Iceland Holidays 2025/2026

Iceland is renowned for its incredible natural wonders – the Land of Fire and Ice comes complete with volcanoes, glaciers, and of course, the Northern Lights. Reykjavik, the island’s capital, by contrast is a bustling vibrant city, filled with restaurants, shops and spas, and has a chilled music and arts scene. 

Iceland might be a world class destination but it knows how to set up a holiday on the cheap. Book with Holiday Hypermarket for exclusive online discounts to secure your bargain holiday to Iceland.

Maybe it’s because of its stunning natural beauty, its shifting tectonic plates or its volcanic landscape but Iceland is a land of constant surprises. Look to the skies and you’ll be able to see the Northern Lights, look to the ground and you’ll notice geysers or even a geothermal field. Iceland certainly is a must visit destination for all these spectacular sights.

Iceland is a country that was settled by the Norse and has retained its spirit of originality and rugged determination. There’s so much to do, see and experience on holiday in Iceland it makes the perfect getaway – just remember to pack extra layers. Iceland’s climate can be quite unpredictable but it does vary on where in Iceland you go.

Given the early Norse love of literature, it’s not surprising that Reykjavik is a UNESCO City of Literature. Be prepared to spot citizens reading their work, or that of others, on city benches or wherever they can find a perch. Holidays in Iceland may not be the same as reading your favourite book on golden sands under the scorching sun, but if you’re an avid reader, Iceland is certainly the destination to do it.

Overwhelmed by natural beauty

You may be overwhelmed by the sheer magnificence of Iceland’s natural beauty but you’ll be able to snap some seriously amazing pictures. Winter temperatures can reach as low as -30°C in the far north, but the heat from the island’s natural thermal springs and its bursting geysers will keep you warm. Most people are surprised when they find out Iceland isn’t always freezing, the snow and ice can disappear in the summer months!

The Blue Lagoon thermal spa is less than a half hour drive away from Reykjavik and can easily be accessed by hire car. If you want to spend some time in its fantastically hot waters and take in some of the massage and other therapeutic treatments, you’ll have to book in advance. This activity is certainly a must-do when on holiday in Iceland.

Another overwhelming beauty in Iceland is the Nautholsvik geothermal beach, a manmade creation where warm water from natural hot springs and cold from the sea mix together in a sandy lagoon to make one seriously comfortable day on the coast. A crazy number of geothermal pools pepper spaces in and around the city that only cost a small entrance fee – it’s the perfect destination to see the sights without breaking the bank.

Small city with a big heart

Iceland’s capital, Reykjavik, is where most of the package holidays to Iceland will take you and being so vast and varied, it’s perfect for a cheap getaway. It may be small in size and in population but that’s definitely a bonus here. The city rocks, with activities ranging from the quirky to the traditional, Iceland has plenty of cultural spots and stunning landscapes that can be explored without emptying the wallet. 

If you’re looking for high-flying sights, there’s the breathtaking peaks of Mount Esja, part of a volcanic mountain range. But if you want to stick to exploring the ins and outs of the city itself, you can simply join a free walking tour. Pick up a few common Icelandic phrases before you go and you’ll get the full Iceland experience. 

Exploring Iceland without the expense

Making the most of Iceland on a budget means getting outdoors and experiencing this gorgeous landscape firsthand. Within Reykjavik alone, you’ll find beaches, hot springs, museums and a gateway to hiking and biking trips, all free of charge.

There are regular tours that leave Reykjavik for other parts of the island so you can include some exciting activities in your Iceland holiday. Some package holidays to Iceland even include specific excursions within the price, so be sure to check before booking. This can be an ideal way to secure your cheap Iceland holiday.

Cheap Iceland Day Trips

Dettifoss is a six-hour drive away and is home to the largest waterfall in Europe, and is also an excellent destination to catch nature’s very own firework displays – the Northern Lights. In fact, you can spot these heavenly light shows all around Iceland, though you have a better chance of seeing them in the countryside rather than the city.

Many of you may holiday in Iceland with the sole purpose of seeing the Northern Lights, but this country has so much more to offer on top of that. You can try and feel the earth moving beneath your feet when you take a 35-minute drive away from Reykjavik and head out to Thingvellir National Park, where the planet’s tectonic plates are very slowly moving apart. There are some extraordinary fissures, rifts and rivers in this unusual landscape.

For keen golfers you can play at one of the world’s most unusual courses by heading to the north of the island. Land of the Midnight Sun, is where you could play a couple of rounds in the middle of the night, thanks to Iceland’s geographical position close to the Arctic Circle. That sounds pretty cool!

For the keen art lovers, you can explore plenty in Iceland too. Head to Reykjavik Art Museum or the country’s national gallery to find works of Iceland’s most famous artists. Or simply wander around central Reykjavik – often referred to by its postcode as 101 – which is the place to spot the iconic, the unusual and the curious.

There’s something for everyone in Iceland so book your cheap holiday to Iceland today and see what sights will impress you the most.

Exciting nightlife

You may not think of Iceland as a party destination, but if that’s what you want, you can certainly find it. Whether you visit a nightclub, music venue or bar, be prepared to have an energetic night in Reykjavik – you probably won’t reach your bed until the early hours of the following morning. Reykjavik has a flourishing night scene, mainly based around the 101 district. Bjork, the famous Icelandic singer, was born in the city and much of the music echoes her distinctive, quirky vibe. 

Most of the bars and clubs don’t have dress codes so you can still make sure you’re plenty warm enough – however, the more dance moves you pull out, the warmer you’ll stay!

Food with a difference

Another great feature of Iceland holidays is the delicious cuisine. Iceland has a few dishes that are very local – shark, or hakarl, is just one example, though only at certain times of the year. In general lamb and seafood are popular, though if you want to try a drink with a difference, then Brennivin, or Black Death, packs a punch as it’s a schnapps variant made from fermented potatoes and caraway seeds.

Plokkfiskur is boiled cod or haddock mashed with potatoes and a creamy sauce, which is entirely delicious. And if you haven’t already tasted the local yoghurt, then Skyr is what you’re looking for.

The hotels in Iceland will give you a choice of international menu favourites, as well as the local cuisine, so you get the chance to try new dishes but have the option of home favourites too. Indeed, when exploring Iceland, you’ll see that restaurants cater for all kinds of flavours. Who knows, you may return home with a new favourite dish!