Looking for cheap family vacation in Israel

Flights are indeed a problem - I'm pretty sure I've heard something about it recently, there are some limits that the Israeli government imposes on the airlines and the situation with flights to France seems to be especially problematic.

Regarding your staying in Israel - did you consider a hostel? There is Momo's hostel, for example, which offers anything from single rooms to 8-bed rooms, with prices starting at 58 NIS a night in a dormitory room (for some reason they only declare the prices in the Hebrew part of the site). If you're OK with one room for the whole family, it could be a solution for you. You can find more hostels in Israel in this site, and as far as I know their prices are more or less the same as in Momo's.

There was an article about the Tel Aviv hostels in a local newspapr here just a week or two ago, and they said they are expecting to be full for most of the summer, so I suggest you act early in case you're interested in this option

hkabla, the prices you're quoting sound very high, looks like there is a mistake somewhere. I checked the Air France website and saw prices of around $400-$550 for the flights, and the hotel room prices on this website are significantly lower than those you're suggesting.

Did you check for any specific dates? there's the Jewish holiday season sometime in September I think, so if you're planning on visiting then maybe the prices you quoted are for the holiday season. Still, they sound really steep.

I had a lovely stay at the

As a teenager I used to sleep in the youth hostels epspecially in Eilat.

They're not hotels, but hostels, but I remember enjoying my stay there.

Very afforable, and they have many guest houses around the country.

Check out their online reservation system for proces and dates. The site akso has pics of some of the hostels.

http://www.youth-hostels.org.il/reservations_en.html 

Many Israelis consider France to be a great place for an holyday. Maybe you can find an Israeli Family that will stay in your house in France while you stay in their house in Israel. This way both families will have a great and cheap holiday