Q: Can you REALLY do the Caribbean on a budget?
A: Yes, you CAN but please keep in mind: you're not going to Pleasantville, OH. It's the Carib...full of tourist attractions, events and items that you can't get at home so you will pay for it. Be ready. If you expect to pay the same for a hotel in Jackson, MS as you would pay in Barbados, then perhaps Barbados isn't for you at this time. However, if you moderate and locate moderate but reputable lodging, you can indeed save while not sacrificing the fun of your vacation. Food expenses are another area that you can economize on but you have to be careful. If you want to eat at ritzy restaurants, again, you will pay. But, you CAN find good, local food at a fraction of the costs.
For hotels and airlines, book as far in advance as possible, at least a month. Personally, I prefer to stay at hotel chains that are known for exceptional quality. These may not be the cheapest but when I'm traveling solo, I want the SAFEST, the CLEANEST and the BEST food if I decide to get room service. I also want to be able to let the hotel's corporate offices know that there were any major problems (remember, the Carib is laid back; don't expect the Four Seasons -- unless your name is Angelina or Beyonce and your man's name is Brad or Jay Z). With that said, most of the smaller islands do not have hotel chains so you REALLY have to research the hotels. I found one good non-chain in Aruba -- it actually lived up to the reviews, while the one I stayed at in St Lucia left a bit to be desired (it wasn't too bad, and the people were VERY friendly, but I wouldn't have stayed there had I known more about it).
Something else to note in terms of cost: the time of year that you travel to the Caribbean makes a considerable difference in prices. If you like to frolick in the water and really revel in the heat of the Caribbean, I've found it best to go during the Summer months (June -August). You can usually find major name brand hotel rooms at really good prices, particularly if you use sites like Hotwire. Prices drop steeply September to early November -- reason being: it's hurricane season!