US Airways has filed for bankrupty and United may not be far behind. Budget Rent a Car is in Chapter 11. The major hotel chains are all reporting diminished occupancy, and even such popular national parks as the Grand Canyon and Yellowstone are reporting that their lodges have space during key travel periods.

What is happening in travel and how will it affect you, the traveler? That's the 20 million dollar question right now, as pundits predict gloom and doom for the consumer in the coming year.

While our view is not all light-hearted--there will be more inconveniences at airports and travelers will have to insure themselves carefully for protection against provider insolvency-- there is much to celebrate in travel today. Airfares are currently at a fifteen year low, selling at 20 percent below last year's rates. And with the exception of certain areas, travel in general is off by about 10 percent from last summer, meaning that there are deals to be had out there---and how!

Today, instead of concentrating strictly on destinations, we'll discuss the "nuts and bolts" of travel: How can one use the internet more effectively to book travel? When is travel insurance necessary? What are "package tours" and how can they help travelers save money? Which packagers offer the most value for the money? How can one save money on cruises?

I'd be glad to answer questions along any of these lines, and also about New York City and Paris, cities I have written on extensively. If you have travel questions that range outside these parameters, throw 'em into the soup anyway. Anything I can't answer (or don't have time to answer today), will be answered by my colleagues in the coming week.

So let 'er rip! I look forward to this conversation.

Read the transcript below

Pauline Frommer is Executive Editor of Arthur Frommer's Budget Travel Online and like many of our editors, grew up on the road. She started traveling at the age of four months, dashing about Europe with her guidebook-writing parents. Pauline is the former Editor in Chief of Frommers.com and was at its helm when it won the coveted "People's Voice" Webby award. She is the co-author with her father Arthur Frommer of the book "The New World of Travel" and a recipient of a Lowell Thomas Award from the Society of American Travel Writers for her magazine articles. Married to photographer/actor Mahlon Stewart, she is the proud mother of three and a half year old Veronica, a terrific traveler in her own right.

Pauline Frommer: Thanks for visiting BudgetTravel.MSNBC.com! I look forward to a good solid hour of travel talk, but if I don't get to all your travel questions, don't worry. This is the kick-off for a full week of talk. The questions I don't get to, will be handled by one of our other Editors later this week.

Deer Park, Texas: My wife and I will be in Puerto Rico on March 7, 2003 for a Celebrity Cruise. Will the offer extend to that time frame?

Pauline Frommer: Highly doubtful. The offer is a last-ditch effort to get tourists to Puerto Rico in the off-season. March is the peak of the season for Puerto Rico, so I can't see any reason why this offer would be extended into that period...But we can always hope!

Washington, DC: (Re: Coming soon: A bloody-marvelous Transatlantic price war!) My husband and I would like to take a vacation at the end of the year from Dec. 25th to Jan. 7th. We would like to arrive to Paris, stay there for a couple of days, rent a car and drive to Vienna.
Would you advise me to purchase the tickets immediately or wait until this magnificent sale of $349 in November?
Thank you,
Patricia

Pauline Frommer: You have decided to travel during the peak of the holiday season. While you may be able to save a bit by flying on Christmas day itself, I don't think you're going to find any major discounts for that time period on air. As well, the $349 deal is for both air and hotel, within a prescribed amount of time in Paris. I'm not sure if you'd be allowed to add in Vienna (although you can contact Go-Today.com and ask the folks there--I may be wrong).
That being said, I think you can wait a bit before booking your air. Booking this far in advance (unless you catch a sale), might mean that you'd miss out on any possible discounting down the road. Look at the "Getting there cheaply" section of www.budgettravel.msnbc.com (it's in the "Encyclopedia of Travel") for our tips on cutting air costs to Europe.

