LaurieA said:
How do you pay for nanny while on vacation? Do you pay them hourly, or daily? Do you give them free time?
I haven't taken a nanny on vacation before but I was invited to go on a cruise vacation with my aunt when I was in college to help with her kids.
I think it depends on tbe individual situation with each nanny.
It the person you need to bring normally would not vacation at WDW or elsewhere and would actually prefer the time off while you are away, I think you would need to not only cover her expenses but pay her for her time.
However, if the person would love to travel and would not be able or willing to pay for it on their own, you could "invite" them to come with the understanding that you will be covering their expenses in return for their help in taking care of the kids with no additional pay.
Free time for the nanny/helper is a must, I think.
As I mentioned, my aunt invited me and another of her friends on a cruise when I was back in college. She paid for all my expenses as well as for family excursions to the islands. I paid for anything extra I wanted such as a spa treatment, etc. She had 2 DD at the time as was pregnant with her third child. I shared a Balcony cabin with her friend. It was a travel opportunity I never could have afforded at that age on my own.
She has 8 kids now!

She home schools and she loves to travel. So, she always has 1 to 2 high school or college age helpers/babysitters go with her on vacation. They really have it good! She usually travels a lot and usually first class. They've been to China, on multiple cruises, WDW once or twice a year, Europe, the Carribbean, NYC all the time. They've been to the ballet, theater, etc. My aunt treats them like extended family.
Many of our family love to travel with my aunt's family (we all pay our own way of course) because of the fringe benefits. While her sisters' all get the cheapest inside cabins on a cruise, she's up in the owner's suite where they all hang out.
She's the one that got my family hooked on DVC. We like to meet them in WDW because my 2 DD's LOVE to play with her 3 youngest DD's. Her youngest DD is 4 months younger than my oldest DD. My girls are closer to my cousins than they are to their own cousins.