It seems as if you book things closer to your planned arrival, the price goes up and it becomes harder to find things to book and do whilst on your trip. I am wondering how far in advance is ideal when planning a trip to Iceland. In terms of flights, hotel, car rental, etc.
Usually, 6 months is ideal. This all comes down to where you want to stay and what you want to do. In some cases, booking as far out as one year is necessary for places that stay booked solid year-round.