Holidays to Iceland under £1000

Resort-style bases in Iceland are few, so budget trips here usually centre on compact towns with reliable hotel stock and easy onward connections.

• Akureyri: Akureyri is the largest town in northern Iceland, set on a long fjord roughly an hour's flight from the country's southwestern capital in the wider region. Hotel stock here is smaller than in the capital, so rooms in the shoulder months sell quickly, which is why we recommend booking early for this base. Its restaurants and cafes are noticeably cheaper than those in the capital, which helps a tight budget stretch further. We rate it as a strong choice for travellers who want a quieter, well-priced base rather than nightlife. It is exactly the brief our Iceland holidays deals are built around.
• Husavik: Husavik is a small harbour town on the north coast, famous as the base for whale watching tours that leave straight from the quay. Accommodation is limited and generally modest, so a budget package here tends to be simple guesthouse or hotel accommodation rather than anything grand, the same brief our Iceland Luxury Holidays deals are built around. The trade-off is distance, since reaching Husavik from the capital takes a long drive, which we factor into the total cost. We like it for travellers whose priority is wildlife rather than a busy social scene.
• Stykkisholmur: Stykkisholmur is a small town on the Snaefellsnes Peninsula with a working harbour and a ferry link across Breidafjordur bay. Its accommodation is modest and fills mainly in summer, so the realistic budget window sits in the quieter months when room rates ease. Getting there means a drive out of the capital, which adds fuel and time to the plan. We recommend it for those who value a peaceful, low-key base over convenience.
• Seydisfjordur: Seydisfjordur is a colourful fishing town in eastern Iceland, reached by mountain roads and a Smyril Line ferry from Denmark. Its guesthouse stock is small, so availability is the main constraint on a budget trip here, and the long journey means transfer costs can climb quickly. We consider it a specialist choice for travellers who want to combine the ferry crossing with a slower, more remote stay. For most budget travellers we suggest a more central base instead.
• Hofn: Hofn is a fishing town in southeast Iceland and a practical base for visiting the glacier lagoon and Vestrahorn. It has a limited but workable range of hotels and guesthouses, and the driving distances from the capital are considerable, so a rental car is almost essential. We see it as a good value option for travellers willing to trade city amenities for access to dramatic scenery. Booking the car and accommodation together usually gives the best per-person figure.