There are an awful lot of hotels and resorts around the world. There are hundreds and thousands of people who rely on tourism for their livelihoods, so they are not just going to give up. Holidays will have to become cheap in order to attract visitors. If it is cheap, the demand will be there. Airlines will not get away with charging high prices, because if they do, the likes of Ryanair will certainly undercut them.
As for holidaying in the UK, the weather is still unreliable. Once your two weeks have been ruined by rain, you won’t make that mistake again.