Here’s what I’m doing to save money as I travel.  I’m now thinking more about what I really need while traveling and what I can live without.

1.  Pass on Hotel Internet Service and my laptop. Daily Savings: $13 on average.

You may find that you have more free time by staying less connected on a vacation.  I’m now toting my iPhone 3GS  instead of a laptop or netbook.  That helps with luggage issues as well.  It’s unbelievable to me that many hotels still charge for daily Internet service.

2.  Find Cheap Parking. Save $17 daily in Honolulu for example.

Time is a valuable commodity.  If I can’t find a cheap parking spot, I’ll let the hotel win instead of circling around the block for a half hour each time I go out.  Before I surrender,  I check my options.

In Honolulu, the zoo parking lot is no longer 25 cents an hour so I’ll try the Waikiki Shell parking lot for free if there’s space.  Another option is parking along Ala Wai Blvd where there are no meters (almost impossible at night).

Frugal Hawaii travelers who plan to stay mostly in Waikiki and Honolulu can skip parking fees and just take the bus.

3.  No Checked Luggage.  Save $10 per bag, per person (inter-island).

Even in Hawaii inter-island travel, two of the three carriers already charge for the first bag and Hawaiian will soon follow.  With all the things I’m leaving out of the luggage, I’m just doing carry-on.

4.  Reduced Hotel Quality:  Definitely not necessary!!! Savings: $125 per day, on average.

This is perhaps the best news for me, as I really like to stay in great hotels.  I’m either using Priceline or negotiating directly with the hotels I’m considering (usually via telephone).  What I used to pay $200+ a night for, I’m now paying an average of $75.

5.  Restaurant Meals Reduced.  Daily Savings: $40 per person.

I’ve cut out more than half and saved big-time (while eating much healthier).  I hit the grocery store and tote a standard kit of basic kitchen tools for the hotel room.  When I take my meals out, I’m eating where the locals do.  One example is my recent review of Honolulu’s Nico’s at Pier 38.  Instead of $50 for dinner, I’m spending less than $20.

6.  Cheaper Rental Car.  Daily Savings: $30 on average.

I don’t need a Jeep or SUV.  Usually I opt for a mid-size or compact instead.  I compulsively check all the available codes or use Priceline to find the best deal.  A week before my trip I check the rates again in case there’s something better.

7.  Shopping:  Buy Less and Pay Less.

It’s still fun to shop when traveling for a plethora of reasons.  I’m shamelessly negotiating the price of virtually everything except groceries.  My lastest deal was at Nordstrom’s shoe department at Ala Moana, where a quick comparison check on the iPhone found the same shoes for 30 percent less elsewhere.  Nordstrom quickly matched the price.

My question to you:  What are you doing to spend less (while enjoying more) in your travels?

Nothing at Nico’s is priced over $10.

When I said “French”, you probably saw dollar signs.  It’s quite the opposite.  My favorite plate lunch, the catch of the day, is reasonably priced at $8.95.

The menu changes daily and includes a homemade sauce with your fish.

On the visit pictured here I enjoyed Cajun style ahi tombo with a watercress basil aioli.  Instead of a mac salad I opted for organic Nalo greens and selected brown instead of white rice.  Since Nico’s is located near the Honolulu Fish Auction building, you’re guaranteed freshness.

Chef Nico’s credentials are impressive.

Nico moved to Los Angeles from Lyon, France at age 22 and has lived Oahu for the past 10 years.  He was formerly the cook and sous-chef at Michel’s at the Colony Surf and the Bistro at Century Center.

The Nico’s Vibe:

Informal, noisy, crowded, with outdoor dining under an awning and clientele eclectic.  You’ll find people of all trades and professions mixed in with visitors.  On Friday and Saturday there’s live Hawaiian music during lunch.

Ordering Food:

Expect a long line but trust me, it moves fast.  I’ve never had to wait more than 5 or 10 minutes to order.  When your food is ready, you’ll be buzzed to come and pick it up.  You can also have the daily menu emailed if you subscribe to their mailing list.

Location:

At the end of Pier 38 (makai side) next to the Honolulu Fish Auction building.  Look for the green awning and you’ll be at Nico’s.  Parking is plentiful and free.

Hours:

Breakfast served 6:30 am to 9:30 am and plate lunch from 10:00 am to 5:00 p.m., Monday through Friday.  On Saturday, Nico’s closes at 2:30 p.m.  Not open on Sunday.

Throughout Hawaii you’ll find self-serve roadside stands. Many are tucked away on back roads and offer great value. Locals build these stands at the edge of their property to sell whatever they grow that’s in season. Most are run on the honor system. Just take what you want and leave the money in the box.

Those of us who live here have our favorite stands that we often visit. I decided to share with you my favorite stand for flowers on Kauai. The price can’t be beat.  For only $3, I walked away with a beautiful arrangement of torch ginger, orchids and assorted heliconias.

