63.99° N · 22.62° W — Keflavík

Destination Intelligence

Iceland, Rising

Virtuoso's advisors rank Iceland No. 3 on the rise. With flat arrivals, less low-cost lift and a new Golden Circle fee coming, the case for selling beyond Reykjavík is stronger.

Andrew LoveseyOctober 1, 20264 min read

Photograph · Barry Marsh / Flickr (Public Domain Mark 1.0)

Iceland’s rise in the 2027 Virtuoso Luxe Report is not a story about volume. Arrivals have been flat for three years. The opportunity for advisors is in the kind of trip the survey points to: adventure-led, increasingly solo, and willing to go beyond the Golden Circle. That is also the part of the market least exposed to the airline and pricing changes now reshaping access.

What Virtuoso’s advisors are saying

The Luxe Report, published on 30 September and based on responses from more than 3,100 Virtuoso-affiliated advisors, ranks Iceland No. 3 among destinations on the rise, behind China and Antarctica and ahead of Egypt and Norway. Iceland is also No. 3 for adventure, after Antarctica and South Africa. In the solo segment, Virtuoso names Iceland, Spain and Croatia as destinations “building momentum as the solo set ventures beyond familiar starting points.”

The numbers are steady, not surging

The Icelandic Tourist Board (Ferðamálastofa) says about 2.27 million foreign visitors arrived through Keflavík International Airport in 2025, 98.7 per cent of the country’s total. Isavia, the airport operator, said in its December 2025 forecast that foreign visitor numbers have been “remarkably stable in recent years, between 2.2 and 2.3 million annually since 2023.” It projected 2.24 million for 2026, a 1.2 per cent dip.

The mix is shifting, though. Isavia reported that about 314,000 international visitors left via Keflavík in August 2026. U.S. citizens made up 33.9 per cent of them, up 27.2 per cent year on year. Canadian departures rose 54.5 per cent. The total solar eclipse on 12 August, which was visible from western Iceland, helped lift the month. Icelandair said traffic to Iceland “remained strong” in August, even though its total passenger count fell 5 per cent.

Air access: less low-cost lift, more North American choice

The biggest structural change is on the supply side. PLAY, the Icelandic low-cost carrier, ceased all operations on 28 September 2025 and cancelled every flight. Isavia’s forecast called PLAY Keflavík’s second-largest carrier and said the capacity gap “has not yet been fully closed,” although other carriers are taking over routes. It projected total Keflavík passengers to fall 7.4 per cent in 2026, mostly because transfer traffic is expected to drop 15.3 per cent.

Isavia's 2026 forecast for Keflavík

Foreign visitors−1.2%

Total passengers−7.4%

Transfer traffic−15.3%

Source: Isavia forecast, December 2025 · Projected change on 2025

For Canadian advisors, WestJet added weekly service to Reykjavík from Edmonton (from 26 June 2026) and Winnipeg (from 27 June 2026). With fewer budget seats, the price-sensitive shoulder-season market is likely to thin out first. Premium travellers, who were never PLAY’s core market, should be less exposed.

A fee on the Golden Circle

Iceland’s government has published a draft bill for a nature and infrastructure fee on non-residents aged 18 and over who visit Þingvellir National Park, Gullfoss and Geysir. As drafted, it would be a one-year digital pass costing ISK 4,500, or ISK 3,000 in the off-season (1 November to 31 May). It would start on 1 May 2027 and replace current parking charges at the sites. Tour operators would be able to buy passes in advance for clients. The consultation closes on 7 October 2026, and RÚV reports that the proposal is being debated. This is separate from the existing per-passenger infrastructure fee charged to cruise ships.

The fee is small next to a luxury itinerary, but it signals that the government wants to manage traffic at the busiest sites. That supports itineraries that spend more nights farther out.

Where the luxury supply sits

The high end is spread across the country, not concentrated in the capital:

Eleven Deplar Farm, Troll Peninsula: a 13-room lodge in the Fljót valley. Its heli-ski season runs 28 February to 5 June 2027. Private buyouts take up to 34 guests, with a three-night minimum.
Highland Base Kerlingarfjöll, central highlands: Blue Lagoon Iceland‘s year-round property, with 46 hotel rooms and six standalone lodges. In winter, guests reach it by 4×4 over roads that standard vehicles can’t use.
Skald Hotel Akureyri, Curio Collection by Hilton: an 86-room hotel in the north’s main town. It was slated to open on 1 August 2026, which would add branded supply near Deplar and the north coast.

For advisors

Sell the second and third regions. Pair a short Reykjavík stay with the highlands (Kerlingarfjöll) or the north (Troll Peninsula, Akureyri). The Westfjords suit clients who want the anti-Golden Circle trip.
Pitch winter and spring to adventure clients now. Deplar’s heli-ski season (28 February–5 June 2027) and buyout model suit multigenerational and celebration groups, which Virtuoso ranks as top trends.
Build in the fee from May 2027. If the bill passes, add the Golden Circle pass to quotes, or buy it through the ground operator. Check the final rates after the 7 October consultation closes.
Reconfirm air. For Canadian clients, compare WestJet’s seasonal Edmonton and Winnipeg flights with Icelandair. Don’t price on PLAY-era fares.

Sources

Andrew Lovesey Editor-in-Chief

Editor-in-Chief of Not An Atlas and founder of Loveseyland. Former Director of Digital and Video at Canadian Geographic and a Fellow of the Royal Canadian Geographical Society.

Sources are linked above. Spot an error? See our corrections policy.

What Virtuoso’s advisors are saying

The numbers are steady, not surging

Air access: less low-cost lift, more North American choice

A fee on the Golden Circle

Where the luxury supply sits

For advisors

Sources

Booking Italy's Busiest Sights

easyJet Opens Girona to Britain

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