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With all the latest data and statistical reports flowing in about the fate of the travel industry as we enter into 2010, it’s difficult to determine what will actually hold true over the course of the next year.  However, one thing is for certain: the traveling habits of both business and leisure travelers have shifted to a more modest, low cost mode of air and hotel usage, according to the most recent findings of the Ypartnership and the U.S. Travel Association.  

Due to the hard hitting effects of the recession and the fear of losing their jobs, Americans have skimped and stashed: we now uphold the highest rate of savings observed in eight years.  Add to higher savings rates the tendency to be more cautious with spending habits, and the US is now undergoing an adjustment to the way we travel.

Both at home and abroad, the trend towards luxury vacation and travel destinations is fading in accordance with the mood the current economic state has cast across the travel industry.  Business and leisure travelers alike are moving away from luxurious hotels and resorts in stereotypically opulent destinations, and opting for more modest hotels and atypical vacation destinations.  Expending on extravagant trips and vacations is no longer in good taste with the economic climate, which explains why destinations like the Caribbean and Hawaii have seen more severe decreases in hotel occupancy and RevPAR than other markets.

Instead of splurging on high cost trips, first class air fare, top notch transportation services, and world class hotels and restaurants, the attitude towards business and leisure travel is now more subdued, more wallet friendly, and more inclined to accentuate simplicity and value.  Hotels have made it easy for travelers to find affordable rates thanks to their aggressive discounting and promotional campaigns, which typically have included free room nights, giveaways, and other perks and benefits for choosing their hotel. 

That being said, hotel rates aren’t expected to rise significantly in 2010.  In fact, PricewaterhouseCoopers forecasts that room rates will be even lower this year than they were in 2010.  Obviously, the economy as a whole will be the ultimate determinant in what will have people traveling more and increasing the demand for rooms. 

Regardless, the new trend in traveling may reveal a whole new set of perceived destinations in 2010, bringing increases in revenue to markets that formerly took the backseat to their more luxurious counterparts.  While the notion of luxe is surely not entirely tarnished, it may take on a new luster as our idea of travel evolves along with the economy.