If you plan to visit Santorini (it really worths the trip and is as beautiful as it seems on the pictures), and if you are looking for an hotel with gorgeous vue on the caldeira without breaking open your piggy bank, choose the Imerovigli Palace !!
We have spent 6 days there from 14 to 20 September 2005, and are very happy of our choice : the hotel is just on the top of the cliff overlooking the bay, and the view is wonderful. Breakfast buffet is delicious, with some hot salt cakes filled with cheese, yogourt with honey and walnuts.
It is just near the Iris Café and the Santorini Princess Hotel (there is no signs; so, take the road between Fira and Oia, at about 3 kilometers from Fira, look for Iris Cafe on the left side, and when you see it, it is just nearby).
The price are very affordable : in september (low season), we paid 100 euros (about the same in dollars) for a junior suite. There is also honeymoon suites with view on sunset side and sunrise side, at 260 euros.
The boss, Frederic, about 65 years old, is very welcoming and speaks fluently 5 languages (he worked at ONU in the past). He will suggest you a lot of good adresses : restaurants, spots to visit, boat tours… He can also arrange you a car rental.
The rooms are spacious, with a small terrace and very quiet. The confort is not similar as for an Hilton or Four Seasons, but for 100 $ it is very correct (keep in mind that the average price for a average hotel in Santorini is around 200 $ per night, and il you want the top around 400 $… and it is for september !).