Just a few years ago, the luxury hotel business was booming in China—a steadily rising economy was producing droves of deep-pocketed business travelers, and government officials were quaffing top shelf Bordeaux wine and running giant tabs in hotel banquet rooms. All that has changed with Chinese president Xi Jinping’s “four dishes and a soup” austerity plan, as government officials facing public shame or worse for spending public funds on lavish banquet room entertainment, or even wine with lunch.

Austerity or not, August is vacation time in Europe. As the continent's political leadership joins millions of citizens heading to the beaches, however, the tough economic times mean most are taking care to ensure their holidays look humble. Tropical beaches and hanging with billionaire buddies are out, stay-cations and low-cost flights are in as politicians take the ritz out of the recess.