A leading tour operator is to make all its holidays "all inclusive" from summer 2012, it was announced today.

The move from holiday company First Choice will mean all hotel meals and drinks and in-resort transfers will be included in the price along with flights and hotels.

The new all-inclusive deals can be booked from May this year, with the company saying that holidaymakers can "leave their wallets at home".

Asked if the change would mean a rise in the price of holidays, a First Choice spokeswoman said: "No, prices will remain as competitive as ever."

The company added that all-inclusive holidays had grown in popularity in recent years and a family of four could save £511 a week on an all-inclusive deal compared with a bed and breakfast offer.

All inclusive holidays account for 65% of First Choice sales at present, with this particular market having grown 32% between 2004 and 2009.

Johan Lundgren, the UK and Ireland managing director of First Choice's parent company, Tui, said: "This is a major milestone for the UK travel industry and an exciting and timely transformation for the First Choice brand.

"All inclusive is becoming the holiday of choice for many British consumers, offering them great value for money, yet there is no mainstream holiday company currently offering a completely all inclusive portfolio.

"First Choice will become the home of all inclusive, offering the best of both worlds - a unique feeling of indulgence combined with practical control over their holiday spending - whatever your budget.

"People can leave their wallets at home and relax: they won't have to worry about spending money when they're abroad."