1. How busy is the Arenal area in July? My family and I will be there the first week of July for 2 nights (dates uncertain). I've noticed that some of the hotels in that area consider July and August high season. For what reason? (European travelers? Ticos on vacation?) Are hotel reservations really necessary?

2. We had planned to stay at Volcano Lodge, but they have not responded to any of my 4 e-mails. Any feedback on this hotel would be greatly appreciated.

Regarding your question about why that time is considered high season by the hotels....the term high season is based on the amount of tourists that visit not on the weather per se. Weather can be a factor in the caribbean areas where there is a lot more rain therefore fewer tourists. Many north american families visit CR at that time because it is during the school summer vacations just as they used to visit Europe during that time (and probably still do somewhat) or Disney World for that matter.
Don't know why Volcano Lodge isn't responding to you but it seems to be a chronic problem in CR in general. Sometimes people make their reservations with no problem and I have myself but there are many times when the internet or some other problem can cause a lot of frustration. That is why I usually end up just having someone down there take care of the calling for me. Just for your information, the best lava viewing during the Jan-Mar time period was from Tabacon, Montana del Fuego, and Arenal Paraiso. I am assuming it is still the same. monteverdeinfo.com has a great simple map of the arenal area showing where the hotels are.

Arenal is also a very popular destinations for Ticos. We were there in August of 2001 and we saw more Costa Ricans vacationing there than in other parts of Costa Rica. This is the only area of Costa Rica where July and August are part of high season (I think most hotels in that area charge high season prices for July and August). On the other hand, I did not get the impression that the area was really crowded. Not more so than any other area we visited in Costa Rica in August.

Suzie and Iza,
Thanks so much for the feedback. I was in the Arenal area last June and it was very quiet, so I was somewhat confused by the sudden increase of rates July 1st. We were undecided between staying at Volcano Lodge or Arenal Paraiso but were leaning toward Volcano Lodge because it's less expensive and provides free shuttle service to Tabacon and Fortuna. Does Arenal Paraiso offer a shuttle service?

I don't think that Arenal Paraiso has a shuttle service to Tabacon. They may, but we had a car so I didn't pay much attention. In any event taxis there are cheap from what I hear. I can't imagine it would cost more than $5 to go from Arenal Paraiso to Tabacon.
By the way Arenal Paraiso has very nice swimming pools that are fed by volcanic springs.

I stayed at Volcano Lodge a couple weeks ago and would recommend it. The rooms are nice and all have a patio with chairs for volcano viewing (I think rooms 1-10 offer the best views).

I'm going to Costa Rica for the first time this June. I've read about a thousand guide books and, after emailing several places, decided to stay at Cerro Chato Lodge. See the New Key to Costa Rica if you're interested in reading what they have to say. It's a small place off the beaten track - and the owner offers a great rate for pick up at the airport, as well as reasonable prices and many tours. He's always been very fast to respond to my emails. It's a rather simple place, but is fine for my purposes. Check it out at:
http://www.geocities.com/cerrochatocr/

Buena suerte!