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
Stop Losing Money On Rental Tolls
Regardless of your rental fleet size and structure, fleet managers, executives, and owners can gain valuable insights into an often-overlooked area of fleet operations.
Read More →
Rethink The Future To Avert A Race To The Bottom
Rental car operators heard a sobering industry message and a stern challenge at the close of the International Car Rental Show.
Read More →
DriveItAway, Free2move Plan Shared Fleet Program for Independent Rental Fleet Operators
Vehicles would be placed with participating rental operations to support car renter demand and provide additional fleet capacity.
Read More →
Stellantis Recalls 1.3 Million Jeep Vehicles Worldwide Over Fire Risk
Stellantis is recalling more than 1.3 million Jeep Wrangler and Gladiator models worldwide over a fire risk linked to power steering pump wiring.
Read More →
Green Motion And U-Save Open Rental Operations In Guatemala
The brands will open their first rental car outlets in the country at La Aurora International Airport in Guatemala City.
Read More →
U.S. Business Travel Drives $623 Billion+ in Economic Impact as Spending Reaches $538 Billion
The data also underscores the industry’s strong multiplier effect across the U.S. economy, revealing that each dollar invested in business travel in 2024 generated $1.16 in GDP.
Read More →
Rental Fleet Sales Skating Just Above 2025 Levels
The U.S. economy's continued growth and positive business investment are creating a favorable environment for fleet vehicle demand.
Read More →Grow Your Rental Business Beyond Cars
Rental fleet operations are facing numerous evolving challenges and opportunities from AI technology to rate and revenue management, to customer service and business growth.
Read More →
Using AI to Create Clarity, Not Conflict, in Rental Car Damage
Rental companies still need people, policy, judgment, and thoughtful implementation, with operators remaining in control of the customer experience.
Read More →
Get Ready To Roll: No Stopping Self-Driving Rental Cars
The autonomous mobility technology revolution will move at its own pace, but sooner rather than later.
Read More →
