Cheap Holidays to Iceland in May

In May the most affordable Icelandic bases are compact towns where accommodation stays modest and day trips do the heavy lifting.

• Stykkisholmur: Stykkisholmur is a small harbour town on the Snaefellsnes Peninsula, with a ferry link crossing the wide western fjord waters, and its guesthouses tend to be priced below those in the city. The wider Snaefellsnes region is dominated by a glacier-capped volcano and can be reached in a few hours by car from the Icelandic metropolis. The town is quiet, so evening entertainment is limited, which suits budget travellers who spend their days outdoors. We rate it as strong value for those who prioritise scenery over nightlife.
• Akureyri: Akureyri is the largest town in North Iceland, set on the long Eyjafjordur fjord, and it offers some of the more affordable room rates elsewhere in the country. From here Godafoss waterfall is within driving distance, and whale watching trips depart from a nearby harbour town on the coast. The trade-off is a longer journey from the south, so we recommend it for travellers who want a quieter base and are happy to use the internal network. We value it for pairing reasonable accommodation with rich scenery at a steadier pace. It is exactly the brief our Iceland holidays deals are built around.
• Husavik: Husavik is a small harbour town in North Iceland and the main hub for whale watching tours, which operate from the town harbour. Accommodation here is generally modest, and the town centre sits close to the water, so walking is easy. Because it is smaller, choice of restaurants and shops is narrower, and you may need to plan meals around your excursions. For a low-cost trip built around one standout activity, it represents excellent value.
• Vik: Vik is a small village on the south coast, roughly 180 km along the ring road from the city centre of the national hub, and it offers a practical overnight stop on a budget itinerary. Its nearby black sand beach and basalt sea stacks are free to visit, which keeps daily costs down. The village is one of the wetter spots in Iceland, so rain gear is essential, and accommodation options are limited compared with larger towns. We recommend it as a low-cost coastal base for travellers comfortable with simple lodging.
• Hofn: Hofn is a fishing town in southeast Iceland and a practical base for the glacier lagoon area, offering accommodation that typically costs less than in the country's largest city. Its position on the ring road makes it a useful stopover for drivers covering long distances in a single trip. Services are fewer and the town is more remote, so careful planning of fuel and provisions helps avoid extra spending. For those prioritising lower room rates over city amenities, Hofn is a sensible choice.