Farmingdale NY: (re: Chain reactions-a setback for the Internet hotel services). 30 years ago a typical major airline summer airfare NY-Europe was $676 rdtrip. A few weeks ago I flew NY-Brussels for $500 rdtrip + $64 tax, (www.vgair.be). Winter fares NY-London are also still the same as about 30 yrs ago, about $400 rdtrip, or less now. Do you expect dramatic airfare increases soon to let the major airlines survive? Losses of Millions of dollars a day can't be sustained forever?

Pauline Frommer: It's an interesting question. Right now, airfares are at a 15 year low, and are a full 20 percent lower than they were last year. So, I think we may see some increase in cost, especially for the less popular routes and the smaller gateways.
However, the use of the internet for travel booking has empowered consumers to such a degree that I do believe there will always be deals out there for those who search (and those who can be flexible in their travel). Bot search engines such as www.qixo.com and www.farechase.com, which allow consumers to search all of the major travel sites in one quick click, are an invaluable tool as they allow travelers to get a quick overview of all their options. And I don't think these tools are going to go away.
What I'm hoping is we'll see the emergence of more upstart airlines, such as Southwest and JetBlue. These airlines focus on the needs of the majority of travelers (rather than trying to bleed a small segment of the market--business travelers)and consequently are doing quite well, in a time that the majors are not.
It's going to be a very interesting couple of months.
By the way, I've heard that VG is a terrific new airline, and a real money saver to Europe. For those who haven't heard of it, its the new Belgian airline, using many of the planes, pilots and crews of the now defunct Sabena.

Farmingdale NY: When do you expect the outdated Cuba sanctions and travel restrictions to be lifted entirely?

Pauline Frommer: When Bush leaves office. As I'm sure you know, both houses of Congress voted in recent months to lift sanctions. But Bush vetoed, so we're back to square one. In fact, the Bush administration has really cracked down on travel to Cuba, cutting the number of licenses it gives to journalists and humanitarian workers in half, and imposing much more severe fines on those Americans caught in Cuba than the Clinton administration is. We have to remember: his brother is running for reelection in Florida. And the Cuban emigrees there are a very powerful voting block. 'Nuf said.

Oconomowoc, WI: (Re: Price War) Will these prices be for business travel as well as tourist? Are there any specials for hosting business meetings abroad?

Pauline Frommer: Sorry, I believe the tickets only cover economy class seats. However, there's nothing to stop you should you decide to plan a business meeting in Puerto Rico to take advantage of this deal. I'm sure you'd be able to find conference space.
My advice: act soon. 5000 tickets will sell out quickly.

Denver, Colorado: (Re: Price War) For a special like those you mentioned today, is there a way to make it 100% sure that you get the tickets and accomodations?

Pauline Frommer: Before we post any article on Arthur Frommer's Budget Travel Online, we make sure that there is good availability. And at this point, there are a number of openings at the $349 price. That may not be the case in another week or two, but if you were to book this week, you should be able to get in on the deal.

Detroit, Mi: I would like to take a family of 5 on a trip during the Christmas holidays. The problem is that I am low income and for once I want to do something different for xmas rather than spending it on toys. Any suggestions?

Pauline Frommer: The Christmas holiday period is the single most expensive time to travel during the year. All of the standard destinations—Caribbean islands, Orlando, Las Vegas, etc—will be jam packed and charging their highest rates. Would it be possible for you to fill the stockings with air tickets for the period two weeks after Christmas: say, January 5 and on? Prices plunge in January, and then go up again in February and March as folks start taking their Spring breaks.
If Christmas is the only time you have to travel, I have two suggestions for you: the panhandle of Florida should be fairly cheap at that time of year. And New Orleans is usually not jammed at Christmas, and has some very nice holiday festivals going on (many of the historic old houses open to visitors, there are free concerts, caroling in the streets, etc). By staying at a nice B&B in New Orleans or one of the smaller hotels, you may be able to get a deal on accommodations. Actually, the web site for the New Orleans convention and visitors bureau has some good deals on lodgings. I'm sorry, I don't have the URL. If you'd have to fly there, you may want to look into Southwest Airlines Vacations (www.swavacations.com) packages there, usually they're reasonably priced.

Dallas, TX: Where in Puerto Rico will this trip take me?

Pauline Frommer: That depends on where you decide to stay. Many of the hotels are in the Condado area, a few in Old San Juan, some outside of the San Juan area altogether. Call one of the companies listed in the article for more information.

Portland, OR: Regarding United Airlines potential bankruptcy situation - will customer's earned Frequent Flier miles disappear? If I book a ticket now for '03 using my FF miles, will my ticket remain valid if United files for bankruptcy?

Pauline Frommer: That's hard to say. I know that US Airways is honoring its frequent flyer programs while in bankruptcy. I think there'd be too great an outcry if they didn't. But you have to remember that historically, only 50% of the airlines that file for Chapter 11 make it out. I'd use those miles sooner rather than later if I were you.

Columbus, OH: What is the minimum # nights to book at the hotel? Would we be able to book 5 nights at the hotel, then visit another Island (Tortola) for another 5 nights? The round trip tickets would therefore be for 11 days?

Also, just want to confirm that we can get round trip air fare for 2 rooms (2 adults and 2 kids) with 4 free airline tickets?

Pauline Frommer: You'd have to book a minimum of five nights at hotels in Puerto Rico. And yes, you should be able to get two rooms and four tickets under this program. I don't know, however, if you would be allowed to extend your stay to eleven days. I'd suggest you contact one of the companies referred to in the article to ask.

Detroit, MI: What happened to the feature "Cheapest Places on Earth" in the current issue? There was supposed to be an article on Memphis. Did you discontinue this feature? When are you going to start 10 issues a year? You said so in January. It's nearly September and you've only gotten 5 out this year!

Pauline Frommer: We kicked of our new nearly monthly schedule with the September issue. Sorry about Memphis. It should be in the next issue. And yes, we are continuing that series.

South Orange, NJ: My granddaughter, age 20, and friend will be visiting NYC on a very tight budget, in September. Where can they eat, other than fast-food places?

Pauline Frommer: There are so many wonderful inexpensive places to eat in New York. It always kills me when I see tourists lining up at the chain restaurants! Some quick suggestions:

For Chinese food, try New York Noodletown at the corner of Bowery and Bayard in Chinatown. Amazing salt-baked squid (no, really, it's delicious) for about $7.95 for an enourmas, shareable plate. Also great noodle dishes (about $4), roasted duck ($6) and many soups.
In Times Square, I like Afghan Kebab House #3, right on 46th street. Very savory kebabs, served with a salad and homemade coriander and mint sauces. Very authentic, cute atmosphere.
For a real experience, tell her to go to East sixth street between First and Second Avenue. Called "Little India" it's brimming with overdecorated, tremendously cheap (but good) Indian restaurants.
There are so many other places, but I really should move on to the next question. We have a great article in our archives on this topic called the "Little Wonder Restaurants of New York" that you may want to purchase for your grandchild (it's $2.95, I believe).

Hartford, CT: What with several airlines facing severe financial problem, do you know of any cruise ship companies experiencing the same problems, i.e. facing bankruptcy?

Pauline Frommer: At this point, the cruise lines seem fairly stable. There's been a lot of talk of mergers, but none have happened as of yet. The weaker cruise lines--Renaissance and Premier--went belly-up last year. But if you're worried it's not a bad idea to get travel insurance for any big ticket travel item nowadays. Make sure however that the policy covers the insolvency of the travel provider. Many of the insurance companies stopped covering insolvency soon after September 11 (boo, hiss).

North Bend, Wa: When is EasyCar coming to America!!!!?? And why is domestic travel so much more expensive than international travel? Doesn't make sense!

Pauline Frommer: As far as I know, there are currently no plans for Easy Car to come to the States. But we can keep our fingers crossed. As for international travel being much less expensive...Not necessarily. There are a lot of great travel deals out there for the States as well, and we'll be profiling them every day in Budget Travel Today, so be sure to watch our site!

