Sounds like a good idea. I already booked a trip to the Galapagos before the financial crisis hit, so no saving $$$ there, but plan to stay in cheaper hotels and eat at cheaper restaurants to make it more affordable.
Limiting travel to within the US for this year. I heard on the TV that many of the airlines have been cutting round trips prices by 50 to 65% to stimulate air travel. We are thinking of at least heading to the West Keys in Florida.
We took alot of day trips on the weekends within New York and the surrounding states. Got to do and see alot more than we would have on one vacation and did not have to pay for any overnight stays. The kids loved the "mini vacations". Rest of the time was spent at the park, pool or beach. Saved alot of money this year, thinking of doing it again next year.
Cashed in Points on my credit card to get gift cards for car rentals; did have enough airline miles for a full flight but it covered half; also did half a trip and half a stay-cation around my house to get some relaxation in.
And lots of bottles of wine on the porch with my girlfriends