Heather Bonner:

When Kate Pavao and Aaron Lazenby moved into their three-bedroom condo in Bernal Heights two years ago, they knew they were making sacrifices. One of them was that there would be no long Hawaiian vacations anytime in the near future.
But then the couple found themselves vacationing in Oahu for three weeks with their 4-year-old daughter, Coco.
They didn’t hit the lottery. No rich relative died and left them money. Instead, Pavao and Lazenby discovered what hundreds of Bay Area residents already know. To take your dream vacation, you don’t have to pay an arm and a leg. You just have to be willing to share your home.
Thanks to the Internet, home exchange programs have proliferated over the past decade, offering Bay Area residents a way to leverage their biggest investment into dream vacations. And, because they live in one of the post popular places on Earth, they can easily swap their homes for the best locales. Potrero Hill for Paris anyone?
“It really speaks to the pragmatist in me,” said Pavao, 33. “You don’t have to leave your house empty, you don’t have to pay for a cat-sitter. We’re paying a lot of money for this place every month. It’s silly for it not to be used.”

Rick Steves:

Just when I was getting used to the idea that a euro should cost $1.20, our dollar plummets 20 percent, and now a euro costs $1.55. Don’t expect our currency to recover any time soon because, frankly, we’re not as rich as we think we are.
But 12 million Americans – the vast majority of them normal working people – had a blast in Europe in 2007. So don’t mope. Just get smart and stretch that wimpy little dollar. To help you keep your travel dreams affordable in 2008, here are ways you can take back that 20 percent drop in your dollar’s value – and have a more rewarding trip.
1. A bed and breakfast offers double the warmth and cultural intimacy for half the price of a hotel. You’ll find them in most countries if you know the local word: Husrom is Norwegian for sobe, which is Slovenian for Zimmer, which is German for bed and breakfast (literally, “room”). In Haarlem, in the Netherlands, I save 33 percent by staying a 10-minute walk from the center and paying 55 euros for a double room with a shower, rather than on the square in the cheapest hotel in town, which runs 85 euros for a double with shower.