Difficult to do really cheap as there are no low cost carriers serving the island. For a cheaper deal try atlantic holidays. http://www.atlanticholidays.net

For Christmas this year they were half the cost of some other major operators - same departure dates, same hotel and even the same flight.

For info:
http://www.madeira-web.com/

For car hire we used strawberry autos (well worth having a car for a few days):
http://www.strawberry-autos.com/madeira/index.html

Have you considered researching flights to Madeira via Lisbon? Both TAP and Air Luxor fly regular Lisbon- Madeira- Lisbon services, so, if you can find cheap flights to Lisbon, this may be a solution if you are prepared to accept the inherent risk of missed connections.

We have done 2 package holidays and 1 diy to Madeira.

Sadly I'm afraid Madeira is not one of those places you can do 'on the cheap'. Last year we booked BA flights from Gatwick and booked the hotels ourselves. The benefit of BA is that they do fly several times a week so you can go for as long as you wish. The flights for next year do seem to have gone up - probably to do with the fuel costs.

For one of the hotels we stayed in we used http://www.madeira-hotels.com which were very good.

I think you just need to do a bit of 'mouse' work and search hotels and flights and then compare them to a package.

If you do go to Madeira can I make a suggestion - try and avoid the A&E dept. at Funchal hospital!! I had the misfortune to break my ankle last November whilst in Madeira and ended up there. Not the nicest of casulty departments I have seen and the rest of the hospital was even worse. Needless to say I opted to return home early for surgery here!

Pippa

Pippa,
I think "avoid the A&E dept" is a suggestion which would apply equally to any location in the world, A visit to one of these establishments is never likely to add to the enjoyment of any holiday.

Too right Sagres though I think if you are going to have an accident there might be better places!!

Madeira is still lovely thought for obvious reasons we probably wouldn't go back. Having been 3 times we have seen and done most things.

Pippa

I understand what you mean, but it's one of our "reserve" destinations for when we want a guaranteed " yobbo-free" holiday.

One way to try for a cheaper flight is to consider a flight-only option with a charter airline. That's the way I have gone. We managed to get Manchester - Funchal flights for £215 each with Thomas Cook airlines for next September. This includes all taxes and the meal option.

As for accommodation we have booked a 5 star apartment, near the Marina in Funchal, for €350 (£ 235) . So the week's package works out for, two people, at £332.50 each. You might be able to get a cheaper deal , especially if you wait for a "last minute" offer. It depends if you want to take that risk.

Here's a few pics to give you a feel for the place
http://wyeman.fotki.com/film_colour/madeira/pa130017a.html

Go to http://madeira.eigenstart.nl and look at the "Levada Walks"

Also, there are pictures of a levada walk here on this site, in the Madeira photo gallery.

Peter