Iceland road trip: itineraries, budget & tips

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Overrun with superlative mountain passes, epic coastal highways and ring roads looping through lava fields and beneath leviathan glaciers, Iceland is a road trip sensation. But driving around the country does not need to give you the chills: KAYAK’s guide will help you get your trip right first time.



A white car travelling a narrow road in the middle of a rugged black sand valley surrounded by steep pointed mountains.
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Reykjavík's snow-covered cityscape featuring the famed Hallgrímskirkja church.

How to get to Iceland?

Thanks to Iceland’s stratospheric rise as a must-visit destination in recent years, the country is now better served by flights from the UK than it ever has been — currently, there are frequent connections from London Heathrow, London Luton, Manchester, Glasgow and Edinburgh.

Nearly all flights depart for Iceland’s main gateway, Keflavík International Airport, which is a 50-minute drive southwest of Reykjavik — a spectacular, otherworldly journey in itself and the perfect starter for any Iceland road trip itinerary.

Meanwhile, second city Akureyri on the whale-frequented shores of the north coast is now accessible from London Gatwick, giving visitors a proper blast of Iceland away from the crowds.

Suitable cars for your road trip in Iceland

Navy blue car parked next to two tents on a rocky terrain.

In the mind’s eye, Iceland is a wilderness akin to Valhalla — with imposing fjords, glacial valleys and unreachable mountains. While this is largely true, the Icelanders have become dab hands at connecting all these wonders with wiggly roads and cliff-hugging routes.

That’s also to say it’s easy-as-pie to motor from Reykjavík all the way around the country’s circular Route 1 — or Ring Road — to the likes of Seyðisfjörður in the far east or Ísafjörður in the soaring Westfjords on well-maintained asphalt.

And the best bit? You can do it in any sort of car you want. I once drove from Borgarfjörður Eystri — Iceland’s folkloric capital of the elves, or ‘huldufólk’ — all the way to Reykjavík in a Toyota Aygo.

To explore farther inland away from the coast, especially on the F-roads — the rougher, unpaved gravel roads that prise open the country’s less trammelled interior — it’s a smooth transition from a simple hatchback to a muscular 4×4. Before you confirm your car rental, make sure you have the right insurance in place to cover any minor bumps or scrapes.

Best time to do a road trip in Iceland

A car driving down the road as the northern lights swirl around a snow-capped mountain in the distance.

If you love the great outdoors, you’ll be smitten by Iceland no matter what time of year you choose to travel.

Of course, summer is for those who want to only drive in daylight. In June, the midnight sun means the country is aglow 22.5 hours a day. November to April, meanwhile, is for dark nights and northern lights, with January being the darkest month, with only an average of 6.7 hours of daylight (source: weatherbase.com). Note, that around this time, snowstorms can temporarily close the Ring Road.

Those in search of better weather adventures, should come in May or June for the driest months, while July and August are the hottest. But not by much: consider 11°C the country’s optimal conditions for sunbathing or wild swimming. It’s a good job then, that there are geothermal spas and heated outdoor pools for every scenario.

As Iceland is as popular as European destinations come these days, November through February is the best time for the quietest roads and — arguably, the clincher — cheaper accommodation. Certainly, that’s adequate compensation for the shorter days. June to August are by far the most popular months to visit (information based on KAYAK’s flight search data).

My most recent trip — from Reykjavík to the Snæfellsnes Peninsula in Western Iceland — was the perfect compromise. Plenty of wow moments, without the impact of mass-market bus tours on the road, or hotel prices that cleaned out my wallet.

Estimate your road trip budget

Two men and a woman bathing in a mountain river, their bikes parked on the shore behind them.

Before heading to Iceland, you’ll likely want to know how much it’ll cost you. Here, at your fingertips, is data based on KAYAK’s comparison from hundreds of travel providers to help you better estimate the cost of your road trip itinerary.

