Some Canadians who booked Mexican holidays through the now-collapsed Conquest Vacations Inc. faced ugly ordeals with hotel managers Thursday who demanded they shell out thousands of dollars or face the police.

At a resort on the Mayan Rivera, 250 Canadian vacationers, including Sarah Sayffi, were threatened with eviction from paradise because the tour company didn't pay their hotel bills.

The problems started Wednesday, when Conquest suddenly announced it was shutting its doors, blaming fierce competition and a faltering economy.

"Conquest is to blame. I'm pissed," Sayffi, told CBC News by phone.

"They let it go all the way to the very last possible moment. Like, all these poor people? They knew they were going to get screwed over and they didn't care. They wanted to make every last cent."

Resorts demand cash

The resort demanded $1,000 from each Conquest guest.

Sayffi's mother, Heather Jackson, wired her the money and is furious with Conquest.

"I just don't know how they sleep at night," Jackson told CBC News. "The morals — I just don't understand how they can send young people … to other countries and they're trusting that they're going to have a great holiday and what happens? This is what happens, that they're stranded there."

In Cancun, 28 Canadians staying at the Golden Parnassus resort clashed with hotel security guards as they tried to leave the premises after disputing their bill, according to Christopher Lee, who has been staying at Golden Parnassus hotel since last Thursday.

He said pushing and shoving ensued and that security blocked an elderly Manitoba man and his daughter from leaving the premises after they refused to pay for their vacation a second time.

He said the conflict escalated to a point that the hotel wouldn't let others leave for the airport until they paid their bills.

"If we tried to leave they would physically push us back into the building," Lee told The Canadian Press in a telephone interview.

Police called in

Four local police officers were called in by the hotel staff and the Canadians were forced to pay, he said.

A reservations manager at the hotel disputed the claim that police were involved, and said the hotel is trying to compromise, even though she said it hasn't received money from Conquest.

"We're talking with all the guests right now and we tell them that we're going to [give them] a special rate," said Elizabeth Ruiz from the Golden Parnassus hotel.

Lee said he ended up paying $700 US to the hotel, on top of the $1,300 he had already paid to Conquest.

Similar stories were being heard from other vacationers in Mexico on Thursday as the fallout from the Conquest collapse rippled through popular sunshine resorts.

Lee, Jackson and the others will have to apply for refunds through provincial travel insurance funds once they get back home.

Industry analysts said Conquest — which had been Canada's smallest tour operator with just four per cent of market share — was conquered by much bigger companies in a recent price war.