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Step 1
Travel during the low season. Peak times for Mexico are Christmas and Easter and there are no good deals to be had. Consider traveling just after these two holidays to take advantage of lowered rates. If you really want some bargains, travel in late spring and early summer when the beaches are empty and so are the hotels.
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Step 2
Avoid expensive cab rides. Mexico has a top notch bus system that spans the country. In tourist destinations, the bus runs often, late into the night and fares are usually below fifty cents. Compare that to a $5-10 cab ride each way! Buses are a safe and practical way to get around and see the sights.
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Step 3
Avoid all-inclusive. All-inclusive resorts may seem like a great deal until you realize that they upcharge almost $100/day for food and drinks. You can get a cheaper hotel room and take advantage of the all day happy hours that most Mexican restaurants offer. Eating at local restaurants and taking advantage of coupons and happy hours can keep you well fed and happy for less than $20/day per person!
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Step 4
Avoid cruise ship days. If you are visiting a cruise ship port, be aware that prices quadruple all over town when they are docked. Do your shopping on days where there aren't cruise ships in town if possible.
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Step 5
Haggle. Haggling is expected except in fixed price stores. Start at 1/3 of the asking price.
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Step 6
Book tours independently and in a group. Going through the tour operator's website will often net you a 10% discount or more. If you can guarantee a small group, you might even get your own tour for free.
