The collapse of the pound against the dollar is raising the spectre of

surcharges on Florida holidays.

But the damage to some British travellers could be even greater.

The major companies, Thomson, Airtours, Cosmos, First Choice and JMC, have hedged their foreign currency positions to such an extent that they will not need to levy surcharges in their summer or winter programmes and probably not in summer 2002.

Smaller companies lack the same financial muscle, which is why operators like North America Travel Service and Funway are believed to have applied to the Association of British Travel Agents (ABTA) to charge clients extra this summer.

ABTA must be satisfied there are reasonable grounds for a surcharge and the operator chips in towards the added cost. If the surcharge is ten per cent or more of the original price, travellers can cancel without a penalty and claim a full refund.

However, the weakening against the dollar took place as the likelihood of Britain's entry to the euro increased. So it is a weakness which could be around for months, even years, ahead.

Steve Endacott, of the Holidays by Phone chain, said: "The dollar has implications which go much wider than Florida.

"All the Caribbean is contracted in dollars by tour operators. So is Mexico.

"Anything in those areas will go up in price so long as the pound is weak against the dollar.

"All tour operators lease aircraft in dollars and buy aviation fuel in dollars too. Before very long, a strong dollar means more expensive flights to Tenerife and Majorca."

How can consumers win in such uncertain times? Major operators are bringing out brochures now for Florida 2002.

The prices in those are unlikely to change unless the pound keeps falling.

Mr Endacott predicts: "The likelihood is brochure prices for next year will be higher than this year. Depending on how much currency operators buy in advance by hedging, prices will rise by £10 to £15 per head."

However, if the pound stays weak, operators could face a tricky situation next January.

Demand in the Caribbean - Barbados, Jamaica and Antigua - is already weak, Florida could get tougher and there is a limit on how many long-haul jets can be switched into Europe without flooding the short-haul market.

There could be overcapacity in several markets and holiday price wars may flare ing up again in January 2002.

Stephen Hughes, managing director of Funway Holidays, said: "Anybody concerned about the cost of holidaying in America in 2002 should book early and take advantage of the early booking discount built into prices in our first edition brochures."

After that advice, presumably, Funway would not have the cheek to demand more money from travellers who commit themselves early.