The country with the chilly name is rapidly becoming one of Europe's hottest destinations. Much of Iceland's popularity is due to its natural features which include glaciers, hot springs, geysers, active volcanoes, portentous peaks and vast lava deserts. In addition to its expansive landscape, Iceland has a rich history and folklore tradition. However, this appeal is tempered by the most expensive prices in Europe. That doesn't mean it can't be visited on a shoestring, but it does mean that budget travelers will have to work a little harder.

Around the coastal regions, Iceland is a bustle of activity, particularly in the capital city, Reykjavík, where more than half of Iceland's population lives. Reykjavik is set on a broad bay surrounded by mountains and is in an area of geothermal hot springs, creating a natural central heating system and pollution-free environment. It is a busy city combining old-fashioned wooden architecture and modern buildings. Despite being a relatively small capital city, Reykjavik has managed to forge a reputation for partying and its nightclubs and bars are regularly filled with hordes of fun-loving citizens.