Updated: 5.05pm

Thousands of Irish holidaymakers face paying accommodation costs for a second time following the collapse of online travel website Lowcostholidays.

The company, which went into administration on Friday, has confirmed that all booked flight tickets remain valid.

However, customers who are due to travel in the coming weeks will have to re-book their hotels once they arrive at their destination.

Those who purchased package holidays (flights and accommodation) will be able to claim compensation from the Commission for Aviation Regulation (CAR).

Holidaygoers who are currently abroad can apply to have their accommodation costs covered by completing an expenses form.

Customers still in Ireland are advised to check if their tickets and accommodation have been paid for.

If your hotel costs are outstanding, a separate claim form can be submitted for compensation. Flights can also be reimbursed if your airline says you cannot travel.

Customers who booked accommodation only are not eligible for refunds and will have try to reclaim costs through their bank or credit card company.

UK administrators Smith & Williamson estimates the closure will affect 27,000 people currently in resorts and 110,000 customers who have not yet travelled.  

The Irish Travel Agents Association (ITAA) has advised holidaymakers who booked accommodation with Lowcostholidays through a travel agent to contact the agent directly for advice.

CEO Pat Dawson told Newstalk Breakfast that most claims should be covered by either the commission or the customer's credit card company. 

Tom Murphy, who booked a package holiday to Cancun through the website last week, said he and his wife will now have to pay another €1,600 for their hotel accommodation. 

"We were driving into town yesterday afternoon for lunch when our daughter rang to say the company had gone bust," he told the programme.