Remember those halcyon days when — it was claimed — you could see Europe on $5 a day. Even then, you had to cut every corner, put up with bedbugs and live on the equivalent of bread and watered-down wine if you really wanted to go on the cheap.

Today, with the Euro seemingly hitting new highs every day, five Euros won’t even buy a good cup of coffee around Les Halles in Paris, let alone along Saint-Germain-des-Prés.

In fact, your five loonies will now only buy about three euros, almost one fewer than last year, thanks to the pounding the dollar has received in the past few months in relation to the strength of the euro. It’s called currency fluctuation and we’re being fluc-ed along with the rest of the world by the trend.

But that doesn’t mean you have to give up your dream of a vacation on the Continent if you plan some strategies to stretch your cash. Here are some euro-saving tips that will leave more money in your pocket so you can stay in clean, well-lit places rather than scraping by while you’re in Europe:

Buy a package

Making individual bookings can be time consuming, and last-minute prices are actually rising because European travel is extremely popular this year. By contrast, wholesalers use their buying clout to reserve ahead, and packages of travel, hotels and tours can be a lot cheaper than booking individually.

It doesn’t have to be the, "If this is Tuesday, it must be Belgium" bus tours, either. If you don’t like group tours, search the web for self-guided tours that can include hotels, car rentals and even meals.

Book a cruise

Cruise lines have to make decisions on itineraries and start printing brochures as long as 18 months ahead of the time they sail. So nearly all of them set their prices in U.S. or Canadian dollars last year, when dollars were much stronger against the euro. That means you’ll get at least a 10 per cent price advantage compared to accommodations ashore priced in euros.

Cruise prices also tend to include all meals and the transportation from city to city. That can help you budget your trip more accurately, and can work out cheaper in the long run than arranging shore travel yourself.

Unlimited passes

Travel passes are no longer just for backpackers. Most large cities in Europe have discount cards that allow you to visit many museums and attractions at a discounted price. Check them out when you go to the local tourist information centre.

The venerable Eurail pass comes with an option for first-class travel and the chance to reserve seats. It’s priced from $693 Cdn for an adult pass good for up to 15 days, with longer durations and options for use in as many as 17 countries.

There are also national and local travel passes good for unlimited rail and bus. Single-country passes can be had from about $75 for a pass good for five days.

Links to current rail deals available to Canadian travellers to Europe are available on raileurope.ca . The commercial site will mail you the tickets, but the trade-off is they add a markup.

And remember that passes are priced per person, so if you’re going with several friends, you may save money by renting a car. If you go that route, make sure you book from Canada and get a firm price, because walk-in car rental rates in Europe are staggering.

Go on the fringe

You can save a bundle just by avoiding the high-tourist summer season and staying outside the high rent districts. Obviously, the bills for accommodations in the 1er Arrondissement in Paris or hotels anywhere near the Via Condotti in Rome are going to be astronomical. You’ll be able to stay an extra day on the savings if you’re willing to walk or take a bus from a hotel in a less fashionable district.

May and September are less expensive than midsummer, although not the off-peak bargains they once were because of a boom in tourism. April and October are more likely to see heavy discounting of hotels, but the trade-off may be that not all the attractions are open at that time of year.

And consider going beyond the well-trod turf. The Republic of Slovenia has just become part of the euro zone, for example, and is actively promoting deals to build up its tourism base.

Other countries that are poised to enter the euro zone, but that still retain their old currencies, are offering discounts this year to promote tourism. These include the Baltic countries of Estonia, Latvia and Lithuania, as well as Poland, which is offering five-star hotel rooms from 65 euros a night. Their prices are reasonable today, but are sure to climb as the euro comes in. And visiting them today will give you an opportunity to see them before they inevitably develop mass tourism.

Pensions and hostels

You don’t have to be a backpacker to stay at a hostel.

In fact, the accommodations in what used to be considered tourist quarters may be better than what you’ve become accustomed to in Canadian business hotels. They’re usually friendlier than a crowded hotel, but the downside is you may have to share a bathroom.

And hostels and pensions are only a good option when they’re close to public transportation, because a late-night taxi ride when public transportation is sparse can quickly offset the savings in room cost.

Pack your own lunch

Even the tourist luncheon menu in major cities in Europe can be expensive. In places like Italy, just sitting down incurs a cover charge and the need to order a minimum amount of food or drink.

But every city has a market that is often among the most colourful places in town, full of sights and sounds, and food fresher than you’re likely to see in any supermarket. It’s a chance to try your skills in the local language and sample the local produce, and you’ll find the prices are the best in town.

Take it all to a local park or scenic spot, et voila, you can feel like a (clothed) subject in Edouard Manet’s famous canvas Le Déjeuner sur l'Herbe.

European rules on drinking in public tend to be somewhat more flexible than in Canadian cities, but check the local customs before imbibing.

Ask the locals

Practising a few phrases of the local language (Can I get a better price? Do you have a fixed-price menu? Thank you very much.) can help you find bargains and negotiate better rates.

Everything can cost more than it should when you are seen as an outsider, unfamiliar with the customs and the language. Local inhabitants know more than the guidebooks.

Enjoy yourself

Finally, remember that this is a vacation and the idea is to have some well-earned enjoyment — not to drive yourself crazy trying to cut corners.

And a tip: The exchange rate if you pay by credit card is generally not as favourable as paying by cash or traveller's cheques.

If you do use cash, remember that exchange booths and hotels in Europe often tack on a set transaction charge. You’re better off cashing a larger amount of money or traveller's cheques at once rather than making a number of small transactions.

Wallace Immen is a travel writer who journeys regularly throughout Europe.