Why Iceland is the Perfect Family Vacation Spot:
Picking a destination for a family vacation can be challenging. Popular destinations like Paris, London, New York City, Hawaii, or Cancun are not only super-expensive, but can also book out super-far in advance. That’s why it’s worth considering travel destinations that might be a little more off the beaten path of many tourists. Thanks to a wide variety of unique opportunities that are all-ages-friendly, Iceland is a great family vacation destination to consider.
Why Iceland? From its natural landscapes to its unique local pursuits, Iceland makes a travel destination for family trips that are truly unforgettable.

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First Things First: Iceland on Family Budgets
Even though Iceland is a great family vacation spot, it can be a pricey place to visit if you don’t plan carefully. Like any family travel on a budget, a little careful planning can help you get the most bang for your buck when you visit Iceland.
When to travel:
Iceland’s peak tourist season is during the summertime, so every aspect of your Icelandic vacation will be most expensive if you visit during peak summer months. That’s why Iceland will stretch your travel budget less if you can visit during the “shoulder season” periods of spring and fall, when the weather is still great but the crowds are smaller. Planning your visit during March to May or September to November is a great way to find more affordable flights and lodging.
Hacks for saving on lodging and on-the-ground transport:
Once you get to Iceland, you’ll need to figure out how you’re going to get from point A to point B throughout your trip. Public transit is the most cost-effective way to get around the capital of Reykjavik, but can be a lot harder to come by elsewhere.
Therefore, it’s worth considering a budget car rental. Research ahead of time whether you can get accident insurance through your at-home car insurance policy or via the credit card you use for the rental, and you can skip the pricey rental company’s policy.
If you really want to explore the whole island, another fun family option to consider is a camper rental. Not only will this provide you transportation, but a week-long rental can also be a lot more affordable than a week of hotel rooms. (Just remember to budget for your gas and campsites as well; the further you get from Reykjavik, the cheaper the site fees.)
Eating smart:
As with any travel destination, there are plenty of ways to avoid cooking without eating out three meals a day, which can quickly bust your budget if you’re traveling as a family. A solid breakfast and planning for a large restaurant meal at lunchtime (since you can often get the same food at lunch for a lower price than at dinnertime), followed by a light supper or snack on the go, are a great start.
Another tip I love for overseas travel is hitting local grocery stores. This can be a much more affordable way to try many local specialties. For a simple Icelandic breakfast, try skyr (deliciously thick and creamy Icelandic yogurt – if you’ve never tasted it, it’s a must-try) with locally-made granola. For quick lunches on the go, many grocery stores – as well as many gas stations will carry sandwiches, pizza slices, and deliciously affordable Icelandic hot dogs at lower prices than you’d pay in a restaurant.
If you’re used to buying bottled water in the U.S., plan to skip that expensive habit and bring a reusable water bottle instead. The local tap water in Iceland is delicious, perfectly safe to drink, and totally free.
Finally, for Americans and others coming from a restaurant-tipping culture, note that gratuities are automatically included in your restaurant bill, so leaving an addtional tip is neither expected nor customary when dining out at restaurants.
Family-Fun Things to Do in Iceland’s Unique Landscape:
The natural forces that created the island of Iceland are part of why its landscape and features are unparalleled. Iceland is an island at the meeting of tectonic plates, and formed from the volcanic activity that naturally occurs at the fault where these plates meet.
Because no other island can claim this distinction, its unique volcanic landscapes and geography are breathtaking. During the colder months, ice and volcanic rocks meet to make a veritable winter’s playground. If your visit takes place during snowy months, you and your kids can try cross-country skiing or sled racing. And year-round, a hike up an active volcano is an experience no one will forget anytime soon.
Iceland’s Kid-Pleasing Wildlife
Iceland holidays benefit not just from majestic landscapes, but also from the incredible variety of wildlife that lives within. It’s not unheard of to see such Arctic animals as polar bears and Arctic foxes, if you watch carefully. Have your school-age kids do some research ahead of time (always a solid family travel tip in my book, as it gets them excited for the trip and invested in your itinerary!), so they’ll have a plan for animals they want to spot. This is also another great excuse to spend some time hiking or exploring in Iceland’s many national parks.
Also plan to spend plenty of time along the coast scouting marine life. Among other marine creatures, there are plenty of humpback whales and orcas swimming near Iceland’s shores, and you should be able to spot them jumping out of the water with some patient viewing time. This will also give your kids to check out Iceland’s black-sand beaches, an unusual sight whose distinct sand comes directly from the volcanic rock that forms the island.
Fun in the Geothermal Pools
Whatever you do, don’t forget to pack your bathing suits for a trip to Iceland. The volcanic activity that made Iceland possible also makes it exceedingly fun. I’m talking most specifically about the geothermal geysers you’ll find throughout the country, with the country’s many geothermal lagoons and waterfalls being a close second.
There’s nothing like seeing a geyser burst right before your eyes, and the Earth-heated warm-water pools are a fun treat year-round. Plan to swim in at least one or two of these geothermal pools; the Secret Lagoon is a more family-friendly choice than the world-famous Blue Lagoon, and also includes a geyser and a beautiful waterfall. Along with your swimsuits, bringing your own travel-friendly quick-drying towels will save you the towel rental fees when you visit these sites.
Another fun and unique family destination is the Reykjadalur Hot Spring Thermal River. At hot spring sites in general, you’ll need to plan for parking fees (if you drive there yourselves) as well as admission, but these must-see spots guarantee unforgettable memories waiting to be made.
Creating Lasting Memories Under the Northern Lights
Finally, being so close to the Arctic Circle, Iceland is a prime viewing spot for the natural nighttime phenomenon known as the Aurora Borealis, or Northern Lights. Iceland’s northern latitude makes for more Northern Lights than you can see in most other places on the globe, and the rural nature of much of its landscape cuts down on the light pollution that can mar viewing opportunities in so many localities elsewhere.
Prime Northern Lights viewing season begins in late summer and continues through mid-spring, so this is another perfect reason to avoid the tourist-heavy summer months when planning your trip. Plan to be captivated and mesmerized by this amazing natural light show.
Family Fun in Reykjavik:
The capital city of Reykjavik is a great place to explore as a family. From a zoo and open-air parks to fun museums and local swimming destinations, there are plenty of choices to keep families with kids of all ages busy and entertained.
While hop-on hop-off tour buses are available in Reykjavik, as they are in many global cities, a cost-conscious family would do better to skip these and just take public transport around the city. Kids of all ages can enjoy fun learning experiences on everything from the northern lights and volcanic activity (think watching a live lava flow from indoors!), to Iceland’s Viking history (complete with Viking-themed dining experiences that include reenactments!).
While you’re there, keep those bathing suits and towels handy. Public swimming pools are a cultural staple in Iceland, not just a summer escape as in much of the U.S., and the geothermal heating that makes many year-round destinations applies to Reykjavik’s hot-spring-fed Árbæjarlaug pool complex, which includes waterslides and special kid-friendly pools.
Your turn:
Have you been to Iceland as a family? What highlights did I miss? Let us know in the comments!
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