Southern Iceland Luxury Holidays

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Top flight + Luxury hotel deals in Southern Iceland

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

Reykjavik Residence Apartment Hotel

Downtown Reykjavik
£535
per person
25 Nov - 29 Nov
found 1 day ago
Return direct flight included
Birmingham (BHX) to Reykjavik (KEF)
9.6/10 Exceptional! (3,456 reviews)
Amazing place

Reviewed on 3 Oct 2026

Tower Suites Reykjavik

Tower Suites Reykjavik

Laugardalur
£1,330
per person
5 Nov - 10 Nov
found 19 hours ago
Return flight included
Bristol (BRS) to Reykjavik (KEF)
9.6/10 Exceptional! (330 reviews)
This was such a neat experience! Breakfast being included was awesome. Great setup for a big group as there was a middle area to meet up. Views are spectacular. Only complaint was initially accessing the building. But once we were setup, it was great.

Reviewed on 2 Oct 2026

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

Digranes
Save 100% on your flight
£1,470
per person
22 Nov - 28 Nov
found 21 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

Hotel Holt - The Art Hotel

Hotel Holt - The Art Hotel

Downtown Reykjavik
Save 100% on your flight
£790
per person
5 Nov - 10 Nov
found 19 hours ago
Return flight included
Bristol (BRS) to Reykjavik (KEF)
9.2/10 Wonderful! (1,001 reviews)
Kvosin Downtown Hotel

Kvosin Downtown Hotel

Downtown Reykjavik
Save 100% on your flight
£704
per person
17 Dec - 22 Dec
found 1 day ago
Return direct flight included
Birmingham (BHX) to Reykjavik (KEF)
9.8/10 Exceptional! (1,010 reviews)
Very nice hotel in a perfect location for sightseeing. A bit noisy but very cute rooms with updated bathrooms.

Reviewed on 29 Sept 2026

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5* Luxury holidays in Southern Iceland

Price found within the past 48 hours. Click for updated prices.
Diamond Suites by Reykjavik Keflavik Airport

Diamond Suites by Reykjavik Keflavik Airport

£1,078
per person
5 Nov - 10 Nov
found 19 hours ago
Return flight included
Bristol (BRS) to Reykjavik (KEF)
9/10 Wonderful! (55 reviews)
The room was not clean. Specifically the bath room and tub had black something coming out of the drain and jets. Also they promoted rooftop hot tubs but neither of them were operational. Food was not that great in the restaurant. Overall we were not happy with our stay. We complained to management for some sort of compensation and they have ghosted us. Very poor experience. Would not recommend staying here.

Reviewed on 30 Sept 2026

Torfhús Retreat

Torfhús Retreat

Save 100% on your flight
£3,562
per person
16 Dec - 21 Dec
found 1 day ago
Return flight included
London (LHR) to Reykjavik (KEF)
10/10 Exceptional! (44 reviews)
We loved this retreat, it was the last leg of our trip and it was neat to be able to stay in a turf house. Everything there was made locally in Iceland you can tell the owners put a lot of thought in it and the private soak tub for each house was lovely. We got to see the northern lights the service was excellent and the house had a full kitchen and dining table to eat.

Reviewed on 7 Sept 2026

Iceland Parliament Hotel, Curio Collection By Hilton

Iceland Parliament Hotel, Curio Collection By Hilton

Downtown Reykjavik
£1,497
per person
28 Dec - 2 Jan
found 1 day ago
Return flight included
London (LHR) to Reykjavik (KEF)
9.6/10 Exceptional! (347 reviews)
Staff needs to be more welcoming. Felt a little snobbish at front desk.

Reviewed on 28 Sept 2026

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3 Night Luxury holidays in Southern Iceland

Price found within the past 48 hours. Click for updated prices.
Miðgarður by Center Hotels

Miðgarður by Center Hotels

Tún
£512
per person
13 Nov - 16 Nov
found 16 hours ago
Return direct flight included
Birmingham (BHX) to Reykjavik (KEF)
9.4/10 Exceptional! (1,108 reviews)
Tower Suites Reykjavik

Tower Suites Reykjavik

Laugardalur
Save 100% on your flight
£790
per person
20 Nov - 23 Nov
found 22 hours ago
Return flight included
London (LGW) to Reykjavik (KEF)
9.6/10 Exceptional! (330 reviews)
This was such a neat experience! Breakfast being included was awesome. Great setup for a big group as there was a middle area to meet up. Views are spectacular. Only complaint was initially accessing the building. But once we were setup, it was great.

