British tourists travelling to America will find their pound goes much further this summer thanks to the continuing fall of the dollar. The revelation of corporate-accounting scandals has rocked the US stock market and sent the dollar into freefall, dropping from $1.40 against the pound six weeks ago to $1.57 on currency markets, and it could fall further in coming months.

Accommodation specialist America As You Like It (020 8742 8299) says hotel rates have plummeted with the lead-in price for a three-star hotel in Orlando now £20 for a room sleeping four people. There are also bargains to be had on New York hotel rooms. 'A lot of New York hotels have special offers on in the summer anyway and this combined with the exchange rate makes it fantastic value for money,' says product director Cath Pusey. The three-star Wellington Hotel in midtown has cut its rates for a double room from £130 per night to £93 in July and August, while the five-star Parker Meridien has reduced rates from £195 to £136 per night.

Tom Armstrong, managing director of Hotel America (01444 410555), which acts as an agent for more than 1,000 hotels in the country, said: 'The exchange rate has knocked on average 5 per cent off hotel prices.'

Attraction Tickets Direct (0845 130 3876), which sells tickets for Florida theme parks, has cut its prices. 'We buy all our tickets in dollars so we are able to pass on the savings to our customers,' says director Oliver Brendon. A five-day Disney Hopper Plus, which gives entrance to the Magic Kingdom, Epcot Centre, MGM studios and Animal Kingdom, has been reduced from £189 to £177 per person. The price for a 14-day Orlando Flex Ticket which includes entrance to attractions such as Universal Studios, SeaWorld and Islands of Adventure, has dropped from £125 to £117.

The American tourism industry hopes that the more favourable exchange rates will encourage UK visitors back across the Atlantic. The huge market for short breaks to New York and Florida family holidays was starting to dwindle long before 11 September, thanks largely to the continuing strength of the dollar. Brendon says: 'The exchange rate is the biggest factor that affects tourism to Florida and always has been. When it falls below $1.50 to the pound people start to look elsewhere. It was the strong dollar rather than 11 September which stopped many people travelling to the States this year and if the dollar goes down, demand will certainly go up.'

However, cheaper prices will not be reflected in the price of tour-operator packages which are contracted months ahead and will therefore not benefit from currency fluctuations.