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Savvy Travel Advice

Iceland on a Budget: How to Save Money in Iceland

Last updated: April 17, 2024 - Written by Jessica Norah 96 Comments

Iceland is a popular but expensive travel destination. To help with your trip planning, we’ve put together a guide to how to travel to Iceland on a budget. Our advice is based on the 6 weeks we have spent traveling throughout this beautiful country.

In this post we’re going to share our top Iceland budget tips to help you save money on your Iceland trip. We’ll start with giving you an idea of what things costs in Iceland and how to set up a budget for your trip, and then we’ll share 21 different budget tips to help you travel in Iceland on a budget. We share ways to save money in Iceland on flights, accommodation, rental cars, dining out, camping, alcohol, groceries, fuel, and sightseeing.

Whether you are traveling on a $1,000 budget or a $10,000 budget, you want to get the most out of your money and your trip to Iceland, and that’s what this post will help you do! 

Table of Contents:

Planning your Iceland Budget

Planning your Iceland budget is a really important part of planning your Iceland trip. You definitely don’t want to arrive and suffer sticker shock and end up spending much more than you anticipated.

With a bit of advance planning we think you will be able to come up with a realistic idea of how much your trip to Iceland is going to cost you, and this section of the post will help you figure that out.

How Much Do Things Cost in Iceland?

Iceland uses the Icelandic krona (ISK) so be sure to check the current exchange rates of the krona with your home currency before you to know the exchange range. You’ll also want to have an idea of the current costs of goods and services.

To find out a good rough idea of the current prices for things in Iceland we recommend checking out a site called Numbeo. Here you can check for prices of basic goods (bananas, a pair of Levi jeans, gasoline, restaurant meals, wine) by country or check on prices of goods for a particular city (see  here for Reykjavík ).

NOTE: The prices in this post were last updated in May 2022 and are rough estimations to give you an idea. ISK currency rates have taken a huge dip since this post was originally written in July 2018. For the USD currency conversion, the conversion rates at time of writing are 1 ISK = 0.008 USD (or 1 USD = 128 ISK).

• Grocery Items – Iceland currently has some of the highest prices in the world for grocery items. Here are some average prices: loaf of fresh white bread (357 ISK; USD $2.77), bottle of mid-range red wine (2400 ISK, USD $18.62), 1 kg of bananas (260 ISK; USD $2.02), 1 kg of white rice (330 ISK, USD $2.56), and 1 kg of boneless chicken breasts (2050 ISK; USD $15.90).
• Eating Out – 450 ISK (USD $3.49) for a hot dog from a hot dog stand, 1089 ISK (USD $8.45) for a 12-inch Subway sub of the day special,1,750 ISK (USD $13.57) for hamburger at fuel station, and 12,000 ISK (USD $93) for 2-course meal (no drinks) for 2 persons at mid-range restaurant.
• Tours & Activities – Prices range a lot based on the type of tour, length, and inclusions but here are some general prices (per person) to give you an idea: 6100 ISK (USD $48) for 1 hour puffin watching boat tour from Reykjavik, 8,700 ISK (USD $68) for a full-day Golden Circle sightseeing bus tour, 19,300 ISK (USD $150) for a 2 hour snorkeling trip, and 20,000 (USD $157) for an ice cave tour. For multi-day tours, 71,000 ISK (USD $556) for a 3 day/2 night tour, 206,000 ISK (USD $1,600) for a 6 day/5 night tour, or 240,000 (USD $1870) for a 8 night/7 night tour.
• Lodging – Prices depend a lot on location and time of year as summertime prices can be double wintertime prices and expect to pay more in Reykjavik than in the countryside. But we provide some rough average prices. 3,800 ISK (USD $30) for a bed in a shared dorm room in a basic hostel, 6,500 ISK (USD $50) for a bed in a shared dorm in a nicer hostel, 9,600 ISK ($75) for private guesthouse room with shared bathroom, 12,800 ISK (USD $100) for a budget hotel or guesthouse, 20,000 ISK (USD $157) for room in mid-range hotel, and over 30,000 (USD $230+) for a room in a 4-star + hotel.
• Campsites – Campsites are about 1,000 to 2,600 ISK (USD $8 to $20) per person/night plus a small overnight tax that is currently 333 ISK (USD $2.78) per tent or campervan. Additional small fees often apply for use of extra services like laundry, waste disposal, and showers.
• Museum Entry Fees – On average, museum and attraction entry fees range from 800 ISK (USD $6.20) to 2500 ISK (USD $19.39). Museums are the most expensive in Reykjavík and less expensive outside of major tourist towns.
• Rental Cars – Car rental prices vary but here are some rough estimates to help guide your budget: 10,300 ISK (USD $80/day) for a 2X2 compact car, 15,700 ISK (USD $120/day) for a small 4X4 Jeep, 15,700 ISK (USD $120/day) for a small campervan with roof tent, and 16,700+ (USD $130+/day) for luxury cars and Jeeps. All rentals generally come with mandatory insurance (often called basic CDW) but to upgrade to include physical damage/gravel coverage is generally an extra 2,000 to 2,500 ISK ($17 to $21)/day. Compare rental prices for cars and motorhomes in Iceland here .
• Gasoline – The estimated average cost for 1 liter of gasoline is 317 ISK (USD $2.88). Note that 1 liter is only about 1/4 of a gallon. A gallon of fuel would be 1,268 ISK (USD $11.52).
• Public Transportation – A one-way regular adult bus ticket in Reykjavík costs 480 ISK (USD $3.72), but you can save money with a bus pass if taking the bus a number of times. In Akureyri, the local city buses are free. Long-distance bus ticket prices depend on location and time of year, but a ticket from Reykjavík to Akureyri will likely cost between 8,000 ISK (USD $62) and 11,000 ISK (USD $85).

