The major reason Europe is cheaper this year than last year is because of the dramatic decline of the euro. Or, if you want to put it another way, the dramatic increase in the value of the dollar.
For instance, it now costs about $1.06 to buy a euro. Last summer, it was about $1.35. So right off the bat, you have over 20% more in purchasing power. That $400 a night hotel is now only $320. The $200 a night hotel is only $160. But it goes further than that. Because Europeans are finding their purchasing power squeezed, they are being offered more travel deals on hotels for instance, that you can take advantage of.
If traveling to a country with an oil-based economy like Norway, the deals are even better. Their currency has declined close to 30%. Norway was expensive to start with anyway, but that $30 burger is now only about $20.
I thought that when Americans found out about the bargains in Italy, the lower prices in Paris, or the deals in Norway, they would flock to Europe, and they are. That would result in airfares going sky-high, and they did. But if you look at the good discount airlines like Norwegian Air and Icleland Air, good deals are to be had there, too.