Southern Iceland Holidays from £532

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Your Southern Iceland Holiday

With the details organised before you go, our Southern Iceland holiday packages let you focus on enjoying yourself. One of the best places to do that is Reykjavik, which is famous for its nightlife, culture and festivals. Kick off your trip to Southern Iceland with a few nights in Reykjavik visiting popular attractions like Reykjavik Harbour and Laugavegur. Reykjanesbær is another top city that draws travellers from far and wide. Blue Lagoon and Viking World Museum are two of the top places to see in this destination. When it's time to stop dreaming and start packing, Expedia will help turn your Southern Iceland holiday into reality.

Top Southern Iceland Flight + Hotel Deals

Price found within the past 48 hours. Click for updated prices.
Reykjavik Residence Apartment Hotel

Reykjavik Residence Apartment Hotel

Downtown Reykjavik
£532
per person
26 Oct - 29 Oct
found 1 day ago
Return flight included
Birmingham (BHX) to Reykjavik (KEF)
9.6/10 Exceptional! (3,364 reviews)
They have many buildings. The main building is good and has amenities. The o e from July 16-20 had no way to take luggage up as lift out of order, and the room cards didn’t work. Bathroom small, sink very very small

Reviewed on 6 Aug 2026

Hotel Laxnes

Hotel Laxnes

Save 100% on your flight
£851
per person
10 Oct - 17 Oct
found 24 hours ago
Return flight included
London (LON) to Reykjavik (KEF)
8.6/10 Excellent! (790 reviews)
This was our first stop in Reykjavik and the staff were wonderful! Good recommendations for food (it's not downtown, but gas and groceries right there and an easy drive into the city). We had to leave early the next morning and they even packed a breakfast for us to take on the road. Would stay there any time!

Reviewed on 4 Aug 2026

Tower Suites Reykjavik

Tower Suites Reykjavik

Tún
Save 100% on your flight
£849
per person
26 Oct - 29 Oct
found 1 day ago
Return flight included
Birmingham (BHX) to Reykjavik (KEF)
9.6/10 Exceptional! (326 reviews)
This property is a boutique hotel located steps from center city. Great view of the. City.

Reviewed on 28 Jul 2026

Hotel Holt - The Art Hotel

Hotel Holt - The Art Hotel

Downtown Reykjavik
Save 100% on your flight
£944
per person
17 Oct - 23 Oct
found 1 day ago
Return direct flight included
Birmingham (BHX) to Reykjavik (KEF)
9.2/10 Wonderful! (1,014 reviews)
ICELAND SJF Villa , Hot tub & Outdoor Sauna Amazing Mountains View - 15 min to downtown

ICELAND SJF Villa , Hot tub & Outdoor Sauna Amazing Mountains View - 15 min to downtown

Save 100% on your flight
£858
per person
31 Oct - 3 Nov
found 15 hours ago
Return flight included
Manchester (MAN) to Reykjavik (KEF)
9.6/10 Exceptional! (28 reviews)
Absolutely great. The pictures don’t do the property justice. Very spacious, spotless clean, totally fell in love with the floors. The sauna and tub were spectacular, got some amazing aurora views while relaxing in both. The neighborhood was great, with multiple stores like Bónus just a few minutes away. The owner was super friendly. Would definitely stay here again.

Reviewed on 11 Dec 2025

Where to stay in Southern Iceland

Find the best Southern Iceland areas and neighborhoods for the activities you enjoy most. Learn more about Southern Iceland
A cityscape with a prominent church, a body of water, and snow-capped mountains in the background.

Downtown Reykjavik

4 out of top 10 points of interest in this area

If you're spending some time in Downtown Reykjavik, Hallgrimskirkja and Reykjavik Pond are top sights worth seeing.

A river flowing through a town with buildings and greenery.

Háaleiti

When in Háaleiti, you can plan a visit to Laugardalsholl and Kringlan Shopping Mall, some noteworthy sights in the nearby area.

A row of white buildings with dark trim and a balcony.

Hlíðar

Though Hlíðar may not have many top sights, you can venture to the surrounding area to see attractions like Reykjavik Harbour and Perlan.

Two boats named 'Christina' and 'Andrea' docked at a marina with a rocky breakwater and a mountainous backdrop.

Vesturbær

1 out of top 10 points of interest in this area

The abundant dining options and waterfront views are top of the list for many visitors to Vesturbær. A stop by Reykjavik Harbour or Landakotskirkja might round out your trip.

A row of colorful townhouses with a clear blue sky.

Tún

If you're spending some time in Tún, Laugavegur and Hofdi House are top sights worth seeing.

Southern Iceland Essential Information

Language
Icelandic
Currency
Icelandic krónurs
Closest Airport
Keflavik Intl. Airport (KEF)

Top hotels in Southern Iceland

Center Hotels Plaza

Center Hotels Plaza

Adalstraeti 4 Reykjavik
Fully refundableReserve now, pay when you stay
£275
7 Sept - 8 Sept
includes taxes & fees
8.8/10 Excellent! (1,408 reviews)
"The hotel was conveniently located near the temple district and other sightseeing. Breakfast was great and the staff was friendly."

Reviewed on 6 Aug 2026

Center Hotels Plaza
Hotel Reykjavík Grand

Hotel Reykjavík Grand

Sigtun 28 Reykjavik
£262
7 Sept - 8 Sept
includes taxes & fees
9/10 Wonderful! (1,022 reviews)
"Hotel Reykjavík Grand has a lot of potential, but unfortunately the management and housekeeping fell well below expectations. The rooms were spacious, clean, and comfortable, making the hotel itself a pleasant place to stay. The hotel also offered complimentary continental breakfast and provided ..."

