Flybus options - help
 

For the the KEF to Reykjavk hotels, I see that there are options for ways to travel. Would a van be the best way to get to the Hilton Nordica? If I land at 7 am, what time should I book the shuttle? Thanks so much. Should I book a return as well? I had thought there might be a train but no. Many thanks.

The Flybus is a coach to the bus terminal, then a van to the hotel. You don't need to book in advance unless you really want to as I believe it's the same price, nor do you need to specify a time on the outbound trip, as they always have buses available to meet incoming flights. If you will definitely be using them to get back to the airport then buy a return as it's cheaper. You can pay in the airport or on the bus, using card, ISK cash or even a combination of both. There are no trains in Iceland.

You could also take Gray Line which appears to be cheaper, but I believe it takes longer as its terminal is far from the city center.

Booking in advance saves you a little time at the airport. Booking roundtrip in advance might save a few bucks. Look also at Airport Express -- same service, slightly lower prices.

For either, if your ticket says TIME A, you can still get on a TIME B bus.

If I book the flybus in advance, how much time should I allow to depart the plane, pick up luggage and be where the shuttle is? Thank you.

Whether it's Fly Bus or Gray Line, there will always be a bus to Reykjavik. If you're lucky to be the last person to board, then the bus will leave but if you're the first one, then you'll have to wait till it's full. Flybus and other coaches are times when bank of fights arrive from Europe and North America. Personally I prefer Gray Line since they don't wait till the bus is full before it leaves.

Need a bit more specific help
 

I am trying to make a reservation because I have somewhere to be on the day of the arrival. How much time does it take to get off the plane, through customers and to the shuttle bus (van in my case). Thank you.

Keflavik Airport is fairly compact so going around should not take too long. I have only flown to Iceland from Europe so cannot say about immigration as within Schengen there is none. However, in my experience everything runs quite smoothly in Iceland so would assume that this applies to immigration and customs as well.

I have taken both the Grayline and Flybus from KEF to the Hilton and on both times the bus dropped me off along the way without need to go to their bus terminal and change for a shuttle so it is worth mentioning to them where you are going.

From cabin door threshold to arrivals hall, allow 45-55 minutes; buy ticket at kiosk, 5 minutes, tops; walk to bus, 5 minutes tops; wait for bus till full capacity to leave, 5-20 minutes; travel time to BSI station, 45-50 minutes; travel time from van/shuttle to hotel 10-15 minutes.

You do not make a reservation from the airport because there are always buses standing by and the leave when it's full. To get picked up at your hotel to the airport, you need to make a reservation however. They usually recommend a 1 p.m. pick up for a 5 p.m. flight.