Iceland

You'll discover on cheap holidays to Iceland that despite ancient tales of trolls and witches, Reykjavik is one of the world's newest capitals. Low-slung buildings and brightly-coloured houses give it a fairy tale appearance. The icy capital has also earned the reputation of being one of the hippest destinations in Europe and the epicentre of a cutting-edge rave culture.

Budget-conscious hedonists should perhaps note that the reliance on high number of imported goods keep the cost of living high, but cheap holidays to Iceland can still be found.

It is the 'Land of Fire and Ice', where a seething mass of thermal activity bubbles underfoot and as the stereotype has it, people wear earthy knitwear with fabulous hats and are classed as the happiest in the world.

Hot springs and geysers; glaciers and snowy peaks; volcanoes and lunar-like lava fields create some beautifully surreal landscapes to experience on cheap holidays to Iceland.

Topping the list of must-sees is Gullfloss, the Golden Waterfall, one of the most photographed in the world, and Myvat with its blue lake, waterfalls, geysers, mud pools and ponies. While on a watery theme, it's also well worth investigating the Blaa Lonid, the Blue Lagoon. A misty and ethereal thermal pool, which is the ideal spot to soak away travel stress while marvelling at tourists' bread and butter on cheap holidays to Iceland - geothermal activity.

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