  • Average price for a roundtrip flight from London to Reykjavík: £186.
  • Average price for one night in a mid-range double hotel room in Reykjavík: £182.
  • Average price for one night in a hostel in Reykjavík: £89.
  • Average daily rate for a rental car in Reykjavík: £76.
  • Cost of 1 litre of fuel in Iceland (as of May 2024, according to numbeo.com): £1.80.

The cost for a 7-day road trip in Iceland, covering 825 miles — hotel accommodation, car hire, and gas consumption only — would be approximately £2,100 for two travellers.

The Ring Road in 10 days

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Day 1: Reykjavík (1 night)

A long-haired woman walking through the colourful streets, wearing a red jacket, knitted sweater, and sunglasses.

Ten days in Iceland is guaranteed to leave you speechless. After soaking up the volcanic landscapes en route from Keflavík International Airport, Reykjavík’s star turns take over. Begin at art deco Hallgrimskirkja church, then plot a map through the colourful streets to the National Museum of Iceland, Harpa Concert Hall and the Sun Voyager sculpture, like the ribs of a Viking ship on the seafront.

Where to stay: Housed in a former biscuit factory, Kex Hostel is a downtown boutique hotel with a here-and-now industrial look and an open-armed restaurant, bar and self-catering kitchens if money is tight.

Day 2: Golden Circle (1 night)

Gullfoss waterfall, a magnificent natural wonder in Iceland, cascades over two tiers of rugged rock formations, creating a stunning display of powerful water currents and mist that takes one's breath away.

Distance from Reykjavík: 73 miles — 2 hours

Buckled up, accelerator primed, it’s onto your first stop: the famed Golden Circle. This scenic, 190-mile loop beginning 25 miles east of the capital absorbs three unmissable natural marvels: Thingvellir National Park, the Geysir Geothermal Area and Gullfoss Waterfall. It’s a simple but successful formula that makes it the most visited one-day itinerary in the country.

Where to stay in the Golden Circle area: A country hotel with cabins and hot tubs, Blue Hotel Fagrilundur is in easy reach of the Golden Circle’s triptych of wonders. To blow the budget, opt for Torfhús Retreat, a collection of turf-topped chalets with private thermal pools.

Day 3: Vik (1 night)

A man in a red jacket with raised hands stands at the edge of a lush, rugged gorge and a stream running through it with a view of a scenic volcano.
A spectacular display of the northern lights fills the night sky above a peaceful beach with a sheer rock formation to the side.

Distance from Golden Circle: 110 miles — 2.5 hours

Stunning roadside views are standard on Iceland’s southern coast, but Vik has a handy knack for cranking up the drama. Of immediate appeal are the gushing waterfalls tucked in gorges off the roadside that look like they’ve been cleft by a giant axe. Chief among these are Seljalandsfoss and Skógafoss, both beautifully framed by cliffs and sea views.

Where to stay: Near to Vik’s renowned black sand beach (spot it used as a location in Rogue One: A Star Wars Story), Hotel Kria has a sci-fi feel to it, with a sleek, minimalist design.

Day 4: Vatnajökull National Park (1 night)

Two smiling men standing on the shore of a lake and hugging with a view of a snowcapped mountain in the background.

Distance from Vik: 87 miles — 1 hour 40 minutes

Strap on your harness and crampons for an adrenalin-packed glacier adventure on Europe’s largest ice sheet. This immense national park is a playground for all sorts of adventures, with mountain guides offering glacier walks and ice climbing introductions from its base camp at Skaftafell.

I’ll admit I’m scared of heights, but still managed to channel my inner hairy-chested hero on a micro-adventure across the Vatnajökull Glacier’s crevasse-ravaged surface. For something gentler, there are trails for all ages and abilities from the Skaftafellsstofa Visitor Centre.

Where to stay: Overlooking a prime section of Vatnajökull National Park, Hotel Skaftafell combines home comforts with IMAX-sized views of the glacier valley behind it.

