Iceland Luxury Vacations

Book a Luxury Hotel + Flight or Car together to unlock savings

Indulge in ultimate luxury with a breathtaking Icelandic escape

Iceland, known as the "Land of Fire and Ice," offers a luxury vacation experience with its stunning geographic landscapes and attractions. Embark on tours to witness the breathtaking waterfalls and majestic glaciers. Immerse yourself in the warm hospitality of the friendly locals and indulge in exquisite dining featuring fresh seafood delicacies. Explore the unique museums, go hiking in the picturesque nature, and be mesmerized by the captivating Northern Lights. With plenty of shopping opportunities and the chance to take leisurely walks amidst Iceland's scenic beauty, this destination promises an unforgettable luxury getaway.

Top Luxury vacation packages in Iceland

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Black Pearl Luxury Apartments
Tower Suites Reykjavik
Hotel Kriunes - A city hotel by the lake
Hotel Odinsve
Alda Hotel Reykjavik
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5* Luxury vacations in Iceland

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Diamond Suites by Reykjavik Keflavik Airport
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3 Night Luxury vacations in Iceland

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Black Pearl Luxury Apartments
Þingholt by Center Hotels
Hotel Holt - The Art Hotel
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4 Night Luxury vacations in Iceland

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Hotel Borg by Keahotels
Hotel Holt - The Art Hotel
Tower Suites Reykjavik
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Top reasons for your vacation to Iceland

  • Stunning Geographic Landscapes: Iceland offers breathtaking tours and picturesque landscapes, including majestic glaciers and awe-inspiring waterfalls.
  • Warm Hospitality: Experience the friendly locals and indulge in exquisite dining featuring fresh seafood delicacies.
  • Mesmerizing Northern Lights: Be captivated by the captivating Northern Lights and witness their mesmerizing beauty.
  • Shopping Opportunities: Explore the vibrant Kringlan Shopping Mall in Reykjavik and enjoy diverse dining options, guided tours, and live music performances.
  • Picturesque Nature: Immerse yourself in Iceland's scenic beauty by taking leisurely walks, going hiking, and visiting unique museums.

Book a Package and Save Money on Your Iceland Vacation

A travel package allows you to conveniently book your flights and accommodations together. Instead of searching for separate deals, you can find everything you need in one place. Flights, hotels, car rentals, and activities are all available options. Customise your package to suit your preferences and budget, and save money with Expedia's price and theme filters.

Experience the best of Iceland on your luxury vacation. With tours, friendly people, fine dining, the chance to witness the mesmerizing Northern Lights, and ample opportunities for shopping, walking, and exploring museums, nature, waterfalls, and hiking trails, booking a package in Iceland is the perfect idea.

How to Save Money on a Vacation to Iceland

  • Utilize public transportation such as buses or trains instead of taxis for local transport to save money.
  • Plan your activities in advance and book through Expedia's OneKey program to take advantage of discounts and special offers.
  • Consider visiting free or low-cost attractions in Iceland, such as exploring national parks, hiking trails, or visiting local markets.
  • Save on sightseeing by opting for self-guided tours or using travel apps instead of booking expensive guided tours.
  • Pack your own snacks and drinks for day trips to avoid spending money on expensive meals while exploring.
  • Look for accommodation options outside of major cities or tourist areas to find more affordable luxury packages.
  • Consider visiting Iceland during the shoulder seasons (spring or fall) to enjoy lower prices on accommodations and activities.
  • Compare prices for car rentals and choose the most cost-effective option for exploring the country at your own pace.
  • Take advantage of complimentary hotel amenities such as breakfast or spa facilities to save on additional expenses.
  • Follow local blogs or websites for tips on budget-friendly dining options and happy hour deals.

Where to Stay in Iceland

When it comes to planning a luxury vacation in Iceland, you have a variety of exciting areas to choose from. Reykjavik, the capital city, offers a vibrant cosmopolitan experience with its upscale hotels, fine dining, and designer shops. Other areas like Akureyri and the Golden Circle boast stunning natural beauty, including waterfalls, hiking trails, and the chance to witness the mesmerizing Northern Lights.

  • Reykjavik: This vibrant city offers a unique blend of natural wonders and urban charm. From exploring museums and cafes to witnessing the mesmerizing Northern Lights, Reykjavik has it all. With friendly locals, picturesque sights, and a lively atmosphere, it's a perfect destination for a luxury vacation.
  • Borgarnes: Nestled amidst glaciers and mountains, Borgarnes provides a secluded and adventurous luxury experience. Enjoy museums, Northern Lights, golfing, and thrilling excursions in the stunning countryside. For a touch of magic, visit the themepark for an unforgettable time.
  • Bláskógabyggd: For a luxurious vacation in Iceland, Bláskógabyggd is a must-visit. With its picturesque landscapes and serene atmosphere, this area offers a tranquil escape. Immerse yourself in luxury accommodations and indulge in the natural beauty that surrounds you.

Explore the best places to visit in Iceland

Iceland offers a luxurious getaway with its breathtaking tours, friendly locals, and exquisite dining options. Experience the mesmerizing Northern Lights, indulge in shopping sprees, and explore the picturesque landscapes through walking, hiking, and visiting museums. Don't miss the awe-inspiring waterfalls and the opportunity to connect with nature. A luxury package vacation in Iceland guarantees an unforgettable experience.

