I've been to Iceland twice now, in May 2011 and July 2014. Both times I rented a small car and drove around the country, using Ring Road 1 as a rough guide. I don't have much to report on the flights themselves other than that they were comfortable with plenty of legroom in Y - Icelandair flies 757-200s which we found adequate for the short hop across from mainland Europe.
Here is a similar map showing Ring road 1 - the main highway around Iceland. It is well signed and has excellent tourist info maps in the rest areas.
Accommodation: We are budget travellers so accommodation for us involved using the excellent https://www.hihostels.com/ network spread around the country. Private rooms are available in most hostels which will set you back $60-100 per night for 2 adults.
Transport: We opted for a smaller rental car as we were not travelling inland to the highlands or on any on the rougher F-roads which require a proper 4WD vehicle. There is so much so see for a first time visitor just by using the Ring road. Be aware that there are still some unsealed / gravel sections on the Ring road and opting for the extra gravel insurance is advisable - unless you are certain your travel insurance will cover you for the excess should you sustain a rock chip etc. We cracked our windscreen on the second trip thanks to oncoming traffic on a gravel section of Ring road 1 and had only opted for the basic insurance. It cost us $800 but thankfully I got about $500 of that back from my CC travel insurance. Also be advised that if going earlier in the season (April-June) there will still be some snow on the higher passes - as seen one one of the photos below. This can be very hazardous as it drops visibility and traction down to very low levels. Some of the fantastic scenery on Ring Road 1...
Here is a similar map showing Ring road 1 - the main highway around Iceland. It is well signed and has excellent tourist info maps in the rest areas.
Accommodation: We are budget travellers so accommodation for us involved using the excellent https://www.hihostels.com/ network spread around the country. Private rooms are available in most hostels which will set you back $60-100 per night for 2 adults.
Transport: We opted for a smaller rental car as we were not travelling inland to the highlands or on any on the rougher F-roads which require a proper 4WD vehicle. There is so much so see for a first time visitor just by using the Ring road. Be aware that there are still some unsealed / gravel sections on the Ring road and opting for the extra gravel insurance is advisable - unless you are certain your travel insurance will cover you for the excess should you sustain a rock chip etc. We cracked our windscreen on the second trip thanks to oncoming traffic on a gravel section of Ring road 1 and had only opted for the basic insurance. It cost us $800 but thankfully I got about $500 of that back from my CC travel insurance. Also be advised that if going earlier in the season (April-June) there will still be some snow on the higher passes - as seen one one of the photos below. This can be very hazardous as it drops visibility and traction down to very low levels. Some of the fantastic scenery on Ring Road 1...