Riverside, CA: Amtrak is getting so much bad press these days. What do you think about using it--do you really save money over flying?

Pauline Frommer: That all depends on the route you're taking, and what kind of deal you get on the air ticket (as you know, air prices fluctuate up and down about as rapidly as the stock market!). Many people don't know that you can get good discounts on Amtrak, too, through its site (www.amtrak.com). I always check there before I buy a train ticket.
As for the bad press, it's not surprising. Our government gives millions of dollars each year to maintain the highways and airports, but has not been adequately supporting our nation's rail structure. I think we all learned after September 11 how important it is to have more than two major means of transportation in this country.

Naples, Florida: What's the south of France and places like Cannes and Nice like in the winter? Is that a good time to go cheaply?

Pauline Frommer: It's a great place to go in winter. While you won't get beach weather, you are fairly far south in both Cannes and Nice and so you should be very comfortable. And Nice, in particular, with it's abundance of terrific museums, is a great destination year round. We often see very affordable air and hotel packages to the French Riviera from such companies as France Vacations (www.francevacations.net) and Go Today (www.go-today.com). It's probably a little early to check those sites, but winter Riviera rates should be up by mid-September.

Newark, NJ: How much should I budget (single traveler) for a week in Paris in November--not airfare and hotel, but other expenses, such as food and entrance fees, subway, etc.?

Pauline Frommer: If you do it frugally, you could get buy on $40 a day or less, excluding the costs of air and hotel. You would do so by finding a hotel where breakfast is included in the room rate and then doing what the Parisians themselves often do, and picnicking for one meal a day. Go into a boulangerie or stop at a crepe stand and have a fabulously inexpensive, open air-meal, at least once a day. If you decide to go to one of the more famous restaurants for a gourmet meal, go for lunch when the prices can drop by as much as 50 percent. Have a wonderful time!!

New York, NY: My husband and I are fortunate to be traveling to both Paris, this September, and Ireland, this Thanksgiving - on the Sceptre Island Emerald Package! Do you have any secrets you could share with us for Paris or Ireland? Any special sites off-the-beaten-path that tourists don't know about? Thanks, Pauline!

Pauline Frommer: I'm not an expert in Ireland, but I must say that on my last trip to Paris I went to an enchanting little museum that I'd never been to before and would highly recommend. It houses the collection of one of Paris' very rich citizens (now dead), and it's quite a collection indeed--Rembrandts and Reynolds and many other great artists--all in an uncrowded, beautiful mansion, where you learn about the history of the family as well. And now, of course, I'm blanking on the name, but I believe it's called the Armand Jacquee house. Also, visit Pere Lachaise cemetary if you haven't done so before. Absolutely fascinating.

Nantucket, MA: It is so great to have you back on the Web, Pauline! My husband and I are thinking of coming to New York City in October. Are there any kind of deals that we should know about for hotels? Any recommendations? We're not millionaires and we're looking for an affordable, decent place to stay. Thanks!

Pauline Frommer: You've picked a great time to visit as tourism has been very slow this summer (and so hoteliers are slashing prices, left and right). For good deals, try the Apple Core Hotels (www.applecorehotels.com). These are a group of chain hotels--Motel Six, Days Inn, etc---all in midtown, and actually much swanker digs than you usually find with these chains. For the fall, they're having an $89 a night sale on rooms. You'll find other discount hotel suggestions at the website of the New York Visitors bureau (www.newyorkvisit.com, I believe). If you come back and see the site next week, we'll have a full article on just this topic, with more suggestions.

Los Angeles, CA: Is it true that the Wal-Mart chain encourages cross-country trippers to park and stay in their parking lots? I guess the idea is that you're more likely to come in and buy stuff. Is that officially sanctioned?

Pauline Frommer: It is true, and we featured this as one of our tips in Budget Travel magazine.

