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When you're visiting a city, ponying up for a more expensive hotel that's in the middle of the action can be a better financial decision in the long run than staying out in the suburbs and spending money and time on transportation. Use time you save to explore--or just recharge in your hotel room. "Particularly if it's a European city in the month of July and it's hot-- you're going to want to go back in the late afternoon and put your feet up before you go to dinner," Watkins says. "That's not easy to do if your hotel is a 30-minute bus ride away." Plus, if it's a family vacation, toting kids on unfamiliar trains or taxis with few breaks will increase the possibility that you'll have a frustrating visit. "Value is more important than what's the cheapest," Watkins says.