Cheap Holidays from Manchester to Iceland

In Iceland the best value usually comes from choosing a base town with easy access to the sights rather than a large resort.

• Reykjavik: Reykjavik is the capital and the most practical base for a budget trip, because it is compact, walkable and close to the harbour, museums and restaurants. Staying here keeps your daily transport costs low and gives you a choice of accommodation at a range of prices. The trade-off is that the city is busier than the rest of the country, so we would suggest booking early for summer weekends. For most travellers from Manchester it remains the sensible starting point. It is exactly the brief our Reykjavik holidays deals are built around.
• Akureyri: Akureyri is the largest town in northern Iceland, set on a long fjord and surrounded by mountains, and it works well as a quieter and often less expensive base, the same brief our Iceland Adults Only Holidays deals are built around. From here you can reach the Godafoss waterfall by car and join boat trips from the nearby harbour. The town is smaller than the capital, so there are fewer late-night options, but the relaxed pace suits travellers who want value without the crowds. We think it is a strong choice for a northern itinerary.
• Husavik: Husavik is a small harbour town and the main base for whale watching in northern Iceland, which makes it a distinctive and affordable focus for a short stay. Accommodation here tends to cost less than in the capital, and the harbour is close to the town centre, so getting around on foot is easy. The downside is a limited choice of restaurants and shops, so you should plan meals in advance. For a value-led trip built around wildlife, it is hard to beat.
• Stykkisholmur: Stykkisholmur is a small town on the Snaefellsnes Peninsula with a harbour that serves as a ferry port for Breidafjordur bay. It offers a peaceful base at a lower price point than the capital, and the boat trips from its harbour are a memorable way to spend a day. The town is very small, so you will need a car to explore the wider peninsula. We recommend it for travellers who value quiet over nightlife.
• Hofn: Hofn is a fishing town in southeast Iceland and a practical base for visiting the Jokulsarlon glacier lagoon, which lies on the Ring Road. Staying here can be good value, but distances are long, so you will spend more time driving than in the southwest. It suits travellers who have a car and want to focus on the glacier scenery of the southeast. We see it as a good choice for a self-drive itinerary built on a sensible budget. It is exactly the brief our Cheap Iceland Holidays deals are built around.