Cheap Holidays to Iceland

Our most requested bases combine easy access to the main sights with a choice of hotels at every budget.

• Reykjavik: Reykjavik is the easiest base in Iceland, a compact capital with colourful houses, the Hallgrimskirkja church and a waterfront that is walkable from most hotels. From here the Golden Circle is a day trip, and the Blue Lagoon sits close enough to fit into an arrival or departure day. The trade-off is that city rooms cost more than rural guesthouses, so we suggest comparing packages that include a central hotel against those with a quieter outer-city base. For most first-time visitors it is the sensible starting point. It is exactly the brief our Reykjavik holidays deals are built around.
• Akureyri: Akureyri is the largest settlement in the north, set on the Eyjafjordur fjord with a botanical garden and a relaxed pace that feels very different from the capital. It is a practical base for whale watching trips departing from the nearby port village and for visits to Godafoss waterfall, which lies within driving distance. Flights to the north are less frequent, so a package is often the simplest way to reach it. It suits travellers who want quiet evenings and fewer crowds than in the capital.
• Vik: Vik is a small village on the south coast, roughly 180 km along the Ring Road from the capital, known for its basalt sea stacks and dramatic shoreline. It is one of the wettest settlements on the island, so pack accordingly and expect changeable weather. Accommodation is limited and books up quickly in summer, which is why we recommend reserving a package early. It works well as an overnight stop on a longer southern itinerary.
• Hofn: Hofn is a fishing community in the southeast and a practical base for visiting the glacier lagoon and the dramatic mountain headland just along the coast. Distances between sights are long, so staying here means accepting more driving time in exchange for access to some of the least crowded scenery on the island. Hotels are fewer than in the capital, and rooms are priced accordingly. We find it best suited to travellers who are comfortable with a self-drive itinerary.
• Husavik: Husavik is a small port in the north and one of the main whale watching hubs in the country, with tours setting out from the waterfront. It makes a quieter alternative to the capital for a few nights, and the cruise calls that arrive in summer can bring extra activity to the waterfront. The drive from the regional city in the north takes around an hour by road, so it pairs neatly with a northern stay. Choose it for marine wildlife rather than nightlife.