Economic slow down and cost?

I don't imagine it would be that much cheaper to travel in the EU. I'd still plan on it being fairly expensive, about 1.5-2 USD per euro.

Man I miss the days when the euro was close to the dollar.

All over Europe we're currently facing high inflation rates due to skyrocketing energy prices (at least that's what they tell us). I've said it before on here: The same pound of pasta that last year cost 29 cents now is 55 cents! Restaurants, hotels, everybody needed to adjust their prices. And in addition to that: In 2001 $82 bought you €100. Today (xe.com) you need $148 to buy €100! So traveling the EU is definitely going to be more expensive for you this year. Eastern Europe, by the way, has become more expensive as well as their economies are growing and maturing... Plus most Eastern European countries have tied their currencies with the €uro, which makes it more expensive for Americans as well...

If it's any clue, more Europeans are streaming to the U.S. for vacation to take advantage of the exchange rate.

And our "economic stimulus" package means we just added to the staggering debt that undermines the dollar.

Are there any signs of a slowdown in US bookings?
If room supply is up, you think cost would be down.
Or is it like oil; it goes up no matter what the supply is.

Just because not as many Americans are traveling to Europe that doesn't mean the rooms are going unoccupied. The void is easily filled by travelers from other parts of the world.

Michael rose a very good point. The gap fills by increasing numbers of Chinese visitors and of course the Europeans are also heavy travelers and visit each others countries. Just a little example of tourists visiting Germany (and staying at least three nights) in 2006. The top 5 countries of origin of travelers to Germany: 1) Netherlands, 2) USA, 3) UK, 4) Switzerland, 5) Italy. The number of visitors from the Netherlands is almost twice as high as from the US. The difference between the numbers of visitors from between the US and the other 3 is only marginal. By the way, 52% of all traveling Germans vaccation at German destinantions, predominantly the Alpine region. Top outgoing travel destinations for Germans are 1) Italy, 2) Austria, 3) Spain, 4) Netherlands, 5) France.