We both flew into Reykjavik, both everything we could at duty free (what all the books say is true- alcohol is taxed so heavily that it is 50-70% cheaper to purchase it at Duty Free, scrambled around to find the SAD Cars rep, rode to what look like an abandoned studio lot, picked up out '92 Subaru outback with no hubcaps and a different colored hatch and were on our way!
We headed to the Blue Lagoon first.
The wastewater from a geothermal power station is naturally so warm and dense with minerals that it was turned into a spa destination: (you can see the steam from the plant in the distance)
pipeline running heating water to town
Other folks we ran into scoffed at the price to bathe (35 euro for basic entry, 9 for a glass of wine) but I thought it was the best 35bucks one could spend.
Silica masks are kept in pots around the property and there are different areas of beaches, varying temps, sauna, massaging water fall:
For the first night we stayed south of Reykjavik, in Hafnarfjörður, at Hotel Viking. From the prices we saw, it was about the same price for 2 dorm-style beds in a hostel as it was for a private room in this type of hotel or a guesthouse, which would include breakfast. Not sure if this is true all the time, or a product of us being there in peak offseason.
Hotel Viking was kinda like the Disney of Iceland, but the town was quiet (it seemed as if we were the only folks staying there, but there were others at breakfast)
The room was very nice, and we didn't get a chance to use the sauna. Breakfast was basically typical European fair, plus suprisingly tastey pickled fish. Breakfast decor: