Iceland, known for its ethereal landscapes, geothermal pools, and the Northern Lights, has become one of the top travel destinations in recent years. With 2024 presenting new opportunities for travel, budget-conscious explorers are increasingly using points and miles to turn their Icelandic dreams into reality.
In this guide, we’ll explore the best strategies for using points and miles to cover flights, accommodations, and other travel expenses in Iceland.
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Why Iceland?
Iceland’s stunning scenery, from glaciers and volcanoes to waterfalls and black sand beaches, makes it a bucket-list destination.
Visitors can experience the Golden Circle, the Blue Lagoon, the Reynisfjara Beach, and the Snæfellsnes Peninsula—all without crossing multiple borders. Despite its reputation as a pricey destination, using points and miles can make this trip much more affordable.
1. Flights to Iceland with Points and Miles
There are multiple options for using points and miles to cover flights to Iceland, especially from the United States.
A. Icelandair’s Saga Club
Icelandair offers a direct route to Reykjavik from multiple U.S. cities, including New York, Seattle, and Boston. Icelandair’s loyalty program, Saga Club, allows travelers to use Saga points to book economy or business-class tickets.
However, it’s worth noting that Saga Club doesn’t partner with any major U.S. airline loyalty programs, so you’ll likely have to acquire points by flying Icelandair directly or converting points from hotel programs like Hilton Honors.
B. United MileagePlus
United Airlines offers direct flights to Reykjavik from Newark (EWR) and other major U.S. cities during peak travel seasons. For flights from the U.S. to Reykjavik, MileagePlus typically requires between 30,000 and 45,000 points for a one-way ticket in economy, with business class options starting at around 70,000 points.
C. American Airlines AAdvantage
While American Airlines doesn’t operate flights to Iceland directly, you can redeem AAdvantage miles with partner airlines like British Airways.
With AA’s one-world partner network, you could book a one-way economy seat starting at around 22,500 miles with a short layover in London or another European city. Note that there may be additional fees for flying through certain international hubs.
D. Delta SkyMiles
Delta operates direct seasonal flights from JFK to Reykjavik, which are bookable with SkyMiles. For flights to Iceland, Delta offers one-way economy seats for around 35,000 SkyMiles, while a round-trip can range from 70,000 to 80,000 SkyMiles. This route typically operates from late spring to early fall, aligning well with Iceland’s peak travel season.
2. Accommodation Options Using Points
Accommodation in Iceland can be pricey, particularly in Reykjavik and near popular attractions like the Blue Lagoon. Here’s how to use points to score a comfortable place to stay:
A. Hilton Honors
Hilton has several properties in Reykjavik, including the Canopy by Hilton Reykjavik City Centre and Hilton Reykjavik Nordica. For both locations, you can expect redemption rates starting at 40,000 to 60,000 points per night. If you have Hilton Honors points from a co-branded card or transfer points from another program, this can be an ideal option for a central, comfortable stay.
B. Marriott Bonvoy
Marriott offers the Iceland Edition Hotel in Reykjavik, a chic and modern property that’s part of Marriott’s Luxury Collection. Marriott Bonvoy members can redeem points for a night’s stay, with rates typically starting around 50,000 to 70,000 points depending on the season.
This is an excellent option for those with a stash of Bonvoy points or the Chase Sapphire Preferred or Chase Sapphire Reserve, which allows for 1:1 transfers to Bonvoy.
C. Airbnb and Vacation Rentals Using Rewards
While not every vacation rental platform allows for direct redemption with points, Chase Ultimate Rewards cardholders can use their points to book properties through the Chase Travel Portal at a rate of 1.25 cents per point (or 1.5 cents with the Chase Sapphire Reserve). This provides flexibility to book more unique accommodations, like a countryside cabin or an apartment near the coast.
3. Transportation and Tours with Points and Miles
Once in Iceland, you’ll need to figure out transportation and sightseeing. Public transport options are limited, so many travelers rent a car. Here’s how you can use points and miles to make the most of Iceland’s breathtaking sites:
A. Car Rentals with Points
Using points to book a rental car can save hundreds of dollars, especially for extended stays. Programs like Chase Ultimate Rewards and American Express Membership Rewards offer the option to redeem points for car rentals.
Chase’s travel portal allows you to book vehicles with points at favorable rates (1.25 or 1.5 cents per point with certain cards), making it easier to explore attractions like Thingvellir National Park, Seljalandsfoss Waterfall, and the iconic Golden Circle.
B. Tours and Experiences
For those who prefer guided experiences, platforms like Viator and GetYourGuide offer bookable tours that can be covered using Chase Ultimate Rewards points. Whether it’s a guided tour of Reykjavik, a day trip to the Blue Lagoon, or a glacier hike, these options allow you to book tours directly using points to offset the cost.
4. Using Flexible Points for Extra Savings
Flexible points, such as those earned through Chase Ultimate Rewards, American Express Membership Rewards, or Citi ThankYou Points, allow you to transfer points to travel partners or book flights, hotels, and car rentals through their travel portals.
A. Chase Ultimate Rewards
The Chase Sapphire Preferred and Chase Sapphire Reserve cards are ideal for travelers due to their flexible points system. Through the Chase Travel Portal, points are worth 1.25 cents per point with the Sapphire Preferred and 1.5 cents per point with the Sapphire Reserve.
You can book flights, accommodations, and activities in Iceland through the portal, saving on out-of-pocket expenses.
B. American Express Membership Rewards
American Express also allows you to transfer points to airline partners like Delta and British Airways. Additionally, the Amex Travel Portal lets you use points to book various travel expenses directly. If you have the American Express Platinum Card, you’ll also benefit from 5x points on flights booked directly through the Amex portal.
C. Citi ThankYou Points
The Citi Premier and Citi Prestige cards allow you to transfer points to airline partners or use the Citi ThankYou Travel Center for flight and hotel bookings in Iceland. If you’re considering flights with Star Alliance partners, this program offers great flexibility for booking on airlines like United or Lufthansa.
5. Don’t Forget Travel Insurance and Health Coverage
While redeeming points and miles is a fantastic way to save, Iceland’s remote and often rugged landscapes can present certain risks. Most travel credit cards include trip cancellation and interruption insurance, which is essential given Iceland’s unpredictable weather.
Cards like the Chase Sapphire Preferred and Reserve or the American Express Platinum offer robust travel insurance that can save you if flights get delayed or a tour is canceled.
Final Thoughts
Exploring Iceland with points and miles in 2024 allows you to experience the island’s natural wonders without breaking the bank. By combining frequent flyer miles, flexible points, and hotel rewards, you can cover most—if not all—of your major travel expenses.
Whether you’re hiking on glaciers, soaking in geothermal hot springs, or watching the Northern Lights, your trip to Iceland is sure to be memorable and affordable with the right strategy.