Around 20% of travel companies have yet to renew their ATOL licences just one week before the application deadline.

The CAA has issued a warning that several businesses of ‘a variety of different sizes’ risk losing their ability to sell package holidays after 30 September.

Some 1,127 ATOLs will expire at the end of the month and around 225 companies have yet to apply for a renewal.

Head of ATOL Licencing Michael Budge said it was vital businesses submit their application ‘as soon as possible’.

“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,” he said.

“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.”