on what to do with these funds. Agents are advised to not refund passengers directly."

The most recent accounts for Jewel in the Crown Holidays Ltd, showed that it made a pre-tax loss of £490,000 for the year to the end of March 2015. Turnover fell from £12.3 million to £11.7 million.

The average monthly number of employees during the year was 18.

The company is the latest Turkey specialist to collapse as the destination struggles in the face of geopolitical problems.

Exclusive Escapes ceased trading last year and Elixir Holidays went out of business in February.

The likes of Mark Warner, Neilson and Thomas Cook have all cut capacity.