Iceland
 

I just booked a June flight to Italy, and am seriously thinking about traveling to Iceland (using 20.000 United miles on SAS), as the Icelandic Krona has seriously crashed. Suddenly, a place that I have always wanted to visit, but was scared off due to exorbitant prices, has become quite affordable.

For example today the Krona is being traded 143 to the dollar (an all-time maximum)....a year ago the Krona was slightly under 60 to the dollar.

Any thoughts on whether I should lock in hotel rates in Reykjavik (looks like a downtown 3 star hotel in June will be $80-$100/day), or should I wait and see what transpires over the next month or two.

I realize this is not a website or a forum in currency hedging, but I would appreciate any thoughts from those knowledgeable Scandinavian travelers who are allot smarter than I.

Iceland is a mess. The state has taken over all the banks. Problem is that the state is microscopic, the whole country has like 300 000 inhabitants. No one really knows what will happen. I would also like to visit as it has become affordable and most likely will stay like that for a long time. About the currency, I have no idea. It lost like 30% against the euro on monday. What will the next few weeks bring? :confused:

Go for it. Unstable currencies tend to overcorrect: you might be able to save a few more pennies if you can time the absolute bottom, but you will almost certainly have to pay a lot more if you book half a year from now.

Im thinking about getting out there also, but I need to get some cheap flight out there from Poland. I was looking even Ryanair to london then to KEF. Any ideas for Oct?

At least on the U.S. site, FI is pricing fares originating outside Iceland in ISK converted to USD so there's a certain conversion advantage there. Not sure if it's just a reconversion but the even number (in 100s of ISK) pricing doesn't seem to indicate so.

My partner's nephew wants to visit Iceland next year and I'm telling him to exchange some of his NOK holdings (he's studying in OSL) ASAP to hedge the gain.

I suspect that there may be huge inflation eventually in Iceland (there has been already because of too much money floating around). Not sure if prices will be cut to reflect reduced spending power (locals can't get money out of banks).

The assets of the 6 Icelandic banks is over US$100 billion. The trouble is the national economy is only worth 1/7th as much.

The U.K. papers cover the Icelandic financial saga due to the huge investments the country has made in the U.K.

http://www.independent.co.uk/news/bu...cy-954587.html

Looks like the ISK is melting down with no one willing to clear ISK trades. Last spot trade before trading halted was ISK 340/EUR.

http://www.bloomberg.com/apps/news?p...w&refer=europe

An attempt a few days ago to peg the ISK in order to stop its value from falling further appears to have been abandoned, so it's difficult to tell when the krona will stabilise. That said, its value against both the euro and the pound appears to be rising again (slowly).

That was what I thought, but it appears trading has been suspended (following nationalisation of the largest lender) so those rates are non-indicative of what the ISK is actually trading for.

I am going to Iceland as well...it's dirt cheap right now. Does anyone know if the airport coach (bus) stops close to the Hilton?

It appears to be very difficult to take advantage on the falling ISK right now. The foreign currency desk at my bank told me on Friday that they are buying ISK's at around 300/dollar, but selling ISK's at around 110/dollar.

Here is a link to VISA USA, and they are converting ISK's at 111/dollar for credit cards, as of Saturday, October 11.


http://corporate.visa.com/pd/consume...o=ISK&rate=0.0

24 hour sunlight
 

I have always wanted to visit Iceland in June and experience the 24 hour sunlight. My best chance was about two years ago when there was a $100plus mistake fare available. I should have pulled the trigger but didn't.

My guess is that by next year they will have replaced their currency with a new currency.

Thanks for the information that 20,000 UA miles will get you there from the European mainland. Anybody know if their are reward flights there on SAS that originate in London?

I tried this over the weekend.....The only non-code share SAS flight that will get you there is routed from Copenhagen to Reykjavik via Oslo. This will cost you 20,000 miles, and as of now, round-trip seating during the months of May, June, and July is impossible to secure.

From London, there is nothing direct, only connecting to the Copenhagen itinerary. But, this routing requires two 20,000 awards (apparently it exceeds the intra-Europe mileage limit),

I've just booked LHR-OSL-KEF (London-norway-iceland) using UA miles literally last night. She said it was over the mileage limit for an award so would take two lots of 20k like you mention above. Called back someone else.. they didn't notice.. 3 of us on SAS through norway to kef for 20k points each and 50pounds in taxes each. No need to go through CPH as well.. although thats probably an option if you're keen to.

We leave on the 19th and come back on the 24th of October.. who knows whats going to happen while we are there, but we are taking food with us as well.

The current economic issues and exchange rate not withstanding... the only thing I recall about Iceland costs is that everything was very expensive. But the place is gorgeous!

I've booked a $549 per person deal via the Iceland Air website that includes 3 nights at the Hilton Reykavik...$1200 for 2 people with all taxes included. ^