Wondering where to stay in Iceland? This guide will help you plan your trip, with options for routes, seasons and budget.
If you love outdoor adventures as much as I do, you will fall in love with Iceland. It’s a unique country, offering epic landscapes, geysers, icebergs, mountains, waterfalls and amazing wildlife. When you start planning your trip, one of your hardest decisions will be where to stay in Iceland.
There isn’t one single ‘best’ place. It really depends on the type of trip you’re planning and what you want to see. Some people prefer staying in one location and making an itinerary of day trips to see various sights. Others prefer to drive the ring road and stay in different locations every night. You’ll also find that some plans work better in summer and others suit a winter trip. After all, the seasonal variation is huge, particularly as you’ll only have a few hours of daylight in the winter months.
This guide will help you plan your time in Iceland. I’ll make some suggestions for the best bases for different trip lengths, and share lots of expert tips so you don’t make any mistakes.
Where to Stay in Iceland
Iceland – Route Suggestions
- First-timers with 3–5 days: Reykjavík (Downtown) plus a base in the Golden Circle such as Hveragerði or Selfoss
- South coast highlights in 5–7 days: Reykjavík → Vík → Skaftafell/Jökulsárlón → Höfn
- Aurora hunters (Sept–Apr): West Iceland (Borgarnes), Lake Mývatn in the north, or Snæfellsnes Peninsula
- Families: Reykjavík’s Laugardalur neighbourhood + a couple of nights in Akureyri
- Photographers: Snæfellsnes, Vík area, Jökulsárlón/Skaftafell, Lake Mývatn
- On a budget: Campervan + designated campsites (it’s flexible and cheaper than hotels + car hire + restaurants)
How to Plan your Trip to Iceland
The easiest way to plan your trip to Iceland is to think about is it in chunks. Ask yourself:
- How many days do I have?
- Am I visiting in summer (with midnight sun) or winter (with icy roads and short daylight hours)?
- What are my ‘must-sees’ such as the Blue Lagoon, waterfalls, glaciers, the northern lights?
- Do I want longer drives and variety, or shorter hops and fewer bases?
Personally, I’d recommend staying at least two nights in each place as it gets so tiring unpacking each day, especially in winter when you’re losing daylight.
Suggested Iceland Itineraries by Trip Length
It’s often hard to know how long to spend in each place in Iceland. It’s a varied country and you might feel tempted to dash about! But, here are a few routes that work well, offering variety and key sights, without feeling like you’re in a crazy rush.
- 3 Days – Base yourself in Reykjavík. You can explore the city and take a Golden Circle day trip. Perfect for non-drivers or those short on time.
- 5 Days – Split between Reykjavík (2 nights) and Vík (2 nights), with a final night near Keflavík if you’ve got an early flight.
- 7–8 Days – A south coast trip works well: Reykjavík → Vík → Skaftafell/Jökulsárlón → Höfn or Eastfjords → Reykjavík. This balances variety with manageable drives.
- 10–12 Days – Add in North Iceland: a couple of nights around Mývatn or Akureyri, and one night in West Iceland (Borgarnes works well).
- 14 Days – You’ve got time for the full ring road. If it’s summer, you could even add Snæfellsnes or the Westfjords.
Iceland is a popular place to hire a campervan. Obviously, this gives you the freedom to follow one of these routes, but without the need to get to a specific hotel location each evening.
Best Areas to Stay in Iceland
Reykjavík & Keflavík
Reykjavík is the obvious starting point. Downtown (Miðborg) is lively, walkable, and where most tours depart from. If you’re visiting with kids, you might prefer Laugardalur, which is quieter. Budget travellers might like Hlíðar. Or, you could stay nearer the airport in Keflavik if depending on your flight times.
Golden Circle (Hveragerði, Selfoss, Flúðir)
These towns are ideal bases if you want to visit the hot springs, geysers and waterfalls, without rushing back to Reykjavík. Hveragerði in particular is known for its geothermal pools, while Selfoss has a good range of dining options.
South Coast (Vík & Kirkjubæjarklaustur)
No doubt you’ve seen the iconic photos of this area of Iceland. It’s where you find black-sand beaches, sea stacks, and waterfalls. Vík is the main destination people visit, but it’s pretty small. Kirkjubæjarklaustur is another great location to stay.
