Iceland: How to Book Your Dream Trip to The Land of Fire and Ice
- Alanna Gabbett
- Dec 8, 2024
- 11 min read
Updated: Mar 26
Iceland, known as the land of fire and ice, is a treasure trove of stunning landscapes, geothermal hot springs, volcanoes, and glaciers. If you are dreaming of an unforgettable adventure, this breathtaking destination should be at the top of your list. Although planning a trip to Iceland can seem overwhelming, with the right information, it can turn into an exciting journey. This guide will walk you through the steps to book your trip, the ideal times to visit, the best activities, accommodation options, car rental advice, and practical tips to help you keep costs in check.
In this guide, we'll explore key factors and essential information needed to book your dream vacation to Iceland!
In this guide:
a. Summer
b. Winter
c. Shoulder Seasons
a. Explore the Golden Circle
b. Relax in Geothermal Springs
c. Adventure Sports
d. Visit Unique Geological Formations
a. Hotels and Guesthouses
b. Airbnb and Farm stays
c. Campsites
a. Types of Rental Cars
b. Booking your Car
c. Driving Tips
a. Flight Costs
b. Accommodation Costs
c. Food Expenses
d. Activity Expenses
a. Determine Your Budget
b. Decide on Travel Dates
c. Research and Book Flights
d. Plan Your Itinerary
e. Reserve Accommodation
f. Book a Rental Car
g. Prepare a Packing List
h. Check Travel Insurance
i. Remain Flexible
a. Embrace the Weather
b. Stay Hydrates
c. Respect Nature
d. Plan for Internet Access
e. Practice Patience
Bookmark these reads for later:
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The Essential Iceland Packing List: Unforgettable Items for Every Season!
The Best Eats in Iceland's Charming Capital: Exploring Reykjavik's Culinary Delights!
Unleash Your Inner Adventurer: Uncovering the Ultimate Kid-Friendly Experiences in Iceland!
Exploring Reykjavik: Top Activities and Sights for an Unforgettable Icelandic Adventure
Iceland: How to Book Your Dream Trip to The Land of Fire and Ice
Ultimate 10-Day Iceland Adventure: Must-See Sights, Hidden Gems, and Insider Tips for an Epic Journey!
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Best Time of Year to Visit Iceland
When planning a trip to Iceland, choosing the right season can enhance your experience. Depending on what you wish to see and do, there are three main seasons to consider.
Summer (June - August)
Summer brings long daylight hours and mild weather, making it the busiest time of year for travelers. With temperatures averaging around 12 to 15 degrees Celsius (54 to 59 degrees Fahrenheit), outdoor activities flourish. You can hike the famous Laugavegur Trail, embark on whale-watching tours that see about 90% of sightings, or explore the renowned Golden Circle with its natural wonders. This is also the ideal time to witness the Midnight Sun and see Puffins along the coastal cliffs. Be sure to book accommodations and car rentals at least two to three months in advance, as prices can rise by up to 30% during this peak season.
Winter (December - February)
If your goal is to see the beautiful Northern Lights, winter is your best bet. While temperatures drop to around minus 1 to minus 5 degrees Celsius (30 to 23 degrees Fahrenheit), the snow-covered landscapes provide stunning backdrops for winter sports. Try your hand at ice caving or relax in hot springs like the Secret Lagoon. Fewer crowds mean a more peaceful experience. Winter accommodation prices are often 20% lower than in summer, but booking early is still crucial.
Shoulder Seasons (April - May & September - October)
Visiting during the shoulder seasons offers a balance of decent weather and fewer tourists. Spring brings blooming flowers, while fall showcases vibrant autumn leaves. Average temperatures in these months range from 5 to 10 degrees Celsius (41 to 50 degrees Fahrenheit). This is a cost-effective time to visit, as many accommodations are priced about 10 to 25% lower than the peak seasons.
After visiting Iceland in both January and September, we can confidently say that September was the perfect time for all the outdoor activities we had planned. The weather wasn't too warm but wasn't frigid. A warm fleece was sufficient for exploring waterfalls and hiking with our kids. Out of 10 days, it only rained once, and the wind wasn't too bad. In comparison, during our trip in January, it rained every day, and the wind made the air temperature unbearable. We had plenty of sunshine in September to enjoy full days of activities outdoors and September turned out to be a great time for Northern Lights hunting as well.
September is the perfect time for a variety of outdoor activities!
Activities to Enjoy in Iceland
Iceland offers a wide range of activities that cater to various interests and all age levels. Here are some highlights:
Explore the Golden Circle
The Golden Circle presents a unique opportunity to experience several of Iceland's natural wonders. Visit Þingvellir National Park, a UNESCO World Heritage Site where you can walk between the North American and Eurasian tectonic plates. Don't miss the Geysir Geothermal Area and the spectacular Gullfoss Waterfall, which drops 32 meters (105 feet) into a canyon. This route covers approximately 300 kilometers (186 miles), making it perfect for a day trip.
