Holidays to Iceland under £700

In Iceland the word resort covers compact towns and harbour settlements where accommodation stock is easier to find at sensible rates.

• Akureyri: Akureyri is the largest town in North Iceland, set on the long Eyjafjordur fjord, and it offers a quieter base than the capital, with a more relaxed pace. Guesthouses here tend to be more affordable than those in the country's busiest city, and the town centre is a short walk from the harbour. Godafoss waterfall lies within driving distance, so you can see a major sight without paying for a long transfer. It suits travellers who value calm evenings over nightlife and are willing to drive for their days out. Browse Iceland holidays with Travelodeal to compare current options.
• Husavik: Husavik is a small harbour town known as one of Iceland's main whale watching hubs, with tours operating from the harbour itself. Accommodation here is generally simpler and less expensive than in the bigger centres, which helps keep a package within budget. The town is close to its centre, so you can reach the harbour on foot each morning. We think it is a strong choice if whale watching is the centrepiece of your trip. Many visitors also look at Cheap Iceland Holidays when comparing north coast options.
• Stykkisholmur: Stykkisholmur is a small town on the western peninsula of Iceland, with a harbour that serves as a ferry port for Breidafjordur bay. Its modest hotel stock means rooms can be easier on the wallet than in the capital, though availability tightens in the peak summer weeks. The town is peaceful and unhurried, which many visitors find restful after a busy city break. It is best for those who want a slower trip and don't mind a longer drive to reach the wider island.
• Hofn: Hofn sits in southeast Iceland and is the practical base for exploring the glacier lagoon and the dramatic headland at Vestrahorn. Accommodation options are fewer, so booking early is important, but rooms here are often more reasonable than in busier southern spots. The distances are long between sights, so expect a full day of driving for each excursion. We recommend it for travellers who are happy to focus on a single region and cover fewer miles.
• Vik: Vik is a small village on the south coast along the Ring Road, close to the famous black sand beach and its basalt sea stacks. Guesthouse rooms here can offer good value during the shoulder seasons, when demand eases after the summer rush. The village is one of the wetter spots in Iceland, so budget trips should plan for changeable weather. It works well for a short stay built around the south coast rather than a full island loop.