Sterling sank dramatically against the dollar last week to lows not seen since the 1980s following chancellor Kwasi Kwarteng’s "mini Budget", which was ostensibly designed to put the UK on a path to growth.

Kwarteng and prime minister Liz Truss have in recent days had to fiercely defend the government’s decision to cut taxes, with the Bank of England stepping in to stabilise the markets earlier this week.

The pound has since recovered to be worth $1.11, still significantly below where is was only a few years ago. Other currencies are struggling too, such as the euro and the Japanese yen.

When the pound is weak against the dollar, holiday prices can increase as many holiday elements – such as fuel and accommodation – are bought and sold in dollars.

Trailfinders said despite operators and other travel suppliers being entitled to put up prices, it would not pass on these price hikes to customers.

"Tour operators are entitled to increase the cost of a holiday, by way of a surcharge, if costs have increased by more than 2%," said Trailfinders on Friday (30 September) in a message to its clients.

"The weaker pound in recent days, most especially against the US dollar, has been far greater than this threshold. For your peace of mind, Trailfinders forgo this right to surcharge: The contracted price of your holiday will not change."