With regard to Italy, hotel prices might get you some good deals depending on stay dates. Big event/tourism peak dates I see no deflation, and I'm in the travel industry.
Cab prices have gone up and so have food prices due to the massive increase in fuel costs. Restaurant prices are going to reflect that.
As I see it, at the end of the day the only thing that is going to make a difference is how stronger your own currency has got as compared to the euro.