This stand is located at 3265 Lauoho Road about a half mile off the highway near Kalaheo.

If you have a favorite roadside stand in Hawaii, please be sure to add yours in the comment section.

While that may be true, there’s one bookmobile on Oahu with a new mission.  It’s Bill’s Bookmobile, cheaply selling used books, music and movies.  All proceeds benefit the Hawaii Public Library System.

Bill’s Bookmobile doesn’t travel to you.  Instead you go to its permanent location near downtown Honolulu.  The parking is free and the deals are many.  You may even find a used book you’ve been searching for.

Named after the late Bill Harper, this project honors his memory and love of books.

Right now you can get 50 percent off the already discounted price on children’s books and cookbooks.  Videos are 10 for $5.00 and romance novels are five bucks a bag.  Be sure to check their website for current deals during your trip.

On my recent visit, I found the books in good to very good condition.  I left with a paperback and like new hardcover for a total of $3.50.

This is a great place for booklovers to meet on their Hawaii vacation.  If you go to Bill’s Bookmobile, let me know how you liked it.

Location: 690 Pohukaina Street.

Directions: From Ala Moana Blvd, turn on Coral Street and then left on Pohukaina.  Parking is free.

Hours: Monday through Friday from 10:00 a.m. to 2:00 p.m, and the first Saturday of each month.

Before accepting your hotel’s charge for parking, you might want to do some checking on your own.

We typically prefer staying at one of the two ends of Waikiki (either near Ala Moana or the Zoo).  This week, we’re staying close to the Zoo, and came determined to do some quick research and avoid the $120 charge for six days of hotel parking we would have otherwise incurred.

At the far end of Waikiki, near the Honolulu Zoo.

• We’ve found free parking available 24 hours a day along Montserrat Avenue, which is off of Kalakau just beyond Kapahulu.
• There’s also unlimited free parking in the lot next to the Waikiki Shell, just off Montserrat.  We park here overnight.
• The Honolulu Zoo, on Kapahulu, just off of Kalakaua, has 24 hour metered marking, for just 25 cents an hour.  It’s closely monitored so don’t forget to bring your quarters and watch your time.
• Nearer to central Waikiki is the Waikiki Banyan Hotel (on ‘Ohua Street), which charges $10 per day or $60 per week for unlimited parking with in/out privileges.

Near Ala Moana.

There is still free parking along the Ala Wai Canal, on Ala Wai Boulevard.  We’ve heard rumors, however, that this may change to metered parking soon.

If you have suggestions on discount parking in Waikiki, we’d love to hear about them.

Food costs here in Hawaii can be very high (or not). I’m often amazed by visitors fresh from the plane buying hundreds of dollars of overpriced food at the grocery store. If you’re going to be here for a week or so, just a little extra planning could put hundreds of dollars of savings in your pocket. Enough to pay for that expensive excursion you might otherwise be avoiding.

So here are some tips for saving money on food.

• Plan ahead. Think about what you’re likely to be needing (before you leave home) and come prepared with a basic shopping list.
• Be careful at Costco, Walmart, Sam’s Club and Long’s. These are stores where the name of the game is impulse buying, which can easily double or triple your food bill. Sometimes just having a grocery list can help keep you on track. These stores are fine-tuned for visitors, which account for about one-third of their Hawaii business.
• Grocery store loyalty cards. A number of Hawaii grocery store chains have these. In combination with sales, they can often reduce of items by 50%. Some of these include Safeway, Foodland (and its related brands), and Times Market.
• Farmers markets. These can sometimes be a good deal. Sometimes not. Local produce and seafood can also be found in grocery stores, at local stands, and on trucks parked along the road. Many times these are far better deals. Some of our farmers markets are also notorious for selling things not even grown in Hawaii, so use a little buyer beware sense. As an example, I recently bought 25 pounds of rambutan off a truck parked along the road. Total cost was $20, or $.80 per pound. The same rambutan (probably from the same farm) were being sold at Costco for $5 per pound.
• Weekly and in-store specials. Even as a visitor, consider having a look at the grocery ads if you plan on doing much cooking.
• Clearance items. Check for clearance items in the store. These are a bigger deal in Hawaii than on the mainland, since shipping and delays often result in damage of various kinds.
• Don’t shop when you are hungry. We all know that when we shop hungry, we end up buying things that we would never buy otherwise. It is funny, but so true.
• Prepare for substitution. Here in Hawaii it is often essential simply due to lack of availability. Mainland shoppers are used to going to the store and finding exactly the product they have in mind. But when you find that leeks cost $5/lb, you might want to just consider onions at one-fifth the price. You can seriously control your grocery bill if you follow this tip in Hawaii.
• Avoid bottled water. What you get out of the tap in Hawaii is better than what’s in the plastic bottle. Check out our thoughts on this.