Relax in Geothermal Springs
Iceland is famous for its geothermal hot springs. The Blue Lagoon, with its striking turquoise waters and impressive spa facilities, is a must-visit. Visitors often rave about the rejuvenating experience, as 92% of them rate their visits positively. Alternatively, the Sky Lagoon is another popular option amongst tourists. If you're looking for something a bit quieter and a whole lot cheaper, check out the Secret Lagoon, which offers a similar experience to the Blue Lagoon. Or if you're feeling adventurous, hike out to the Reykjadalur Thermal Springs. The hike is moderately challenging and takes around 45 minutes each way. But on arrival, you will be greeted with the stunning landscape of a natural thermal spring that's completely free and not filled with tourists!
Adventure Sports
For adrenaline junkies, Iceland is paradise. Consider glacier hiking on Sólheimajökull Glacier or snowmobiling across Langjökull Glacier. These activities provide thrilling experiences unlike any other. You could even try surfing at the chilly beaches near Reynisfjara, where some waves reach up to 3 meters (10 feet). Other activities include descending into the empty magma chamber of a volcano, visiting an ice cave, and snorkeling between tectonic plates at Silfra Fissure. If you're really in for a thrill, check out helicopter tours over the many active volcanos across Iceland. Witnessing an erupting volcano from the air is part of our personal bucket list!
Visit Unique Geological Formations
Iceland’s unique geology features mesmerizing landscapes. Explore the black sand beaches of Reynisfjara, the striking lava fields, and vibrant volcanic craters like Kerid Crater. A visit to these spots is sure to yield stunning photography opportunities, making your Instagram account shine.
Iceland features a wide variety of activities perfect for families!
For more ideas on unique and thrilling activities available in Iceland, check out our activities guide here!
Where to Stay in Iceland
Selecting suitable accommodation can enhance your overall trip experience. Options are varied and unique. Accommodation in Iceland can be expensive, so always consider and research multiple options to find what fits your needs and budget.
Hotels and Guesthouses
Reykjavik, Iceland's capital, offers a range of hotels and guesthouses, such as Hotel Borg for a luxurious stay or Kex Hostel for budget-friendly options. Guesthouses often serve homemade breakfast, providing a cozy atmosphere that can be a nice touch after a day of exploring.
Airbnb and Farm Stays
For a truly authentic experience, consider Airbnb rentals or farm stays. Staying on a local farm allows you to immerse yourself in Icelandic culture. You might find farms that offer horse riding and organic meals, enriching your visit while supporting local businesses.
Campsites
If you prefer budget-friendly lodging, consider camping. Camping options are scattered throughout the country, allowing you to stay close to nature. With prices averaging around 1,500 ISK (about 11 USD) per person per night, it is an economical choice. Just ensure that you check weather conditions and campsite facilities in advance.
You can even rent a camper van if you want a bit more comfort.

Renting a Car

A rental car provides the freedom to explore Iceland's majestic landscapes at your own pace. Iceland's roads are easy to navigate, and the rules and regulations are fairly straightforward.
Types of Rental Cars
Consider your planned routes when selecting a rental car. For exploring urban areas and the Ring Road, a compact car will suffice. For off-road adventures, opt for a 4WD vehicle to navigate Iceland’s rugged terrain safely. Renting an SUV allows for better handling on gravel roads and in winter conditions.
Also, consider if you'll be traveling on F-roads (highland and mountain passes). These roads are only open in the summer and not all rental agencies will allow travel on these roads. Always check that the car you rent is allowed to travel on F-roads by double-checking with the agency.
Booking Your Car
Book your rental car early, particularly during peak tourist seasons. Compare prices across various rental services and read customer reviews for reliability. Be sure to check what is included in your rental—coverage like a collision damage waiver can save you hassle and costs in the long run. We really liked Blue Car Rental because all insurance and coverages were included in their pricing.
Driving Tips
Driving in Iceland is different than in other countries. Always be prepared for sudden weather changes, as conditions can shift dramatically. Familiarize yourself with local laws and be cautious when driving on gravel roads. Rain and snow greatly affect visibility and road stability. In addition, frequent high winds can make driving conditions a bit more unstable.
Be sure to check out our Ultimate Guide to Renting a Car in Iceland!
Costs Associated With a Trip to Iceland
Understanding potential costs can greatly improve your budgeting.
Flight Costs
Flight prices can vary widely depending on the season. On average, round-trip flights from North America to Iceland range from 300 to 600 USD. Booking several months in advance can yield better prices, while fare alerts can keep you informed about any special discounts. We recommend tracking flights with apps such as Hopper or Skyscanner. You can set up alerts, so you'll be notified when a flight is a good deal.
