How Transformed the Country

cntraveler.com/stories/2015-09-18/how-icelandair-stopover-program-transformed-

Many countries have a national airline: the United Kingdom has ; the UAE has . But Icelandair has gone beyond that to provide Iceland with much more than just a national carrier. Thanks to a famous layover package that brought many North American tourists to the country for the first time and a proprietary group of branded hotels around the country, Icelandair has completely changed the face of its country’s tourism.

“We wouldn’t exist without Icelandair,” says Hannes Palsson, one of the principals of LGBT-focused tourism company Pink Iceland. Icelandair’s layover program—where travelers could book a three day stopover in the country on the way to or from major European cities for less than simply booking a fare with a transfer in Reykjavik —began in the 1960s. It grew in popularity in the early 2000s as international curiosity began to grow about the small, mysterious Nordic nation. The layovers gave North Americans a chance to learn about the homeland of Bjork and Sigur Ros and many of them liked their small sample of Iceland so much that they returned or told their friends. “There is so much to do and see in Iceland and we always encourage our passengers to stopover on the way to Europe to get a sample of Iceland,” explains Michael Raucheisen, the US marketing and communications coordinator for Icelandair. “After they have had a small taste of what Iceland is all about, we know they will return and make it their primary destination on their next trip.”

The Perfect Day in Reykjavik Iceland’s isolation had long made it an expensive country to travel in, but Icelandair weathered the economic crash of 2008 by positioning Iceland as an affordable European destination. The gambit worked. Since then, tourism has grown year-over-year and the entire city of Reykjavik seems to be under construction as new hotel properties—including a Hilton Canopy that will take up an entire city block—spring up on formerly sleepy streets.

Icelandair owns 22 hotels within the country, making it easy for travelers to book hotels and flights at once for a seamless experience. But it’s not only about convenience: the branding of both the airline and the hotels is fun, kitschy, and inviting without being cloying. For example, passengers on Icelandair planes sit in seats printed with cute facts about Iceland, such as: “Good night” is “góða nótt” in Icelandic. It has a soft and cuddly sound.” One of the in-flight radio stations plays nothing but entire Sigur Ros albums. And when a passenger checks into the

Icelandair Hotel Reykjavik Marina in central Reykjavik, they’ll find similarly funky design elements, including brightly-colored plaid chairs in the common room, a Steampunk-style clock hanging above the reception desk, and a note in bathroom stalls urging guests not to get “too cozy” and to ask the front desk for local recommendations.

A bright, nautical-themed room at the Icelandair Marina.

Courtesy Icelandair

But Icelandair hasn’t simply succeeded at upping tourist numbers. It has also become a tastemaker in its own right. Many of the American and Canadian tourists stopping into Cafe Loki, a popular hangout across the street from

Church of Hallgrímur, said that they were there because of an Icelandair in-flight video that featured the restaurant and named it as a good place to try the country’s notorious raw sharkfin snack. The #MyStopover hashtag, which Icelandair launched in 2014, is a way to let travelers show off their Blue Lagoon pics on Instagram and Twitter and make their friends back home envious enough to plan trips of their own. In other words, it's free Icelandair marketing, and that's just how the company likes it. “The main idea behind Icelandair and Icelandair Hotel is to extend the strength of a strong umbrella brand () over related products, and of course be able to cross-sell our products across these related categories,” says Lara Moller, a sales agent for the Icelandair hotels group. “In that way we are able to provide a one-stop shop for tourists, and by the strength and size of our brand in Icelandic tourist industry, be on top of their minds when traveling to Iceland. So when flying with Icelandair and staying at Icelandair Hotels, customers are ensured that they will enjoy quality customer service throughout their entire travel.” Moller and the rest of Icelandair’s hotel arm will be managing some new properties opening in 2016 and 2017, including the Hilton Canopy. Next up: Icelandair-branded ski trips and helicopter rides? It could happen.