If a holiday involving Santa Claus in suntan oil, the elves on skis or a glass of millennium bubbly in an exotic location is a must this year, then expect to pay top prices for the privilege.

Airfare and hotel prices for most destinations have increased significantly for the Christmas/ New Year period. If you're willing to be flexible, however, there are still some bargains available for families and couples before or after the holiday period.

Bargain-price tour-operated trips over the Christmas break are usually booked a year in advance says Mr Brendan Moran, chief executive of the Irish Travel Agents Association (ITAA).

"There is still some availability for families where money is no object but you'd be looking at year ending 2001 for reasonably priced budgets. Therefore, it may not be the best time to travel from a purely economic point of view for most families," he says.

Pricewise, it may be better to plan your travel around the children's mid-term breaks in October and February.

Family Money conducted a travel availability and price survey of a few major package and tailor-made holiday providers. We also examined special deals and activities for kids on holiday.

According to Budget Travel, its popular school-break date of travel is the weekend of October 16th for two weeks in self-catering accommodation. At the time of publication, there was availability to Majorca, Costa del Sol and the Algarve.

Majorca will cost £679 (€862) for two adults and two children or £569 for two adults and one child. Costa del Sol is £999 for two adults and two children and two adults and one child is £769. Portugal's Algarve is in the middle of this price range at £919 for two adults and two children and £729 for two adults and one child.

Budget says it does "not quote prices for one week, but if clients are interested in one week on October 23rd it can work out very cheaply to take two adult prices plus a 50 per cent discount for one child, when available."

The Budget Travel Kiddies Club is available in better quality hotels in all three destinations. This type of accommodation runs at £790 for two adults, two children, and £719 for two adults, one child.

The Kiddies Club provides parents with some time alone on holiday by offering children from four to 12 years old at least four hours of entertainment, five days a week. The club is free and although activities and hours vary from resort to resort, children receive a complimentary T-shirt, bum bag and baseball hat.

Falcon Travel still has availability for an all-inclusive 14-day holiday departing November 11th. Prices, based on two adults and two children, are: Ocean Beach Apartments, three star, Tenerife for £1,193; Green Star Apartments, three star, Gran Canaria, £1,174, kids club available; Barcelo el Castillo, Fuerteventura, three star, £1,168; Aguazul Apartments, Lanzarote, three star, £1,081, kids club available. The Winter Kids Club, available at selected properties, is designed for children from three years to 11 years. Children and their parents can take part in theme days, competitions and adventures including talent competitions, sports days and beach parties. Exotic travel may be another reasonable and unique option for some families and couples. The Christmas/millennium period is already sold out for short-haul destinations, says Mr Cormac Walsh of Joe Walsh Tours.

"A lot of people are just now deciding to avoid that period in travel. What they want they can't get, or it's too expensive," he said.

Instead, holiday makers are choosing value for money by visiting far-flung destinations. "We're concentrating on the long-haul holidays to places like Phuket, Thailand, Bali and Malaysia," says Mr Walsh.

"There's superb value on the ground in these countries and airfare keeps coming down," he says.

In some cases, quality accommodation which is out of reach in Europe is an option in Asia. "It's almost as affordable to go to Bali for 14 nights as it is to go to any of the major European destinations. Spending is much less once you get there," he said.

A 14-day trip to Le Meridien, Bali offered by Joe Walsh Tours before October 31st costs £879 per child and £969 per adult, based on two children and two adults. The same trip taken during the holiday period costs £1,215 for a child and £1,275 for an adult. However, that same price applies for travel from November 1st through December 19th.

Travelling long distances with very young children is usually not an option but older children are given plenty to do on these flights. The airlines provide activity packs and special video and radio programming to keep them entertained. Singapore Airlines' hi-tech Kris-Vision, provides passengers with individual units allowing them to choose their movie and offering a wide range of games and children's programming.

Once you land, many of the hotels have family activities and children's clubs during the day. According to Mr Walsh, Asians adore children and the quality of child care when on holiday is excellent and very safe. Daily activities for families range from water sports to golf lessons. These pre-scheduled group activities and the kids' clubs are free of charge. Some hotels also have libraries that include children's books. Couples may find the best bargains to long-haul destinations because they have more options in terms of their travel dates, said Mr Walsh. Long-haul destinations also provide greater flexibility because flights are scheduled every day rather than just once a week.

Families or couples who must travel over the Christmas and millennium period will find additional charges on their hotel bills. According to the Trailfinders Tailormade worldwide brochure 1999/2000, a millennium supplement is charged in most locations.

In some cases a minimum stay and purchase of dinner is also required if December 31st is included in the stay. If booking the first class Bali Dynasty Tuban, Bali from December 27th to January 1st, a five-night minimum stay and higher rates apply. They are £86 for a standard single/twin/ double and £97 for a standard triple compared to the normal price of £44 and £56 respectively. A similar price supplement exists at first-class Hotel Sanur Beach, Bali, but there is a compulsory charge for dinner on December 31st - £96 for adults and £48 for children under 12. Of course, many people are willing to pay the price if they can find availability during this busy season.

There are several options for families on a budget to travel abroad during October/November or January/February. There are two main types of packages available from travel agents at that time - winter sun or skiing holidays. Winter sun continues from November to March while skiing is best from January through March says Mr Moran of ITAA.

There are many price ranges and destination choices for winter sun holidays. Joe Walsh Tours for example, offers a two-week holiday to Lanzarote in November for two adults and two children for £1,297. Accommodation is a one-bedroom apartment at either Bitacora Apartments or Puerto del Carmen.

Learn-to-ski holidays organised by Falcon Travel offer child discounts and benefits like free child ski packs and free insurance for children up to age 15. They also provide in-flight entertainment like special kids' audio channels and kids' packs. A learn-to-ski-family week at Apartment Velvet in Arinsal, Andorra is £1,448 for two adults and two children.

Group discounts are also available for adults on bookings of eight or more people with price deals which mean up to one in five travels free. There are discount "blackout periods" when travelling between December 25th and January 1st. If you don't mind spending Christmas and New Year's Eve at home with the family, you may be rewarded by discounts of between 30 to 40 per cent if you travel before or after the holiday period.