Dawson and Sanderson has scrapped credit card fees in a move that it claims will shortly be followed by all major travel companies.
The Newcastle-based agency, which has 21 branches in the region, has ended the surcharge on all credit and MasterCard payments, except American Express and business credit cards.
Managing director Chris Harrison said: "A lot of customers prefer to use credit cards because they may be collecting reward points or find it more convenient to spread payments for larger purchases.
"Why should we be penalising our customers if they want to make that choice?"
He added: "Credit card surcharges can be a significant income stream for travel agencies, but it just does not feel right to be doing this to our customers when they may have been saving for months for their holiday.
"We are taking the lead on this but I expect it may be followed by all the major travel companies. We want our customers to be confident that the price they see, is the price they pay."
