Southern Iceland Holidays from AU$3,163

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Your Southern Iceland Holiday

When it's time for a break, book a Southern Iceland holiday package. Get set to experience nightlife, culture, festivals, and much more in this exciting destination. Start your trip to Southern Iceland with some time in Reykjavik visiting popular attractions like Reykjavik Harbour and Laugavegur. Reykjanesbær is another city that lures travellers from far and wide. Blue Lagoon and Viking World Museum are two of the top places to see here. Expedia is a one-stop shop when it comes to planning your Southern Iceland holiday. From flights and hotels, to rental cars and more, we know how to create a travel experience like no other.

The Latest Southern Iceland Holiday Deals

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

ODDSSON Downtown Hotel

3.5 out of 5
Holt
Price was AU$4,061, price is now AU$3,163 per person
AU$3,163
per person
30 Mar - 5 Apr
found 21 hours ago
Return flight included
Sydney (SYD) to Reykjavik (KEF)
9.2/10 Wonderful! (223 reviews)
Fully equipped, well-designed kitchen was a game changer! Plenty of parking and centrally located. Highly recommend!

Reviewed on 27 Dec 2025

Reykjanes Guesthouse

Reykjanes Guesthouse

3 out of 5
Price was AU$4,066, price is now AU$3,529 per person
AU$3,529
per person
30 Mar - 5 Apr
found 21 hours ago
Return flight included
Sydney (SYD) to Reykjavik (KEF)
8.6/10 Excellent! (154 reviews)
Signs, signs, everywhere signs.... Signs to wash your dishes, not to pee on the bathroom floor(yes, seriously), check out on time, take off your shoes, etc and a little over priced given the lack of anything else in the area. It is a literal ghost town with only two restaurants.

Reviewed on 31 Oct 2025

Hotel Keilir by Reykjavik Keflavik Airport

Hotel Keilir by Reykjavik Keflavik Airport

3 out of 5
Price was AU$3,912, price is now AU$3,398 per person
AU$3,398
per person
30 Mar - 5 Apr
found 21 hours ago
Return flight included
Sydney (SYD) to Reykjavik (KEF)
7.2/10 Good! (821 reviews)
The staff was super friendly, even changing my room so I would have a better view in case the northern lights would make an appearance! I had to be up super early for a flight so in-room coffee makers would be my suggestion. Otherwise staff gave me a complimentary transfer back to the airport, what more could I ask for?!

Reviewed on 15 Dec 2025

Diamond Suites by Reykjavik Keflavik Airport

Diamond Suites by Reykjavik Keflavik Airport

5 out of 5
Price was AU$4,942, price is now AU$4,341 per person
AU$4,341
per person
30 Mar - 5 Apr
found 21 hours ago
Return flight included
Sydney (SYD) to Reykjavik (KEF)
8.8/10 Excellent! (42 reviews)
Hótel Berg

Hótel Berg

4 out of 5
Price was AU$3,693, price is now AU$3,254 per person
AU$3,254
per person
30 Mar - 5 Apr
found 21 hours ago
Return flight included
Sydney (SYD) to Reykjavik (KEF)
9.4/10 Exceptional! (1,207 reviews)
Clean, great hot tub. Wish there was more varity for breakfast but overall great place to stay.

Reviewed on 9 Jan 2026

Our guide on where to stay in Southern Iceland

Find the best Southern Iceland areas and neighborhoods for the activities you enjoy most. Learn more about Southern Iceland
Reykjavik showing interior views, a church or cathedral and religious elements

Downtown Reykjavik

3 out of top 10 points of interest in this area
4.5/5(14 area reviews)

If you're spending some time in Downtown Reykjavik, Hallgrimskirkja and National Gallery of Iceland are top sights worth seeing.

Find hotels in Downtown Reykjavik

Southern Iceland Holiday

Southern Iceland Essential Information

Language
Icelandic
Currency
Icelandic krónurs
Closest Airport
Keflavik Intl. Airport (KEF)
Top Sights
Blue Lagoon, Jokulsarlon Glacier Lagoon and Thingvellir National Park

Our pick of the best Southern Iceland Hotel Deals

Grandi by Center Hotels

Grandi by Center Hotels

4 out of 5
Seljavegur 2 Reykjavik
Fully refundableReserve now, pay when you stay
The price is AU$305 per night from 27 Jan to 28 Jan
AU$305
27 Jan - 28 Jan
includes taxes & fees
9.2/10 Wonderful! (1,418 reviews)
Good

Reviewed on 14 Jan 2026

Grandi by Center Hotels
The Reykjavik EDITION

The Reykjavik EDITION

5 out of 5
AUSTURBAKKI 2 Reykjavik
The price is AU$662 per night from 9 Feb to 10 Feb
AU$662
9 Feb - 10 Feb
includes taxes & fees
9.4/10 Exceptional! (574 reviews)
Excellent and friendly staff. The best service ever!

