Southern Iceland Holidays from AU$1,470
Book a Hotel + Flight or Car together to unlock savings
- Plan, book, travel with confidence
- Better togetherSave up to AU$2,500 when you book a flight and hotel together*
- Find the right fitWith over 300,000 hotels worldwide, it's easy to create a perfect package
- Rest easyPlan, book, and manage your trip all in one place
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.
Kvosin Downtown Hotel
Downtown Reykjavik
AU$1,866
per person
23 Dec - 30 Dec
found 3 hours ago
Return flight included
London (LON) to Reykjavik (KEF)
9.8/10 Exceptional! (1,010 reviews)
Hotel was great. Very clean, location was perfect as it's close to everything. Great water pressure in the shower as well. Heated towel rack a plus. Just make sure you pay the parking fee (when I checked in I was not told anything about parking and ended up getting a parking ticket for $100USD).
Reviewed on 8 Oct 2026
HH Guesthouse
Downtown Reykjavik
AU$1,510
per person
23 Dec - 30 Dec
found 3 hours ago
Return flight included
London (LON) to Reykjavik (KEF)
8.2/10 Very good! (30 reviews)
This was such a cute property. We received check in instructions day before and was very easy to get in. Finding the guesthouse was a bit difficult but we asked someone in the bakery next door and they were able to direct us. It’s right next door to a convenience store. The guesthouse itself is huge and has everything you need. You do take stairs to get to your room but not a big deal and we found parking on the street. Would definitely stay here again as the location is also perfect and near all the club spots in downtown Reykjavik. Would definitely come here again
Reviewed on 24 Aug 2026
Thingholt Hotel Apartments from Center Hotels
Downtown Reykjavik
AU$1,589
per person
23 Dec - 30 Dec
found 3 hours ago
Return flight included
London (LON) to Reykjavik (KEF)
9.2/10 Wonderful! (386 reviews)
Perfect for a family of 5, great location, clean, very cosy.
Reviewed on 11 Oct 2026
Ranargata Three Bedrooms Apartments by Heimaleiga
Vesturbær
AU$2,967
per person
23 Dec - 30 Dec
found 3 hours ago
Return flight included
London (LON) to Reykjavik (KEF)
8/10 Very good! (1 review)
Excellent location and proximity to attractions and restaurants. Only negative was foul smelling bathroom, the bedrooms/kitchen were very well kept.
Reviewed on 29 Aug 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
Downtown Reykjavik
3 out of top 10 points of interest in this area
If you're spending some time in Downtown Reykjavik, Hallgrimskirkja and Reykjavik Pond are top sights worth seeing.
Vesturbær
1 out of top 10 points of interest in this area
The abundant dining options and waterfront views are top of the list for many visitors to Vesturbær. A stop by Reykjavik Harbour or Landakotskirkja might round out your trip.
Háaleiti
When in Háaleiti, you can plan a visit to Kringlan Shopping Mall and Laugardalslaug Geothermal Pool, some noteworthy sights in the nearby area.
Laugardalur
Laugardalur is popular for its abundant dining options, and if you're looking for more to see and do, you might think about a trip to Laugardalslaug Geothermal Pool or Laugavegur.
Tún
If you're spending some time in Tún, Laugavegur and Hofdi House are top sights worth seeing.
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
Hotel Vík í Mýrdal
Klettsvegur 1-3 Vik I Myrdal
AU$336
30 Oct - 31 Oct
includes taxes & fees
9.4/10 Exceptional! (1,311 reviews)
"This hotel was amazing and very convenient."
Reviewed on 13 Oct 2026
CityHub Reykjavik
46 Hverfisgata Reykjavik Reykjavíkurborg
Fully refundableReserve now, pay when you stay
AU$152
4 Nov - 5 Nov
includes taxes & fees
9.2/10 Wonderful! (706 reviews)
"Pleasantly surprised with this accommodation. First tine staying at a CityHub. Booked the MovieHub. Cozy, large enough space for 1. Good lighting. Shared restrooms were very clean. Staff was friendly."
Reviewed on 11 Oct 2026
Alda Hotel Reykjavik
Laugavegur 66-68 Reykjavik
Fully refundableReserve now, pay when you stay
AU$218
9 Nov - 10 Nov
includes taxes & fees
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.
