I had an excellent experience with Smartours' "Wonders of Israel" tour. It was very economical: $2,500 a person [for 11 days], and that included airfare, hotels, food, tour guide and museum fees. I generally avoid tours, however, having a guide in Israel really enhances the entire perspective. Every square inch of Israel is packed with history — it helps to have a knowledgeable guide to share that perspective.
Smartours, New York; (800) 337-7773, http://www.smartours.com