We are in the early stages of planning a long stay next winter in Thailand. We will be flying into Bangkok and going from there. I was looking for any suggestions on what locations might be suited best for us. We like busy touristy areas, but preferably not where prices are too inflated. We would like to spend much of our time near beaches and preferably with snorkeling areas nearby. We also hope to be able to use local transportation such as buses, to go from place to place. Is it crazy to go with no hotel reservations in hope of finding places to stay as we move around? We would be looking for very simple accomodations, nothing fancy. From what little research I've done, Phuket seems like an area we would be most interested in. Any other suggestions?
Also wondering for those of you who have been to both places, how Thailand would compare to Mexico as far as cost of living and such. Thanks.