The economy is still recovering from a massive downturn, and for most people, that means a smaller vacation budget.  Cheap options include going somewhere within driving distance of home or staying with family/friends to decrease lodging costs.  You should also consider allowing the government to pay for part of the vacation.  This is why the rich get richer.  They use tax strategies to maximize their wealth.  As long as you mix business with the vacation, you can deduct expenses from the trip.  This is why most business conferences are in tourist hotspots.  

There are two major instances when a vacation can be used for business.  First off is when you are looking for a new job.  Second is when you are traveling for your business.  This second reason is why everyone should start a home business.

Looking for a new job.
The IRS puts it very nicely:  "You may deduct travel expenses, including meals and lodging, you had in looking for a new job in your present trade or business. You may not deduct these expenses if you had them while looking for work in a new trade or business or while looking for work for the first time. If you are unemployed and there is a substantial break between the time of your past work and you're looking for new work, you may not deduct these expenses, even if the new work is in the same trade or business as your previous work."  You do not need to land the job to take the deduction. 

Deductible expenses while on your "business trip".
1. Transportation:  If you use your car to travel, you may deduct either the exact costs of travel or deduct using the "standard mileage rate" determined by the government.  The IRS set the rate at $0.50/mile in 2010.  Transportation is fully deductible throughout the trip whether you use a car, plane, train, or other. 
2.  Meals:  Meals are deductible at 50% for both you and your business associates.  If you pay for your associates, that too is 50% deductible for you. 
3.  Lodging:  Lodging is fully tax deductible for your stay.  If you can fit the entire family into your room, that is fine.  Extra rooms or fees for roll-away beds are not deductible. 
4.  Entertainment:  50% of costs are tax deductible as long as you bring an associate for business purposes. 
5.  Miscellaneous:  Telephone, internet, fax, laundry, tips, etc. are all fully tax deductible. 

Extra rules:
1.  To be deductible, expenses should be ordinary and necessary.  Lucky for you the government gives plenty of leeway with what is ordinary and necessary.  First class travel, expensive restaurants, and pricey food can all be necessary for business.  Just remember that there is a big difference between a nice $250/night hotel room and a $2000/night suite.  Be relatively reasonable. 
2.  You should spend more days on business related activities than not.
3.  You can deduct the expenses directly related to a spouse, child, etc. only if they are an employee and they have a genuine business reason for going on the trip with you. 
4.  Any expenses that are needed for your travel are still deductible if you bring family.  For example, gas is 100% deductible for one car to travel to Vacation Destination X no matter how many relatives you put in the car. 
5. Trips that leave the country are more complicated.

For more information on home business related deductions, get this book.