Hotel booking site Amoma.com shut down abruptly on Friday.
Clients received emails confirming that the company had ceased trading.
The firm posted a note on its website warning that customers with bookings with the company would not likely see hoteliers honour them.
Amoma is understood to have gained a reputation for undercutting many headline prices that hotel companies were advertising on their websites.
The company issued a “ceased trading” notification on its website.
It cited “commercial practices” of rival price comparators as making the “continuation of our activities impossible”.
Amoma said: “The result is a market concentration in which only a very small circle of major online travel agencies can survive.”
It added: “We therefore regret to have to inform you of the cessation of our activities, with immediate effect.”
Clients were told to contact hotels directly, they payment provider or travel insurance company.