How will the economy effect travel?

With the UK on the verge of recession, and the credit crunch impacting around the world, will the travel trade be decimated?
There is little doubt that the average family will be cutting expenditure on package holidays. At the same time, it is likely that the top-end holidays in more exotic locations and cruises will be as well subscribed as ever. The other end of the spectrum will also remain pretty much unaffected and may even get a bit of a boost, this end of the market would include holidays within the UK in general and specifically camping and caravaning holidays.
This is because those with the money to afford top-end holidays will probably retain their appetite for their expensive vacations, and those who take less costly holidays will remain equally unaffected and may well find their numbers swelled by those wishing to go on holiday on a budget.
With the news that globally there will be less and less flights, there is no doubt that the travel industry will have less money to go around over the next few years and there will most likely be more casualties like XL. The likelihood is that it will be the more competitive budget holiday companies at higher risk.