Stay near popular Southern Iceland attractions
Reykjavik Harbour
9.2/10 (8,713 reviews)
Reykjavík's historic harbour pulses with maritime culture amid colourful repurposed fishing buildings. Embark on whale watching or Northern Lights cruises while enjoying panoramic views of Faxaflói Bay and Mount Esja.
Blue Lagoon
9.4/10 (4,050 reviews)
Iceland's iconic Blue Lagoon offers milky-blue geothermal waters rich in minerals amid volcanic landscapes. Reserve a twilight soak to experience the ethereal atmosphere while enjoying silica mud masks.
Hallgrimskirkja
9.2/10 (7,612 reviews)
Hallgrímskirkja rises like Iceland's basalt columns in concrete form, dominating Reykjavik's skyline. Take the lift to the observation tower for sweeping city views framed by distant mountains.
Black Sand Beach
9.8/10 (1,665 reviews)
Iceland's dramatic black sand beach features towering basalt columns and Reynisdrangar sea stacks. Keep a respectful distance from the powerful Atlantic waves while watching for puffins nesting in summer.
Laugavegur
9.4/10 (6,657 reviews)
Reykjavik's main thoroughfare pulses with colourful boutiques, Icelandic design shops, and lively cafés. Wander between art galleries and cosy restaurants before experiencing the street's legendary nightlife scene.
Photo by Olivia Fortner
Thingvellir National Park
9.4/10 (4,157 reviews)
Walk between two tectonic plates at this UNESCO site where Iceland's first parliament was established in 930 AD. Explore the Almannagjá Gorge's dramatic fissures and witness the Öxarárfoss waterfall's cascading beauty.
Gullfoss
9.8/10 (564 reviews)
Part of a nature reserve, this waterfall crashing into a deep canyon is among the country’s most iconic features.
Frequently asked questions
How much does a Southern Iceland holiday package cost?
The most affordable Southern Iceland package is AU$1,470, so your dream trip can become a reality — without breaking the bank. Combine flights, hotels and car rentals to customize a package suited to your travel style.
How do I get a cheap travel package to Southern Iceland?
You'll save a pile of money if you bundle your flights, hotels and car rentals into a Southern Iceland travel package. Sometimes cheap means fewer choices. But not with Expedia. We offer over 550 partner airlines and 1 000 000 properties all over the world, so you'll always have plenty of variety to choose from. Want to save even more? Add some fun activities to your package deal and unlock even bigger discounts! After all, travel is about more than simply getting to your destination.
Where should I stay in Southern Iceland?
You'll have lots to do in Reykjavik, with well-known landmarks like Hallgrimskirkja and Blue Lagoon to explore. Or, if sights like Thingvellir National Park and Geysir Hot Springs are more your style, Bláskógabyggd is the place to head.
What are the top hotels in Southern Iceland?
When it comes to properties in Reykjavik, Centre Hotels Plaza and Reykjavik Residence Hotel are among the favourites. If you're also visiting Golden Circle, Hotel Vík í Mýrdal and Courtyard by Marriott Reykjavik Keflavik Airport will make you feel right at home.
How far in advance should I book my Southern Iceland holiday?
While not all air carriers release tickets early, it's usually possible to compare international fares on Expedia up to a year in advance. This is when you can score some fantastic bargains. If you've left things to the last minute, you may still be in luck. Sometimes the cheapest prices appear a few weeks before departure.
What does an Expedia Southern Iceland travel package include?
Hotels, flights and rental cars, or any combination of them — it's your pick! Whether you're visiting Southern Iceland with the whole family or travelling by yourself, there's a package to suit every budget and style. Once you've made your booking, why not add on a few tours as well?
What should I know before booking a Southern Iceland travel package?
Our prices are always low. However, you'll score even better deals if you book your hotels, flights and car rentals together. With an Expedia package, you'll get transparent pricing and a terrific range of choice.
Can I choose my airline with a Southern Iceland Expedia holiday package?
With a holiday package, you're in charge. Whether you'd like to fly to Southern Iceland in business or coach, simply select from the available airline options. Expedia has access to more than 550 airline partners worldwide.
If I'm not able to travel, can I cancel my Southern Iceland holiday package?
You sure can, and we'll help you every step of the way. You may be able to cancel and rebook your Southern Iceland holiday package for free if you booked in the last 24 hours. But you may incur a fee from your airline, hotel or car rental company for older bookings. If your travel plans unexpectedly change, take a look at our Customer Service Portal for more information.
* Savings based on package bookings compared to the price of the same components booked separately. Savings not available on all packages.
