If you do happen to visit Kerala (Cochin) you can call up Wilson Tours to arrange a boat cruise for you. I emailed them before my trip and they said I could pay on arrival. I was a bit hesitant that they might cancel last minute and I emailed them like 3-4 times before my trip. As we didn't want something which kept us out until late evening, we opted for a canoe boat day cruise. The total cost for 2 was Rs 2,800 which is approximately AED 185. It included lunch, pick up and drop to the hotel. I thought this was an extremely good deal. At this price do not expect an air conditioned car. The lunch was simple but nicely prepared. It included 3 types of vegetarian dishes, 4 pieces of fried fish (which was some local catch) and rice. If you forget to tip the boatman do not worry, as he will remind you :P. Visit their website http://www.wilsontours.co.in/about.htm for more details.
If you prefer staying somewhere close to the backwaters, check out Ilona Lake Resorts, Kumarakom (http://www.ilonahotels.biz/factsheet.html). We booked them through Iris Holidays (http://www.irisholidays.com/) and paid Rs 8,500 (around AED 580) for one night stay (including breakfast). 
The resort has a variety of things you can do like mini golf, badminton, cycling, swimming etc. I would suggest not visiting their "Ayurveda spa". I cannot say much for the food either, however the rooms were clean, the showers had hot water and the folks were hospitable. Oh and if you are in Cochin do make a dinner reservation at the Marriott (near the airport), the servers there are extremely polite and friendly and the food is awesome.
Happy holidays :)
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