With the economy showing its first signs of life this week, the travel industry has reason to be cautiously optimistic.  After all, this is the worst economic downturn the US, and the world, has experienced in quite some time.  The travel industry has been hit particularly hard.

Airlines have been dealing with higher fuel prices and a significant drop in the number of passengers.  They are trying to stay above water by raising prices, but that seems to only further dissuade potential customers who are worried about spending extra cash on tickets while the economy struggles.  Major airlines expect to cut nearly 10% of their flights over the next few months.  Even budget carriers like Southwest Airlines and Europe’s Ryanair are cutting flights.  Meanwhile, train and bus ridership is up nearly 12%.

Hotels are also feeling the crunch.  Most places report a 5% decrease in reservations from this time last year.  Meanwhile, cancellations of existing reservations have nearly doubled in the past few months.  Some hotels rely on corporate bookings for a major part of their revenue.  So, as companies struggle to make ends meet, Hotels are struggling also.

But there are some bright spots.  Oil prices have fallen, making driving once again a reasonable alternative to flying.  And airlines have been restructuring to cater to customers on a tighter budget.  Though the slowdown has hurt airlines, it has given a higher profile to budget carriers like Southwest Airlines and Ryanair, both of whom survive by offering rock-bottom fares.  British Airways is trying to increase its trans-Atlantic service by offering cheap business class flights with its new subsidiary, OpenSkies.

In many places, investment groups and real estate developers are starting new projects aimed at creating mid-range and budget hotels.  These are signs that the industry is responding to the economy, even if they are a little late in doing so.  Hopefully, when all is said and done, there will be more options for budget travelers in search of cheaper flights and cheaper hotels.

As more people forego their typical travel plans in order to save money, many hotels and resorts are thinking of new ways to capture the avid traveler’s attention.  While discounted hotel stays and flight-hotel packages can encourage some travelers to go ahead with their travel itinerary, many are finding better incentives to book that hotel stay.  Some hotels are now offering gas cards to potential guests as an incentive to save money during and after the vacation. By encouraging travelers to save money on related travel expenses, hotels may be able to lure otherwise home-bound guests to their property, despite the economic downturn this year.
Many travelers have already taken steps to reduce their gas consumption and reduce their dependency on vehicles for local and regional travel.  The rising trend of ‘staycations’ allows many singles and families to forego traveling altogether and explore their neighborhood or hometown instead.  Staying at a hotel has consequently become a luxury for many, and rising travel costs are not making it easy for the average traveler to keep up with their tight budget.
Hotel rates are projected to decrease in the upcoming months, but at a steady rate.  This may encourage more people to book hotel stays and make use of incentives and package deals that help stretch those dollars to their fullest potential.  Loyalty programs are another incentive that can bring back return guests and encourage travelers to continue on with their usual vacation plans. Loyalty programs allow guests to earn points for future rewards such as discounted hotel packages, free overnight stays and other hotel specials that are not otherwise available to the average guest.
Still, incentives such as gas cards may offset some of the costs associated with travel, and smart hoteliers are cashing in on the trend by extending gas card incentives to many traveling hopefuls this year.

While many people have long turned to airline mile incentives and frequent flier miles packages to make the most of their dollar, hundreds are now realizing that collecting miles may be a futile effort.   The world’s most popular airlines including Delta and Continental are restructuring their frequent flier programs and reducing the number and scope of incentives for even the most loyal traveler.  These devaluations of airline miles also means higher fees to use up those miles and co-pay agreements that allow travelers a chance to upgrade their awards.
The days of a completely free ticket are giving way to mediocre discounts and incentives that are far from attractive.  Accruing miles for frequent flying is actually becoming more costly to keep up with, especially if travelers miss the deadlines to use up the miles and have to pay fees to redeem points.  Travel experts continue to explain that frequent flier programs aren’t really loyalty programs; they are more of a ‘multichannel marketing vehicle’ that encourage travelers to collect points and use them for discounts on additional purchases.  Car rentals, groceries, phones and even hotel rooms may be available at a discounted rate for these avid travelers, and few actually collect enough to qualify for a completely free airline ticket.
Some airlines are offering alternative options for their loyal customers, giving them a cash back discount and opportunities to enroll in a credit card to rack up extra advantages and benefits instead.  Still, these incentives are not enough to offset the hidden costs.
People who continue to make purchases with high-interest credit cards just to ‘collect miles’ may also be putting themselves at a disadvantage.  Charging a credit card for high-ticket items means interest payments will soon be due, and the extra costs may not be enough to substantiate the cost of a future ticket.  Making sure that the credit card is itself a valuable investment may be in the best interest of the budget-conscious traveler.

