London goes on sale

Late last summer, during a visit to London, I joined the chorus of those who complain constantly about the expense of Europe's largest city.

For first time visitors, the expense comes more as a surprise. For more frequent travelers to Britain's capital -- I probably average at least two trips there a year, and have had a long association with the city -- London's costliness has been an evolving thing: We can remember when, say, a pound was worth less than $1.50 (when my family lived in London during my childhood, the exchange rate was far less).

But the global financial crisis has hit the UK hard, and London, which an increasing number of American tourists were avoiding last year, is finally returning to more reasonable prices.

London is still expensive, of course. But it's much more affordable than it was even three months ago.

The pound is now worth $1.42, according to the latest currency exchange rates. At the time of my last visit, the pound was closing in on $2.

The Sydney Morning Herald recently reported that London's businesses, eager to attract customers, are slashing prices for some of the most expensive activities you can do in the city -- namely, eating and drinking.

Several restaurants with Michelin stars are introducing lunch and dinner menus for as little as GBP12. The price of a pint of bitter at some pub chains has gone down to 1GBP.

Heading to London? Be sure to check out the local newspapers, which are reportedly printing daily coupons for restaurants, pubs and department stores, and running special sections devoted to advice on how to save money during your visit.

Filed under: Budget Travel