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In the past, Iceland wasn’t seen as an affordable destination for most travelers. However, with recent blows to the Icelandic economy, the country is taking a look at its travel and tourism markets:

“Iceland was once prohibitively expensive for many people, but now the tiny island nation is rebranding itself as a budget destination…Iceland’s economy was booming a few years ago, fueled by the availability of cheap credit. But the collapse of the country’s financial system has reversed its fortunes.” (from CNN)

As evidence that Iceland is rebranding itself as a “budget destination,” Icelandair has released airfares as low as $478+ R/T to Reykjavik from US destinations including Boston and New York. These airfares are good on select travel dates through March 31, 2009.

Visit Icelandair Offers for more details, and search FareCompare for the lowest filed airfares to Reykjavik from your hometown.