The economic downturn and travel industry woes have taken their toll. Visitors to the Islands are down, in June by about 15-20 percent, and there is a noticeable difference.

While July statistics haven’t been released yet, based on what we see here, they will likely reflect a downturn, perhaps in the same range.

There has truly not been a better (or equally inexpensive and uncrowded) time to visit Hawaii in years. This is likely the best it’s ever going to get. I suggest that if you’ve been putting off your vacation to Hawaii, now is the ideal time to take the plunge.

Here’s why:

• Fewest tourists since 2003 (5 years).
• Inexpensive hotel availability is unprecedented. I don’t believe that there is a hotel in Hawaii where you can’t bargain a good deal at this moment.
• Good airfares are coming fast and California deals are likely the next ones to happen.
• Inexpensive car rentals.
• No restaurant or other reservations needed.
• Local people will be extra glad to see you. Enjoy the aloha spirit.

Here’s how to take advantage:

Watch for the new lower fall airfares. We announced a series of them last week, and I expect in the coming two weeks we will see many more including the long-awaited California airfare deals.

Also look for hotel and car rental deals which are to be found everywhere.

Here are just a few examples of excellent hotel deals that I found:

1. $130. Partial ocean view with breakfast for two. Keauhou Beach Resort, Big Island. A lovely location at an unbelievable price. Valid through December 21.
2. $129. City view. Or $149 ocean view. Includes breakfast for two. Resort Quest Waikiki Beach Hotel. Use promotion rate code 5050. Valid through December 23.
3. $115. Upgraded room Including breakfast for two. Just reopened Wyland Waikiki. Valid through December 21.

In addition to Wotif, we also use last minute hotel discounters Need it Now (Australia and New Zealand only), and Rates to Go which is owned by Orbitz.

Our Strategy:

If we’re not happy with the deals on these sites, we’ll sometimes call the hotel directly to see if a lower rate can be negotiated. It never hurts to ask.

This may work because the hotel will not have to pay a commission if you book directly with them.

It is always preferable when possible, in our opinion, to have contracts be directly with the service provider and not with a third party.

If so you may want to consider a home swap. This is a growing travel industry trend and may be a perfect solution in our stagnant economy.

I found everything from a Kauai beachfront home to a condo in Lahaina, and even a yurt in Pahoa. Properties are posted with photos, descriptions and maps.

Here are two sites to consider: Home Exchange (20,000 listings and a $99/year fee) and Home for Exchange (10,000 listings and a $59/year listing fee).

Home Exchange was featured in a recent movie called, “The Holiday.” Here’s a clip from the movie which may inspire you to consider a home swap (especially if it includes Jude Law, Kate Winslet or Cameron Diaz).

httpv://www.youtube.com/watch?v=AhLVOrUYCjI&feature=related

Suggestions for a successful home exchange:

Do your own research, check with your insurance company regarding liability issues, obtain additional photos or video of the property you’re considering, set up a written agreement and obtain references.

Have you ever tried this? We’d love to hear your experiences with this innovative way to travel for less.

You might be wondering whether this is a good time to visit Hawaii, given the economic slowdown. The answer is a definite and resounding, YES. Here’s why:

1. Capitalize on fewer advance bookings. Economic woes are causing people to plan and book trips with less lead time. We’re seeing this as a great opportunity to find better deals by thinking ahead of the crowd and making your plans early, while bookings are softer than usual for summer or after Labor Day.

2. Consistent value. Hawaii prices are quite reasonable when compared with international alternatives. Foreign currencies, including those of Australia, New Zealand and French Polynesia for example, have become more and more expensive (when bought with U.S. dollars). On our recent trip to French Polynesia, we saw costs jump 20%+ from trip planning to our actual travel. Coming to Hawaii, you can be assured of value without regard to the dollar’s strength.

3. Competitive air fares. Even with Aloha’s bankruptcy this week, there is a great deal of competition in the U.S. Mainland to Hawaii air corridor. While prices may not be the cheapest we’ve ever seen, they will likely remain reasonably low, especially when you take advantage of seasonal fluctuations. Until early June, and following Labor Day, are excellent times to find good prices. During the summer, try shopping for different days of the week, using a tool such as Travelocity’s flexible date search. Prices from one day (or week) to the next can vary by hundreds of dollars.

4. Negotiate hotel deals. Watch for hotel deals, in much the same way as for air fares. In addition, consider booking a reservation and then just prior to the non-refundable cancellation period, look again to see if you can find a better deal directly from the hotel (try website and phone), the online agencies, last minute specialists like wotif.com, or on bidding sites, with help from the biddingfortravel.com forums.

5. Car rental options. Same advice I suggested for hotels applies here.

Once the economy starts to sense a bottom, Hawaii will be on an up-tick in terms of pricing. I suggest you get over here as soon as you can to take advantage in the interim.