As the cost of travel continues to rise, more people are looking for frugal activities and cheap airline tickets to keep up travel expenses.  After finding a reasonably priced ticket and settling into comfortable accommodations, turning to free – or close to free – attractions and activities can make the frugal trip that much more worthwhile.  Almost every city has its own set of free attractions to discover and explore, and many overlooked destinations continue to be a popular weekend activity for residents.  If you’re committed to keeping up with your budget this travel season, here are some simple ways to find free attractions in any city:
1.  Consult the Visitors Bureau.  Every city has its own tourist outpost set up at the Visitor and Convention Bureau, and many of the organization’s websites list some popular activities – and their costs – for the avid traveler.  You can also call these agencies to inquire about any free events or attractions in the area, and you’ll be surprised at the list of activities that truly are free of charge.
2.  Don’t forget the gardens!  Botanical and sculpture gardens are often overlooked when it comes to finding free things to do, and most cities have at least one that is open to the public free of charge.  Check up on hours and age limitations by visiting the organization’s website and look forward to a unique experience.
3. Look for free museum passes.  Some museums and galleries charge admission fees throughout the week, but many offer free admission on select days.  If you’re heading out on your trip during the week, don’t be surprised to stumble across a few museums and art galleries that offer free admission during the first half of the workweek.
4. Head to an outdoor concert.  Outdoor concerts in the city square or at a city park are great ways to enjoy the great outdoors and take in some free music.  You can find a listing of concerts through the local newspaper, or even by contacting the Visitors Bureau.
5. Go people watching at the park or café.  Cafes, bistros and city parks are fun and free destinations to just sit back and people watch.  You’ll get a taste of local culture and can enjoy the area from a new perspective.

While thousands of Americans are foregoing the summer roadtrip in order to avoid the pinch of rising gas prices, others are still going ahead with their summer plans by adding a few creative twists to their plans.  Even though it’s easy to blow a travel budget on gas, food and lodging on the usual roadtrip route,  there are several ways to cut costs and minimize expenses from the get-go.

From arranging a ‘couch’ for your stay to packing your own sustainable food picnic, here are some simple ways to save money and enjoy exploring the American interstate like the good old days:

1.    Look for free lodging on your route.  In the same way that bed and breakfasts offer comfortable accommodations for the weary traveler, many people are joining online networks such as Couchsurfing where you can find people who offer free lodging at various destinations.  Couchsurfing communities allow people from all over the world to connect with people who will provide a ‘couch’ (usually a guest bed) for a safe and friendly lodging experience.
2.    Count on free entertainment.  Head to any city or town’s community or visitor’s center for a listing of free entertainment and events you can take in along the way.  This is a lot of fun for the spontaneous traveler, and will give you a chance to experience the local culture at no cost.
3.    Pack a picnic.  Think sustainable energy when you’re hitting the road for a few days so you can avoid the fast food stops as often as possible.  Loading up on healthy, wholesome foods means you’ll have more energy to focus on your trip and can forget about the common side effects of processed foods.
4.    Skip the highway travel as often as possible.  If you’re looking for diversity and excitement, plan your route along the smaller roads that get less traffic – and may even help with your mileage.
5.    Make use of buses and trains.  Map out your route so you only use a vehicle for a portion of your trip, and then count on buses, trains or even rental cars to help you get to neighboring destinations with ease.  In most cases, you’ll be able to save on the costs of gas and parking with this strategy.

