Australians who lost more than $1 million on prepaid “dream” holidays have been told not to expect to see their money again.

melbourne-based agency Traveldream — registered as Australian Travel Deals Pty Ltd and known for selling discounted flights, cruises, and international tour packages — collapsed in April and went into voluntary administration.

A new administrator’s report has revealed Traveldream paid another Melbourne-based company, My Travel Experience (MTE), about $1.22 million to secure flights, accommodation and tours for customers. 

However, MTE failed to pass the money on to suppliers and has now gone into external administration itself, leaving customers with little chance of recouping their losses.

“To be abundantly clear, without creditor funding to progress the claims detailed in the body of this report, no dividend is expected to be declared to any class of creditor,” concluded administrator Bill Karageozis from insolvency firm DVT Mcleods.

Mr Karageozis also found debts owed to…