First of all, a big thank you to members who helped me arrange my recent holiday in Iceland.

I'd just like to say that

1) Iceland is still pricey but the current prices are about 50% of what they were! Every day things like plasters or toothpaste are far more expensive than what you'd pay at home.

2) The Icelanders are really friendly and not just chasing tourist money. They all speak English too - which is necessary as Icelandic is impossible if you weren't born there or have Icelandic parents.

3) Don't try to fool yourselves that you can drive the interior (F) routes in a car. You not only need at 4WD but experience of fording rivers and driving on a rough service for a long time with very few stops - say every 80 km for a coffee or petrol!!

4) The lack of security and the honesty factor in Iceland is wonderful - doors left open, keys in car ignitions etc ........... because everybody knows almost everyone and would know who had done something if something happened to you or your property.

5) All the accommodation I used was spotlessly clean and comfortable and we're not talking posh hotels here!

6) Travelling during the height of summer makes it very difficult to go to bed because the sun is still up!!! Be firm with yourselves if you have to travel on the next day!!

7) Not only did I do day tours from Reykjavik - Iceland Excursions/Gray Line and Reykjavik Excursions are the main tour operators - but I went on a fabulous 6 day cross-country tour with ICELAND ON TRACK. Our driver/guide, Omar, was not only knowledgeable but very human and careful to see that all our family's needs were met. We saw SO MUCH - not just the major sights, but special ones off the beaten track. We ate traditionally and well, and felt we had really become close to the culture and all the wonderful bonuses that this provides! Omar will help to tailor a tour to your needs, and we enjoyed thermal bathing, skidooing and riding in the 4X4 on the glacier too!

ICELAND ON TRACK came to my knowledge through this site, and I would like to recommend them for a really good value holiday with kind and attentive staff where you feel you are travelling with a friend rather than a guide. So please have a look at their site (www.icelandontrack.is) and ask them to arrange a tour for your specific wishes. I used to work for a similar agency in France, and can only say that they exceeded my professional expectations AND gave me an unforgettable holiday too.

I just got back from a week there and agree that is was pretty affordable, and in fact I'd go so far as to say it was cheap. A pint of beer was about what I'd pay here in the states and despite the famous high cost of eats there are plenty of options for decent foods at a decent price. Cheaper than London, that is for sure. Not tipping of course helps, too.
We spent seven nights in Room With a View, 5 on the top floor with the hot tub overlooking the main street and 2 more in room 310 which was probably the biggest room I've ever stayed in while traveling. The total was only $12XX and it was right in the middle of the bar scene and walking distance to pretty much everything, which comes in handy if you meet some women at the bars. Highly recommended.
Something else to note is that for several of the tours it's cheaper and faster to simply rent a car and do it yourself. We did do the caving/ diving tour which was cool and a short out and back 4x4 tour with Husky Travels or something like that. They have a trip that heads out at 1800 for about two and a half hours, and if you have other things planned during the day and/ or don't want to do all the other stuff included in other tours then it is ideal.
If you are thinking about going to Iceland now is probably the time. If and when their currency bounces back things like tours and liquor will out of reach for many people, at least people like me.

Thanks for your feedback chuckd. I'm still reeling from the beauty of the country and the kindness of the Icelanders.

Thank you for your post. I was there with my family this past August and prices had certainly gone down (especially in Euros!) from previous visits.

What struck me most on this visit was that you could not detect in any way whatsoever that there was an economic crisis going on....