Holidaymakers to pick up terror tab

THE Government might help the hard-pressed travel industry by allowing tour operators to pass on surcharges to customers. The move could mean an immediate £40 rise on the average cost of a holiday for four.

Under present rules, tour operators are forced to absorb surcharges levied by suppliers such as airlines of up to 2% of the cost of a holiday. But the industry has been lobbying hard for change in the aftermath of the US attacks and it is likely to result in the introduction of a mass of surcharges.

Alan Flook, secretary-general of The Federation of Tour Operators, which represents the majority of travel companies, said: 'The last thing we want to do is levy surcharges, but in the current situation we are suffering terrible uncertainty. As brochures go to press, there's no longer any guarantee that prices will be the same as when holidaymakers book - we just can't live with funding 2% of all holidays. We have been in discussions with the Department of Trade and Industry and expect an answer soon.'

A DTI spokeswoman said: 'We are considering the proposals from the travel industry.'