Europe is really expensive because of the low buying power of the US dollar.
Three tour operators are luring travelers with value-added packages and dicounts.
Two companies offer free airfare, but you have to sign-up soon, and one upmarket outfitter is offering really interesting fall tours for 15% less.
I detail the specifics in my latest newsletter, 05/10/08.

What good deals have you found for Europe?
Best,
Candyce

Another way to enjoy Europe for less is on a cruise. For one airfare, you get to see many places. The cruise price includes meals (more food than you could ever possibly eat) lodging, entertainment and children's activities.

With European prices high, a cruise is a cost effective way to go.
What are some of your favorite European ports and why?

Best,
Candyce

An other tip for stretching your budget: find a hotel whose rates include breakfast. This is common in Europe and while the breakfast is usually Contintental--cold fare--typically the meal is ample with lots of cheese, cold cereals, pastries, coffee, juice, rolls and often smoked salmon, herring or other salads.

What tips have you found? Any dollar-stretching hotels you would recommend?
Best,
Candyce

I hesitate to mention this, but when in Italy last fall my DD and I would pocket a roll and an apple at the hotel buffet breakfast. (We figured that we were light eaters and didn't take as much breakfast as most of the other diners) With the addition of a bit of cheese purchased at a local grocery, we were good to go for lunch.

Another tip: try Europe off-season. The shoulder seasons are often the best. Instead of Europe in summer when it's crowded, try fall when the tourists thin out and the prices drop.
Venice is wonderful any time of year, but I especially like it in October. The weather's mild, but not hot and there are few lines in musuems and it's easier than in summer to get a dinner reservation.
What European cities do you recommend in off-season?
Best,
Candyce