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Cities and transportation issues for visit in December to Southern Italy.

Taking family, 2 adults and 2 (21 yr olds) to Southern Italy in December/January for 3 weeks over school break. We have been to Rome and north before. Would like suggestions for small cities to visit and also how you would travel. Right now it looks like we would spend 3 to 4 days in Rome, Naples and Palermo. Any suggestions for other cities or small towns for 1 or 2 nights. Also, I am guessing like last time, rail pass would be the best for us but do not like having to pay $10 Euro per person to reserve seats. Any help? Last, about Ferry to Sardina from Palmero and then to Rome or Naples. Not much of a schedule in December and seems expensive.
Dean

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Check out the trenitalia website for schedules and fares. The seat reservation is already included in the price and if you buy ahead of time you can get the mini fares which can be up to 60% off. I would stay away from a rail pass as they usually don't save you any money, but you should do the math to be sure. http://www.trenitalia.com/cms/v/index.jsp?vgnextoid=ad1ce14114bc9110VgnVCM10000080a3e90aRCRD There is usually a schedule change for the trains which occurs in December but the times and fares don't change much so you can still get a good idea of costs and availability by looking at the schedules for now. I'm pretty sure that the ferry operates the same way but am not 100% positive. Donna