Southeast & Glaciers (Skaftafell, Jökulsárlón, Höfn)
If you’re keen on hiking, glacier tours, or photographing icebergs, stay around Skaftafell or Jökulsárlón. Alternatively, the fishing town of Höfn has a lot of charm too!
Eastfjords (Djúpivogur, Egilsstaðir, Seyðisfjörður)
Remote and scenic, the Eastfjords are great if you’re a more adventurous traveller, who doesn’t mind long drives.
North Iceland (Mývatn, Húsavík, Akureyri)
The north of the country offers some incredible landscapes such as Lake Mývatn with its bubbling mud pots and lava fields. Akureyri, Iceland’s second city, is a popular base for a few days of exploring this part of the country, particularly if you’re planning activities like whale watching in Húsavík.
West Iceland (Borgarnes, Hvammstangi)
A lot less popular, this area of the country is great for seeing the Northern Lights.
Snæfellsnes Peninsula
Snæfellsnes has a lot of Iceland’s highlights in one area, including glaciers, lava fields, dramatic coastlines, and the iconic Kirkjufell mountain.
Westfjords (Ísafjörður, Patreksfjörður)
For adventurous travellers in summer, the Westfjords is a place to see Iceland’s dramatic cliffs, native puffins and wild beauty. You’ll have to be prepared to drive long distances though!
Highlands (Kerlingarfjöll, Hveravellir)
If you’re visiting Iceland in summer, and hiring a 4×4, this area is very special. It’s an area popular with hikers and outdoorsy types.
Iceland Accommodation Types: What to Expect
Iceland has a good quality of hotels on offer, but prices can be pretty steep. This is particularly Reykjavík in the summer months. I’ve always been impressed with the range of unique accommodation in Iceland. There are beautiful cabins, stargazing domes and chic luxury villas.
Alternatively, if you like the idea of a self-drive trip, I’d recommend hiring a campervan. They give you total flexibility, save you money on eating out (which is always pretty pricey in Iceland) and you don’t have to think about accommodation. The only thing to know is that you’ll need to stay in registered campsites. You can’t just pull over and enjoy the views for the night.
Tips for your Trip to Iceland
If you’re sold on one of the routes I’ve suggested, it’s worth bearing a few things in mind during the booking process.
In summer, it’s best to book accommodation well in advance as it can be pricey. It’s a great time to visit as you’ll get maximum daylight hours, meaning you can pack more adventures into your trip.
If you’re keen to see the northern lights, you’ll want a darker time e.g. autumn / winter. It’s cheaper to visit then too, but conditions won’t be so nice for outdoor adventures.
If you’re planning a winter trip, keep your plans flexible. It’s common to deal with road closures and challenging weather. Plus, you’ll only have a short window of daylight each day.
It’s possible to see the northern lights all over the country. Just check the aurora websites during your visit. Success rates tend to be higher in areas such as Borgarnes, Snæfellsnes and Mývatn.
You don’t need a car to explore Iceland. There are lots of great day trips and multi-day tours which depart from Reykjavík, and take you to the famous sights.
Elevate Your Time in Iceland
If you’re looking for unique accommodation or experiences to make your Iceland trip more memorable, here are some of my top tips.
- Glass igloo: If you’re visiting in winter, book one of the glass igloos or bubble hotels where you can lie in bed watching the northern lights dance above you.
- Farm stays: Lots of family-run guesthouses are on working farms, so you might wake up to sheep bleating outside or get fresh skyr with breakfast.
- Rent a campervan: A campervan or RV offers the ultimate in freedom and flexibility. Plus, some Icelandic campsites are in stunning locations, with geothermal pools or mountain views.
- Hot tubs: Many hotels and guesthouses have outdoor hot tubs. There’s nothing quite like relaxing with views of the mountains or waterfalls. I’d happily plan my route around hot tubs if I could!
- Turf houses: These traditional Icelandic homes look like they’re straight out of The Hobbit. A few have been converted into cosy guesthouses, perfect if you fancy a storybook-style stay.
- Icelandic cabins: There are minimalist cabins dotted all over Iceland, often with floor-to-ceiling windows.
I hope this guide helps you plan your trip to Iceland. I think one of the biggest tips I can give you is to take it slow. It might feel like there’s just so much to see and do, you want to pack it all in to a short time. But, you really won’t appreciate your time if you race around! Give yourself some breathing space to enjoy it at a more leisurely pace.
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