Arlington, VA: Why is it necessary for airlines to move passengers from bulkhead aisles to accommodate babies? Don't the parents know beforehand and ask for this before the flight? It seems the airlines try to embarrass people into moving which defeats the purpose when the parents keep running back to their old seats for their bags, diapers. Thanks.

Pauline Frommer: Don't blame the parents! It's the airlines who assign those seats, and often they reserve them for the big spenders--folks who fly that airline a lot. And then, for no good reason, they realize at the last moment that parents with small children need them more, and so it's a big hassle for everyone. On my last trip back from Italy, my three year old daughter husban and I were all assigned to different rows, despite the fact that we thought we had seats together. We had to bargain with passengers once we got on board, so that two of us (Mom and daughter) could sit together.

San Diego, CA: I've been to New York City a lot, and want to see something different. A friend told me that I should go out to the borough of Queens. Do you agree? What does one do once one is there?

Pauline Frommer: The Museum of Modern Art recently moved to Queens temporarily, and it has really raised the profile of the entire borough. I can't recommend a visit to Queens highly enough. For museums, there's MOMA of course, but also the terrific Museum of the Moving Image, a must visit for anyone interested in movies, TV or new media (a lot of really interactive exhibits, free movies, great fun). There's also PS 1, which is a terrific contemporary art space. And Queens is home to the most ethnically diverse population in the United States, so it can be fascinating just to walk the streets of Flushing or Jackson Heights. Great restaurants too!

New York, NY: (RE: Puerto Rico for free) What if a person has a house or a residence in which to stay at in P.R., are we still entitled to the free airfare?

Pauline Frommer: Sorry, you have to buy the hotel rooms to get the airfare.

Dover: How do I take advantage of this offer to travel to Puerto Rico? Can I just go to any travel agent? Also, the article states that you can fly from the mainland. Is it only referring to Florida or would it be possible to fly from anywhere in the country providing it is a direct flight? Thanks.

Pauline Frommer: You have to use one of the companies in the article (two of which work only through travel agents). There's a list of gateways at the bottom of the article which will let you know if you can get a free ticket.

Baltimore, MD: I would like to go to Orlando for the parks and would like to know when there are bargains there, or how to find out the cheapest way to take a family (five).

Pauline Frommer: There are tremendous bargains in Orlando. In fact, we'll be running an article on this subject in Budget Travel Today, either on Friday or Monday. But briefly, look into the packages of either Southwest Airlines Vacations (www.swavacations.com) or Leisure Link International (www.eleisurelink.com). If you're planning to drive, right now, you can get $20 motel rooms, plain but decent, at many of the properties in Kissimmee.

Englishtown, NJ: I'm planning a vacation to San Francisco and I'm in the process of searching for a hotel for my family. All of the sites I searched require payment in advance. Are these sites worth it? Are there sites that do not require pre-payment, but still will save me money?Thanks, JB

Pauline Frommer: I believe Quikbook (www.quikbook.com) does not require advance purchase, and it has pretty good rates. Also, if you go directly to the chain sites, you shouldn't have to prepay to get a discount. See today's article called "Chain Reactions".

Vancouver, WA: If you could only give one piece of advice about taking a cruise, what would it be??

Pauline Frommer: Don't buy the land excursions. Simply get off the ship at port and go to any of the taxi drivers or tour ops who work the ports and book a tour on the spot. You'll save a lot of money this way. Also, if you see something that you must have in one of the onboard shops, wait until the last of the cruise when all the shops will inevitably throw a sale. One final bit of advice: use a cruise discounter to book and you could save a lot. Visit the section of this site called "Savings at Sea" for more information on that!

Los Angeles, CA: Do you know if there will be any good deals for travelling from Los Angeles to Paris in November or December, 2002, with 5 or 6 nights stay in Paris?

Pauline Frommer: Both France Vacations (www.francevacations.net) and Go Today (www.go-today.com) have good packages from Los Angeles. I'd also look into Offpeaktraveler.com.

