Santorini, Greece
The stealth wealth capital of the Cyclades, Santorini is home to some of the most expensive hotels and villas in Greece. It's also home to a sleek hostel, the Kykladonisia, which is built into the volcanic rock near Fira, the biggest of the island's towns. The hostel has its own swimming pool and some rooms have stunning sunset views.
Staying there: The Kykladonisia (santorinihostel.com) costs from €34pp per night, B&B, in a double; dorm beds from €23
Getting there: Easyjet (easyjet.com) has new flights three times a week from Gatwick
Amalfi, Italy
The Amalfi coast is not the sort of place to take any notice of the credit crunch; the picture-perfect towns of Amalfi and Positano still clatter beneath the Blahnik-clad feet of Europe's moneyed and beautiful. But it is possible to find budget accommodation between the bars and designer boutiques; rent an apartment and you can soak up the atmosphere for free, from the privacy of your very own cocktail terrace.
Staying there: La Casa di Lolina is a one-bedroom apartment sleeping four, from £195pp a week (four sharing) through Interhome (020 8780 6629; interhome.co.uk)
Getting there: Easyjet flies to Naples from Gatwick, Stansted and Liverpool.
Crete, Greece
Lying in glorious isolation in a bay that can be reached only by boat or on foot, the Old Phoenix is a delightfully simple hotel on the south-west of the island, with 28 air-conditioned rooms, all with balconies overlooking the sea. The hotel's goats provide cheese and yoghurt before completing their life cycle as a main course in the hotel's vine-clad taverna. It's properly isolated, a world away from Crete's five-star resorts, and all the better for it.
Staying there: The Old Phoenix (00 30 282 509 1257; old-phoenix.com) costs from €19pp a night based on two sharing a double
Getting there: Thomas Cook (fly thomascook.com) and Jet2 (jet2.com) fly to Crete from a number of British airports
Ibiza Town, Ibiza
Hovering between a hostel and a hotel, the Hostal Parque has more of the attributes of the latter, along with a fantastic location at the foot of Dalt Vila, the old part of Ibiza town. If your budget will stretch, book one of the Atico rooms that open out onto a decked terrace with great views.
Staying there: Ensuite doubles cost from €40pp per night (two sharing); Atico rooms from €55pp. Hostal Parque: 00 34 971 301358; hostalparque.com
Getting there: Ryanair (ryanair.com) and Easyjet fly to Ibiza from a variety of airports including Stansted, Newcastle and Bristol.
St Tropez, France
As unlikely as it might seem, renting a boat is the budget way to experience the glamour of harbour life along the French riviera - as long as you don't want to actually set sail. With moorings from Monaco to Cannes, a week on a boat gives you the chance to sleep next to a gin palace.
Staying there: A yacht moored in the Cogolin Marina, just outside St Tropez through Houseboat (00 33 494 561659; houseboat-info.com) costs from €125pp per week based on four sharing. A 43ft-yacht with three cabins in the old port of Cannes costs from €165pp per week.
Getting there: Easyjet flies to Nice from seven UK airports.
Alghero, Sardinia
In this notorious, magnate-filled corner of the Med, one pocket of good value stands out. Not only is Alghero served by low-cost flights, but it offers history in the shape of 16th-century palazzos, seriously good restaurants, a marina and - a short drive away - a long stretch of beach. Apartments in the town are highly affordable and, best of all, it's a safe distance from the dubious pleasures of the Costa Smeralda's Billionaire club.
Staying there: Casa Rosa is an elegant one-bedroom apartment sleeping four, from €19pp a night through Bluewater Apartments (bluewater-apartments.com)
Getting there: Ryanair flies to Alghero from Liverpool and Stansted.
Cruise the Med
With over-capacity on most liners, there are heavy discounts available this summer and cruising can be a great way to dip in and out of some of the Med's hippest spots. The Island Escape has a "Mediterranean Discovery" itinerary, which takes in Palma, Olbia in Sardinia, Livorno (for Florence and Pisa), Villefranche in France and Mahon in Menorca.
Staying there: The seven-night cruise costs from £579 (a saving of £397), including flights, transfers and full-board accommodation through Thomson (0871 231 3243; thomson.co.uk/cruise)
Nice, France
Budget accommodation doesn't have to mean camping; if you're happy to do without an ensuite bathrooms, prices come tumbling down. Surprisingly, Nice has a good selection of budget hotels, mostly tucked away in the atmospheric back streets just a stroll away from the general glamour. One of the best is the Hotel Wilson, with individually-styled rooms.
Staying there: The Hotel Wilson (hotel-wilson-nice.com) costs from €20pp a night in high season, based on two sharing
Getting there: Easyjet flies to Nice from seven UK airports.
