Iceland Tour & Vacation Packages

Similar to many other parts of Europe, Iceland has rules in place to help preserve its culture and geographic isolation is also a factor in developing and preserving the country’s cultural qualities. Independence, self-sufficiency and a strong work ethic – traits that allowed this northern island to flourish in challenging conditions – continue to be highly valued today.

Icelandic culture and customs are full of myths and legends, many with a connection to Christian and pagan values. Folk tales of elves, gnomes, fairies and trolls still circulate, and whether or not the locals continue telling these to unlock the secrets of the past, or simply in jest, they’re definitely worth listening to. But when news outlets report on road plans being changed to avoid disrupting an elfin church, it’s easy to believe that this unusual country and its magical landscapes are a product of what lies ‘hidden’ in its mysterious depths.

Today, Iceland is a highly modern and progressive society. It is consistently rated as having the smallest gender pay gap and strong LGBTQIA+ rights representation in the parliament and media. It’s also one of the greenest countries in the world, with almost all energy coming from renewable resources such as hydropower and geothermal.

Read more about Iceland's History and Folklore

Pre-modern history

This island nation was settled by Vikings in the ninth century, with much of the early literature recognizing Norse sailor Ingolfur Arnason as the first settler of Iceland, founding Reykjavik in AD874 along with his wife and brother. Icelanders remain proud to this day of their Viking heritage. The Icelandic language, for example, is so similar to the Old Norse spoken during Viking times that Icelanders can still read and understand the original Icelandic sagas.

A book of settlements titled Landnamabok, compiled in the 12th century, documents the names and other details of nearly 400 original settlers of Iceland who arrived in the ninth and tenth centuries. The document tells of a Norse Viking called Floki who sailed to Iceland for fishing and farming, however, due to his livestock not surviving in the conditions, had to return to his home in Norway. After heading up a mountain and looking over a fjord full of sea ice, he named this land Iceland.

In AD930, an Icelandic General Assembly was established and was deemed a Christian settlement less than a century later. Settlers and slaves brought to Iceland by Scandinavians were of Irish and Norse descent, and although some still debate which communities influenced the identity we now know to be Icelandic, the first distinctive text documenting ‘Icelandic-ness’ is said to be a rule book of sorts – the First Grammatical Treatise.

20th century and today

After long periods under Norwegian and Danish rule, Iceland was recognized as a sovereign state in 1918. On 17 June 1944, Iceland became an independent republic. It has a multi-party parliamentary system and a written constitution. The parliament is still called Althingi after its medieval General Assembly.

Many of Iceland’s major industries stem from its location and surrounding natural resources. Tourism aside, fishing and seafood products make up much of the country’s exports and employ a majority of the workforce along with agriculture and farming. Recent investment in greenhouses and geothermal energy has seen Iceland become increasingly self-sufficient, growing products that usually do not fare well in icy climates, such as potatoes, tomatoes and potted plants. Other food is imported along with many consumer goods.

Flanked by the ocean and inhabited by almost twice the amount of sheep as humans, Iceland understandably boasts a cuisine dominated by seafood and local lamb.

Seafood

The country’s diet relies on plenty of potatoes and lamb, but seafood trumps all – sourced fresh year-round from the waters of the North Atlantic and Arctic and prepared in a variety of ways. Be sure to try Hardfiskur – a salty fish jerky, best enjoyed buttered.

Meat

Sheep and cows are free-range and fed chemical-free diets, making lamb and dairy products exceptionally good here. One of the best ways to enjoy the produce on offer is to warm yourself up from the inside out with a hearty meat soup: a mixture of lamb, root vegetables, herbs, and rice.

Skyr

Skyr, a popular yogurt that is technically a cheese, is also a must-try in all its variety of flavors. Eat it like the locals do at any time of the day – for breakfast, as a snack, as a dipping sauce, in drink form (called drykkur), or as a dessert topping.

Hot dogs

Surprisingly, hot dogs are Iceland’s most iconic fast food. Widely available, a hot dog is probably the cheapest meal you’ll have in Iceland. Order one with all the toppings – sweet mustard, ketchup, raw onions, deep-fried onions, and aioli.

Bread

Rye bread (also known as rugbraud) and butter is a common side to most meals in Iceland, but the preferred way of cooking the loaves are quite unique. Traditionally, the bread is buried near a natural hot spring, sprinkled with sugar, and left to gently steam for up to 24 hours. The end result is dense, cake-like bread that has a slightly sweet taste. Enjoy it with a traditional Icelandic soup, smoked lamb, or, of course, fish.