Airlines have been struggling to get by over the last few years.  Most companies have crammed as many seats as they can in already tight spaces.  More flights with the same plane (and less layover for the pilots and attendants) have also been used to combat falling profits.

Now they are facing yet another crisis – FUEL.  As the cost of oil continues to hit all time highs, the fuel costs for airlines is pushing more and more of them into bankruptcy.  They are finding new and creative ways to get more of your money without actually raising the price of your tickets.

1.    Baggage fees – many airlines are now charging a fee for every bag you check over the first.  Some are even looking at charging for any luggage that you check.  At the rate they seem to lose baggage, this is just one more reason to find ways to travel with nothing but a carry-on.
2.    Choice seat fees – there was a time when you could actually choose the aisle or window seat or where in the airplane you wanted to sit (tale, middle or front).  Now the airlines charge for certain seats (like those in the front that typically have more leg room).
3.    Reservations – in an effort to cut costs even farther, airlines are now passing on the expense of having live personal for you to talk with while making your reservations.  Some are charging a fee for purchasing tickets through their agents or airline desk clerks.
4.    Snacks and meals – not all airlines offer free snacks any more and even less offer meals (although they seem to keep you on the plane longer than ever before).  Now meals and snacks can cost anywhere from $1 up to $8.

Airlines are trying hard to stay afloat through the rising costs of oil prices.  If they offered better service (and on time travel) then many consumers would be willing to help share the cost of those expenses.

As thousands of families feel the pinch of a tighter travel budget this season, adding a creative twist to typical vacation plans may be necessary.  The ‘staycation’, or backyard vacation is becoming a popular trend for those who want to enjoy some time away from the usual schedule but don’t want to break the bank from travel expenses.  Still, even a backyard vacation requires some planning in order to keep boredom at bay and make it a memorable experience.  Here are some simple ways to enjoy a backyard vacation this season:

1.    Lock up technology devices.  From computers to cell phones, your break can only be a true break without the connection to phone messages, e-mail and even wireless internet.  In order to imitate the effects of a vacation, you need to make a conscious break from electronic devices throughout the entire ‘trip.’
2.    Create an itinerary.  You’ll need a list of unique and fun activities to enjoy, even though you won’t be going too far from home.  Allow yourself time to explore relaxing activities, read a book, or simply sit outside in the sun for a few hours.
3.    Learn about a nearby city or town.  One of the best parts of backyard vacations is the freedom and flexibility to explore nearby territories.  Plan to visit at least one new town or city that’s close to home so you can ‘play tourist’ for the day.
4.    Host an at-home spa.  If you usually indulge in spa services and treatments when you’re staying at a hotel, round up some supplies or book an independent massage therapist for an afternoon of treatments.  You can still enjoy all the benefits of the treatment, but in the comforts of home.
5.    Create an exciting menu.  Whether you’re a brunch enthusiast or love to indulge in dessert, create a unique menu and list of food items specifically for your home vacation.  Sharing your favorite foods with friends and family can be a great addition to your unique break from regular activities.

With summer in full swing, it’s tempting to just sit back, relax and stay at home to avoid the high cost of travel this season.  However, staying on home turf for the entire summer may not be necessary if you plan ahead and take advantage great travel deals and a few creative ideas.  You can get out and enjoy the great outdoors, take in a few experiences and enjoy some quality time together with your significant other – without overextending your monthly budget.  Here are just a few affordable summer vacation ideas for couples who want a quick getaway from the usual summer routine:

