British holidaymakers due to head for the US in the next few days are to be given a compensation package, UK tour operators announced today.

Anyone due to take a package holiday to New York, Boston or Washington in the next seven days will be offered a free transfer of their holiday or the option of cancelling without incurring any penalty.

The transfer or cancellation offer also applies to other holidaymakers taking package trips to the rest of the US and Canada, but only for those due to travel in the next 48 hours.

The Federation of Tour Operators, which agreed on the deals after meeting today, said it would review the situation "on a daily basis".

Thomson Holidays said the compensation was available only for package holidaymakers. Those travelling on scheduled flights should contact their airline.

The company said it did not expect demand for travel to areas of North America outside the major cities to be much affected.