What are you using for your thermostat? I'm not familiar with incubators per se, but thermostats generally have a span above (and sometimes below) the setpoint. For instance, if the setpoint was 100 and the span was 2, then the thermostat would run the heater until it go up to 102. I believe somebody else mentioned added water bottles. Since the water would cool more slowly than the air surrounding it, it acts as a heatsink. It will absorb heat from the atmosphere than slowly give it off to the surrounding air keeping the air at a more constant/stable temperature. I would look into adding more heatsinks and adjusting the span on the thermostat if you're uncomfortable with the fluctuation. You might also consider introducing a fan to keep the air moving. I really didn't see one in the photo.