Licorice

Name a food and chances are Icelanders have tried to add licorice to it. Black licorice is beloved by locals and found in a wide range of desserts and candy bars. During your time here, head to Valdis in Reykjavik to test out a cone filled with salted black licorice ice cream. Even if the weather’s cold, the ice cream joints will be open!

The weird and wacky

Icelanders have a reputation for serving up some of the most unusual food in the world – boiled sheep’s head, fermented shark known as harkarl, ram testicles and smoked puffin to name a few. Although the country’s isolation and harsh winters once meant these foods were eaten out of necessity, today most of these ‘delicacies’ are only prepared to shock tourists. Try if you dare, but we suggest sticking to the common foods that locals eat.

Alcohol

Alcohol can be expensive in Iceland and is best bought at the duty-free shop. Although forms of prohibition existed until 1989, alcohol is now widely available all over the country in state-run liquor stores. If you’re feeling brave, try the local brew, Brennivin – a potent, traditional caraway-flavored schnapps nicknamed ‘black death’.

Read more about what to eat in Iceland

Read more about what to drink in Iceland

1. Explore Reykjavik

Iceland's capital city is totally beguiling, surrounded by volcanic peaks and boasting a vibrant art and nightlife scene. Browse the city’s galleries, explore the colorful street art, dine on fresh lox (traditionally cured salmon), or cycle to the striking cathedral of Hallgrimskirkja – trying to say that after a tipple or two of Brennivin (Iceland's signature spirit) might be tricky!

2. Discover the Golden Circle

The Golden Circle is the holy trinity of southern Iceland. This 186-mile (300 km) route is brimming with natural wonders that showcase why so many travelers fall under Iceland's spell. Marvel at the layered cascades of Gullfoss Waterfall, explore the dramatic rift valley in Thingvellir National Park and witness the unpredictable eruptions in Geysir Geothermal Area.

3. Cruise along Jokulsarlon

It's impossible not to be amazed by the sheer size and beauty of Jokulsarlon, Iceland’s famous glacial lagoon. Enjoy a boat tour along the icy waters where you'll cruise past towering glaciers and witness icebergs of all shapes, sizes and shades of blue drifting into the Atlantic Ocean.

4. Experience life in Akureyri

Soak up the charm of this northern port city – the second-largest city in Iceland. Better described as a big town with lots of character, you'll be won over by its quaint turf homes, rich history and folklore, and the imposing Mount Súlur that looms over the town. Akureyri is also an ideal Northern Lights viewing location between September and April.

5. Be wowed by Westfjords

Venture off course to the unspoiled, untamed reaches of the Westfjords – without the big crowds. This is a land where mountains meet the sea most dramatically, where waterfalls tumble down into the inky fjords and puffins live along the towering cliffs. If you’re lucky and conditions allow, we might cruise along Látrabjarg (Europe’s largest bird cliff) to see puffins, razorbills, guillemots and more.

6. Bathe in the Blue Lagoon

There's no need to worry about being cold all the time in Iceland when you can slip into the famous Blue Lagoon just out of Reykjavik. Surrounded by black volcanic rock, a soak in the mineral-rich, milk-blue waters of this geothermal spa is the perfect way to relax and unwind after a big day of walking. 

Iceland possesses some of the world’s most incredible natural wonders and unique landscapes. From active volcanoes to vast ice fields, bubbling hot springs and enormous glaciers, these dramatic contrasts have earned Iceland the nickname of the ‘Land of Fire and Ice’.

Many of these geological features are products of geographical location – on the Mid-Atlantic Ridge, where the North American and Eurasian tectonic plates intersect and their movements away from each other create volcanic activity. The country is covered by moss-carpeted lava fields, soaring fjords, incredible waterfalls and dramatic geysers, all of which add to Iceland’s otherworldly look.

The country is also the perfect spot to see the Northern Lights. From September to March, you’ll have the best chance to view this spectacular natural light show when the skies are clear and auroral activity is high. But don’t let that stop you from visiting in other seasons – Iceland’s natural wonders are truly year-round attractions.

Top 4 natural phenomena of Iceland

1. Northern Lights

The Northern Hemisphere's Aurora Borealis has captivated and intrigued travelers for years. Any winter tour of Iceland absolutely must include a chance to see the Northern Lights. This natural light display that runs along magnetic fields often brings hypnotic green, yellow and red shades to the night sky in Iceland from September to March. As one of nature's most magnificent triumphs, this is one unforgettable spectacle.

