One Day in Iceland Layover Guide: Car Rentals, Overnight Stays and More
- Maria DiCicco
- Aug 20
- 6 min read
Your quick-guide to what to expect with one day in Iceland on a layover.
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You May Do These Things in Iceland
Like many embarking on a long layover in Iceland, there's a few pre-requisites that one might expect:
Eating strange and intriguing local foods (puffin, fermented shark...)
Discovering quaint and rustic harbors
Exploring lava fields and geothermal hot spots
Catching a glimpse of the blue lagoon
Perhaps seeing the elusive Northern Lights
This is what Iceland is all about! Having at least one day in Iceland, you'll get to tackle a really good bit of this stuff. I've shared some itinerary ideas at the bottom of this article.
But You Probably Won't Do This
Getting caught in a lava flow or have your flight disrupted by lava. IcelandAir is really good about updates on their website regarding volcano eruptions. Bottom line, you're going to be ok and your flight is more than likely not going to be impacted.
Don't believe me? Read it for yourself here: https://www.icelandair.com/blog/icelands-hottest-natural-wonder/.
Tips For a One Day Layover in Iceland
Cold weather, wind, and low temps are inevitable. Bring a jacket - even if you are coming from somewhere warm!

You can see in the photo above, coming from Madrid I at least remembered a winter coat but completely neglected to properly cover my legs! Big mistake. At a minimum bring tights or go shopping for some when you arrive (tips on that in one of my layover itineraries here).
Meanwhile, expect high prices in most places. You will not need foreign currency for a short layover - just use your credit card.
Getting around without a car in Iceland is doable, but for a layover you don't want to spend all your time in transit out of your control. I highly suggest renting a car.
The airport is very easy to transit through, and frankly really enjoyable. There are a lot of great souvenir shops and cafes for staying a few hours, but with anything more than 12 hours in Iceland, you are going to want to get outside and explore.
Lastly, expect to spend $200+ per night on lodging, and that's the budget end of your options. More than likely, you will spend upwards of $500 for a one-night stay in Reykjavik.
Even your Marriott or Hilton points don't go very far in Iceland, so be prepared to spend all your points or a good bit of money on a one night stay!
Luckily, I've found a couple easy-on-the-budget options for you, below.
Transportation Information from Keflavik Airport
The city of Reykjavik is a good hour away by car, and can be nearly 1.5 hrs by bus. Be prepared in advance for how you will get where you are spending the night.
Here are the most common options for getting from KEF to Reykjavik:
Note: Price estimates are based on data from Rome2Rio.com.
BUS or SHUTTLE: 50 minutes - 1.5 hours
Estimated Cost: $15-80 USD
Buses and airport transfers can be arranged online in advance, or Icelandair actually offers tickets for this service in-flight. If you are a planner and like to book ahead, this bus service, for example, starts at $37 USD and takes you from KEF airport to Reykjavik.
TAXI: 42 minutes
Estimated Cost: $140-$180 USD
It's direct, but it's pricey!
DRIVE: 42 minutes
KEF airport has plenty of rental car options with all the top name brands. Learn more about renting a car abroad here.

PRIVATE DRIVER/DAY TRIP OPTION INCLUDING BLUE LAGOON
Estimated Cost: $250+
For a more luxury experience, hire a private driver to your chosen destination through Day trip, and they will add siteseeing stops (your choice) along the way. This is great for layovers, especially if you don't plan to rent a car but still want freedom.
Best Hotels Near Iceland Airport (KEF)
Depending on your mode of travel and itinerary plans, you should plan to stay in either Keflavik or Reykjavik. Here's my picks for some of the best options to suit your tastes:
Best Rental Property Near Iceland Airport
Best Hotel for Northern Lights Viewing
Best Hotel for Spending Points Near Iceland Airport
Best Bed and Breakfast Near Keflavik Airport
Where to Stay in Reykjavik
Best Campervan Rentals in Iceland
Best Rental Property Near Iceland Airport
Go for: charm, proximity to the airport, walkability to restaurants and a serene waterfront

This is where my family stayed and it was perfect for one night. We ate at the pizza restaurant downstairs and enjoyed the area amenities very much.
Best Hotel for Northern Lights Viewing
This area is stunning. We visited the lighthouse (below) for a walkabout the area including their lovely museum and restaurant.

The Lighthouse Inn is walkable to this area (in good weather conditions) and has a clear view of the night sky, perfect for seeing the Northern Lights in Iceland on your layover.
Best Hotel for Spending Points Near Iceland Airport
This is your classic airport Marriott - comfortable, full of amenities, and easy to get to. An average night will run around 40,000 points and above.
Best Bed and Breakfast Near Keflavik Airport
If you want a quirky and very "Icelandic" stay near the airport in Iceland, this is a great choice. And, prices are very reasonable starting around $211/night.
Where to Stay in Reykjavik
It's tough to find cheap hotels in Reykjavik, so I really recommend staying in Keflavik. But, if you want to be in the action, consider one of the Marriott or Hilton Properties.
They average around $300-$650 USD per night, but you are backed by a brand you know and can trust.
For a luxury stay on points, consider Marriott's The Reykjavik EDITION hotel, averaging around 94,000 points a night. It's in an ideal location in the heart of downtown Reykjavik by the old harbor port, and walking distance to the Laugavegur Street shopping street.
Can't afford the points? The waterfront harbor views and moody Icelandic vibes may be worth shelling out the money for one night. There are other Marriott properties in town as well for around 80K+ points, but not with such amazing views!
Here are some of your Hilton Reykjavik options:
Depending on the time of year, hotels can run less than $200 - but you have to grab it when you see it. There are a lot of cute options!
For a particularly offbeat stay in Reykjavik, consider staying at the pod hotel concept, CityHub Reykjavik. The clean and safe hostel style hotel offers affordable stays for flexible travelers who don't mind sleeping in a cubby for the night.
Best Campervan Rentals in Iceland
Renting a campervan in Iceland can be a great and adventurous way to see the countryside. The hitch is, some require a minimum rental/stay (and this article obviously is just for 1-2 night layover passengers).
Nonetheless, Happy Campers is the highest recommended campervan company, or go through Rent Campervans. You can check minimum stays/rentals on their availability calendars.
For a 5+ day rental, Booking.com offers Kuku Campers - a compact and cute option for a solo traveler or couple.
Some car rental companies even offer campervans, like Hertz.
Things to Do in Iceland on a Long Layover
From hot springs to geothermal areas, lighthouses, history museums and more, there are plenty of attractions and activities to fill a day or two on a long layover.
Be sure to consult my guides on layovers with kids in Iceland, as well as my driving itinerary of things to do in Iceland near the KEF airport. Both of these have tremendous and detailed information on how to get around, what to see, and where to eat!
With 24 hours in Iceland, you're bound to get a great taste for the nation, its cuisine and it's absolutely stunning landscapes. Enjoy!
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