Iceland is an island of intriguing contrasts. Icy cold temperatures, barren lunar-scapes and pristine glacial scenery are interspersed with bubbling hot geothermal springs and steaming volcanoes. Add in the world’s most northerly capital, Reykjavik, famous for its pulsating nightlife, and you’re in for a unique holiday experience.

There are few places, especially within a three-hour flight of the UK, that you can go husky sledding, snowmobiling, bathe in hot thermal waters and party all in one day. So if you’re searching for an unusual holiday, Iceland is definitely worth a visit. Reykjavik is perfect for weekenders, while those searching for natural, not nocturnal, wonders should head for the interior to admire the awesome volcanic scenery with spouting geysers, hot springs and bubbling mud pools aplenty.
The island has always had a reputation as an expensive holiday destination, but with its recent economic woes, it’s now more affordable than ever.

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WHEN SHOULD I VISIT?

Many people’s perception of Iceland is snow and freezing temperatures, but this is only partially true. Temperatures do plummet well below freezing in winter, with just five hours of daylight in December. This is the best time to visit for snowy pursuits such as glacier skiing, snow mobilling and husky sledding, as well as to view the Northern Lights – a magical natural light experience which OK! saw in all its colourful glory. Take a Superjeep tour (www.superjeep.is) as, unlike the coach tours, the car can chase the lights so you’re ensured better views.

Summer temperatures average around 15˚C, but you have the bonus of up to 22 hours of daylight. This is the perfect time for families to visit and go white-water rafting, kayaking, whale watching or enjoy a camping expedition on Icelandic horses.

WHERE CAN I STAY?

Stay in the heart of the action in sumptuous style at the Hótel Borg (www.hotelborg.is). This five-star hotel features 56 individually designed bedrooms with heated floors in the marble bathrooms. It has an enviable city centre location overlooking the beautiful square of Austurvöllur. However, if you don’t intend to party late (the weekend pub crawls are legendary), make sure you don’t book a square-facing room as it can be noisy!

At the other end of the scale, two Icelandic football stars, Hermann Hreidarsson and Eidur Gudjohnsen, who play for Portsmouth and Fulham FC, are opening an upmarket hostel called Kex (www.kexhostel.is) in an old biscuit factory in April.

WHERE CAN I PARTY?

Reykjavik’s nightlife epicentre is Laugavegur Street, where you’ll find 100 restaurants, bars and clubs. Vegamót is where the trendy crowd congregate, while other hip hangouts include Café Solon, B5 (great for cocktails) and Café Oliver. Kaffibarinn is a popular bohemian hangout – order a Viking beer, it’s an Icelandic classic. For late-night action, head down to Gaukur á Stöng for live bands or the popular NASA nightclub. Finish the night with a hot dog from one of the stalls at the Old Harbour.

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WHAT CELEBS WILL I SEE?

If you’re into music, time your visit with the Airwaves Festival (www.icelandairwaves.com), held every October. The Kaiser Chiefs, the Zutons and Biffy Clyro have all headlined. Or sip cocktails with the likes of Heston Blumenthal, Ed Westwick and Calista Flockhart at the super-cool 101 Hotel. Meanwhile, Quentin Tarantino, Kiefer Sutherland and Robbie Williams have been spotted in Reykjavik.

WHERE CAN I EAT?

You’ll find some unusual delicacies on Icelandic menus such as puffin, reindeer and fermented shark, but don’t worry, there’s more familiar fare too! If you want to try classic Icelandic cuisine, dine at Laekjarbrekka, where OK! tucked into the delicious lamb carpaccio, smoked lamb with crisp salad and blueberry vinaigrette and apricot panna cotta. For innovative Icelandic cuisine in cool surrounds, try the Seafood Cellar. Here the chef serves up stylish culinary delights such as langoustines with spruce and smoked cod with fennel. Another cool restaurant is The Fish Market, where you can feast on langoustine tempura in an Asian-style dining room. For gourmet cuisine and island views try Perlan, the revolving restaurant at the top of the city’s old water storage tanks.

HOW CAN I RELAX?

Due to the abundance of underground geothermal energy, you’ll find outdoor thermal pools – many of them public – all over the island and there’s even a hot beach at Nauthólsvik, where the chilly waters are warmed goethermally. The island’s most famous geothermal pool is the Blue Lagoon (www.bluelagoon.is), located out towards the airport. Here we immersed ourselves in the mineral and salt-rich therapeutic waters before opting for a salt-glow body treatment while semi-submerged in a pool. Once our body had been buffed and cleansed, we headed to the Blue Lagoon’s stylish restaurant for some juicy, plump scallops and a fruit smoothie.

WHAT IS THE MUST-DO EXCURSION?

No trip to Iceland would be complete without taking an adrenalin-fuelled adventure into the island’s wild interior. OK! signed up for an all-day guided Golden Circle Tour with Superjeep in one of their oversized Land Rovers. We absolutely loved zooming across glaciers, rivers and lava fields, but the icing on the cake was our driver guide Ragnar, who had an encyclopedic knowledge of Iceland. Highlights of our trip were the impressive Gullfoss waterfalls and the geothermal area around Geysir and Krisuvik, famous for their spouting geysers and bubbling mud pools. We also took in the majestic Eyjafjallajökull, the active volcano which caused so much airline misery last Easter. We finished up at the Seljalandsfoss waterfall, where you even walk behind the waterfall’s thunderous waters.

OK!’s next excursion with Superjeep put us firmly in the driving seat. Snaking along behind our guide, we set off on a snowmobiling safari through the Mydalsjökull glacier. OK! was meant to be admiring the views, but we have to admit we were really enjoying whizzing across the snow imagining we were in a James Bond movie!

HOW DO I GET THERE?

Iceland Express (0118 321 8384, www.icelandexpress.com) is Iceland’s low-fare airline, with prices starting at £89 one-way including taxes. The airline flies daily from Gatwick to Reykjavik and will launch new routes from Edinburgh, Dublin and Belfast in June. Iceland Express also flies between Gatwick and New York (Chicago and Boston will be added in June) and this can include a stopover in Iceland. A double room, including breakfast, at the Hotel Borg (www.hotelborg.is) starts at £140 per night.