Holidaymakers have said they were left “stressed” and “traumatised” following chaotic holidays booked through the same travel agent.
More than 30 people in the Winchester area have formed a Facebook group making allegations about their experiences with a representative of InteleTravel.
The company said it had terminated the contract of one of its representatives, and Hampshire police confirmed a woman had been arrested on suspicion of fraud by abuse of position.
The BBC has been in contact with the woman, but she is yet to comment.
Customers have said they were left with unbooked flights, unpaid hotels, and ended up out of pocket.
Marisa Noyce booked a holiday to Morocco with her husband and daughter, but said shortly beforehand she realised the hotel had not been booked.
She said they agreed to take a break in Crete instead, but when they arrived the hotel there was not booked either.
Over the next few days they chased the representative for the money, but it was not paid in full until a day before they checked out.
“We had to agree on a totally different destination, different country, different everything,” Ms Noyce said.
She said they had not had any explanation and the experience “ruined our holiday and my 40th”.
Claire Marshall previously went on a holiday booked through the same person that went to plan, though it did involve chasing up paperwork.
However, the next holiday, which she went on with her daughter to Tenerife, began with the boarding passes only arriving the night before, and with incorrect names on them which cost money to change, she said.
When they landed she said they were told to go to a different hotel without explanation.
Ms Marshall said: “I had the embarrassment of having to pay extra money… sitting in the reception of a five-star hotel looking like an absolute idiot waiting for money to come through like I couldn’t afford to pay for it, when actually I’d already paid months earlier.”
She had already booked a second holiday the following weekend with the same representative, and said it ended up having the wrong flights booked, and incorrect boarding pass details again.
“It’s a relief to know I’m not on my own but it doesn’t take away from the fact that we have had a horrific experience and it has traumatised me,” she said.
“I don’t want to ever book with anyone ever again and I want to do it all myself.”
The BBC heard from another woman who said her family’s trip to Lapland had no flights or accommodation booked for it.
Another said for her trip to Lanzarote the boarding passes came through last minute and had mistakes on them, while the wrong hotel rooms were booked.
“We were sent very dodgy-looking boarding passes, again with spelling mistakes that would not match the passports, also only two of the three needed,” she said.
In a statement InteleTravel said it was “aware of issues” regarding the representative and was “taking the matter very seriously”.
It said it had “alerted all the relevant authorities, including industry organisations” and was working closely with them, but was “unable to provide any further information at this time due to the nature of the ongoing investigations”.
The company said it had “robust anti-fraud measures and a commitment to working with industry peers to eradicate fraud”.
ABTA, the association of travel agents and tour operators, said it had been contacted by Inteletravel about the case.
Hampshire & Isle of Wight Constabulary said it was investigating a number of reports in relation to allegations of fraud.
“It has been alleged that money was taken for holidays by a woman operating as a travel agent, which were then not booked.
“A 39-year-old woman from Winchester has been arrested on suspicion of fraud by abuse of position. She has been released on police bail until 8 December.”
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