Myself, partner and a friend are traveling to Iceland from London early March for 3 nights. What should we do/where should we go to get the most out of our trip? Should we stay in Reykjavik or somewhere else? Thanks!
Iceland is the best and am excited for you guys! It all depends on what you guys are really interested in (hiking, city life, renting a car and exploring, etc). If I was heading there for my first time and only had three days, I would definitely stay in Reykjavik. The city is small but is fun to explore and very walkable. I'd spend one day exploring the city. The next day, I would rent a car and do the Golden Circle. They have bus tours that can take you, but we found renting a car so much better because we enjoyed pulling off of the road along the way to take pictures, explore and pet the Icelandic horses. For the third day, I'd keep the car and travel along the southern highway. There are a lot of places you can google to stop off. For instance, there are several waterfalls, an glacier lagoon, glaciers, volcano and some other cool scenic views. If you are not interested in driving all day, then you can take a tour bus, though, its a long day of travels and you don't get to spend too much time at the attractions. We also liked to go to the attractions and wait until the tour buses left. If you are able to schedule a tour to walk on the glaciers, that would be an awesome experience as well! If you have a 1/2 day either when you get to Iceland or before you leave, I'd also recommend the Blue Lagoon! It's closer to the airport, which makes it a good place to visit when you arrive or before you leave. Again, if you guys prefer more relaxation over adventure, you may like to spend a full day at the lagoon. 4-5 hours was good enough for us! Have fun and make sure to take pictures!
Oh, I also forgot, make sure to go to the famous hotdog stand in Reykjavik. The hotdogs are very inexpensive and are one of the most amazing hotdogs you will EVER have!
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Since you have only three nights, I'd recommend staying in Reykjavik. I walked all over that city and just wandered from cafe to bookstore to art gallery. You might be able to get out into the nearby areas and tour some lava tubes, too. Even if you never leave the city, it's just a great place to walk around. Friendly, good public transit, interesting stores ... Oh, and be sure to visit Icelandic Fish and Chips and the Icelandic Phallological Museum. Great food at one, great fun at the other.
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Book a hotel within walking distance to Bæjarins Bestu - it's a hot dog stand. Spend the next 3 days eating their hotdogs !