News

We already know about the gloom. The angry queues outside failing banks in London. The death of that Wall Street phenomenon, the cocky investment banker. And of course the side effect of billions in vanishing assets around the world: a radical postponement of retirement, college – and especially that Christmas vacation.

According to travel experts, holiday bookings are already down as much as 15 per cent from last year. Things also look dicey for the future: A recent poll on Travelocity revealed that 66 per cent of respondents will be considering the dreaded r-word when booking holiday tripping.

That's the bad news. The good news is that those travellers who are willing to take their money out from under their mattresses are being courted like mad. Gold-plated names such as Harrods and Gucci are offering discounts and rewards to their customers. Celebrity chefs are concocting cut-rate menus. Bars are watering down the financial news with two-for-one deals.

As for hotels? “Business travel has taken a big hit, so hotels are looking at ways of getting their occupancy rates up,” says Brian Simpson, general manager at Travelocity.ca. “These days, there are a lot of midweek deals to fill the gap business travellers have left.”

All of which means that even the world's most expensive destinations suddenly look cheap. Or at least cheaper. For example, London, 90 per cent of which is normally unaffordable to 90 per cent of the population, is affordable again. And thanks to flailing currencies, even the up-again, down-again loonie has serious purchasing power in party towns like Rio and Reykjavik.

So we're not exactly applauding the credit crunch. But we can at least stifle our moans through New Year's. Herewith, a few tips on making the most of the downturn.

LONDON

GET THERE

Air Transat (airtransat.com) has fares from Toronto for as low as $600 ($149, plus those killer taxes). Transat Holidays also has packages including flights from Toronto, seven nights' accommodation, transfers and breakfasts for $1,195. Or if you can get yourself to New York, American Airlines (aa.com) will fly you business class to Heathrow from $1,684 plus taxes.

STAY THERE

Every so often, the hip Hoxton hotel offers a logic-defying £1-a-night promotion. Last time around, 1,000 rooms sold out within 26 minutes. But you'll get another crack at a bargain bed in January (hoxtonhotels.com). Or if you're planning a more timely visit, try the Metropolitan on posh Park Lane (metropolitan.como.bz) – rooms are $313, or more than 50 per cent off regular rates. Another good source: The high-end hotel finder mrandmrssmith.com, which lists two-for-one offers at London's most fashionable boutique hotels.

EAT

Remember when five bankers made headlines with a $63,000 wine bill at Gordon Ramsay? They were fired before the crunch. And the fat cats that remain are more likely to hit Ramsay's new deli venture York & Albany (gordonramsey.com). It's in down-market Camden and the prix fixe is just $23. Also check out toptable.co.uk for two courses at a critics' favourite, St. Alban, for $28. Play Pick up some “credit crunch chocolate” ($8 for a 150-gram bag) at Selfridges & Co – the Holt Renfrew of Blighty. Visit H&M for its new Comme des Garçons collection and Topshop for Kate Moss's new line. Or hit the exclusive department stores: Harrods, Harvey Nichols and Fenwick will all be starting their “January” sales before Christmas. A night at the theatre is cheaper too. The National Theatre, Royal Court Theatre, Lyric Hammersmith and Sadler's Wells are offering $18 tickets this season.

MORE INFO

visitlondon.com

NEW YORK

GET THERE

Porter Airlines (flyporter.com) flies from downtown Toronto to Newark from $271. Or you can leave Vancouver next Thursday on a last-minute three-night weekend package with Delta or Northwest from $900 (travelocity.ca).

STAY THERE

The American website Orbitz.com lists November deals such as $45 off the posh W Hotel or $236 rooms at the Wellington. The Four Seasons is offering a “third night free” deal (of sorts) from $935 a night for the month of December. And the cost of a standard room at the new Cooper Square Hotel has fallen from $495 a night to $320.

EAT

According to New York Times food writer Frank Bruni, visitors can expect more snacks under $4, more Sunday bargains and wine lists with more reasonable glasses this fall. Plus cheaper tasting menus: Icon (iconrestaurantnyc.com) has lowered its six-course tasting menu from more than $100 to $75; the legendary, jacket-is-mandatory 21 Club (21club.com) is offering a three-course dinner with a cocktail for about $85 through November.

PLAY

Don't bother with Barneys and Bergdorf; we hear the deepest discounts are at independent boutiques in Nolita and the Lower East Side. Also check out dailycandy.com for tips on sample sales. Or hit JC Penney (really) for its new line from designer Charlotte Ronson. Items range from $17 to $75. As for theatre, visit the new TKTS booth in Times Square (tdf.org) for half-price Broadway seats.

