The bench in Horbury was unveiled in memory of Bobby and Christi Shepherd, who were aged six and seven when they died at the Louis Corcyra Beach Hotel in October 2006.
The youngsters were overcome by fumes from a faulty boiler at the resort.
Their parents Sharon Wood and Neil Shepherd said: “We have great pleasure in unveiling this bench in memory of Christi and Bobby.
“This is a place that we spent many a happy hour eating fish and chips and watching the world go by.
“Christi and Bobby will have been gone 10 years in 2016 and finally we can start a new chapter in our lives knowing we did everything we could in their memory.”
An inquest found that the youngsters were unlawfully killed, and ruled that travel firm Thomas Cook had breached its duty of care.
Following the inquest West Yorkshire coroner David Hinchliff called on the government to bring in new legislation to protect other holiday makers from carbon monoxide poisoning.
Wakefield MP Mary Creagh has also called for better safety procedures. She said: “It was lovely to see the memorial bench to Christi and Bobby unveiled. The people of Horbury will always hold the children dear in their hearts, and this lasting memorial means that they will never be forgotten.”
On November 16 Ms Creagh will host a Carbon Monoxide Safety Conference in parliament. Sharon Wood and Peter Fankhauser, chief executive of Thomas Cook, will be among speakers at the event.