I am puzzled by the "cheaper" rates if you book a package, i.e. air fare and hotel. It seems to me if you find a great airfare and book the hotel yourself, it is still cheaper than a package, since in the package you are charged for each person individually. The hotel room doesn't charge per person, but by the room. What are your thoughts?

I always compare several of the same type of package to doing it myself, and it usually comes out almost exactly the same, at least for the air/hotel packages. You do find deals sometimes; we booked a 3-night weekend package from the Albany to Las Vegas (staying at the Luxor) through Southwest for about $900 last fall, including taxes, airport transfers and trip insurance. Pricing it out on my own it was a few hundred more. Keep comparing and take the best deal!

My experience has been similar to Sandy's but I've opted to book independently for reasons of flexibiluity. Several friends have recently gotten fantastic "close-out" deals in January on all-inclusive packages to warm destinations (e.g. Dominican Republic and Jamaica). It's based on this being a lull time in carribean travel and them having the flexibility to buy the package (and arrange their time off) two weeks before departure. The prices they paid were so ridiculously cheap (e.g. 7 days hotel, all meals and airfare for about what one would usually spend for hotel or airfare only)that I'm inclined to chance it myself next winter.

I don't know where you live, but if you live in Canada, package tours are always cheaper. If you book your air and hotel separately, even if you get a really low airfare, and book the hotel separately, it would work out to be more expensive, as the hotels in the Caribbean quote in U.S. DOLLARS, and with our exchange rate, it normally works out to be more, than what you would pay on a package tour.

Thanks everyone for your replies. I guess I would be inclined to do it, if the price was extraordinarily good. But I like to pick the hotels myself and chances are the deals wouldn't be where I would choose.

Well, if you want to book independently because you want a diff hotel than in a package, go ahead. But your reasoning that it would have to be cheaper because packages charge a certain rate per person whereas a hotel charges by the room is nonsensical. Double room rates are divided in half for the prices of packages that assume double occupancy, and invariably they are quoted that way in pricing, they aren't the same accommodations cost for each person as the entire room. Usually packages are cheaper or they would not exist except as a minor convenience item for some people who do not want to do any research; usually they are cheaper because the packager negotiates good room discounts, that's why, ones you could not get yourself; some packages throw in a few other little items also, like tours, which may make a marginal difference. Some are no different than if you booked the air and the same hotel yourself, though, but you have to check that.

The combination package (not a tour but air/lodging/car rental) comes to less money when departing from Chicago airports a great majority of the time. This goes for almost all USA destinations and for a great number of the European ones. The inclusives to the Caribbean at certain short term times are greatly cheaper. What you lose in flexability you may gain in added perks. Some transfers, 2 or 3 hour guided tours, added show tickets etc. are perks that may be included.

A year or so ago there was an ATA inclusive to NYC that featured the Doubletree Suites for 5 days at a cost of less than the rooms alone when we tried to get them separately, so be aware. Southwest has some good ones but much better for some cities than for others. Overall it seems to us that there are not as many real values for USA destinations as in previous years. But I have heard of some fantastic ones to London and Spain.

When Mexico was the only trip I could afford, I always went air/all-inclusive. But now I'm going to Hawaii and am learning about all these great, affordable bread and breakfasts. Package deals don't deal with B&Bs, only hotels and resorts. I'm really excited about not staying in a hotel or resort this time.

Maggi, my husband and I are traveling to Maui in September for a two-week stay. Because we've been there before and knew where we wanted to stay this time, I did a lot of research on my own to see what it would cost if we booked air, condo, and rental car separately. Then I called a travel agent and told her where we wanted to stay. Odds are that if one packager doesn't offer your location of choice, another one will. It took her no time at all to locate one that offered the ocean-front condo we wanted, flights on United, and a rental car, for HUNDREDS less than what I'd found on my own. By all means, do your homework and then see what a travel agent can come up with in terms of a package--you may be surprised!

Bottom line is this (having read several 'tests' in travel publications of the hypothesis that agents are cheaper vs independent booking, etc) THERE IS NO DEPENDABLE, HARD AND FAST RULE AS TO WHICH IS CHEAPER FOR ANY GIVEN TRIP.
Just as air fares fluctuate wildly at times from day to day, flight to flight, sometimes great packages are available which will deeply undercut a la carte booking, but certainly not always.
The last good example of this I read was in Conde Nast Traveler a year or two ago. They pitted an internet-skilled independent traveller versus an experienced agent and had them try to book several different trips. Results varied based on destination but the agent was not always able to outperform the indpendent traveller.

There's no simple solution. If you want the cheapest, you have to do the legwork...try an agent, try the internet, make the calls to the hotel/airline, etc etc.