In the air, the biggest revolution in the past decade has been the emergence of low cost carriers. These no-frills airlines offer cheap seats by cutting back on food, frequent flyer schemes and other perks, but passengers around the globe have responded enthusiastically. For some, low travel fares leave extra cash to splurge on luxury accommodations and services.

The trend started in the United States with Southwest Airlines, spread to Europe with the launch of Ryanair and easyJet and is now gaining a foothold in Asia and Australia. Flying is no longer the preserve of the rich – since 1960, fares have reduced by about 70 percent in real terms. Millions who never believed they could afford air travel are now booking seats on the internet, printing out their own e-tickets and buying snacks on board from casually dressed attendants.

As low-cost, no-frills travel spreads, so does the appeal of its opposite: high-cost, high-touch exclusivity and pampering. Business and first class travel is getting more luxurious and more expensive. As airlines court passengers willing to pay big bucks for comfort, they are fitting their cabins with lie-flat seats, cocktail bars and incredible entertainment systems. They offer limousine transfers, massages and swish airport lounges to ensure customer loyalty.

This trend will gain strength when the new A380 Airbus comes into service next year. These 555-seat mega-aircraft can be fitted with on-board showers, shops, casinos and private sleeping cabins. Among the airlines that have ordered these aircraft are Emirates, Singapore Airlines, Lufthansa, Qantas, Air France and Virgin Atlantic.

Overall, the big chain groups still dominate and it is hard to imagine a major city without a Hyatt, Sheraton, Hilton or a Marriott. However, brand loyalty is running second to value-for-money in many markets. Hotel groups are increasingly forced to launch new brands to cater for travellers who expect a comfortable room, but care more about price than a lavish lobby, a range of hotel restaurants and costly in-house services.

At the other end of the scale is the surge towards boutique hotels and exclusive vacation resorts. These hotels offer personalized service, superior locations, unique architecture and interior design and amenities not found elsewhere. The clarion call here is: “Smaller is better”. Boutique hotels help restore character and distinctiveness to cities, and their growing popularity shows that travellers welcome a change from the sameness of global chains.

The big hotel chains are responding to this challenge by developing their own version of the boutique hotels for their best customers, with separate check-ins, faster service, and special perks. In the leisure market, the trendsetters are the Aman resorts in Asia. These include the Amandari In Bali, the Amanpulo in the Philippines and the Amn-i-Khas in India. Their common feature is that they offer luxurious suites and villas in pristine settings. Their select group of customers want exclusivity and are prepared to pay for it.

Many of today's trends are being fuelled by the influence of the Internet and the move towards on-line bookings. The Internet has made pricing across the industry more transparent and consumers more informed. While it continues to be a valuable research and price comparison tool, the number of on-line bookings has been soaring. In Europe they increased by 36% last year and in the United States 45% of all travellers made travel reservations on the Internet in 2004. Research shows that those who booked once are likely to continue to do so, with the majority of online bookers (83%) using the Internet to do at least half of all their travel bookings. The US leads the field for online bookings, while the UK and Germany are the largest online travel markets in Europe.

Staying wired while travelling is important to both business and pleasure travellers. Research shows that almost 70 percent of business travellers take mobile phones on trips, 42 percent used the internet or email while travelling and 25% travel with a laptop computer. Even leisure travellers enjoy being connected – 60% have mobile phones with them and 22% used the Internet or email. Get ready for an explosion of wireless hotspots in the next few months as hotels, airports and shops cater to this demand.

*Chinese visitors will dominate tourism in the next decade. They already dominate or make up a large share of the tourist market in Hong Kong, Macau, Vietnam, Thailand, Malaysia, Singapore and Indonesia. However, by 2020, the World Tourism Organization has predicted that more Chinese tourists - a massive 100 million - will head overseas than tourists from any other country.

*Travellers are getting more adventurous. Around the globe, adventure travel is booming, with a growing number of tourists wanting more than a sightseeing experience. Nearly 50% of US adults have taken an adventure trip in the past five years. This includes adventure activities like whitewater rafting, scuba diving and mountain biking. Fitness has become more important, with a quarter of travellers using gyms or fitness centres while travelling, while 12% of US travellers played golf while on a trip.

* Medical tourism is soaring as Europeans and Americans head for foreign destinations to have medical and dental surgery at a fraction of the cost in their home country. Among the favoured destinations are Budapest in Hungary, Mumbai and New Delhi in India, Bangkok in Thailand, Cape Town in South Africa and Singapore.