It used to be that when a person mentioned going to Europe, everyone's ears would perk up because it involved a sizeable chunk of change, for the only the wealthy could afford to go. That all changed in the latter 60's when people began to travel without all the amenities. Ever since then, there have been gobs of people heading off to Europe, some staying at the Ritz and others at the Chinze, and everywhere in between.
Here's how to do it on a shoestring:
Airfare
If you get the right kind of credit card, you can get air miles and fly for FREE. I have been to Europe many times and NEVER paid for a ticket, (and at present have enough air miles for 2 more overseas trips) so I know it can be done. Get that credit card; use it for every purchase, and be religious about paying off the balance every month so you are not paying any interest. That is a must. Ask around with your friends and relatives, if they are making a large purchase, see if you can utilize your card and they can reimburse you. Have I done that? You bet ya. Be careful though that you don't get left holding the bag. Be sure when you ticket, that they aren't farming you off on some other airline. They do that sometimes, and charge you extra. So you're paying just the tax and security fees, around $60.00 total. That's a bargain!
http://www.frequentflier.com/
http://www.webf lyer.com/
If an air miles card is not in the picture, just check the deals.
Kayak.com, expedia.com, travelzoo.com, there's a million of them.
Arriving
Don't skimp on maps, and get your bearings, especially of the city you are landing in, so you don't stand there like you have holes in your pockets. Get some local currency as soon as possible, but don't carry any more than you need for the day. Exchange rates vary; usually your ATM card will give you as good an exchange rate as you'll get anywhere else.
Visit the Office of Tourism and get what information you might need, such as local museum and historical site passes.
Cheap Sleeps
If you're going to a large city like Paris or Rome, reservations are strongly recommended. Yup, I have learned the hard way. It's easy to be stoned out and find yourself dragging from no vacancy to no vacancy. So book ahead.
For dormitory style sleeps, Join Hostelling international ($25.00 a year). No bells or whistles, but you'll have a safe (and usually clean) place to sleep. Usually, they are conveniently located in the heart of the historic part of the city, or at least easily accessible.
http://www.hihostels.com/
Another option is Couchsurfing.com. Meet people who have surfed couches all over the world!
http://www.couchsurfing.com/
For a one star hotel, there are a million internet sites out there. Listed are just a few to get you started. Outside of the large cities, hotels are much cheaper, and more available. You may want to take your chances and not reserve. Yes, you are taking a bit of a risk, but personally I like keeping my options open. If I have a reservation, I am nailed. Invariably, on the way to my reserved hotel, I will find another one, cheaper and nicer that I wish I was staying in. In Italy and France, you can stay in small, clean privately owned hotels for less than 30 Euros a night. Whatever you do, DON'T let an OT (Office of Tourism) book a room for you!
http://cheaprooms.com
http://www.backpackeurope.c om/
http://www.bugeurope.com/
http://www.hotel-discoun t.com/
Eats
If you're on a budget, STAY AWAY from those fancy restaurants. Here's what you do. Go to grocery stores (what do you know, there are grocery stores in Europe too!) and do it just like you do it in the states, or go to a deli, and find a nice park or bench, sit down and enjoy. Either way, you're eating for a lot less than you would in the restaurants. And there are good sandwich shops all over the place where you can usually get some good bargains. And then when you feel like you have amply saved some money, go ahead and splurge!
If you order coffee or beer, drink it at the counter or you will pay a service charge, maybe up to 8 Euros for a cappuccino. You cannot save money if you're paying that for a cappuccino!
Ground & Local Transportation
Ground transportation will be one of your greatest expenses. Unless you plan on living on the train, forget the Euro pass, or flex pass. Figure it out, it isn't worth it. Just buy point to point tickets.
If you rent a car, beware of exorbent parking fees in large cities! Also a word about car rental; the prices have really climbed lately, toll roads are a rip off, and so is the fuel. Unless there are three or four people splitting the cost, it may not be worth it.
When you go to large cities like Paris, Rome or London, get a 2 or 3 day metro pass. Keep it in a SAFE and CONVENIENT place. Something you can get out quickly without digging through your pack. BEWARE, they are small and easily lost, and most of the time, you're trying to find it while you're trying to keep up with the flow of masses of people! If you have it handy, you can go with the flow!
There are several budget airlines, such as Ryan Air and ValuJet, but beware. First of all, it takes a lot of time getting to and from an airport, not to mention the extra time before your flight departs, and they charge extra for baggage, sometimes more than the ticket! Best thing to do when flying Ryan or ValuJet is to wear as many of your clothing as you can, and carry your books, eliminating as much weight of your luggage as you possibly can.
Souvenirs
Now listen very carefully. Unless you're going to China, and you want a souvenir that says made in China FORGET IT, because all those souvenirs are made, guess where? Hats, t-shirts, umbrellas that say Paris were not made in France. So save your money. The best souvenir to get you won't find at a souvenir shop anyway, you'll find it at some local shop far away from the tourist traps. If you want to get that hat that says 'PARIS' made in China, just wait until you get back to the airport. They're actually a better bargain there anyway!
No matter how well you plan, something always happens to drain your money away from you. But with a little planning, it isn't impossible to keep within reason. Bon Voyage!