Travel specials and promotions are nothing new, even in a booming economy. But when the stock market is down, gas prices are up and the general economic outlook is cloudy, travel and other disposable income dependent industries must sometimes step up their efforts. In an attempt to lure travelers and even capitalize on the trend to take vacations closer to home, hotels and resorts are offering a myriad of interesting freebies, gimmicks and other specials in attempt to recapture some of the travel market that may be losing steam as a result of a sagging economy. Here are a few of the most interesting.

While hotels have used the “extra night free” special for years, a plethora of deals is available these days, from free third night to free seventh night, and offers often include “kids eat free,” “kids stay free,” free parking and free breakfast as well.

One attempt to ease the pain at the pumps is the free gas offer that has proliferated throughout the travel industry. Recently the Mississippi Gulf Coast, a visitors and convention bureau based in Gulfport and Biloxi, Mississippi, is running a $50 gas card special for anyone who spends two nights in a qualifying hotel. Choice Hotels (the chain that includes Comfort Inn, Sleep Inn, Clarion and a few others) is also offering a $50 gas card after three individual stays at its hotels. The free gas promotion is one of the hottest gimmicks around right now, with everyone from Best Western to the Texas Campground Association to Expedia getting in on the act.

Wyndham Vacation Resorts is offering add-ons for their travel packages to Destin, Florida. For instance, couples staying three nights have the choice of a $50 dining certificate or a pair of dolphin cruise tickets. Marriott will give visitors a $25 gift card for travelers spending a weekend at certain hotels.

Credit cards are partnering up with hotels and other travel industry groups for promotions as well. MasterCard has a long list of specials for those willing to leave the house on a jaunt, and these are not limited to budget properties. These promotions include a “Special VIP Experience” at any designated Small Luxury Hotels of the World (SLH) and include such experiences as spa treatments, culinary activities or other local activities; the Sofitel “chic picnic” deal for European properties, which includes an upgraded room, a VIP gift and a special “enchanting moment,” is filled with gourmet goodies.

A few other creative offers include free cocktails, activity or entertainment credits or tickets. In Vegas, the offers get even better and include such gimmes as free chips or slot play, VIP passes to certain nightclubs, room upgrades and perhaps the best – a future flight credit of up to $350 to the Luxor or the $300 Flyback offer at the MGM Grand, which gives a $300 credit for return trip airfare.

Travel specials can be found not only in the United States but around the globe as well, with rail travel specials in Canada and Europe, Exotic Dubai travel packages that include a free desert safari with a BBQ dinner and free river cruise passes in Singapore.

Whether these specials, gimmicks, promotions and offers will help shore up a stinging travel industry remains to be seen. Perhaps the cleverest, however, is the Lehigh Valley area of Pennsylvania. This area’s lodging members offer special travel packages under the “Pain in the Gas” promotions, which consist of free gas cards or rebates with qualifying stays. A pain in the gas indeed.

In fact, in 2007, according to the U.S. Department of Commerce’s Office of Travel and Tourism Industries (OTTI), the number of Americans traveling abroad grew by 1% from 2006 to 2007, increasing for the fourth year in a row. However, the first quarter of 2008 could hint of change as the economy continues to weaken and the euro strengthens. Combined with higher fuel prices, and hence higher airline prices, travel to the Continent is starting to get quite expensive.

OTTI reports a .2% decline for American travelers to Europe in the first quarter of 2008, as compared to the same period last year. Interestingly, however, in a few areas where the dollar remains relatively strong, such as South Africa, Mexico and South America, travel has increased. Americans traveling to Central and South America have increased in numbers by over 6% from last year, Mexico is up more than 8% and visitors to Africa are up a whopping 47.9% over 2007.

Against All Odds

And while many Americans who choose to vacation abroad are still traveling, that trend is likely to drop off especially if the economy continues to limp along. The Air Transport Association has reported that jet fuel prices have increased a head-spinning 70% through July 3 in comparison to 2007.

The New York Times reports that airlines industry analysts expect cuts in flights by nearly 10% for the year. And what about those economic stimulus checks? The Y Partnership, a travel industry PR firm, in cooperation with the Travel Industry Association, found in a recent survey that one in six of those receiving a check would spend it on travel.

So where are Americans choosing to vacation? For luxury travelers, high-end hotels, African safaris and River cruises in Europe are still popular. But for the average traveler who cannot afford the currently expensive euro, destinations such as Central and South America are looking very good. Many, however, are also choosing to stay in the States. Travel + Leisure magazine’s latest issue may be the harbinger of travel trends to come. Typically aimed at an upscale market of travelers, the July 2008 issue is draped in red, white and blue, and the headline reads “50 Fabulous U.S. Travel Ideas.” The editor’s regular column acknowledges the precipitous drop of the dollar against the euro and offers ideas for meaningful travel within the 50 states.