  • Myvatn Nature Baths: Immerse yourself in the relaxing geothermal waters of Myvatn Nature Baths while enjoying the stunning views of the lake and surrounding mountains. Indulge in delicious local cuisine, witness the mesmerizing Northern Lights, and explore the nearby natural parks and volcanoes.
  • Kerlingarfjoll Mountain Range: Experience the untouched beauty of the Kerlingarfjoll Mountain Range located in Hrunamannahreppur. Discover the vast natural parks, hike through picturesque landscapes, and marvel at the breathtaking views. This resort offers a serene escape from the bustling city life.
  • Kringlan Shopping Mall: Explore the vibrant Kringlan Shopping Mall in Reykjavik, where friendly locals and tourists gather. Take part in guided tours, visit museums, enjoy diverse dining options, go on a shopping spree, unwind at a bar, and immerse yourself in the rich culture and live music performances.

Best months to visit Iceland

Iceland boasts a year-around average temperature of 40.9°F, peaking at 52.0°F in July, its warmest month, and dipping to an average low of 31.6°F in January, the coolest. Rainfall averages at 67.1mm annually, with October seeing the heaviest showers and June being the driest month.


Monthcalendar iconTemperature (Fahrenheit)temperature iconRainfall (mm)rain icon
January31.689.9
February32.565.0
March34.765.0
April38.553.1
May44.241.9
June49.340.9
July52.048.0
August51.166.0
September47.171.9
October41.597.0
November35.885.1
December32.781.0

All you need to know about luxury vacations in Iceland

What can I expect from a luxury Iceland vacation?

Luxury means the very finest of the things you enjoy most. Indulge your every waking moment—and restful night—with a luxury Iceland vacation. Sip handcrafted cocktails by an infinity pool, sink into bliss at a full-service spa with a massage cabana on the beach, and chat, cheers, and laugh through exquisite breakfasts, lunches, and dinners with spectacular views. 

How can I find all-inclusive luxury vacation packages in Iceland?

By refining your filters, the most opulent all-inclusive vacation packages will appear before your eyes. Check the 5* filter to find truly sensational stays. You barely need to lift a finger. 

Can I book a cheap Iceland luxury vacation?

Affordable luxury is only ever a few clicks away. Enter your travel dates and sort the grandiose getaways on offer by price to see the most fiscally friendly retreats first. Filter by budget, too, to find your perfect balance of luxury. Right now, luxury vacations start at $839. Prices and availability are subject to change. Additional terms may apply.

How can I book a luxury family vacation in Iceland?

Tailor your luxury family escape by checking the filters that set the whole family’s hearts a-flutter. Whether that’s wet and wild water parks, heavenly hot tubs, or the kid-quieting magic of free Wi-Fi. 

Can I book a package in Iceland with a luxury vacation home?

A private paradise is true luxury! Filter by property type for houses, villas, and apartments. For an amazingly affordable all-in-one luxury experience, book your accommodation, airfare, and car rental as a package.   

How can I find the best luxury vacation deals in Iceland?

Find absolute delight in the dropdown! Simply sort your tempting search results by deals to find that lean-budget luxury. For a budget conscious stay, consider booking a stay away from big cities or outside the peak months.

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

Freedom and flexibility are the greatest luxuries of all. Get both when you filter by payment option and book a trip with free cancellation or on a buy now, pay later plan. 

Why should I book my luxury trip to Iceland with Expedia?

A luxurious trip follows a stress-free booking experience. Find, build, and book the most glorious of getaways in seconds—with ATOL protection for added peace of mind.

Top Luxury Iceland Hotels

Hotel Borg by Keahotels
Hotel Borg by Keahotels
4 out of 5
Posthusstraeti 11, Reykjavik
  • 6 min walk from Reykjavik Harbour
The price is $227 per night from May 7 to May 8
$227
includes taxes & fees
$199 per night
May 7 - May 8
Choose luxury at Hotel Borg by Keahotels, where you can enjoy amenities like designer toiletries, Netflix, and more. Deluxe amenities at this hotel include a ...
9.2/10 Wonderful! (1,001 reviews)
"It was a very comfortable place to explore Reykjavik from. The breakfast was very good, the city was at the door step."

Reviewed on Apr 14, 2025

Hotel Borg by Keahotels
Diamond Suites by Reykjavik Keflavik Airport
Diamond Suites by Reykjavik Keflavik Airport
5 out of 5
Vatnsesvegi 12-14, 4th Floor, Reykjanesbær
  • 40 min drive from Reykjavik Harbour
The price is $1,188 per night from May 18 to May 19
$1,188
includes taxes & fees
$1,064 per night
May 18 - May 19
Treat yourself to some luxurious accommodations at Diamond Suites by Reykjavik Keflavik Airport, where you can enjoy amenities like massage services, Frette ...
8.6/10 Excellent! (42 reviews)
"The Diamond Suites were fantastic—a perfect, relaxing place to stay for our last night! The staff were wonderful and made sure everything went perfectly. Great stay!"

Reviewed on Sep 22, 2024

Diamond Suites by Reykjavik Keflavik Airport
101 Hotel, Reykjavik, a Member of Design Hotels
101 Hotel, Reykjavik, a Member of Design Hotels
4 out of 5
Hverfisgata 10, Reykjavik
  • 6 min walk from Reykjavik Harbour
The price is $198 per night from Apr 25 to Apr 26
$198
includes taxes & fees
$173 per night
Apr 25 - Apr 26
Pamper yourself with a luxury stay at 101 Hotel, Reykjavik, a Member of Design Hotels, where you can enjoy amenities like Champagne service, massage services, ...
8.8/10 Excellent! (250 reviews)
"Conveniently located, steps to tourist area. Taxi stand less than a block away. On property restaurant was excellent."

Reviewed on Nov 14, 2024

101 Hotel, Reykjavik, a Member of Design Hotels
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.

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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.