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Where to Stay and Eat
Best-value splurge hotel
Hotel rooms in Iceland tend to be shoeboxes, but even the smallest ones at The Black Pearl, in Reykjavik, have a separate bedroom, a full kitchen, and a balcony. The hotel is well located in the city center, not far from the water and not on one of the pedestrian streets (where it can get noisy).
Eating out isn’t really part of Scandinavian culture (when they go out, Icelanders are more into clubbing than dining). But Dill, Kol, The Fish Market, and Grillmarket—all in Reykjavik—are very popular among visitors. They’re expensive but worth it for the amazingly fresh seafood and the creative new-Nordic cuisine.
Lobster soup at Tryggvaskáli in Selfoss. Not only is the soup of outstanding quality, so rich in taste, but the restaurant has a homey feel and a friendly staff. It’s an easy place to make a stop while driving the Golden Circle.
What to See and Do
The Westman Islands are fantastic for birders; from May to August, it’s one of the best places in Iceland to see puffins. There are only a few hotels on the islands, so if you are one of the lucky few to spend the night, it feels extremely remote.
Most overrated place
The main section of the Blue Lagoon is packed with busloads of tourists from morning to evening. (While there are many hot springs around Iceland, people come here because the silica-rich water is thought to be rejuvenating.) Instead, book a visit to the Blue Lagoon’s much more exclusive Retreat Spa and Lagoon, where you’ll have access to your own private changing rooms, pools, and comfy seating. It’s more expensive, but you get a much more pleasant experience without the lines, and you can stay for four hours rather than the standard two.
Most underrated place
Thorsmork Valley. It’s a different world, with an astounding variety of landscapes: crater lakes with crystal-clear water, hidden waterfalls, rocks blown out in the most recent volcano eruption, and fabulous hiking trails that offer a chance to see very different flora than in other parts of Iceland. The valley isn’t easy to access—you’ll need either a specially modified “super jeep” or a helicopter—so it sees considerably fewer tourists than other parts of the south.
A “Viking Sushi” boat tour. You catch scallops, sea urchin, and fish, which the crew prepares as sashimi and sushi. It’s as fresh as food can get.
How to spend a lazy Sunday
Watch local professional sports teams compete at the Laugadalshöllin in Reykjavik; the most popular events are handball, soccer, and swimming. Or hop on a bike or in a cab and head to a local hot spring; they’re all over the country, and the staff at your hotel can direct you.
October is far less crowded than in the peak summer and winter months, and most roads and hotels stay open until the first snow late in the month. If you are lucky, you can even see the Northern Lights.
Early November, when the Airwaves music festival causes hotel prices to skyrocket and Reykjavik gets very crowded and noisy.
The Christmas/New Year’s holiday. Iceland has a family-oriented culture, so you don’t get a great feel for local life at this time of year, and many businesses are closed; plus, rates go up 50%.
The craggy Dimmuborgir lava formations. Their appearance changes depending on the light and season, so no two shots here will ever be the same.
Fish oil tablets. These are said to make you strong and healthy—and are about the only thing in Iceland that can be considered a bargain.
Locals don’t tip, but it’s nice to leave 5% in a restaurant, or round up the bill in a taxi, if you got good service.
Your swimsuit, regardless of the time of year. You never know when you’ll pass a gorgeous hot spring and want to go for a dip.