Reviewed on 6 Aug 2026

Hotel Reykjavík Grand
Grandi by Center Hotels

Grandi by Center Hotels

Seljavegur 2 Reykjavik
Fully refundableReserve now, pay when you stay
£286
7 Sept - 8 Sept
includes taxes & fees
9.4/10 Exceptional! (1,648 reviews)
"The rooms were fantastic and staff was very friendly. The breakfast was delicious but I wish I had pre-purchased the breakfast buffet. It would have been less costly."

Reviewed on 5 Aug 2026

Grandi by Center Hotels
See all 2,055 properties in Southern Iceland
Lowest nightly price found within the past 24 hours based on a 1 night stay for 2 adults. Prices and availability subject to change. Additional terms may apply.

Stay near popular Southern Iceland attractions

A marina with various boats docked, a large ship in the background, and a cityscape with buildings.

Reykjavik Harbour

9.2/10 (8,713 reviews)
Reykjavík's historic harbour pulses with maritime culture amid colourful repurposed fishing buildings. Embark on whale watching or Northern Lights cruises while enjoying panoramic views of Faxaflói Bay and Mount Esja.
See properties
A modern building with large windows and a wooden deck leading into a clear blue pool.

Blue Lagoon

9.4/10 (4,050 reviews)
Iceland's iconic Blue Lagoon offers milky-blue geothermal waters rich in minerals amid volcanic landscapes. Reserve a twilight soak to experience the ethereal atmosphere while enjoying silica mud masks.
See properties
A street with a pink bicycle, a yellow bench, and various storefronts.

Laugavegur

9.4/10 (6,657 reviews)
Reykjavik's main thoroughfare pulses with colourful boutiques, Icelandic design shops, and lively cafés. Wander between art galleries and cosy restaurants before experiencing the street's legendary nightlife scene.
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A waterfall cascading down a rocky cliff into a river.

Gullfoss

9.8/10 (564 reviews)
Part of a nature reserve, this waterfall crashing into a deep canyon is among the country’s most iconic features.
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A coastal landscape with a prominent green hill, a rocky cliff, and distinctive rock formations in the sea.

Black Sand Beach

9.8/10 (1,665 reviews)
Iceland's dramatic black sand beach features towering basalt columns and Reynisdrangar sea stacks. Keep a respectful distance from the powerful Atlantic waves while watching for puffins nesting in summer.
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A modern building with a reflective glass facade, surrounded by a marina with several boats.

Harpa

9.2/10 (5,664 reviews)
Harpa's geometric glass façade reflects Iceland's volcanic landscape and Northern Lights, creating a dazzling waterfront landmark. Experience world-class performances or tour this architectural masterpiece from within.
See properties

Frequently asked questions

How much does a Southern Iceland travel package cost?
From just £532. Yes, you read that correctly. Our Southern Iceland packages are a great way to stretch your budget further. Combine your hotels, flights and rental car and get out and explore this lively destination.
If I'm not able to travel, can I cancel my Southern Iceland travel package?
We totally get that life sometimes gets in the way of your plans. If you've booked a Southern Iceland travel package and have to cancel or amend it, we're here to help. We suggest having a look at our Customer Service Portal first for information. But in general, if you've booked your package within 24 hours, you may be able to cancel or change your itinerary at no cost. If it's been more than 24 hours, your airline, hotel or car rental company may impose a fee.
How do I get a cheap travel package to Southern Iceland?
Browse and lock in everything all in one place with our Southern Iceland travel packages. You'll find bargains on hotels, flights and more that'll keep your hip pocket happy and your adventurous spirit busy. And, with more than 550 airlines and 1,000,000 hotels all over the world to select from, you'll have endless opportunities to mix and match as you please.
Does Expedia offer Book Now, Pay Later Southern Iceland holidays?
Your bank balance shouldn't prevent you from going on holiday, so Expedia has devised a solution to help. Thanks to our partnership with online lender Klarna, it's easier than ever to book an incredible getaway without using up all your savings. Klarna offers flexible payment options during the checkout process that take the stress out of budgeting for your trip. Check out these flexible payment options:
  • Pay monthly holidays: Klarna offers convenient monthly payment plans that work for all budget sizes, so you can take that well-earned holiday sooner.
  • Pay in instalments holidays: If you'd prefer to pay for your escape across multiple transactions, holidays paid in instalments might be right for your Book Now, Pay Later holiday through Klarna.
  • Low deposit holidays: Hitting the "book now" button is much easier with this payment plan. Just put down a small deposit on your booking and then get on your way.
How far in advance should I book my Southern Iceland holiday?
Reserving your tickets early with Expedia means one less thing to worry about. Many air carriers display prices up to 12 months prior to departure dates. This is generally the cheapest time to book. If circumstances have left you booking late, discount tickets to Southern Iceland sometimes emerge a few weeks before departure.
What does an Expedia Southern Iceland travel package include?
From flights and hotels to rental cars, Expedia can help you create a Southern Iceland package that suits you. Heading away for a week or longer? Give some thought to a hotel, flight and rental car bundle. If your break is short, a hotel and airfare deal may be more your style. Activities can also be added after you've booked. Our travel packages make it a cinch to save and plan.
What should I know before booking a Southern Iceland travel package?
A travel package can be tailored to your budget and is an easy way to make your hard-earned dollars stretch further. What you include is up to you. Hotels, rental cars and flights — decide on a combination that suits your plans.
Can I choose my airline with a Southern Iceland Expedia travel package?
Yes — that's one of the best things about an Expedia travel package. You get to choose. We have more than 550 airline partners throughout the world, so you have lots of choice when organising your Southern Iceland getaway.

Explore a world of travel with Expedia

* Savings based on package bookings compared to the price of the same components booked separately. Savings not available on all packages. Flight-inclusive packages are ATOL protected.