Thomas Cook will make a "financial gesture of goodwill" to the parents of two children who were killed by carbon monoxide poisoning during a 2006 holiday in Corfu.
Sharon Wood and Neil Shepherd, whose children Bobby and Christi were killed by a faulty boiler, made the announcement after meeting the travel company's CEO Peter Fankhauser.
The amount of the pay-out has not been disclosed, but Mr Shepherd said they plan to make donations to several charities.
Speaking at a press conference in London, Mrs Wood said: "Nothing can give us back our children or the carefree lives we once led.
"No one can erase the lifelong pain for Christi and Bobby's family and friends.
"We cannot change the past and we accept it may be time to look to the future."
A two-week inquest heard that Bobby and Christi died due to multiple flaws in the installation and maintenance of the hot water boiler.
An inquest jury concluded that the travel company Thomas Cook had "breached their duty of care".
The family's lawyer Leslie Thomas QC said: "Today for the first time in this tragedy Thomas Cook have done the right thing.
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