Hundreds of people from across the Black Country had been due to enjoy an all-inclusive five-day trip to Torquay and other destinations last month with TT Tours.
But the coaches failed to turn up and the shutters were pulled down at the firm's base at Bilston Indoor Market when people turned for refunds the following day. Now it is being investigated by Trading Standards.
Meanwhile to help bring some smiles back to faces Wolverhampton-based Majestic Travel yesterday stepped in to take many of those left out of pocket on a daytrip to Bicester and Oxford for free.
Among those taking advantage of the free trip was Margaret Walker from Wednesfield. She said: “When I found out that my holiday had been cancelled, I was really surprised as it was such a genuine and nice company.
"It's really lovely of Majestic to do it and after booking with them in the past, they'll definitely be my first choice in the future to look for a holiday."
Richard Lavendar, Majestic Travel director, said that as soon as he heard about what had happened, he knew he wanted Majestic to help.
He said: "It's for the unfortunate people who had not only put their hard earned money, but also their faith into a company they thought they could trust."
"I personally joined a Facebook page created by some of the TT tours ex-patrons and offered a free day trip to Oxford and Bicester.
"Alongside this, we also offered free seats on our pre-existing day trips, which we can proudly announce, have been accepted by some of those that were hurt by TT tours.
"Our only hope is that those involved get as much as enjoyment out of our trips as they would have done originally."
TT Tours' office in Bilston was raided by Trading Standards workers last month when the company owners failed to turn up to provide refunds to the would-be holidaymakers.
Dozens of people turned up to get advice from the council team at the town hall.
One of those taking advantage of the free trip yesterday was Janet Mason, from Wednesfield.
Mrs Mason said: "It's a lovely goodwill gesture from Majestic to put on this coach trip for us today after everything that happened with TT Tours.
"Margaret and I are lucky in that we've only paid for one holiday as we know people who've booked several holidays and already paid for them.
"We will look to enjoy today and make the most of the trip we've been given. I've never been to Oxford, so it'll be nice to spend some time there."
The trip was to consist of a walk around the model Bicester village to begin, followed by a visit to Oxford where they will be able to see attractions such as Oxford Museum.
Plimbley Travel, which has bases in Wolverhampton and Walsall, is one of the other firms which has offered free trips as well as Homer's Travel in Wolverhampton.