Iceland Luxury Vacations

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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

Price found within the past 48 hours. Click for updated prices.
Hotel Odinsve

Hotel Odinsve

Downtown Reykjavik
$602
per person
Nov 10 - Nov 13
found 1 day ago
Roundtrip flight included
New York (JFK) to Reykjavik (KEF)
9/10 Wonderful! (1,004 reviews)
Bathroom smelled awful due to plumbing problem. I had vip membership with hotels.com but was not upgrades. I was told that I could get a new room after complaining about the smell but when asked about it the next day, the manager stated I didn't check out at 11 am, claiming they called the room but could not find me. However, I was not told that I needed to check out and no one called my cellphone to have me switch rooms that day. Afterwards, I was told that a partial refund would be provided but never received anything. The hotel is obviously hurting for money, feel sorry for them. It's advertised as 4 star but more like 3 at best, 2 star with a smelly bathroom.

Reviewed on Sep 9, 2026

Tower Suites Reykjavik

Tower Suites Reykjavik

Laugardalur
Save 100% on your flight
$1,247
per person
Nov 12 - Nov 15
found 10 hours ago
Roundtrip flight included
New York (NYC) to Reykjavik (KEF)
9.6/10 Exceptional! (329 reviews)
My husband stated this was the best hotel he’s ever stayed it! Views are spectacular, breakfast every morning was amazing, bed was very comfortable, shower was great, and the storage was plentiful. The staff was very friendly and helpful. Only issue is it was hard to find the entrance on a Sunday evening since the hotel is just the top floor of an office building and the sign is very small. We called and the staff greeted us in the parking lot to help us. Great experience, would highly recommend!

Reviewed on Aug 28, 2026

Miðgarður by Center Hotels

Miðgarður by Center Hotels

Tún
$686
per person
Nov 10 - Nov 13
found 1 day ago
Roundtrip flight included
New York (JFK) to Reykjavik (KEF)
9.4/10 Exceptional! (1,104 reviews)
The gym was extremely minimal. Everything was fairly basic. He did have a great steam room. I felt like the hot tub wasn’t hot enough, and it was inconvenient located in front of the dining area which was uncomfortable to be seen through people eating their dinners while you’re in your bathing suit the staff was incredible. Very accommodating. The rooms are very small and below average could’ve had better products.

Reviewed on Sep 7, 2026

Þingholt by Center Hotels

Þingholt by Center Hotels

Downtown Reykjavik
$699
per person
Nov 10 - Nov 13
found 1 day ago
Roundtrip flight included
New York (JFK) to Reykjavik (KEF)
9/10 Wonderful! (1,004 reviews)
Lovely location. Been here twice would always come back. Great breakfast great staff.

Reviewed on Sep 8, 2026

Máni Apartments

Máni Apartments

Downtown Reykjavik
$683
per person
Nov 10 - Nov 14
found 16 hours ago
Roundtrip flight included
New York (JFK) to Reykjavik (KEF)
8.4/10 Very Good! (1,932 reviews)
This is a good value for the Reykjavík prices which are overall expensive. Grocery store is close by called Bonus. We saved a lot by being able to cook at home. I messaged the house to ask about parking options and the referrals were excellent and very accurate. Very popular spot called the Bookstore It’s right underneath the apartments. You can hear the music very loudly. The good news is the music is excellent. And it stopped sharp at 11 PM. But be aware that it is a very loud spot between 8-11 pm.

Reviewed on Sep 7, 2026

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5* Luxury vacations in Iceland

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

Diamond Suites by Reykjavik Keflavik Airport

$1,973
per person
Oct 10 - Oct 13
found 1 day ago
Roundtrip non-stop flight included
Los Angeles (QLA) to Reykjavik (KEF)
9/10 Wonderful! (53 reviews)
Staff was very helpful. We had trouble locking our balcony door and the front desk came up to assist. We stayed in the Pearl room. We didn't realize our balcony was a shared balcony with another room and the common space shared amongst the suites. There were no issues, but would have been nice to know before hand. Overall the room was very clean, very nice, and we enjoyed our stay for 1 night.

Reviewed on Sep 7, 2026

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3 Night Luxury vacations in Iceland

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

Þingholt by Center Hotels

Downtown Reykjavik
$913
per person
Oct 12 - Oct 14
found 1 day ago
Roundtrip flight included
Boston (BOS) to Reykjavik (KEF)
9/10 Wonderful! (1,004 reviews)
Lovely location. Been here twice would always come back. Great breakfast great staff.

