Doris,
Many hotels in Italy lower their prices beginning in late July and August. August is the month when a lot of restaurants and smaller shops close as it's the month when Italians take vacation.
Check Hotel Metropole in Venice . It's a very good hotel and is offering decent rates beginning in late July. That's where we are staying.
You're right that air prices were over the top this year. I shudder every time I think what we are paying for our tickets! I'm flying out in late July.