Reviewed on 16 Jan 2026

The Reykjavik EDITION
Center Hotels Plaza

Center Hotels Plaza

4 out of 5
Adalstraeti 4 Reykjavik
Fully refundableReserve now, pay when you stay
The price is AU$227 per night from 20 Jan to 21 Jan
AU$227
20 Jan - 21 Jan
includes taxes & fees
8.8/10 Excellent! (1,435 reviews)
Room is very clean & friendly staff, plus very convenient location. A good memory from Iceland.

Reviewed on 13 Jan 2026

Center Hotels Plaza
See all 1,955 properties in Southern 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.
All Inclusive Holidays
All Inclusive Holidays
All Inclusive Holidays
Cheap Holidays
Cheap Holidays
Cheap Holidays
beach holidays
Beach Holidays
Beach Holidays

Discover the most popular places to visit in Southern Iceland

Reykjavik Harbour featuring outdoor art, general coastal views and a sunset

Reykjavik Harbour

4.5/5(55 reviews)

Start your stay in Reykjavík with a trip to this antique port district, the point of departure for city tours, boat rides and more.

Reykjavik Harbour
Blue Lagoon which includes a luxury hotel or resort, modern architecture and a hot spring

Blue Lagoon

4.5/5(30 reviews)

Soak away your aches, get a massage treatment and swim in the milky blue waters of this mineral-rich geothermal pool sculpted by lava in Grindavik.

Blue Lagoon
Black Sand Beach

Black Sand Beach

5/5(10 reviews)

If a restful holiday is part of your travel plans, Black Sand Beach might be the perfect place to visit during your trip to Vik I Myrdal. While you're here, you can savour the top-notch restaurants.

Black Sand Beach

Frequently asked questions

Can I cancel my flight booking to Southern Iceland due to COVID-19?
Many airlines now provide more flexibility due to COVID-19. Our Customer Service Portal will help solve most questions about which policies apply to your Southern Iceland flight. It's also worth reading through the terms and conditions of your fare — preferably before locking in your seat!
What's the best way to find cheap flights to Southern Iceland that have flexible change policies?
Search for your cheap flights to Southern Iceland, then tick the "No change fee" box directly under the "Flexible change policies" filter. It's that easy. We understand that plans change and flexibility is essential, so book with confidence with Expedia.
What are some of the general tips for travellers to Southern Iceland during the COVID-19 outbreak?
The COVID-19 outbreak has led to big changes to how we travel. If you're flying to Southern Iceland, the following tips will help you navigate these new travelling challenges:
  • Investigate if any travel restrictions apply to your destination and origin before booking anything. Also check if there are any conditions you'll need to follow on arrival, such as taking a COVID-19 test.
  • Wear a face mask even during airport screening. A TSA employee will ask you to adjust your mask to verify your identity.
  • Instead of handing a TSA agent your boarding pass, position it directly on the scanner yourself. After that, hold it up for inspection.
  • TSA now permits passengers to take one container of hand sanitizer, up to 12 oz (350 ml) in size, in carry-on bags. This will have to be removed from your bag and submitted for screening.
  • To reduce handling during the screening process, place items such as your belt, phone and wallet into your carry-on instead of into the bins.
  • If you're bringing food through the security checkpoint, put it in a clear plastic bag and then into a screening bin. This lessens the likelihood that a TSA agent will need to handle your food container or carry-on bag for closer inspection.

Which airlines fly to Southern Iceland?
Icelandair operates flights into or near Southern Iceland, including 1062 that land at Keflavik Intl. Airport (KEF) each month. Select your holiday dates and then secure your fare early for an awesome deal.
How can I find cheap tickets to Southern Iceland?
You'll always pick up an epic deal with Expedia, but our "flexible dates" search function makes it that much easier. Enter your preferred flight date, then check the flexible dates box above to see the cheapest prices for nearby days. was the cheapest price for a flight to Southern Iceland in the last seven days.
How much is a flight to Southern Iceland?
You could have scored a return air ticket to Southern Iceland from anywhere between and in the last seven days. For one-way journeys taking off from (), the lowest price during this time was .
What are the most popular airports to fly into in Southern Iceland?
The primary gateway to Southern Iceland, about 1739 flights land at Keflavik Intl. Airport (KEF) each month. Look for a rewarding deal, book your seat and prepare to discover this fabulous region.
When is the cheapest time to fly to Southern Iceland?
If you can be flexible with what day you jet off to Southern Iceland, try to fly out early on in the week. The cheapest day to take off is usually Tuesday, closely followed by Monday. Saturday is typically the priciest day, with a lot of people choosing to take off on the weekend.
How much is a plane ticket to Southern Iceland?
In the last seven days, journeys to Southern Iceland varied between and . Prices depend on a number of things, particularly the departure time, cabin class, airline and how early the fare is booked.
Which airlines with flights to Southern Iceland employ COVID-19 cleanliness policies?
In an effort to reduce contact between travellers and flight crew during the COVID-19 outbreak, the majority of airlines have taken physical distancing and other strategies to the skies. An example of these are:
  • Icelandair - this airline is known for providing passenger masks and cleaning with disinfectant.
  • Wizz Air - this airline is known for providing passenger masks and cleaning with disinfectant.
  • Delta - this airline is known for electrostatic cleaning and cleaning with disinfectant.

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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.