We should not lose hope yet. Playbill pointed out that Travolta did two sequels before, so I'm guessing if he likes the story and the paycheck enough he'll have no problems with a sequel. Adam Shankman still likes the idea of a sequel too. Plus, the rest of the cast is big enough to support a movie, especially Zac Efron and the success of High School Musical. Not to mention every Amanda fan clamoring to see her shine in something new.
http://www.playbill.com/news/article/122786.html