London — With the dollar worth about half a British pound, American visitors on vacation in London might as well hand over their wallets at the airport.

But you can see London and not break the bank if you base yourself outside the capital.

Newsday (ENLARGE)

Beautiful villages, open meadows, historic sites, castles and more are all reasons to visit the Cotswolds, a possible cost-efficient base for trips into London, about 90 minutes away by car.

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"London is a major city, and like most major cities it's more expensive than out-lying areas," said Joanna Allen, a New York-based spokeswoman for VisitBritain, the country's tourism agency.

Make that a lot more expensive for Americans carrying greenbacks. With the exchange rate for the pound hovering around $2 in December, a one-way ticket on the subway costs the equivalent of $8, and a taxi from Heathrow airport to London can cost more than $100.

Even worse, hotel rooms in central London can easily drain visitors of more than $600 a night.

For those willing to try a base outside London, BritRail (www.britrail.com) gives visitors an inexpensive and flexible option for exploring Britain by train.

At the same time, a low-cost bus service called Megabus (www.megabus.com) allows visitors to travel to and from London from a variety of cities including Bristol, Birmingham and Portsmouth for little more than $2.

Finding accommodation is fairly straightforward as well.

During the summer and school holidays, colleges and universities have accommodations in dormitories, hostels and student apartments to rent outside London. Information is available at www.venuemasters.com.

There are also hotels in the countryside with fixed dollar rates for Americans.

For example, VisitBritain's Allen said she knows of at least two hotels in the Cotswolds, a lush, hilly region about a 90-minute drive northwest of London, offering fixed-dollar rates. One is Cotswold House in Chipping Campden and another is the Hotel on the Park in Cheltenham.

There also are a number of bed-and-breakfasts throughout the Cotswolds where you can find rooms for less than $100.

Tom Meyers, editor of www.eurocheapo.com, an Internet guide to inexpensive travel, agreed that "hubbing it outside London can, indeed, bring some budgetary relief."

Meyers suggested the coastal city of Brighton, about 50 miles south of London, as a possible base.

He said that a quick Internet search turned up 15 hotels with rooms for under $200 per night in Brighton.

Of course, you also need to consider rail prices, which are about $32 for the one-hour journey to London.

"So if you booked a hotel in Brighton for $150 and purchased two 'cheap day return' tickets at $64, your daily budget for hotel and transportation to London for two people would be $214," he said.

"This is quite reasonable, and the one-hour train ride would give tourists a chance to plan their days," he said.

Dorothee Vogel, a travel analyst at Jupiter Research in London, said many tourists opt to stay in Windsor, about 30 minutes west of London.

"It has a slightly different smaller flair and it's also close to Heathrow airport," she said. "Places such as Hampton Court are within easy reach, giving tourists the chance to see sights often missed on a general tourist trip to London."

Windsor is home to Windsor Castle, the largest inhabited castle in the world and one of the official residences of Queen Elizabeth II.

Kelsey Merwick, a spokeswoman for www.go-today.com, an Internet tour operator, said that staying outside the capital makes sense.

Cities like Guilford, Cambridge and Oxford offer tourist opportunities that can be combined with a visit to London.

"There are some good deals if you aren't planning on going into London every day," she said.

But Merwick emphasized that there are cost-effective ways to stay in London despite the weak dollar.

"We believe the best way is with a travel package that combines airfare and hotel for maximum savings," she said.

The company offers a variety of London packages started at $549 for airfare from the East Coast as well as six nights' accommodation and breakfast daily.

Peter Frank, editor of www.concierge.com, a travel planning Web site, said he wouldn't recommend staying outside London under any circumstance, especially for a first-time visitor.

"You'll find yourself spending more time on the train than enjoying the sights," he said.

Frank recommended two London hotels that are relatively affordable.

One is B+B Belgravia, a stylish inn near Buckingham Palace, where rooms are about $214 a night, including breakfast.

Another is the Hoxton Hotel, in a gallery-filled east London neighborhood, with rooms at about $175.

"Another idea is to rent an apartment, which lets you save money not only on the room rate but also on meals, which can be shockingly expensive in London," Frank said.

He said one agency, www.citadines.com, rents apartments in great locations for as little as $250 a night.

In the end, Merwick said that you have to weigh the pros and the cons before deciding whether to stay inside or outside London.

"The hotel price will probably cost less, but you have to factor in rail prices and the time you are losing in transit," she said. "And if you plan on doing a lot of shopping in London, you won't be able to drop your bags off at the hotel in the middle of the day."

"You can't forget the convenience factor," she said.

IF YOU GO

Getting there: Expect to pay $650 or more round trip to Heathrow or Gatwick airports in London. Delta Air Lines will have nonstop flights to Heathrow beginning March 28.

Where to stay for less

During school holidays, universities rent out student rooms. See www.venuemasters.com for details. Find rooms at the London School of Economics at www.lsevacations.co.uk. Check out the Travelodge chain (www.travelodge.co.uk), which offers large rooms and all-you-can-eat buffet breakfasts. Also check out a company called Coastal Cottages (www.coastalcottages.co.uk), which operates affordable apartments across Britain.

Where to eat for less: The official tourism bureau, VisitBritain, suggests trying one of Britain's many gastropubs, which generally offer quality food at reasonable prices. Noteworthy gastropubs include the Eagle in London; the Drewe Arms in Broadhembury, Devon; the Punch Bowl Inn at Crosthwaite in Cumbria; the Crinan Hotel in Argyll, Scotland; and the Foxhunter at Nant-y-Derry, Wales.

Information: VisitBritain: 1-800-462-2748, www.visitbritain.us.