Why is Iceland so Expensive?

Prices are high in Iceland for a variety of factors. It doesn’t just affect travelers though, Iceland has one of the highest costs of living in the world.

The high prices are partially due to the isolated nature of Iceland’s location as an island in the North Atlantic as the cost and time to import goods is high. Another factor is that Iceland is a small country with a relatively small workforce in a country where the costs of living are very high so labor costs are high. The country also has to depend on hiring foreign labor, especially in the fishing and tourism sectors.

Another factor on some items is taxes and import fees. For instance the taxes on alcohol and fuel are very high in Iceland.

However, another big factor is the country’s currency. When we last visited the economy was very strong and the Icelandic krona was very strong (some were saying too strong). This, of course, means that the prices of everything are very high. However, when the country has a recession or a financial crisis (such as in 2008), the krona crashes and prices tumble.

So as a traveler, the prices you pay are going to depend a lot on how well Iceland’s economy is doing. Good to check this out before your trip as if you use price estimates from 6 months ago, your budget could be way off.

Tips for Setting your Personal Iceland Budget

Use your research to set a realistic budget for your trip.

A good budget should:

1.) Be comprehensive – It should include all your major costs of traveling including your flights, lodging, transportation (buses, rental car [fuel, insurance], ferries, etc.), meals, tours and activities, sightseeing admission fees, and extras (e.g., shopping, souvenirs, snacks, camping gear rental).

2.)  Be practical given the average costs in Iceland.

3.) Sit comfortably within your financial constraints. Be sure to leave a little room for unexpected expenses.

4.) Not be too restrictive. Don’t plan a trip that is so restrictive in terms of budget that you have doubts about whether you will actually be able to enjoy the trip.

What if I Can’t Afford to Travel to Iceland?

If you find after doing some research into prices and checking out our budget tips that you have significant concerns about the costs, consider a shorter trip (e.g., 3 days instead of 5 days) or consider waiting and saving up a bit of money first. Iceland will still be there next year.

You don’t want the travel stress of worrying about money on the trip and also you don’t want to feel so restricted on the trip that you don’t have any fun. For instance, would you enjoy Iceland if you are not being able to do any paid activities and having to eat boiled rice each night?

