A story from the New York Times this week reported a dramatic increase in the cost of  rental car rates at a time when other parts of the travel industry are offering big discounts to encourage people to get out of the house and hit the road. In fact, Michelle Higgins of the NYT’s said that the average rate for a weekly airport rental of a compact car booked seven days in advance was up 73 percent compared with the same month last year, in large part because car rental companies are reducing the size of their fleets. Are you paying more to rent a car? Are you finding any deals out there? Share your suggestions for saving money on car rental with other readers.

- Jim Buchta

Even in the dog days of summer, the airfare wars continue.

This weekend, American Airlines is offering a NetsAAver last-minute getaway from Minneapolis to Chicago for just $67 one-way (roundtrip ticket required, of course). Tickets must be purchased by midnight Friday with departures by Saturday and returns the following Monday or Tuesday.

This on the heels of the competitive Southwest Airlines’ fares — where, when I checked its website — tickets to Chicago were being offered for as low as $49 each way. (Some different rules apply).

That’s worth noting, as this weekend’s Chicago events include everything from Taste of Chicago to the Gay and Lesbian Pride weekend.

And those aren’t the only deals out of the Twin Cities. United Airlines is offering two of its e-fares this weekend as well: Ottawa, Canada ($338), and Springfield, IL ($140). Same get-’em-while-they’re-hot rules apply.

It’s the time of the year when the tanned and toned show up on the pages of People Magazine playing at chic–and expensive–Mediterranean resorts in France and Italy. Dubrovnik, on Croatia’s Dalmatian Coast, is not only a cheaper Mediterranean option, but it’s a stunning blend of old world city and beach town. See for yourself in this promotional video.

Q: I have a $1000 flight voucher with Delta. I’d like to use it, but need to keep my costs down once I get to my destination. Do you have any tips?

B:  Thanks to the recession, a $1000 voucher will get you far. We just checked flights for late June and many roundtrip tickets to European cities–including Amsterdam and Berlin–cost well under $1000.  The same goes for many Latin American destinations. If you are willing to spend an extra $300, you can even get to Sydney, Australia.  Depending on how adventurous you are feeling, there are several good options to help you save on lodging costs. The first is CouchSurfing.org, a global organization that connects travelers with people who are willing to offer them a free place to sleep. CouchSurfing.org has several safety measures in place to protect you from staying with a wacko, but you have to be fairly sociable and interested in a cultural exchange for this option to work. Another good choice is to check out one of the new breed of upscale hostels–private rooms! private baths!– that have been popping up in cities such as London, Berlin and Barcelona. One of the best European hostel resources is Hostelling International.

United airlines has joined US Airways in raising fees for baggage that is checked at the airport.
For both airlines, fees for checking a bag at the airport will be raised $5. That means slapping down $20 for the first bag and $30 for the second. Fliers can pay the current prices ($15 and $25, respectively) if they pay the bag fee online before arriving at the airport.
United’s increase goes into effect June 10 and applies to tickets purchased from today onward. US Airways’ fee goes into effect July 9 and applies to tickets purchased after April 22 (US Airways made their announcement last month).

Local airline expert Terry Trippler alerted me to these deals:

ACT FAST: Until midnight tonight, buy a regular priced ticket at Sun Country for destinations from Los Angeles to Orlando, and get a companion ticket for $39 (one-way fare).

Yesterday, Delta announced its own sale for Northwest and Delta flights through September 14. Sale prices are for Tuesday and Wednesday flights, though other days are available for higher fares. Buy by May 18; restrictions apply.