How to stretch your vacation dollar? Head south of the border.

Mexico's resort area of Cabo, or Los Cabos, is an 18-mile stretch of desert between the towns of Cabo San Lucas and San Jose del Cabo. The area, at the tip of the Baja California peninsula, has been under tourist development since the mid-'70s and is nearly ready to take on the role as one of the swankiest spots in North America.

The area has top spas, golf courses, gourmet dining and resorts with the finest luxury amenities. One resort set to open in December at a rate of about $1,000 a night for two is the Capella Resort and Spa (with access to downtown Cabo via a private, 1,000-foot tunnel carved through the mountainside).

But there's a way to stay affordably if you search bed and breakfast lodging vs. the all-inclusive route. A popular choice is the solar-powered La Fonda del Mar Inn with room rates from $65 double. The inn is five minutes from the fishing village of Pueblo La Playa and downtown San Jose del Cabo; 30 minutes from Cabo San Lucas; an hour to the art colony of Todo Santos or an hour from La Paz. In the evening, stroll with the locals along streets lined with art galleries, shops and gourmet restaurants around Plaza Mijares in San Jose del Cabo. Visit LosCabosGuide.com for more on the La Fonda and for other inn choices or condo stays.

Airfare to Los Cabos

Through May 20, buy tickets to Los Cabos at round-trip rates of $398 (plus taxes and fees) on Delta Air Lines. This rate, valid on trips completed by July 31, requires a three-day advance notice of travel. Sale prices not valid June 26-July 6. American Airlines matches this rate and permits trips without advance notice and without blackout dates.

On to South America

Continental Airlines has an exceptional airfare sale to South America. Rates are $330 round-trip to Quito or Guayaquil, Ecuador, and $445 to Bogota, Columbia, (add $172 for taxes, fees and fuel surcharges). Trips can be taken any day (based on availability) when a three-day advance notice is given. Stay any three nights and finish trips by June 15.

Quito, known as the "Queen of the Andes," is an ideal spot to begin scenic tours of the country. The Otavalo Indian Fair has been operating for over 500 years within its community. The Colonial city of Banos, gateway to the Amazon rainforest, is popular for its scenery, hot springs, and for exploring the "Black Giant," (Tungurahua), the largest volcano in Ecuador. Quayaquil is known primarily as the "Gateway to the Galapagos Islands." In just about every village you might wander into, you'll find a local weekend celebration centering around the churches with music, dance and fireworks.

Cruise the Galapagos

A cruise in the Galapagos Islands, an archipelago of highly controlled islands located 600 miles west of the Ecuadorian coast, is the best way to experience this living museum in a short amount of time. Some cruises are as short as four days. Prices range greatly as choices range from small boats for up to a dozen passengers to large luxury ships for more than 100 guests. The islands cannot be explored do-it-yourself style; visits must be made in groups escorted by a certified naturalist guide. Visit ExploringEcuador.com for tour operators.

Air deal to Panama

Panama is another value choice. It is bordered by both the Caribbean and the Pacific and lies in the middle of Central America between Columbia and Costa Rica. American Airlines serves this destination at a sale rate of $305 (plus taxes and fees) on trips finished on or before June 15. This rate, valid any available day, requires a three-day advance notice. Stay two days to a month. Buy tickets by May 19.

If you have just a weekend, check out "Panama at a Glance" from tour operator Panama Jones. This basic tour of four days/three nights includes a city tour, a Panama Canal tour and full transit between the seas (cruise 7:30 a.m.-6:30 p.m.) at per person rates from $601. PanamaCanal.com

For the more adventurous, fly to El Porvenir (formerly known as San Blas) to visit the native Kuna Indians, indigenous peoples with deep traditions and to swim and snorkel around tropical islands. One-day trips, including airfare and three meals (breakfast/lunch/dinner), are offered by ExtremePanama.com (Several other one-day trips are offered).

Clara Bosonetto Maerz is a retired travel consultant. Sale fares listed are subject to change and do not include taxes and fees. Budget Traveler deals appear Monday through Friday on ajc.com/travel, with information about discount airline seats, cruises, rental cars, packages and hotel rooms.