Travel Bargains

Arthur Frommer, long known for his budget travel guides and magazine Arthur Frommer’s Budget Travel, presented with his daughter Pauline at the April 2008 Atlanta Travel Expo. Their topic was travel bargains. Among the top picks were China, Vietnam, Kenya and Panama in addition to the American system of National Parks.

Exploring less frequented areas can offer a more authentic view of culture as well as a more favorable cost. Panama, which had an iffy reputation for travelers back in the 1980’s Noriega years, has transformed itself into a country ripe for visitors, with both rainforest jungles and sparkling beaches. (Disclaimer: travelers to foreign countries should always check with the State Department before departing.) The Panama Canal, which was handed over to the Panamanians by the U.S. in 1999, has experienced its busiest year ever in 2007. Furthermore, even though Panama uses the Balboa as currency, U.S. dollars are widely accepted, dispensing with the whole issue of currency exchange. With a beer that can easily cost under $1 and a wide range of tropical activities, Panama is becoming a popular destination.

Africa is becoming popular as an alternative to Europe too. For visitors who stay in a standard tourist hotel, rooms can be had in South Africa for under $50 per night, according to solotravel.org which offers cost guides for a number of countries. This is in sharp contrast to France, where a mid-range hotel will easily run you over $100 per night. Travelers who enjoy going abroad can also find great deals in other areas around the globe – such as a tourist hotel in China for about $30 or less and $20 in Vietnam.

Not only has international travel been impacted but domestic travel as well, with one of the hardest hit areas being family summer vacations. With gas prices exceeding $4 per gallon, families are rethinking and reorganizing the family road trip. The Travel Industry Association, which develops an annual Travel Price Index, estimated a 6% increase in travel prices in April from one year prior. The major driver of this increase is, of course, gas prices which have increased well over 20% in the past year. This is all in contrast to the Consumer Price Index which increased a seemingly mere 3.9% during the same period.

Families who take the quintessential Great American Road Trip have been directly impacted by these increases. Indeed, AAA recently released a report that estimates the cost of driving a new car at 54.1 cents per mile – a 1.9-cent increase from last year. AAA’s sensitivity to fuel prices is reflected in its online travel planner which lists current gas prices at over 100,000 gas stations in the U.S.

At Lake Bruin, Louisiana, Memorial Day weekend was a crowded day on the lake. A rural oxbow lake near the Mississippi River, the lakeshore is dotted with family homes and holiday camps. Vacationers in the local bait and gas shop were heard discussing the increased number of people. “We think it is because families who usually drive down to the beach or go somewhere else have stayed closer to home this time – gas is just too high!” lamented lake-goers. “There seems to be far more people here for a holiday weekend than normal,” agreed another.

From Hollywood to Reality

Another vacation method families have long used to both limit costs and heighten the vacation experience has been the home exchange. While not a new concept, the idea was popularized in the 2006 movie The Holiday, starring Cameron Diaz and Kate Winslet. The premise is simple: potential vacationers are matched via a website based on where they live and where they would like to visit – and they stay in each other’s homes.

A quick read-through of some of the most popular websites that handle these exchanges, such as HomeExchange.com and 1stHomeExchange.com, will show that most of these homes are very nice abodes. Most profiles tell a bit about the owners as well, revealing a large proportion of professionals, including physicians, attorneys, professors and retirees; some are couples, others have small children. This seemingly affluent group comes with the expected nice selection of homes as well, ranging from suburban McMansions to Caribbean condos to beach bungalows.

However, even within this group of sophisticated yet frugal vacationers, the dynamics are changing. Whereas a year ago many American homes listed were requesting exchanges in Europe, Mexico, Australia and around the world, many recent updates are sticking closer to home. Listings give site members a spot to list where they are interested in visiting. Although there are still many around the world, a higher proportion now lists areas much closer to home than did a year or two ago.

One particular listing in Sarasota, Florida, for instance, states, “We are looking for a place close to home, due to the weakening economy – two days of driving distance at the most.” Another listing in Georgia lists its preferences as Tennessee, North Carolina and Florida. A Sacramento, California, ad requests, “Anywhere in California.” Several Hawaii listings request, “Any other island in Hawaii.” While these types of listings are not singularly the result of the price of gasoline (some people just like to stay close to home), the increased frequency with which these types of requests appear seems to be.

For now, these changes in the travel habits of Americans seem to be only slight. Vacationers are still traveling, just perhaps for shorter distances or driving rather than flying – a tightening of the belt but still relatively slight. With fuel prices steadily increasing, however, the long-term fallout on the travel industry and the great American summer vacation remains to be seen.