Go in the shoulder season. Technically, winter is the cheapest time to visit Europe, but six years of living in Alaska made me allergic to cold weather - as well as reluctant to cart the heavy coats, hats and gloves needed to survive a February day in London. Instead, we tend to visit the Continent in the spring or fall, when hotel rates are still cheaper than the busy summer season and there are fewer tourists. Our last visit to Paris in mid-April offered a few days of crisp weather, but nothing we couldn\'t handle with sweaters and leather jackets, along with classy Parisian scarves knotted casually around our necks.
Research like crazy - and be flexible. There\'s no substitute for shopping around when it comes to finding great deals on airlines and hotels. No single source always has the best prices; I\'ve booked cheap vacations from consolidators, travel agents and over the Internet. Several of our friends also swear by the package deals offered off-season by airlines, including United and Virgin. Check them all out, and make sure to look at different departure and return dates. Traveling midweek generally cuts costs, and moving your visit by a few weeks can also save a bundle. A departure in late March can cost significantly less than one in early April, for example.
Don\'t overpack. Too much stuff means you\'ll wind up taking taxis instead of the cheap public transit that connects most European airports and city centers. You also could pay extra if you have more luggage than airlines allow. I toured India with a single suitcase and managed a 10-day trip to France with one carry-on bag, so I\'ve learned that packing light pays off. (You might want to stuff a collapsible duffle bag into your suitcase, however, to bring home any treasures you buy overseas.)
Use the right credit cards. A few years ago, using your MasterCard or Visa for most purchases was a great idea, since you got the best possible exchange rate (the one offered to major banks). Now, many major issuers - including Citibank, Bank of America, Chase, Wells Fargo and Bank One - are tacking an extra 2% fee on top of the 1% fee charged by Visa and MasterCard. (American Express charges 2% for foreign transactions.) Check with your card issuers to see which issuer charges the least, and use that card for your purchases. But bring an extra credit card just in case you have problems with your first one. On our honeymoon in Spain, our credit-card issuer cut off access to our card, convinced that our overseas purchases were a sign of fraud. Fortunately, we had a spare card with us, averting what could have been a disaster.
Use your ATM card for cash. Banks are cashing in by charging higher fees for overseas transactions, but you\'re still better off using ATMs than most currency exchange kiosks. Just make sure you withdraw large amounts - $200 to $300 at a time - so that the $1.50-to-$3 fees your bank charges don\'t add up. (Also, make sure you know your numeric PIN. European keypads usually don\'t have letters on them.) If you do use a currency exchange service, pick one that posts the rates at which it buys as well as sells currency. The rip-off places are the ones that only post the selling price, or the ones that have more than a 5% gap between the two prices.
Keep your receipts. If you shop a lot, you can get a refund of the value-added tax (VAT) you pay in European countries. This is something you\'ll need to do at the airport on your way out of the country, but the small hassle can be worth the savings - up to 25% of what you spent. Follow the instructions in your guidebook for claiming your refund.