Determine how much money you need to save and then figure out how long it will take you to save the money for your trip. The best strategy is to save a little money each week (or each month) until you reach your savings goal.

Iceland on a Budget: 21 Ways to Save Money in Iceland

Below we’ll share 21 ways to save money in Iceland. These include ways to save money on flights, lodging, groceries, sightseeing, restaurants, camping, fuel, transportation, and activities. Many of these tips you can start using right now as you begin to plan and research your trip, and should help you stay within your budget while traveling in Iceland.

The ISK prices in this post were last updated in May 2022. For the USD currency conversions, the conversion rates at time of writing are 1 ISK = 0.008 USD (or 1 USD = 128 ISK). So do keep this in mind and please check the latest exchange rates for your country’s currency.

1. Travel to Iceland Off Season

The busiest and most expensive time to travel to Iceland is in the summer months. The high season in Iceland is from about mid-June to end of August. Hotels, activities, car rentals, and other services are often higher during this period. We have been in both summer and winter and the increase in accommodation prices was particularly noticeable. With higher demand, expect higher prices.

So if you are flexible in when you travel, consider traveling outside of the summer season, particularly July and August. You’ll avoid paying the highest prices and also avoid the most crowded time in Iceland. If you still want to travel around this period, consider going just outside of the busiest period, say late May, early June, or September.

However, despite the higher prices, there is a reason that most people choose to visit in the summer. It is partly due to this is when most people can take their vacation time, but it is also when Iceland generally has its best weather and the greatest number of tourist-related businesses, attractions, and services are open. It is also the safest time in terms of driving, hiking, and camping, and summer is the best time to see wildlife in Iceland. So keep in mind both the pros and cons to make your decision.

If you are planning to travel in the summer months, our 1 week Ring Road itinerary and 5 day all-season itinerary may be useful.

If you are thinking about traveling in the winter (December to April), you can check out our suggested 7 day Iceland winter itinerary for an idea of more of the pros/cons of winter travel and an idea of where you might want to go. Here is a list of fun winter activities that you can do in Iceland which include skiing, ice cave explorations, snowmobiling, snorkeling, and Northern Lights hunting.

2. Book a Cheap Flight

Try to save money for your trip by looking for inexpensive airline tickets. If you live in North America (particularly the Midwestern or eastern United States), Western Europe, or Northern Europe you can probably find low airline fares. If you are patient and have flexible dates, you should be able to find decent flights.

The main providers of inexpensive flights to Iceland are Icelandair (main Iceland airline) and Play (budget-focused airline). Previously the budget Iceland airline was WOW Air but it ceased operating in March 2019.

For example, in the UK you can get round-trip flights to Reykjavík from USD $180 and Americans from a select number of cities are sometimes able to get round trip flights to Reykjavík from the east coast for as low as USD $200!

Just be sure you check the baggage guidelines and inclusions for the airline as most budget airlines have strict weight and luggage requirements. You’ll need to add in extra luggage fees, as needed, into your flight cost. For example, an IcelandAir Economy Light ticket does not allow for any checked luggage.

Many people end up paying a lot in extra baggage fees at the airport because they did not pre-pay. If you need to bring additional baggage, purchase the additional luggage allowance with your ticket rather than at the airport to save money.

If you don’t live in a country or near a city where Icelandair or Play operates, you might try booking a flight that connects to one of those cities to take advantage of cheap fares. For booking flights we like Priceline , Kiwi ,  Southwest (for flights within the USA only).

Many people also visit Iceland on a stopover on their way between North America and Europe, or vice versa. Stopovers with Icelandair are available on most transatlantic flights at no extra cost and you can stay in Iceland for 1 to 7 days. A stopover is a great way to see Iceland if you only want to visit some highlights but it is not your primary holiday destination. See our guide to visiting Iceland on a stopover for some ideas.

