Auto Rental News
MenuMENU
SearchSEARCH

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.

by Chris Slesarchik
September 6, 2016
What Growth in Tourism Means for Iceland’s Rental Industry

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

3 min to read


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.

Ad Loading...

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.

Ad Loading...

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:

Ad Loading...

• 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

A tech collage of electronic devices against a computer chip blueprint map.
Rental OperationsMay 1, 2026

Why Car Rental Can No Longer Run On Workarounds

The shift from branch-based software to connected operations is turning rental technology into strategic infrastructure.

Read More →
A tech collage of electronic devices against a computer chip blueprint map.
Rental OperationsMay 1, 2026

Why Car Rental Can No Longer Run On Workarounds

The shift from branch-based software to connected operations is turning rental technology into strategic infrastructure.

Read More →
A black Audi SUV superimposed on a historic scene from downtown Tashkent, Uzbekistan.

Carwiz Sets Up Rental Operations In Central Asia

The global franchise operation reaches a first in its rental fleet portfolio with new service in Uzbekistan.

Read More →
Ad Loading...
A raging brushfire in the countryside.
Rental Operationsby Martin RomjueApril 30, 2026

Where Rental Fleets Must Adjust To Shifting Catastrophe Risks

West Coast disasters pose unique challenges and liabilities for rental fleet operators, who are advised to take steps tailored to their specific situations.

Read More →
ARN Industry Newsmakers thumbnail page with ARN and ICRS logos and shots of Nick DiPrima and Martin Romjue
Rental Operationsby Martin RomjueApril 27, 2026

Using AI To Find Rental Car Damage

Angry car renters are storming social media, the mainstream media, and online ratings platforms to complain about charges they claim are either unfounded or excessive.

Read More →
Photo of CEO Krešimir Dobrilović against a gray modernist crooked-tile mural display.

Carwiz Opens Car Rental Service In Panama

A Carwiz partner in Puerto Rico is taking on the Panama franchise with operations in the nation's largest airport.

Read More →
Ad Loading...
A world map with Flexways logo and new locations headline.

Flexways Opens 10 Locations Among Franchise, Affiliate Rental Networks

The integrated business model combines each operator’s local expertise with international standards to boost sales.

Read More →
Photo of a suitcase, passport, and smartphone.

Traveler Customer Satisfaction Up This Year Data Study Shows

The study looks at customer analytics to size up performance in car rentals, rideshare, airlines, lodging, and OTAs.

Read More →
A rental car between two placards showing a symbolic revenue increase from $300 to $1600.

New Consulting Company Ready To Boost Point-of-Sale Revenue

Revcuity, an outgrowth of Frontline Performance Group, aims to help clients capture more revenue moments with face-to-face customers, including in the car rental space.

Read More →
Ad Loading...
Martin Romjue stands at conference stage podium close to a dangling, glistening chandelier.
Rental Operationsby StaffApril 15, 2026

Meet The (Semi-New) ARN Editor

Martin Romjue has been editing and reporting for ARN since 2023 and fully transitioned to the role of chairman of the International Car Rental Show in 2026.

Read More →
Ad Loading...