The cost of travel has increased markedly in recent months. This is due to rising jet fuel prices and associated inflationary pressures, which are forcing airlines to consider dramatic fare increases and correspondingly large decreases in the number of flights.

This has already had a major impact on travel patterns. USA Today recently published an article discussing the fact that many domestic travelers who have “grown accustomed to flying for fun and business during the past 30 years” are finding it increasingly less affordable to do so. It is likely that Florida, Nevada and Hawaii, states that are heavily dependent on air travel will suffer the most.

Expected decreases in corporate travel are unlikely to be smoothed out by rising foreign visitation in the United States, Britain and Europe. At present, gateway cities such as New York are bucking the trend as the weak dollar is drawing in foreign tourism. However, as the global recession takes hold, increasingly squeezed foreign travelers may choose to stay at home.

An additional disincentive to long-haul travel at present are the recently announced bumper fuel surcharges, which are being added to the cost of tickets. Airlines such as British Airways and Virgin Atlantic, among others are raising their surcharges considerably.

Most believe that increased travel costs are here to stay. As a result, Doug Steenland, CEO of Northwest Airlines notes that, “travel patterns are going to change.” The airline industry as we know it may look vastly different in the years to come. Older, less fuel efficient planes will be retired. Routes will be cut and by this time next year, there could be 20% fewer seats available. Airlines may merge or go out of business entirely. Cheap travel will undoubtedly become a thing of the past.

Hoteliers need to be thinking about where demand is likely to come from in the future if air travel becomes prohibitively expensive. If most companies and individuals are priced out of doing business in regions far from home base, they may become more regionally focused, which in turn could provide a shot in the arm for local economies.