Reviewed on 2 Oct 2026

Center Hotels Laugavegur

Center Hotels Laugavegur

Downtown Reykjavik
£513
per person
13 Nov - 16 Nov
found 16 hours ago
Return direct flight included
Birmingham (BHX) to Reykjavik (KEF)
9.2/10 Wonderful! (1,362 reviews)
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4 Night Luxury holidays in Southern Iceland

Price found within the past 48 hours. Click for updated prices.
Center Hotels Laugavegur

Center Hotels Laugavegur

Downtown Reykjavik
Save 100% on your flight
£418
per person
18 Dec - 22 Dec
found 1 day ago
Return flight included
London (LON) to Reykjavik (KEF)
9.2/10 Wonderful! (1,362 reviews)
Tower Suites Reykjavik

Tower Suites Reykjavik

Laugardalur
£941
per person
3 Nov - 7 Nov
found 12 hours ago
Return flight included
London (LON) to Reykjavik (KEF)
9.6/10 Exceptional! (330 reviews)
This was such a neat experience! Breakfast being included was awesome. Great setup for a big group as there was a middle area to meet up. Views are spectacular. Only complaint was initially accessing the building. But once we were setup, it was great.

Reviewed on 2 Oct 2026

Premium Downtown Queen Apartment KARTULI

Premium Downtown Queen Apartment KARTULI

Laugardalur
Save 100% on your flight
£464
per person
3 Nov - 7 Nov
found 12 hours ago
Return flight included
London (LON) to Reykjavik (KEF)
6/10 (2 reviews)
Bed bugs! All of us being bitten and we caught two bed bugs on our beds! I tried to contact the host and no answers. Since it’s 1am, we have no other places to go. Our next day’s plan is ruined because we need rest. It’s awful experience!We have to sit in chairs the whole night. I tried again contacting the host during morning. No answers yet! This is unacceptable and we request a full refund!

Reviewed on 14 Aug 2026

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All you need to know about luxury holidays in Southern Iceland

What can I expect from a luxury Southern Iceland holiday?

Luxury on holiday is all about relaxing and feeling good. Whether you choose a sumptuous spa, Michelin-starred restaurant or super-king bed is your call. Use our amenities filters to find the things that tick all your boxes.

How can I find all-inclusive luxury holidays in Southern Iceland?

Tick the all-inclusive and 5-star filters to find the crème de la crème of Southern Iceland holidays. With everything included in the package price, you can drink and dine to your heart’s content, without worrying about that bill at the end.

Can I book a cheap luxury holiday to Southern Iceland?

A luxury holiday doesn’t have to break the bank. Travel out of peak season, choose a hotel or resort a little way out or go for a last-minute getaway and you’ll find some cracking deals. Sort by price to find luxury holidays to Southern Iceland starting at £418. Prices and availability are subject to change. Additional terms may apply.

Are there luxury spa holidays in Southern Iceland?

For sunset massages on the shoreline and view-filled saunas, use our spa filter to find your ideal Southern Iceland spa hotel. Book a whole weekend soaking away your stresses, or hop into the spa after the beach, some golf or a local advent-ahhhh.

What should I look for when booking a luxury family holiday in Southern Iceland?

Luxury isn’t just for adults. Those little touches designed for little people make a family holiday genuinely stress free … which is the greatest luxury of all. Look for spacious suites, pools toddlers can splash in, and breakfast buffets with waffles, pancakes and Nutella galore.

Can I book luxury last-minute holidays to Southern Iceland?

You can wangle a top-notch luxury holiday in Southern Iceland for a fraction of the normal price by booking last minute. Just enter your dates and see what’s available – if you’re flexible ... even better!

Can I book a luxury holiday in Southern Iceland with free cancellation and/or flexible dates?

If you’re splashing out on a luxury holiday, make sure your money is safe by booking with free cancellation. Just use the fully refundable filter and make sure you read all the terms and conditions.

Why should I book my luxury travel to Southern Iceland with Expedia?

Nobody does luxury quite like Expedia. With so many gorgeous properties in Southern Iceland to choose from, as well as access to first-class flight deals and hire cars with horsepower, there’s no better place to book.

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* 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.