MORE INFO

ilovenewyork.com

REYKJAVIK

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The surprise victim of the current downturn is Iceland – where only a few months ago a McDonald's Value Meal cost $15 and a half pint of beer nearly $10. Since then, the banks have crashed and the krona has halved in value. That $10 now gets you two half pints. And getting to Reykjavik is cheaper too, thanks to Icelandair (icelandair.com). From today until March 9, for example, a Toronto-Reykjavik “party weekend” including a flight, two nights at the Iceland Hotel Loftleidir and transfers starts at $845 a person, double occupancy. This spring, Icelandair will be offering flights from Toronto starting at $517.

STAY THERE

Even the top-end 101 Hotel (101hotel.is), once upward of $600 a night, is now a relatively affordable $380. At the Fosshotel Baron or the Fosshotel Lind, both in central Reykjavik, you can save 25 to 30 per cent on weekends and 40 per cent on weeknights with a new last-minute deal – rates will likely be less than $85 a night. “Everything, including accommodation, in Iceland is now about 50 per cent cheaper,” says Sif Gustavsson of the Iceland Tourist Board. “We're recommending that people take advantage of this now, because you never know how long these things will last.” EAT

Last year, dinner at the trendy Fish Market (Adalstræti 12) would have cost you $50. Now, you'll leave just $25 poorer. And at the waterfront seafood restaurant Saegreifinn (saegreifinn.is), a lobster soup that would have cost you $15 last year is now around $8.

PLAY

Entrance to Reykjavik's most popular museum, The Culture House (thjodmenning.is), is now just $2.75; the National Gallery offers free admission. Or book a round-trip tour from the city to the steamy Blue Lagoon for $40, including your admission fee (re.is).

MORE INFO visitreykjavik.is

RIO DE JANEIRO

GET THERE

While the Northern Hemisphere grapples with a downturn, Brazil's economy is quietly disintegrating. The real has depreciated nearly 40 per cent this year. This does translate into bargains on the beach if you can handle the 12-hour flight. The specialist Brazilbookers.com has flights leaving Toronto (via New York) for $1,400 return. Or book their New Year's package, which includes airfare and five nights at the Philippe Starck-designed Hotel Fasano for $6,100 a person. (If that doesn't sound like a bargain, holiday rates at the Fasano are more than $1,000 a night.)

STAY THERE

The deals, like the party, start once you arrive in Rio. The top-end Copacabana Palace (copacabanapalace. com.br) has a new “stay another night” offer: four nights for the price of three. But you'll save the most in town. Rates at Casa Mango Mango (casa-mangomango.com), a colonial townhouse with lush gardens and a pool, are down nearly 25 per cent from last year, with rooms starting at $49.

EAT

You can dine with rock stars and kings at the Copacabana's Cipriani for not much more than the price of a meal at your local Olive Garden: veal with foie gras and truffle, rosti potato and glazed tomato tart will cost around $50. Or an idyllic house in the hills called Aprazivel (aprazivel.com.br) offers four ways to dine al fresco: patio, garden, gazebo and veranda. It claims to be one of the most expensive places to eat in Rio – which, these days, means you can do three courses for $30.

PLAY

Entrance to the Museu Nacional (museunacional.ufrj.br) is just $1.60. Charter a helicopter for a tour over the Christ statue for $80 a person (helisight.com.br). Buy one of Havaianas's just-launched handbags for $40 on the Ipanema strip.

MORE INFO

riodejaneiro-turismo.com.br/en/

CAPE TOWN

GET THERE

Emirates has fares from Toronto Jan. 7 to March 31 from $1,450 return (emirates.com). Excellent deals can also be had if you leave stateside and book care of South African Airways Vacations (flysaavacations.com).

STAY THERE

According to Kate Parsons of hip hotel-finder I-escape.com, “Most of the hotels and villas on our site are making more special offers than usual at the moment.” Namely, a 10-person villa in Camps Bay starting at $500 a night including breakfast – or 20 per cent off stays of three nights or more at other Camps Bay properties. Back in central Cape Town, stay for $40, breakfast included, through Jan. 31 at the Cape Diamond Hotel (capediamondhotel.co.za). Another good resource: The British-based site www.fleerecession.com.

EAT

The rand has fallen so precipitously – 20 per cent last month alone – you could probably treat the president to dinner. Head to the V&A Waterfront for lobster at Baia (6262 Victoria Wharf) for less than $25 a head. Savoy Cabbage (savoycabbage.co.za), one of the city's best restaurants according to Gourmet, has a three-course menu for $30, down from $40 last year.

PLAY

The swank, seaside Twelve Apostles Hotel & Spa (12apostleshotel.com) offers a full-day pampering package including massages and facials for two in a private room and a three-course dinner for $270. Or visit the folk-art boutique Monkey Biz (monkeybiz.co.za) and bring home beadwork crafted in local townships. You'll feel good twice over – good deed, good deals.

MORE INFO

tourismcapetown.co.za