1. Hit the beach.  If you’re within a few hours drive of the coast, spend the day – the whole day – at the beach.  Plan to head out before sunrise so you can catch it on the ocean, and then relax, nap and enjoy the beachfront with a walk on the boardwalk, shopping, or even taking in a dance performance or local event.  Wait until sunset to enjoy a picnic for two and make the most of your day.
2. Camping at the State Park.  Take a drive to a nearby state park for a memorable camping trip.  There’s nothing more romantic than sitting by the campfire and enjoying the great outdoors in the middle of summer.  Pack a camera, your favorite foods and head out for a one or two-day trip for two.
3. Museum roundup.  Make your way to the cultural district of your town or city for a day of museums and antique shopping.  Just exploring new venues on foot is a great way to spend time together, and you can learn about the history and culture of your hometown or city in the process.
4. Be a kid again.  Plan a trip to the zoo, spend the day at the arcades, or just watch a lineup of animated movies and Disney classics you both enjoyed as a kid.  This is a great way to add some genuine fun back into summer break!
5. Tag along with a group trip.  Find out if any neighborhood organizations you’re a member of are organizing group travel excursions during the summer.  You’ll be able to cash in with group rates on many attractive destinations in your State, or around the country.

If a tight budget has put a dent in your travel plans to Europe this year, there are still plenty of ways to cut costs and save on your total trip.  Hostels make it easier to enjoy safe accommodations in several key cities throughout Europe, and cost a fraction of the price of the typical boutique hotel or even the classic bed and breakfast.  Designed for student travelers and backpackers, hostels in Europe are quickly becoming a place for budget-conscious travelers who want to enjoy a fresh experience. 

Hostel offer several benefits for the traveler-on-the-go, making it easy to check in for just one day or night and head off to another venue without the extra stress of hotel check-in times and booking fees.  Since Europe’s cities are easily accessible by train or boat, lining up a set of hostel stays can be a much more convenient option than arranging hotel suite accommodations in each city.  The stereotype of hostels being similar to college dorm rooms is slowly being replaced by a fresh new take on the hostel experience; some of today’s hostels are equipped with semi-deluxe amenities such as en suite kitchens, private bathrooms, computer rooms and wireless internet access.

 Other benefits of staying at a hostel in Europe include:

• Easy access to key sights and attractions in the middle of the city
• Opportunity to meet people from around the globe
• Ability to practice foreign language skills
• Saving money on the basics so you can spend more on other luxuries on the vacation

Hostels that cater to families and groups are also available; these hostels feature in-room bathrooms and kitchenettes, as well as community kitchens for those who want a true backpacker experience.  Many hostels provide linens for a small fee, and are equipped with play equipment for kids, laundry rooms and even televisions for some light entertainment.

If you’re ready to head out for a summer vacation this year, don’t miss out on some of the latest trends in travel.  The green movement continues across the travel, resort and hotel industry, more venues are offering eco-inspired amenities and features.  Cruise ships are heading out to Europe this year as more people want to explore beyond the usual Caribbean and South American ports, and more dining options at destination cities mean every foodie can travel to their heart’s delight.  If you’re looking for a fresh new experience this summer, make sure you pick a vacation that’s right in line with these other five trends:

1. Luxury trekking.  Outdoor enthusiasts can embark on a rigorous journey to the mountains and cliffs, but bask in luxury when they head back to the cabin.  The latest trends in trekking offer sleeping bags inside deluxe accommodations; head off to luxurious cabins outfitted with hot tubs and down bedding.
2. National park adventures.  Since many people are choosing budget-friendly options to manage high gas and travel costs, heading out to camp sites and adventure tours at a National Park may be on the itinerary.  Look for exclusive vacation packages at several destinations across the U.S.
3. Spa lodging.  Head off to a spa for a pampering treatment, but extend your experience with an overnight stay.  More spas will be catering to the budget-conscious traveler this summer with extended stay vacation packages, freebies and discounts on treatments.
4. The classic American roadtrip.  If all else fails in your trip-planning, you can always head off on a roadtrip.  To curb increasing gas expenses, you can choose a city or town in your region for a semi-‘staycation’.
5. Water park mayhem.  Whether you’re traveling with the family or just want to feel like a kid again, heading to the water park can be a great way to spend a weekend or an extended stay. Water parks with lodging options make it easy to take advantage of package deals and enjoy a wealth of on-site activities and amenities.