Iceland is one of the most amazing places I have ever been to and I can’t recommend it enough. However, it is very expensive so you do need to plan it well if you don’t want to spend a fortune. Also, tours/attractions do fill up well in advance.
Wow Air is your standard budget airline but read the baggage restrictions really carefully. There is great bus service between the airport and the town centre. They can even collect you from/drop you off at your hotel at no extra cos. For a short visit Reykjavik is great to base yourself in but don’t plan on spending much time there. Rent a car if you can (it worked out much cheaper for us). Eating out is crazy expensive so it’s worth looking into Airbnb apartments or hostels with kitchens. Shop at Bonus which is the Lidl/Aldi of Reykjavik (you can’t miss the drunk pig logo). More info on preparation, accommodation, cars and food here.
- Snorkelling: Fantastic once in a life time experience snorkelling between the North American and Eurasian plates. There’s no sea life but the rocks are fascinating and the water is unbelievably clear. The dry suit is a bit stressful if you’re claustrophobic or don’t like things around your neck. Cost €120. More here
- Golden Circle: We saw Thingvellir National Park, Geysir, and Gullfoss Waterfalls. All are a must see (especially the waterfalls). It takes 45 minutes to get to the national park and then another hour to get to Geysir and Gullfoss. The drive is beautiful and the sights are well worth it. More here
- The Blue Lagoon: Incredible and such a novelty. Go early in the morning and book in advance. The basic package is fine if you just bring your own towel and flip flops. Cost €40 each. More here.
I would have LOVED to see the Northern Lights but sadly the skies were too cloudy every night we were there. I used this website to check each night and it seemed to coincide with the tour company cancellations too.