How early should I book rooms/rental cars?


So I’m planning my first trip to Iceland for August 19-27. I’ve been looking up that apparently the best time for flight prices is about 3.5 - 5.5 months before the trip, so I’m planning on waiting until late Feb or early March to buy the tickets. I want the trip to be as cheap as possible so I’ll be staying in hostels as much as I can. Should I be booking my rooms, and rental cars right now or will I be fine doing those after I book my flight?

I’m just worried I might change the dates of my trip slightly if there’s a cheaper flight available 1-2 days before or after, and that would mess up my room plans, since I’m planning on going from Reykjavik to the Diamond Beach over the course of 4 days and I want to stay in different places along the south coast as I move along so I’m not driving back and forth.

Also, during the summer will I be fine with a 2WD car? I do intend on doing a ton of hiking and exploring and some of the places did say they recommend 4WD but I’d rather not spend the extra money.

Any help is appreciated :slight_smile:


Hi Richard,

We always recommend booking as far in advance as possible but maybe not before you have booked your flights as you might end up wasting money in cancellation or modification fees. I would just recommend booking transportation and accommodation once your dates are for sure.

In the summer, a 2WD will be absolutely fine. The advantage of having a 4WD is that you are able to visit the Highlands of Iceland which are also accessible via Iceland’s South Coast. Þórsmörk & Landmannalaugur are popular Highland destinations.

More information here:

Also, if you wanted to check out our offers on car rentals, check here: