Planning My Trip

I am planning a trip to Spain pretty soon. I am curious to know if there is a specific place I should look to find the best cheap Madrid hotels. I am not wanting to spend all of my money on staying the night somewhere. I want to be able to spend my money on fun activities and souvenirs for my family. I am also wanting to know what airlines are the best for saving money on international flights. Any help I could get would be helpful. I am wanting to start all of the planning as soon as possible.