Cleveland, OH: I'm planning a trip to London for early August '03. While it is peak season, are there any hints to getting good airfare by planning this trip so early, or am I stuck paying the $800 or so summer rates I saw this year?

Pauline Frommer: Don't plan this early. There are no discounts available yet. Wait until March of next year, at the earliest to start booking.

Juneau, AL: I realize that the politics of India vary greatly depending on region--does it seem safe for Americans to travel in some parts of India at this time?

Pauline Frommer: I'm a great fan of India, and have always felt safe when I traveled there, even when traveling alone. Take the cautions you would in any large city and you should be fine. It seems like tensions have eased between India and Pakistan and I believe the State Department has lifted its travel advisory. For questions of safety, it's always a good idea to go to the US State Department website. I also like the Australian consular website as its safety information tends to be a bit more detailed.

Toledo, OH: Is Japan a cheaper place to visit because of their economic troubles?

Pauline Frommer: Japan is cheaper than it was a decade or so ago, but it still can be shockingly expensive. I traveled there when my daughter was ten months old, and we managed to spend $40 for one, not-so-large package of diapers (the Japanese word for those? Diapah, interestingly enough!) Every once in a while, a company called Jalpak (www.jalpak.com) offers inexpensive air and hotel packages to Japan which can save you a bit of money. If you decide to travel independently, look into staying in Ryokans--traditional, Japanese style inns. You may have to share a bathroom, but that's an experience in itself--you'll be escorted to a tub, filled with scalding hot water as the maid goes to lay out your futon for the night. Some ryokans also include a kaiseki meal--twenty or so, tiny courses, delicious, served in your room. An experience not to be missed.

Flushing, NY: Why not do an article on European Budget travel airlines and how long their schedules run into the autumn between various places---for example I would like to visit friends in Belgium in the fall and then go on to Athens but it is super-expensive. If I knew more about the budget airlines I might go on to another city from Brussels by train and then get one of the budget trips on an charter airline to Athens but I know they stop running sometime in Oct or Nov. If you could make the info available we could all become much more savvy European travelers. (I know how to use the Internet to get the most inexpensive USA travel by checking the routes traveled by each airline but I simply do not know the various inexpensive European airlines). Am delighted to see you will be giing us info online!!! Good luck with this new venture!!!

Pauline Frommer: We are planning to run just such an article in the upcoming weeks. In the meantime, you should look at the web sites of Ryannair, Go, Easyjet, and the Europe by Air pass. We'll cover more in the article, and give full details.

Brooklyn, NY: (Re: Puerto Rico for Free) OK, who is the right travel agent? Can you direct me to site that can offer me a deal like this? It would be appreciated.

Pauline Frommer: The tour operators to use are listed in the article. If you live in New York, Boston, Chicago or Miami, I'd suggest going with Inter Island, as their hotel rates seem to be the lowest.

New York, NY: Please tell me how an airline ticket consolidator makes money. I travel to Hong Kong just about every year. I always buy tickets from a consolidator. The lowest published roundtrip fare to Hong Kong for this time is about $1,200, but I only pay about $650, all taxes and fees included. Better yet it's always a well known US carrier, either United or Northwest. It's always the case.

Pauline Frommer: Often they buy in bulk and at a great discount. They make their money by marking up the fares, but they still pass on great savings to their customers.

Pauline Frommer: Well, our hour's up. Thanks for all the great questions. And if I wasn't able to answer your question today, simply revisit the site tomorrow at noon (or the day after that, or the day after that). My colleagues and my father, Arthur Frommer, will be sitting in the "experts" chair, fielding as many questions as possible.

And thanks again for visiting www.budgettravel.msnbc.com. While we won't be having live chats every day, we will answer one (or more) travel questions, every weekday, from here to eternity, at the Ask the Editors section of this website. Simply click under "Village Square".