We'll be taking our very small toy breed dog to a holiday cottage with us for the first time this year.  Although she generally does well on walks, she remains somewhat timid of strangers and downright fearful of other dogs (not in an aggressive way, but shaking and barking).  I've decided to use a shoulder bag type carrier for her when we're out and about (letting her out on a lead when appropriate).  Do you think this may help to reassure her when we're out in public, and perhaps lessen some of her more fearful behaviour?  I obviously don't want this holiday to be unnecessarily stressful for her.

If you have not had her to training classes I would start now this will help her get over her fear of other dogs, ringcraft classes would be better than obedience, first couple of times there I would just sit with her on my knee and watch then gradually join in, if you explain to the trainers that you do not want to show you are here for socialisation they should help you, there are dogs  at our ringcraft who are not shown.  Some ringcrafts specialise in small dogs only, but they are harder to find. Have you asked the breeders advice at all.