Air Iceland (www.airiceland.is) and Eagle Air (www.eagleair.is) run domestic services to all major airports within Iceland from Reykjavík’s city airport, linking up with air or bus connections in over 40 towns. They also fly to Greenland and the Faroe Islands.
If you’re in Iceland for a short amount of time, flying can be a great way to see the different areas of the country and it doesn’t have to be expensive. You can take a bus one way and fly the other; this mode of transport also allows you to see the country by air, which can be singularly dramatic. Both internal airlines offer day tours of the country as well as day trips, guided tours and scheduled flights. You need a passport to travel to Greenland or the Faroe Islands from Iceland.
Car hire services are available from Reykjavík, Akureyri and many other towns. Speed limits are 50kph (31mph) in urban areas, while outside towns they are 90kph (56mph) on paved roads and 80kph (50mph) on gravel roads. Driving under the influence of alcohol is prohibited. It is obligatory to use headlights at all times of the day and night, and to wear seat belts, both in the front and back seats.
An International Driving Permit is recommended, although it is not legally required. A temporary driving licence is available from local authorities on presentation of a valid UK driving licence. Vehicles are driven on the right side of the road.
Remote areas of Iceland have poor mobile and GPS reception; it is always advisable to tell someone where you are going and when you will return and to take a map. Some roads receive few passersby so you should be prepared in the event of an emergency. Costs for breakdown recovery can be high. Check details thoroughly with your car hire company. Changing weather conditions can make driving in Iceland like nowhere else in the world. Be prepared and take all reasonable precautions.
A major road, the Route One, which links all the main towns and runs in a circular route around the island, rings Iceland. Outside Reykjavík, roads are often quiet and empty; sheep and horses can be hazardous, as can weather conditions, but driving itself is usually relaxed.
There are roads serving all settlements, but outside major settlements, they can be gravel rather than tarred. Every year, lesser-used roads through the central highlands of the country are re-marked by the first vehicles to drive the route. Most mountain roads are only open in summer, and some of them can only be used by 4-wheel-drive vehicles.
Taxi services are available from all hotels and airports and downtown areas of Reykjavík and Akureyri.
Iceland has some appeal to cyclists; the quiet roads and scenery have made it popular with touring European cyclists and several cycle tour options are available. Cycle hire is available in Reykjavík by the day as well as for longer-term rental.
The BSI bus station in Reykjavík is the hub for buses in the country. Routes are available to take you everywhere (they are much more frequent in the summer than the winter) including tourist packages, flight and bus links and scheduled routes. Reservations are not always necessary and you can buy tickets from the driver. Check BSI (www.bsi.is/index_en.html) for bus schedules and routes.
Most of Iceland’s cities are easy to drive round and easier to walk around. Parking is usually easy and there is little traffic.
There are ferry links to the Westman Islands off the southwest coast served by Herjolfur ferries (www.herjolfur.is). Sæfari (www.landflutningar.is/saefari) offer scheduled trips from Grimsey Island in the Arctic Circle to the north of Iceland, whilst Seatours (www.seatours.is) offer journeys around the Westfjords from Stikkisholmur on the Snaefellsjokull peninsula.