Day 5: Djúpivogur (1 night)

A man standing by fence in a yellow snow jacket strokes Icelandic horse on its head, snow covered mountains in background

Distance from Vatnajökull National Park: 143 miles — 3 hours

Thirty-five miles east, and at 300m deep, Jökulsárlón’s glacial lake is the lowest point in Iceland. It jabs the senses with hints of the colossal ice field that lies to the north and is the first stop on the road to Djúpivogur — a zodiac cruise is a must here. The scale dwarfs most imaginative fantasies and there is a sense that arriving here is to have entered a new Ice Age. Then, onwards, the road northeast leads to Djúpivogur on spectacular Berufjörður.

Where to stay: Hótel Framtid in Djupivogur is a delightfully-creaky property in a renovated Danish merchant’s house dating back to 1904.

Day 6: Seydisfjordur (1 night)

A sky-blue church on the mountainside at the end of an asphalt road in the middle of colourful houses on a foggy day.

Distance from Djúpivogur: 110 miles — 2 hours 30 minutes

The road to Seydisfjordur is a saga in itself and the village has always been a world apart from the rest of Iceland — it’s cut-off by the Fjarðarheiði mountain pass and located some 17 miles off the Ring Road. Never mind that though, as the valley it occupies is a stunner and the journey alone is worth it — along the way, stop in mountain-fringed Reyðarfjörður and stock up on supplies in Egilsstaðir.

Where to stay: At the intersection of village life, Hotel Aldan is spread across several restored buildings, including the old bank and post office. The main building is also home to Norð Austur, a sushi restaurant with an Icelandic twist.

Day 7: Lake Mývatn (1 night)

A herd of sheep walks through a snowfield next to a frozen lake.
A brown cabin at the centre of a lake's steaming pool.

Distance from Seydisfjordur: 125 miles — 2 hours 40 minutes

Lake Mývatn fits the bill in winter as the self-proclaimed “Northern Lights Capital of Iceland”, but it’s a delight in any season, particularly because of the geothermal Mývatn Nature Baths — milky pools where you can steam and soak just as nature intended. For a journey into Iceland’s legends of the magical ‘huldufólk, detour northeast along Route 94 and across a glacial river delta onto the gravel road to Borgarfjörður Eystri.

Where to stay: The big benefit of Berjaya Mývatn Hotel is it’s a five-minute walk to Lake Mývatn, plus it has a cosy restaurant, pub tavern and attention-to-detail rooms as lovely as any you’d find in Reykjavík.

Day 8: Akureyri (1 night)

A church sticks out in the middle of traditional houses at the base of a lush green mountain alongside a marina with anchored boats.

Distance from Lake Mývatn: 46 miles — 1 hour

With a few exceptions, Northern Iceland is the most memorable place to go whale watching in Europe. Blissfully quiet compared to other spots, the coast is prime cetacean territory, with both Akureyri and nearby Husavik (46 miles farther north) welcoming minke, fin, orca and blue whale into the surrounding bays. With a humpback breaching before your eyes, it’s the visceral, three-dimensional Iceland you’ve always hoped for.

Where to stay: By this stage of your Iceland Ring Road itinerary, you might want to trade country quiet for city vibes. Akureyri is the closest the country’s north gets to this fast pace and all roads seem to lead to landmark Hótel Kea.

Day 9: Stykkishólmur (1 night)

Mount Kirkjufell, a peak in the shape of an arrowhead, is surrounded by a beautiful green environment and a waterfall that runs into the river.

Distance from Akureyri: 220 miles — 4 hours 30 minutes

Don’t panic about the driving distance today. In a country nearly the same size as England, there is always going to be one long day behind the wheel. And this is it. The good news is the scenery is as wild as you’ve come to expect — pit stops should include silvery Bergárfossand the family-friendly Icelandic Seal Center — and journey’s end brings you to Stykkishólmur, one of Iceland’s loveliest towns.

Some 25 miles farther west along the coast outside Grundarfjörður is Kirkjufell, or Church Mountain. It’s now the most photographed peak in the country. On my last visit, the car park was nearly full: go early or late to avoid the stampede.

Where to stay: Apart from a handful of low-key guesthouses, there’s only one address in town: Fosshotel Stykkishólmur. As you’d expect from one of Iceland’s most popular hotel chains, the rooms are box-fresh, while it has an uncluttered modernist look.

Day 10: Reykjavík (1 night)

A grassy valley surrounding a snowy mountain dotted with charming cottages.

Distance from Stykkishólmur: 108 miles — 2 hours 20 mins

It’s back to the capital, across the lava-ravaged landscapes of Snæfellsnes and with a side trip to ogle Snæfellsjökull, the peninsula’s eye-popping, glacier-capped stratovolcano. By the time you reach Reykjavík, time off from behind the wheel is compulsory. Those in search of Icelandic at its most sybaritic should splash out at the Sky Lagoon in Kópavogur. Or finish your life-affirming trip in the ethereal waters of the geothermal Blue Lagoon on the Reykjanes Peninsula.

Where to stay: Fosshotel Reykjavik, in the city’s business district and with 320 rooms, is Iceland’s largest hotel. It stands out for its superb bay area views and lower-ground floor bar, Bjorgardurinn.

The Snæfellsnes Peninsula in 3 days

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Day 1: Búðir (1 night)

A wooden black church stands in a deserted field at the feet of a mountain

Distance from Reykjavík: 111 miles — 2 hours 30 minutes

For incredible loveliness on a more visceral, mystical scale than Reykjavík can provide, your road leads northwest from the capital, under two sea tunnels, and onto the Snæfellsnes Peninsula. As sheep outnumber people here, there’s not often road traffic to worry about. It’s one of Iceland’s wildest places, so with your windproof, water-resistant jacket on, get a close up of Bjarnafossa, a waterfall that hurls itself off a vertical precipice and Búðakirkja, the black church of Iceland.

Where to stay: Located a brisk walk from Búðakirkja — frankly, there is nowhere else to stay on this hunk of the coast — Hótel Búðir takes centre stage with ample rooms, a restaurant and bar.

Day 2: Stykkishólmur (1 night)

Two lovely red houses with grass-covered roofs are set against a breathtaking backdrop of steep mountains, with wood tables and chairs in front.

Distance from Búðir: 80 miles — 1 hour 50 minutes

There are plenty of must-sees on Snæfellsnes, so rise early and strike out for Arnarstapi and its lava tube tunnels that fan out beneath the Snæfellsjökull stratovolcano. Though French author Jules Verne never visited West Iceland, Snæfellsjökull National Park became the starting point for his Journey to the Centre of the Earth back in 1864.

The road on beckons: the distinctive black sand beach of Djúpalónssandur is another must, as is Saxhóll, a volcanic crater where the view of Snæfellsjökull amps up the drama. Stopping at the roadside becomes routine, as one superlative view after another appears to fill the windscreen on your way to Stykkishólmur.

Where to stay: Located outside the centre, Fosshotel Stykkishólmur is the most likely spot to land a room in this harbour town. Many visitors day-trip here from Reykjavík, but slowing to Icelandic time, the instinctive feeling is to stay and enjoy a trip-making meal at nearby Narfeyrarstofa.

Day 3: Reykjavík (1 night)

A woman in a blue jacket standing beneath rows of fish hanging on wooden racks to dry in the air.

Distance from Stykkishólmur: 108 miles — 2 hours 20 mins

Shrugging off the thousand-odd islands of Stykkishólmur, the road winds back south through dramatic mountain scenery, with the temptation to stop for a hike always there. Lesser known is the Bjarnarhöfn Shark Museum, where the process of making fermented shark — an Icelandic delicacy — is chewed over by the story-telling owner. Equally strange back in the capital is the Icelandic Phallological Museum, dedicated to the collection, study and presentation of penis specimens.

Where to stay: It’s your last night, so splurge on a night at The Reykjavik EDITION. It’s a jewel-box hotel and one of the country’s priciest, but comes with party piece bar, restaurant and sumptuous suites.

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