NOTE: All international flights currently land at Keflavík International Airport, about 30 miles southwest of Reykjavík. There is an airport within Reykjavík but it is used for domestic flights only (and a few from Greenland & the Faroe Islands).

3. Compare Lodging Options

You can save money by comparing different lodging options and looking across different websites.

In Iceland, there are a variety of lodging options from hostels to guesthouses to apartments to hotels. Reykjavík has the greatest number of lodging options and properties range from budget to luxury. There are fewer choices in the less populated areas of the country. Guesthouses, bed-and-breakfasts, and small hotels are the most common types of places throughout the country.

If you are booking your own lodging, be sure to compare options and consider alternative options to what you normally book. 

Here are some places to start to get an idea of prices:

• Booking.com – One of the largest and most competitive online booking websites, it offers all kinds of accommodation options including hotels, guesthouses, holiday homes, apartments, and hostels. This is the website we use the most to book our lodging worldwide.
• HostelWorld – Our recommended place to search for & book hostels around the world. Hostels are usually your cheapest option in Iceland (except for campsites).
• Book directly – It is always a good idea to check out the hotel website to see if they can offer a better deal.
• Vrbo – A popular online place to find apartments, and holiday homes for a variety of budgets. Note that like many places, there are a lot of illegal vacation rental properties in Iceland and the large increase in vacation rental properties over the past few years has been driving up rental prices for locals. So these services are often unpopular with some Icelanders!

4. Book Accommodation in Advance

As with many destinations, booking your accommodation in advance can save you money. It also gives you access to the most variety in lodging and can help ensure you get a room within your budget. Last-minute rates, especially in high season, can be very expensive (we’ve seen them triple the normal rate).

Once you have your dates set and flights booked for your trip, I’d start investigating lodging options within your price range. Not only can booking in advance save you money, but it also ensures you have a place to stay. Driving around late at night looking for a place to stay is never fun!

Even if you are not 100% sure of your plans yet, it may still be a good idea to book your accommodation if you have the option to cancel it if necessary. On many online hotel websites, like Booking.com , most properties allow you to book a hotel room, guesthouse, or apartment, and then cancel it if your plans change. You just need to cancel it by a certain date as will be indicated on the booking (normally 24 hours to 1 week in advance depending on the property).

By booking in advance, you lock in the current rate and know you have a place to stay, but can still change your mind later.

5. Consider a Camping Holiday

Camping is one of the least expensive ways to overnight in Iceland and also gets you outside and under the stars. This is a great way to travel in Iceland on a budget. We’ll share all the information you need to know to decide if camping is right for you and how much you can expect to pay per night.

Finding Campsites in Iceland

Camping is fairly inexpensive in Iceland and is one of the best budget ways to travel around Iceland if you plan to self-drive. Campsites are about 1,000 to 2,600 ISK (USD $8 to $20) per person/night plus a small overnight tax that is currently 333 ISK (USD $2.78) per tent or campervan. Additional small fees often apply for use of extra services like laundry, waste disposal, and showers. So you can save money by checking rates before choosing a campsite.

Do I need to book campsites in advance?

You don’t need to book camping in advance in Iceland. In fact, most campsites do NOT take advance bookings. There is normally a lot of space (most are open fields) and people are rarely turned away.

It is a good idea to know where campsites are located in advance so you can loosely plan where you will stay each night during your trip. Space is allocated first come, first serve at most places, so just don’t show up too late during the busy season, especially if have specific requirements (e.g., large caravan that needs water & electric hookups). Checking in by early evening is a good idea and most campsites allow registration and check-in between set hours so it is a good idea to check ahead.

Those traveling in winter should note that many campsites in Iceland are seasonal and are closed in the winter months. So be sure to check campsites’ operating dates when planning your driving route.

There are no great campsite websites out there (at least none that we have found anyway) that have all the Iceland campsite information on them. But here are two websites to check out for a rough idea of campsite locations: here  (lists 60+) and here  (lists 40+). Note that there are more small campsites around the country that are not captured on these websites, and local Visitor Centers are good places to stop for all the options in a specific area of Iceland.