Accommodation Costs
Accommodation prices fluctuate based on the season and location. While budget options like hostels can start at around 3,000 ISK (22 USD) per night, hotels in Reykjavik can go up to 30,000 ISK (220 USD) or more during peak season. Booking in advance can help secure better rates. Always check multiple sites to find the best deal. We always check a variety of hotels and apartments on Expedia, booking.com, and Airbnb.com, to ensure we get the best deal.
Food Expenses
Dining out in Iceland is known for being pricey; average meal expenses in restaurants can range from 3,000 to 6,000 ISK (22 to 45 USD) per person. To save money, consider shopping at local grocery stores for meals. Many travelers save significantly by preparing their own food. Consider booking an Airbnb or apartment that has a kitchen so that you can prepare most of your own meals.
Activity Fees
While many natural attractions in Iceland are free, guided tours and experiences vary in price. For example, glacier hiking and snowmobiling tours can start at 15,000 ISK (110 USD) per person. Allocating a budget for excursions can enhance your experience and make lasting memories.
For our complete guide to budget-traveling in Iceland, click here!
A Simple Guide to Planning Your Trip
Planning your dream trip doesn't have to be challenging. Here’s a straightforward guide to streamline your planning process:
1. Determine Your Budget
Start by setting a realistic budget that includes flights, accommodation, activities, food, and transportation. It's best to categorize expenses for a more accurate idea of spending. Allocate a budget for each category by researching typical costs in your destination.
Check out our guide, Mastering the Art of Budget Travel for more information.
2. Decide on Travel Dates
Once your budget is established, select travel dates based on desired activities and weather preferences. Choose a time of year that allows you to complete your intended itinerary and matches the activities you plan to pursue at your destination.
3. Research and Book Flights
Utilize flight comparison websites to monitor fares, booking your flight in advance for the best rates. Remaining flexible with your travel dates is a great way to ensure you get the best deals on travel. Sometimes flying a day earlier or later can save you $50 or more per ticket.
4. Plan Your Itinerary
List must-visit attractions, activities, and excursions. Create a flexible itinerary to allow spontaneity and rest. We always start by outlining our must-do activities and must-see places. We then do a rough outline of our day-to-day itinerary. Traveling with kids, we always ensure to leave flexibility for nap times, bad behavior, and slow little legs.
5. Reserve Accommodations
Select and reserve your accommodations based on your budget, preferences, and proximity to desired attractions. Make sure to book in advance for the most options.
6. Book a Rental Car
Once your itinerary is set, book your rental car so you can explore at your convenience. Make sure to select a company that matches your preferences and budget. Always check the rental contract and fine print to make sure everything matches up with your needs.
7. Prepare a Packing List
Compile a packing list based on the season and planned activities, including essentials like warm clothing and sturdy shoes.
Check out our Essential Iceland Packing List or our Complete International Flight Packing Checklist for Families.
8. Check Travel Insurance
Consider purchasing travel insurance to cover aspects like delayed flights or cancellations. We love the Squaremouth.com site because it allows us to filter for only the coverage we need, and they offer some of the best rates from great insurance providers.
9. Remain Flexible
Planning is important but stay open to spontaneous adventures that may arise during your trip. It's important to keep your itinerary loose, with time for unexpected adventures or rest when needed. Also, be sure to allocate some extra funds for your spontaneous and unplanned adventures.
For a more in-depth guide on planning your dream trip, check out our guide here!
Key Tips for a Great Journey
Embrace the Weather: Layering is essential to tackle unpredictable weather. Always pack a light fleece and waterproof layer, no matter the season.
Stay Hydrated: Carry a reusable water bottle to remain hydrated, particularly during outdoor activities. Most tap water in Iceland is safe to drink.
Respect Nature: Always follow local guidelines and stick to marked paths to protect Iceland's fragile ecosystems. Be sure not to step on the lichen, as it can come with a hefty fine.
Plan for Internet Access: A local SIM card can ensure reliable internet access throughout your trip. We prefer using eSIMs for our trips, however, your phone would need to be unlocked and compatible with this. Our favorite eSIM companies are Holafly (for unlimited data) and Airalo (for pay per GB data). Click HERE for 15% off your order with Airalo!
Check out some of our other favorite travel apps here!
Practice Patience: Popular sites can be crowded, so maintaining patience is vital for an enjoyable experience. It's essential to arrive early to secure parking at popular sites or otherwise be patient waiting in long lines.
Popular food spots may also get busy during mealtimes, especially popular takeaway spots.
Planning your dream trip to Iceland, the land of fire and ice can ignite excitement and anticipation. By determining the best time to visit, choosing your activities, and selecting ideal lodging and transportation options, you'll set yourself up for an incredible adventure. Stay flexible, enjoy the beauty around you, and cherish every moment in this breathtaking destination. May your travels spark unforgettable memories and inspire countless future adventures!
For more information on planning your dream trip to Iceland, check out our complete Iceland Travel Guide!
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