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Which mode of transport to select?

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All, This is the first time I am taking my family to Europe and plan to visit in May 2013. The dates are decided primarily based on school holidays and my job schedule.

I want to plan the month long vacation by myself instead of going through a tour operator and naturally all sorts of questions are cropping up. I will create separate threads for each one and link back to this one for completeness.

The question I have here is the mode of transport while travelling in Europe. I plan to spend a few days in Paris and a few in London read 4-5 ea. But the rest of the itinerary will be a whirlwind spending atmost a day or two in each city. I plan to additionally stay 3 days or more (if possible) in Rome. In addition I would like to go through Switzerland, part of Germany, Italy, Spain, Prague (?? "big if" but put due to the wishes of my wife :) )

I will be travelling with my wife (both of us in our late 30's), my daughter of 9 yrs and my mother of 60+ yrs. What would be your opinion in travelling? Should we take trains, or buses, car or my personal fave a RV?

The budget is not much of a constraint but between spending 500Euros and saving 1 hr and spending 200Euros we would pick the 200Euros definitely! :) A 100Euros here and there would be okay.

Would love your responses and apologies if I haven't put all the background!

Thanks,
Alok

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