What Growth in Tourism Means for Iceland’s Rental Industry
As Iceland’s tourism continues to expand, demand for auto rentals is also rapidly increasing. According to Auto Europe, there has been 195% growth in car rental bookings in Iceland over the past five years.

International visitors traveling to Iceland from 2011 to 2015. Chart courtesy of Auto Europe.

International visitors traveling to Iceland from 2011 to 2015. Chart courtesy of Auto Europe.
Today, Iceland can claim its spot as king of the “hot destinations” hill. Its steady progression up the tourism ladder makes it seem like something more than just a passing fad.
According to a recent report from the official Tourist Board of Iceland, international tourism to the country was up 30% from 2014-2015 and has more than doubled in the past five years.
A majority of these visitors came from the U.S. (20% of total), tailed closely by visitors from the U.K. (19% of total) and Germany (8% of total).
Iceland has become popular as a destination that’s unique from the typical European experience, and auto rentals have prevailed as the preferred way to travel about the country.
In most tourist destinations, travelers are typically presented with a range of options in local transportation. While trains, taxis, buses, and even ferries all compete against car rental in countries like France and Italy, public transit is not nearly as established in Iceland.
Having a private vehicle is a key factor in visiting many of Iceland’s most famous attractions, and the numbers seem to prove it.
At Auto Europe, net bookings from the U.S. for vehicle rentals in Iceland grew 195% from 2011 to 2015 — a trend that mirrors the 127% growth in international visitors traveling to Iceland during the same period.
The need for car rentals in Iceland has been skyrocketing, and a look at Google Trends data confirms that more people are searching online for car rentals in Iceland than ever before.

Interest in "Car Rental Iceland" queries from 2011 to 2016. Courtesy of Google Trends Graph.
One of the more intriguing aspects of Iceland’s growing car rental market is the types of vehicles that are in demand. Most tourists visit Iceland to explore its landscape.
While the Colosseum and Tuscan hillsides inspire travel to Italy, volcanoes and waterfalls draw travelers to Iceland. Touring these natural attractions involves driving on dirt and gravel roads where four-wheel-drive is required.
At Auto Europe, we’ve observed that 4x4, SUVs, and campervan rentals have accounted for nearly 30% of total rental bookings in Iceland over the past five years (37% in 2015 alone).
Here are some key takeaways on tourism and car rental in Iceland:
• Demand for auto rentals is rapidly increasing (195% growth over five years among destination Iceland bookings at Auto Europe).
• Travelers from the U.S. and U.K. make up the largest portion of incoming visitors (20% from the U.S. and 19% from the U.K.).
• Most U.S. travelers visit in the summer months while most U.K. travelers visit in the fall and winter months.
• 4x4 vehicles and camper vans are the most sought-after vehicle categories (making up 37% of all Iceland bookings in 2015 at Auto Europe).
By Chris Slesarchik, SEO specialist at Auto Europe
More Rental Operations

Turo and Tesla Take the Next Step Toward Autonomous Car Rentals
The partnership brings Tesla's Full Self-Driving (Supervised) technology into the rental experience, offering a glimpse of how increasingly automated vehicles could change car rental.
Read More →
How Rental Operators Can Navigate Personalized Pricing Rules
As regulators scrutinize the use of customer data in pricing, rental operators need to know whether they can explain why one renter pays more than another.
Read More →
Direct, Broker or Hybrid? How Travel Retailers Source Rental Cars
As travel retailers weigh direct supplier relationships against third-party distribution, rental operators need to understand how those decisions affect their business.
Read More →
How Did This Independent Rental Operator Grow to 170 Vehicles in 4 Years?
With 170 vehicles across three Kentucky locations, Joel Price relies on an overseas team to handle reservations, payments, and after-hours customer service. It's one part of an unconventional approach to growing an independent rental operation.
Read More →
What Does It Take to Succeed in B2B Rentals?
The fundamentals may be familiar to daily car rental operators, but project-based truck rentals put different demands on the fleet and the business.
Read More →
NPR Builds on International Partnerships to Grow Rental Bookings
With Ana Laborde supporting broker development, NPR Auto Group is tailoring distribution strategies, rate packages, and partnerships to grow international reservations across its three brands.
Read More →
Advantage, Sixt Place Among Top Five in Annual Satisfaction Study
While Enterprise and National retain the top spots in JD Power’s 2026 rankings, the latest customer satisfaction results suggest renters can find competitive service beyond the biggest car rental names.
Read More →
The $100,000 Insurance Trap in Exotic Car Rentals
Exotic rental agencies often rely on customers’ personal auto policies to protect six-figure vehicles. But policy language can dramatically change the coverage for vehicles over $100,000 MSRP.
Read More →
The Booking Is Confirmed, But Is Your Customer Ready to Drive?
For international renters, a confirmed reservation doesn’t always mean they’re eligible to drive. Earlier checks can help operators catch documentation and payment issues before the customer reaches the counter.
Read More →
ICRS 2027 Opens Call for Papers
The International Car Rental Show seeks session proposals on the business, operational, and technology issues facing car rental operators. Submissions are due Jan. 15.
Read More →
