The Icelandic krona continues to lower in value against major currencies, an ongoing trend over the past year. The volatile krona has decreased in value against the Euro, the US dollar, the Danish krona and the British pound; meaning Iceland has become a cheaper tourist destination for many than it was a year ago.
Increased competition has also brought on lower airfares to and from Iceland, with carriers often offering last minute deals to travellers. Visitors who are willing to spend some time outside the city limits of Reykjavík should be able to reduce their accommodation expenses quite a bit by staying at local guesthouses, hotels, or a farm stay.
Public buses will bring you to quaint towns such as Akranes and Borgarnes in the East (a short 45-minute bus drive from Reykjavík city centre), and Hveragerði and Selfoss in the South (also a mere 45 minute-long drive from Reykjavík).