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best way to explore iceland in a week

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I am planning to visit iceland in 3rd week of april?
I am confused about few things and want to ask those who have been there.
1. Where should i book hotel (Cheap ones are preferred)
2. which all places to visit so i can cover complete iceland?
3. Where to book a car in budget?
4. If it's worth booking a tour company for city tours, if yes then whom should i book?
5. Best places to have food in iceland.

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    We love the Hotel Frøn - 50 euros a night last April, a huge, sunny room and delightful staff.

    We've been twice and never left Reykyavik, so can't help with "covering complete Iceland."

    Never booked a car. Don't want to, either.

    We do the free city tours given by students. They are phenomenally good tours.

    There is no good place to have food in Iceland that we have found. Even at expensive restaurants. Best food we had on both trips was at Meze, the only Turkish restaurant in the country.

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    How many nights/days are you there? If you've got a full week plus a weekend i.e. 9 nights, you could probably consider driving the Ring Road and doing a fast paced tour round the whole country. Google driving Iceland's Ring Road or take a look through some trip reports here for itinerary and stop ideas.

    If you have 6 or 7 nights, I'd look through a guidebook, narrow down the sights or things most of interest to you, and look at how far they are from Reykjavik. Consider something like this if you are most interested in Iceland's natural sights:

    2-3 nights South Coast for waterfalls (Skogafoss, Svartifoss, Seljalandsfoss), black sand beach, Jokulsarlon glacial lagoon, woods mountains and glaciers at Skaftafell for hiking

    1-2 nights Snaefellsnes for diversity of landscapes and seascapes, volcanoes, walking and hiking, birds, waterfalls (Barnafoss, Glymur, Hraunfossar), Kirkjufell

    1-2 nights Reykjavik

    You can do these in a rental car on your own, or by day or multi-day tours.

    You can hit the famous Golden Circle as part of your journey to the South Coast, or as a daytrip from Reykjavik.

    If you're interested in the Blue Lagoon, most recommend doing it on your way from the airport when you arrive, or on the way to the airport when you depart.

    For food, I'd recommend the following budget food options in Reykjavik. In more rural areas, your options will be limited.

    -Café Babalu
    -Noodle Station
    -Svarta Kaffi

    I went to one high end restaurant Dill in Reykjavik and found the food fantastic, but it was expensive about $150 for set menu and wine pairings. (I visited in March 2015).

    Have a wonderful trip! Iceland is a fabulous country.

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