Britain's biggest tour operator is scrapping fuel supplements on its holidays.

The move - the first by a major holiday company - will save Thomson clients around #30 per person on a short-haul trip.

Thomson managing director Peter Rothwell said: "We've decided as market leader that it's time to put an end to misleading prices.

"Our decision to end fuel supplement charges will mean that, unlike others, our customers will clearly see the full cost of their holiday, helping them to make an honest price comparison."

He went on: "Travel companies now have no justification whatsoever for charging a fuel supplement - let alone one that is as high as when the price of fuel was at its peak.

"Despite this, companies are continuing to hit their customers with this additional charge. They are simply baiting customers with artificially low prices, then stinging them with unavoidable supplements."

Meanwhile, British Airways Holidays' sale started yesterday, with savings of up to #556 per person.

Prices lead in at #295 per person for a seven-night fly-drive to Orlando in Florida based on departures between January 13 to March 28.

Other offers include seven nights in Barbados from #419 per person, seven nights in Mauritius from #989 per person and three nights in Dubai from #445 per person.

Also today, travel company Thomas Cook said thousands of summer holiday bookings had already been made since Boxing Day. Bookings for summer 2007 were almost 50 per cent higher than those for summer 2006 at this time last year.

Ian Derbyshire, executive director for Thomas Cook's holidays division, said: "There's been a real rush of people booking their holidays since Boxing Day morning. It seems there's a resurgence happening in package holidays - whether it's down to great prices, the need for a hassle-free holiday or the reassurance of well-known brand names, it's too early to tell.

"What we can see is that all-inclusive holidays are really popular for next summer, as are new package holiday destinations like Australia, Brazil, Sardinia and Kerala in India."