If you are renting a campervan in Iceland, your rental will likely come with a list of recommended campsites and campsite information.

Ways to save money on campsites in Iceland?

Those who plan to camp for several nights or more in Iceland and are visiting between May and September, may want to check out the Camping Card . The card gives you overnight stays (campervan or tent) for up to 2 adults (plus up to 4 children under age 16) in any of the participating 40+ campsites. You can stay in any 1 campsite for up to 4 days maximum. It is valid for up to 28 nights and will definitely save you money if you are camping for several days or more in Iceland!

The Camping Card (currently 21,900 ISK or USD $169) can be purchased online  and shipped to you before your trip, or purchased after you arrive in Iceland. Within Iceland you can purchase it at numerous locations including a number of tourist information offices, campervan and car rental agencies, 10-11 grocery stores, and post offices.

Some RV and campervan rentals come with a Camping Card or the option to add one to the rental price in advance such.

Are there camping packages available?

Yes, there are a few self-drive camping tour packages available that include your campervan or RV rental as well as a suggested itinerary and camping essentials. For those planning to drive the Ring Road, this 12-day self-drive camping trip deal (available May to September) includes your campervan rental, basic CDW insurance, camping gear, and a detailed travel plan and suggested itinerary.

For those looking for a hiking plus camping tour, you can do a guided hiking tour that includes camping such as this 5 day Landmannalaugar hiking tour or this 6 day guided trek that includes Iceland’s 2 most famous hiking trails. These tours include transportation to/from Reykjavik, luggage transfers, meals, and a guide.

Can I camp for free in Iceland?

The answer for the majority of cases is NO unless you are wild camping (tent camping) under certain circumstances. There is a common misperception that you can camp or park almost anywhere in Iceland for free, but this is not true. Iceland used to have pretty lenient rules on wild camping and did not really regulate illegal RV and campervan parking.

However, in the past few years with increased tourism and increased destruction of the environment by campers, new rules were introduced and illegal camping is more widely regulated and policed. New laws are designed to protect the environment, avoid traffic accidents, and to prevent damage to private property. Many landowners and even entire regions of Iceland now prohibit any camping (tent or campervan) that is not within a designated campsite.

Basically if you want to sleep in your campervan, car, tent trailers, campervans, RV, or any other sort of motorized vehicle, you need to stay overnight in a designated campsite . The main exception is if you have the explicit permission of the landowner to overnight on their property, which is how many Icelandic people are able to camp for free.

Camping is inexpensive in Iceland (see above section) and there is no good reason to try to illegally camp in Iceland. Be a responsible traveler to this beautiful country.

Now if you wanting to do real wild camping (a traditional tent pitched well off the road away from buildings), then there are places you can still wild camp for FREE for 1 night at a time in Iceland. Although note that it is still recommended that you use a designated campsite when one is nearby, but is a great option for uninhabited areas of Iceland (e.g., Hornstradir Nature Reserve or central Highlands areas) and for those wanting to do multi-day hiking treks.

There are a lot of restrictions and areas that do not allow camping of any kind (see list here ), but if you want to tent camp for free legally, there are still some places you can do it.

Unless you are a seasoned camper with good cold-weather gear, we would only recommend tent camping in the summer months as the weather can be very cold and wet throughout the rest of the year and make for some really uncomfortable camping situations. Camping in Iceland is definitely best during the summer months.

If you plan to camp in Iceland, be sure to check out the Environmental Agency of Iceland website which covers all the overnight Iceland camping rules as well as lots of safe travel tips.

6. Consider All your Iceland Travel Options

Although you probably have an idea of how you plan to travel around Iceland, it is a good idea to consider all your options. The least expensive option may depend on the size of your travel party, time of year, and how many days you have in Iceland.

Although budget is definitely an important factor, you also want to consider your travel comfort, time you have in the country, how much time you have to plan, how much time you want to spend planning, and other important factors.