Reviewed on Sep 8, 2026

Tower Suites Reykjavik

Tower Suites Reykjavik

Laugardalur
$1,723
per person
Nov 13 - Nov 15
found 13 hours ago
Roundtrip non-stop flight included
Albany (ALB) to Reykjavik (KEF)
9.6/10 Exceptional! (329 reviews)
My husband stated this was the best hotel he’s ever stayed it! Views are spectacular, breakfast every morning was amazing, bed was very comfortable, shower was great, and the storage was plentiful. The staff was very friendly and helpful. Only issue is it was hard to find the entrance on a Sunday evening since the hotel is just the top floor of an office building and the sign is very small. We called and the staff greeted us in the parking lot to help us. Great experience, would highly recommend!

Reviewed on Aug 28, 2026

Alda Hotel Reykjavik

Alda Hotel Reykjavik

Downtown Reykjavik
$947
per person
Oct 12 - Oct 14
found 1 day ago
Roundtrip flight included
Boston (BOS) to Reykjavik (KEF)
9.4/10 Exceptional! (1,360 reviews)
The hotel is the perfect location for walking around the city center and is a 5-minute walk to a pick-up/drop-off location for local tours. The hotel staff were very friendly and the room was clean and larger than expected.

Reviewed on Sep 8, 2026

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4 Night Luxury vacations in Iceland

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

Miðgarður by Center Hotels

Tún
$686
per person
Nov 10 - Nov 13
found 1 day ago
Roundtrip flight included
New York (JFK) to Reykjavik (KEF)
9.4/10 Exceptional! (1,104 reviews)
The gym was extremely minimal. Everything was fairly basic. He did have a great steam room. I felt like the hot tub wasn’t hot enough, and it was inconvenient located in front of the dining area which was uncomfortable to be seen through people eating their dinners while you’re in your bathing suit the staff was incredible. Very accommodating. The rooms are very small and below average could’ve had better products.

Reviewed on Sep 7, 2026

Tower Suites Reykjavik

Tower Suites Reykjavik

Laugardalur
Save 100% on your flight
$1,247
per person
Nov 12 - Nov 15
found 10 hours ago
Roundtrip flight included
New York (NYC) to Reykjavik (KEF)
9.6/10 Exceptional! (329 reviews)
My husband stated this was the best hotel he’s ever stayed it! Views are spectacular, breakfast every morning was amazing, bed was very comfortable, shower was great, and the storage was plentiful. The staff was very friendly and helpful. Only issue is it was hard to find the entrance on a Sunday evening since the hotel is just the top floor of an office building and the sign is very small. We called and the staff greeted us in the parking lot to help us. Great experience, would highly recommend!

Reviewed on Aug 28, 2026

Þingholt by Center Hotels

Þingholt by Center Hotels

Downtown Reykjavik
$699
per person
Nov 10 - Nov 13
found 1 day ago
Roundtrip flight included
New York (JFK) to Reykjavik (KEF)
9/10 Wonderful! (1,004 reviews)
Lovely location. Been here twice would always come back. Great breakfast great staff.

Reviewed on Sep 8, 2026

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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.

MonthTemperature (Fahrenheit)Rainfall (mm)
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 $602. 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

Posthusstraeti 11 Reykjavik
  • 6 min walk from Reykjavik Harbour
$314 nightly
$356 total
Oct 6 - Oct 7
Total with taxes and fees
Choose luxury at Hotel Borg by Keahotels, where you can enjoy amenities like designer toiletries, Netflix, and more. Sought-after amenities include a spa and ...
Hotel Borg by Keahotels
Diamond Suites by Reykjavik Keflavik Airport

Diamond Suites by Reykjavik Keflavik Airport

Vatnsesvegi 12-14 Reykjanesbær
  • 40 min drive from Reykjavik Harbour
$534 nightly
$599 total
Oct 6 - Oct 7
Total with taxes and fees
Treat yourself to some luxurious accommodations at Diamond Suites by Reykjavik Keflavik Airport, where you can enjoy amenities like massage services, Frette ...
9/10 Wonderful! (53 reviews)
"Staff was very helpful. We had trouble locking our balcony door and the front desk came up to assist. We stayed in the Pearl room. We didn't realize our balcony was a shared balcony with another room and the common space shared amongst the suites. There were no issues, but would have been nice to ..."

Reviewed on Sep 7, 2026

Diamond Suites by Reykjavik Keflavik Airport
101 Hotel, Reykjavik, a Member of Design Hotels

101 Hotel, Reykjavik, a Member of Design Hotels

Hverfisgata 10 Reykjavik
  • 6 min walk from Reykjavik Harbour
$374 nightly
$422 total
Oct 6 - Oct 7
Total with taxes and fees
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, ...
101 Hotel, Reykjavik, a Member of Design Hotels
See all 2,675 properties in 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.

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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.