2. Gullfoss

Otherwise known as Golden Falls, this spectacular three-tiered waterfall drops suddenly into a deep cavern. The falls are surrounded by lush, green countryside, and the rainbows created by the mist and spray provide brilliant photo opportunities.

3. Lake Myvatn

This part of northern Iceland was born from volcanic eruptions millions of years ago and continues to be shaped by volcanic activity to this day. The combination of strange lava formations, thermal caves and a sprawling lake dotted with craters and rising rocks makes for an eerie yet beautiful landscape.

4. Jokulsarlon

Literally translating to ‘glacial river lagoon’, this monumental glacier lake is the largest in Iceland. Featuring a parade of large and small blue icebergs floating on and under the pure, icy water, this lagoon is so beautiful that it has been used as a backdrop for Hollywood films, a set for reality television shows and in a starring role on a postage stamp!

Iceland is notorious for being an expensive destination. Travelling on a budget here is difficult but can be done. Head to Bonus – Iceland’s discount grocery store – so you can cook rather than eat out for each meal. The duty-free store at Keflavik International Airport is the best place to pick up a bottle of Icelandic alcohol such as Brennivin liquor, Reyka vodka or Viking Gold beer for a fraction of the price you’d find elsewhere. It’s also a good idea to travel as a group, as operators can get better rates than a single traveler at hotels and restaurants, plus they know all the local hotspots.

If you’d like to take home Icelandic local specialties, Reykjavik is the best place to shop. Some of the country’s coolest retailers can be found on Laugavegur, one of the oldest shopping streets. Here you can browse clothing from quirky local designers alongside traditional lambswool sweaters, as well as tourist shops selling plastic Viking hats and puffin magnets. For smaller boutiques selling local art, head to Skolavordustigur.

Despite the long and dark winters, Icelanders are among the happiest people in the world. Why? One reason is that they understand the importance of getting together and having a good time, even if it’s pitch black outside. There are many celebrations to join in on throughout the year, but here are a few to look out for:

Winter Lights Festival

Every year, buildings around Reykjavik light up at night to celebrate both the winter world and the growing light after a long period of darkness. The Winter Lights Festival uses many public buildings, all major museums, and thermal pools to illuminate the city with lighting designs and art installations to thaw people out after a long winter.

Thorrablot

This annual mid-winter feast in January or February is one of Iceland’s oldest festivals, dating back to Viking days. Fearless eaters can find restaurants in Reykjavik offering special Thorrablot dinners of boiled sheep’s heads, rotten shark’s meat, and cured ram testicles. If you can, try to snag an invitation to a local’s house, where celebrations tend to be more festive and involve lots of singing, dancing and drinking.

Viking Festival

Modern-day Vikings in traditional garb flock to Hafnarfjorour each June for a festival Leif Erikson would approve of. Swordfights, archery, axe throwing, a traditional market, concerts, and a proper Viking feast are all part of the festivities.

National Day

1944 marks the year that Iceland became a republic after an overwhelming majority of the citizens voted for independence. The deciding referendum took place between May 20 and 23 that year; however, Iceland’s National Day is celebrated on June 17th – the birthday of the man who originally led the movement in the late 19th century, Jon Sigurdsson. There are parades all around the country, usually with brass bands and marching horses. Music, food, fireworks, and street parties – you get it, they’re a patriotic bunch.

Dalvik Fiskidagurinn Mikli (The Great Fish Day)

Each August, the northern fishing village of Dalvik invites you to a free, all-you-can-eat fish and seafood buffet. The event is held for no reason other than to bring people together over a delicious meal. You might come for the free food, but you’ll stay for the company.

Read more about festivals in Iceland

Public holidays that may impact travel include:

• Maundy Thursday, Good Friday, Easter Monday

• Labor Day

• Ascension Day

• Whit Sunday and Whit Monday

• National Day

• Commerce Day

Please note that the dates of Iceland's public holidays may vary.

For inspiring stories to prepare you for your Iceland adventure, check out these books:

• Independent People – Halldor Laxness
• Jar City – Arnaldur Indridason
• The Little Book of Tourists in Iceland – Alda Sigmundsdottir
• Waking Up in Iceland – Paul Sullivan
• The Tricking of Freya – Christina Sunley
• Viking Age Iceland – Jesse L Bycock
• The Far Traveler: Voyages of a Viking Woman – Nancy Marie Brown
• Burial Rites – Hannah Kent
• The Book of Settlements: Landnamabok – Herman Palsson (trans.)

Discover more about visiting Iceland from our travel experts in our Complete Guide to Iceland.