Was it just the name that was mis-spelt once or more than once? Tour Ops usually charge a per person amendment fee which depends on the date of travel. Have you checked their booking terms and conditions? I've just had a quick look and it would appear to be free of charge if it's more than 57 days before departure.
It does seem extortionate, but names on passports and tickets must be the same. I does however seem that all the cards are stacked in the travel company's favour.
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