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Holidaymakers are up in arms after receiving an SMS from Fantasy Tours informing them that their holidays have been cancelled.
The company offices are closed and a police investigation is underway following complaints from customers who had booked with the company.
In October 2012, the Director General of the Consumers Authority (MCCAA) had warned the public against a tour operator whose services were "supplied in an unsatisfactory manner".
In a statement, the director general said that Golden Travel Club Ltd - who operates commercially under the trade name Fantasy Tours - was found to be in breach of its obligations.
"It has been repeatedly established by a number of decisions of the Consumer Claims Tribunal that Fantasy Tours fails to abide by the obligations it has taken upon itself with regard to the services [it provides]," the statement read.
Fantasy Tours operates as tour operator, travel agent, tourist agent, travel and tour charterer, and contractor, caterer for all travel and tourist requirements and promoter of all kinds of conveyances of tourists and travellers.
A Facebook page Frauded by Fantasy Tours was also set up.