We are traveling from Anchorage to Talkeetna/Denali with our two children (9 & 11) in late June. Is there any reason we need to pay the exorbitant prices for an SUV, or are we okay renting a basic mid-size car?

Basic mid-size is fine, the route you are taking is paved and there won't be any snow.

You can avoid some of the high taxes by renting off-airport, like at the Budget facility on Spenard or from one of the non-chain companies. For example here are the taxes you are charged if renting at the airport. You avoid the last two (11.11% + $4.87 daily fee) if renting elsewhere:

•10% State of Alaska vehicle rental tax
•8% vehicle rental tax
•11.11% airport rental tax
•$4.87 per day vehicle rental fee

Your first hour on the road is going to be like any multi lane highway. Then it becomes a nice paved road like many state highways. On our last trip we had a borrowed elderly Buick station wagon we dubbed the grandma car. Keep plenty of water and snacks in the car and don't let the gas tank get too low and you'll be fine.

Thanks for the suggestions! Any suggestions on places to stay (B&B or cabins) in the Talkeetna area?

I can't give you any rocommendation for accompdations in Talkeetna since the times I have been there, I stayed at the Roadhouse which has pretty basic rooms. However, if you like wonderful artery-clogging American food in large quantities, I highly recommend the Roadhouse for breakfast or lunch.

We are going to Talkeetna June,17 and staying at the Northern Guest House. my niece lives in Talkeetna and suggested the place. You can check it out on web.

Best to get reservations. We thought we wouldn't have a problem on a Monday night in June but Talkeetna doesn't have a lot of options. The visitors center founds us Gate Creek Cabins. You'll have plenty of room for a family but the cabins are a bit away from everything. No quick drive to a restaurant but if you bring what you need you can cook your own dinner and breakfast.