Venice has been called a unique urban masterpiece. It has canals instead of streets, boats instead of buses, and ornate bridges instead of subways. Distances in Venice are also short, so location here isn not as crucial here as it might be in other cities like Rome or Milan. Some claim that it is also inevitable that you will get lost in Venice, because everyone does, even with a map. The good news is that being lost in Venice’s labyrinth of archways and canals is a pleasure. When it comes to accommodation, Venice is pricey and, sometimes, fully booked, even in the low season, so it is best advised that you book ahead.

It is true that Venice's hotels have a reputation for being more expensive than their counterparts in other Italian cities. So for visitors on a tight budget, the question of where to sleep in Venice may also be best answered with "Don't." Of course you may be able to save a few euros by staying on the mainland. Mestre and Marghera, Venice's modern suburbs, are convenient if you have a car and can't afford to pay for parking. Still, we recommend sleeping in the historic center if you can afford to do so, or even if you can't. During high season and on weekends, the tourist population shrinks dramatically after the daytrippers have gone home. This makes late evening and early morning the best times to enjoy Venice without the crowds.

The Grand Canal delineates the six main central neighbourhoods (sestieri). The heart of the city is San Marco, cradled by the great lower bend of the Grand Canal, the Venice of tourist brochure legend. Much of not-to-miss Venice is here, but if you want to get away from the crowds head for the backwaters and boat-yards of the quieter districts. To the east is Castello, hard-working, lived-in and traffic- free; to the south, bohemian-chic Dorsoduro is crammed with artistic treasures; to the north, peaceful Cannaregio’s off-the-beaten-track churches are a delight; and, in the eye of the lagoon, Santa Croce and San Polo are full of monuments and ideal places for wandering.

The area around the Piazza San Marco has an express vaporetto stop, and you'll disembark here if you come by boat from the airport. But it is also the most popular area in Venice for tourists, and it has higher prices and bigger crowds than any other sestieri or neighborhoods. The closer to piazza San Marco you get, the swisher, brasher and more cramped the accommodation becomes.

For hip, designer hotels head for Dorsoduro and San Marco. Dorsoduro and San Polo, on the less touristy side of the Grand Canal, are good bets during high season. Cannaregio also has a neighborhood feel once you get away from the busiest streets. Closer to San Marco, the Castello district has some quiet areas not far from the main tourist attractions.

The Lido, an island that separates the Venetian lagoon from the Adriatic Sea, is popular in summer, especially with well-heeled beach buffs and golfers who can afford the tabs at classic resort hotels like the Hotel des Bains and the Excelsior Palace. Luxury hotels have free shuttles to the Piazza San Marco, guests at smaller hotels may have to rely on the public water buses.

Special Value rates and best deals on 203 hotels in Venice