Michael Lobello never thought an all-inclusive vacation would be his cup of tea. So when the Pottstown, Pa., financial adviser and his family decided to spend a week in Jamaica, they gave the all-you-can-eat-buffet crowd a wide berth and headed for the luxurious Ritz-Carlton Golf & Spa Resort at Rose Hall. But when he realized the hotel was offering a food-and-drink package that would actually cut his vacation bill by 40 percent, he ended up with well, an all-inclusive vacation.

All-inclusive going tony? While the Ritz-Carlton hasn t introduced a limbo night just yet, it and the rest of the travel industry is gearing up for a record game of How Low Can You Go? Indeed, with the slumping economy already putting many vacationers plans on ice, it hasn t taken long for the industry to realize that the old days of packed rooms and record-high rates are over. Desperate to keep travelers on the move this winter, hotels have been rolling out deals of all shapes and sizes, advertising everything from comped meals to free nights. Then there are the fire-sale rate cuts, especially at resorts that can no longer fall back on expense-account-wielding business travelers; both Oahu s Makaha Resort & Golf Club and the Hilton Scottsdale Resort & Villas recently offered price drops of 50 percent or more. Hotels have gotten creative too, with other upscale destinations such as the Westin Resort, Aruba, following The Ritz-Carlton s all-inclusive lead, and the Silver King Hotel in Park City, Utah, giving away a new set of skis, bindings and poles with every weeklong booking.

The explosion of offers has had an unexpected consequence: Choosing the best option is now trickier than ever. Ironically, going last-minute may now be the safest choice, since steadily escalating deals put early bookers in danger of missing out on the next big offer. And anyone who says he can tell you when the deals will bottom out, says Scott Berman, leader of PricewaterhouseCooper s hospitality practice, is just guessing. Hotels, meanwhile, are adding to the confusion by promoting some of the biggest bargains only to select travelers, like their loyalty-club members or subscribers to discount sites like Travelzoo or Travel Ticker, hoping that rack-rate bookings continue. Below, we sort through today s travel turmoil for four of the most popular winter getaways.

Hawaii

First the bad news: Hawaii has been one of the industry s hardest-hit destinations, largely because of trouble in the skies. Island-bound workhorses ATA and Aloha Airlines both folded in 2008, and according to the Official Airline Guide, the number of available seats to Hawaii from the U.S. mainland in December was down 18 percent from 2007. Even worse, fares to the 50th state this January are expected to spike by an average of more than $270, says Live Search Farecast.

But now the good part at least for travelers. With those high airfares and dropping visitor numbers (in the first eight months of 2008, for instance, arrivals to the Big Island fell 16 percent compared with the same period in 2007), Hawaii s tourism industry is being squeezed like never before. The result? Hotels, restaurants and tour guides are all rolling out the deals. Even the island s famously pricey car rentals are in the mix; a recent search turned up a compact for the unheard-of rate of under $20 a day. And where deals were once scattershot, now many big hotel companies offer far more flexibility, advertising bargains that apply across several of their resorts. Both the Hyatt Regency Waikiki and Sheraton Maui Resort & Spa, for example, are offering free upgrades and a third night free a big step up from the more typical fifth-night offer.

Golf

Even before the latest economic shake-up, the $26 billion golf travel market was already in the rough, with a glut of posh new resort courses opening in recent years and not enough golfers to go around. And with the slowing economy hitting the typical 50-something golf vacationer and his 401(k) particularly hard, even the high-end golfers are scaling back, says Bill Golden, president of Myrtle Beach Golf Holiday.

To stand out, many resorts are trying to stuff more extras into their golf packages. The Half Moon resort in Jamaica, for instance, recently touted its Total Golf Experience, which includes a cart and caddy, greens fees, and all drinks and meals, starting at $395 a night. Still, some of the best deals aren t packages at all and, far from being hyped, actually take some detective work tofind. This past fall travelers looking for a bargain on the Westin Savannah Harbor Golf Resort & Spa s Web site, for instance, might have found a king room starting at $263 a night. But enter a special rate code from bargain site Travelzoo and the same room class dropped to just $99 a night, a savings of over 60 percent enough for another round or two. A spokesperson for the hotel says the $99 rate is for a limited time and exclusively available through Travelzoo.

Ski

For some travelers, beaches and greens have nothing on a fresh coat of powder. But with last year s average U.S. six-day, high-season lift ticket clocking in at $366 (and that s before even thinking about hotels or plane fares), ski vacations typically aren t the most wallet-friendly. This year, though, the industry is off to an especially slippery start: Advanced bookings at Vail Resort s associated hotels were down 18 percent this fall compared with the same period in 2007, and fall sales at ski vacation packager Ski.com also fell below last year s numbers. So, many resorts are extending their early-season discounts into high season.

They re also making a play for family vacationers, who might otherwise be spooked by the high cost of lift tickets and lodging for the whole clan. With tiny Crested Butte, Colo., gaining 18 percent more flights this winter, local trip provider Crested Butte Vacations is attempting to leverage that newfound air power by offering a free plane ticket for every two vacationers who book. Not to be outdone, Delta Vacations recently offered a five-night hotel package that includes lift tickets and a six-day car rental, starting at $515 a person.

Mexico & the Caribbean

When Julie DeVall came across an offer from travel site BookIt.com, she wasn t even in the market for a vacation. But one particularly generous deal stopped her in her tracks: a seven-day stay at the Valentin Imperial Maya Resort in Mexico s popular Yucatan Peninsula, including taxes, round-trip airfare and a $400 spa credit all for $2,250. I kept thinking there would be some kind of catch, says the retired professor. But there wasn t.

These days kitchen-sink offers like the one that snared DeVall are becoming practically standard in the region. One reason: Despite the past hurricane season and ever-climbing airfares, the number of hotels in the area keeps growing. In Mexico, for instance, room supply in the first six months of 2008 was up 4 percent compared with same period in 2007, meaning travelers have properties rabidly competing for their attention. Over in Puerto Rico, we found a sweet offer at El Conquistador Resort & Golden Door Spa that includes an upgrade, 30 percent off golf and spa vouchers, and a $150 resort credit all starting at $245 a night.

Of course, as often happens, those freebies can still end up costing you money. Excited to use her $400 spa credit, DeVall discovered upon arrival that the voucher covered only massages, not facials, body wraps or other treatments. But after three rubdowns, she still hadn t used her whole credit. So what did the well-kneaded vacationer do? She donned her robe and hit the table yet again, ponying up the difference out of her own pocket. Says DeVall, I mean, how could you not use it all?