Lower fares and better exchange rates are making this summer a great time to travel abroad.

Last summer, airfare from Dallas to Sydney was $2,190 round-trip, but this year prices have been averaging $899 for summer travel. We've even seen it dip below $800 round trip, including taxes and fees. A year ago, 100 U.S. dollars would have bought 104 Australian dollars; this year, you'll get 125, a 20 percent increase.

Flights from Dallas to Germany are 60 percent to 65 percent less than they were last summer, and the dollar is up by 13 percent. Last summer, flights from Dallas to Germany were averaging $1,448 round-trip. This year, we're seeing summer flights for $538 round-trip, including taxes and fees. A year ago, 100 dollars would get you 63 euros; this year, 71.

Flights from Dallas to London last summer were $1,278 round-trip. We're seeing fares that are $400 to $500 cheaper this year. We recently priced flights to London at $778 round-trip, including taxes and fees. One of the reasons for this big discount is that last year the fuel surcharge alone was $440, and this year it's $220. Last year, you would have received 50 pounds for 100 dollars. This year, you'll get 62 pounds, a 24 percent increase.

Two people can travel this year to Cancun, Mexico, for the price you would have paid for one last year. Flights from Dallas to Cancun would have cost $480 round-trip last summer, but this year we've seen flights for $239 round-trip, including taxes and fees. If you exchanged 100 dollars last summer, you would have gotten 100 pesos. This year, you would receive 132 pesos, a 32 percent increase.

One final tip: Consider bundling your airfare and hotel. Packages that include both are plentiful. The best deals have been packages with stays at four-star hotels. Luxury properties have been hit hard by the recession, and they have been offering their biggest discounts in bundled deals. The difference in rates between four-star and three-star hotels can be minimal, and it may even cost less to stay in the four-star.

A strategy I use when searching for cheap packages is to look for airfare only and find the dates that offer the cheapest flights. Then use those dates when pricing packages. You can often save hundreds of dollars by bundling, and finding and using the cheapest flight dates can save you even more.

Tom Parsons is publisher of BestFares.com.