Aging baby boomers and a return to traditional destinations dominated the travel industry in 1998.

The aging population means fewer people are planning high-energy vacations like skiing and more are participating in less-physically demanding activities like golfing, cruising and spa vacations. The shift has led to a frenzy of golf course construction, the construction of bigger cruise ships and a growth in the numbers of resorts offering spa services. It has also meant mergers in the ski industry, with mom-and-pop resorts selling out to big corporations.

Big destinations like New York City, Las Vegas and the Bahamas are riding a crest of renewed popularity. Las Vegas now has more than 100,000 hotel rooms, with the opening of several new resorts. New York City is hot again, with hotel occupancy at near record levels. An expanded resort in the Bahamas is hoping to draw a large crowd - and it will need to, since it has more than 2,300 rooms.

Europe and the Caribbean continue to be the most popular destinations for Americans. Great deals in 1998 could be found in Asia and Hawaii because of the downturn in the Asian economy. The strong U.S. dollar also contributed to great bargains in places like Canada.

Theme park attendance was down a bit in 1998, but the industry continues to expand. Disney opened Animal Kingdom in 1998 and launched its Disney Magic cruise ship. Orlando, with its many theme parks, has grown into one of the nation's most popular destinations. Big names continue to dominate the industry, which is beset by merger-mania. Four companies now own the 50 biggest amusement parks.

Hurricanes in the Caribbean impacted that region's tourism in the latter part of the year, though the islands say they have recovered and are ready for tourists again.

The airline industry had a strong year, with nearly full flights. Ticket prices stayed down for consumers. 1998 saw an increasing emphasis on frequent fliers and many frequent flier programs merged. One of the big issues in 1998 was over the handling of carry-on baggage. United has moved independently to limit the size of carry-ons, a move which has caused much debate.

Hotel prices are eating a bigger chunk of the travelers budget. A survey of hotels shows hotel prices are up an average of $32.

Travel on the Web started coming into its own in 1998, with people able to explore pricing and destinations without the aid of a travel agent. The growth of online purchasing is predicted to re-structure the booking of travel, with airlines dominating the online business initially. Since online commissions for travel agents are lower, the growth in e-commerce is also predicted to impact travel professionals.

In 1999, look for people to take more trips, travel industry mergers to continue, additional growth in online booking and huge growth in the cruise industry. The cruise industry is expected to expand by nearly 50% in the next three years. The new European currency, the euro, officially debuts January 1, and should make travel in Europe less troublesome money-wise. Hotel prices are expected to continue creeping up, while airline ridership should remain high. The big rush is already on for making travel plans for the millennium. Have you decided where you will go yet?

By Kirsten Olsen, Travel Editor, USATODAY.com