Iceland Travel Options :

Guided Tour – Join a guided group tour that goes to the places you want to visit. Your itinerary, hotels, sightseeing, and transport will be taken care of with little planning needed. Although it can be more expensive than planning everything yourself, tours allow you to have a very good idea of all the major expenses before you start the trip. Example guided tours in Iceland are this 6 day ring road trip and this 10 day Ring Road trip . See this great  list of guided tours in Iceland for a curated list of options.

Day Tripping – A popular way to travel in Iceland is to base in a city (or two), and explore from there. You can either hire a car and drive yourself or book day trip tours. For example, from Reykjavík, you can explore most of western and southern Iceland on day trips, and from Akureyri you can explore most of northern Iceland. See a guide to popular Reykjavík day trips to get an idea of what you can see if you are considering basing in the capital.

Self-Drive – Hire a car, set your own itinerary, choose your own activities, and book your own lodging. You control your bookings and budget. Everything is up to you!

Self-Drive Package – If you want the freedom of driving yourself but don’t want to do a lot of planning, you can book a self-drive package where your rental car, hotels, and any tours are booked for you and you are given a suggested itinerary based on your preferences. You can see self-drive trips on Tour Radar here and on Guide to Iceland here , to give you some ideas.

Travel By Public Transport – You can travel by public bus to get around the country. This is definitely one of the cheapest forms of travel available in Iceland. You can also travel using a Bus Passport in the summer months.

Camping – Camping is one of the least expensive ways to overnight in Iceland, and you can choose to get around via a regular car, campervan, or by public transport.

Hitchhiking – Although a popular recommendation in budget forums and guides, we don’t recommend hitchhiking as your primary means of getting around Iceland. Icelanders we spoke to think it is strange (and unsafe) for tourists to show up in a foreign country expecting to hitchhike their way around. Depending on the kindness (or pity) of strangers to drive you around is not the best (or most efficient) way to get around Iceland, especially if you have limited time. Instead consider sticking to one area you can explore on foot or by bike (e.g., Reykjavík), taking the bus, getting a Bus Passport, or consider carpooling.

Each of the options above has its pros and cons, and I’d read this planning guide for more information if you need help deciding on how to travel in Iceland.

7. Consider Using Public Transit 

Public transportation covers Reykjavík and the surrounding area very well. It is a great and relatively inexpensive way (480 ISK per ticket) to get around the capital compared to taxis or a rental car. There are also bus passes as well if you plan to use the bus multiple times during your time in Reykjavík.

You can pay the bus fare on the bus to the driver (bring exact change) or using a credit card in advance using the Strateo phone app . The buses are free for those using a Reykjavík City Card .

Akureyri, the country’s second largest city in the north, has free city buses that visitor can use to get around!

For those traveling around Iceland, the public transportation network connects all the major towns and cities. You can see the public transport network here with most of the regular bus routes run by Strateo . For the long-distance buses, you can pay for tickets using a credit card.

Whether or not the public bus is a good option for you will depend on where you plan to go and what you plan to visit as while towns throughout Iceland are well-connected, many tourist sites like waterfalls and remote beaches are not going to be located near bus stops. 

8. Buy a Bus Passport

One of the disadvantages of the regular buses is that they only connect places that local people will be traveling and are not necessary well-suited for tourists. However, in summer, you can purchase a  Bus Passport  where hop-on hop-off buses operate around the country that pick-up and drop-off passengers at the most popular hiking spots and tourist attractions in Iceland.

The South Shore bus pass covers a number of attractions along the South Shore including Hveragerði, Seljalandsfoss waterfall, Skógarfoss, Vík, Skaftafell National Park, and Jökulsárlón Glacier Lagoon.

There are also special hiker bus passes and services offered through Trex and Thule Travel in the summer months.

Bus passes can represent a really good value for transportation if you plan to use it for several days or more. Check the routes and schedule to find out if it would be a good value for your trip. The bus passports can be purchased online or once you are in Reykjavík.

9. Travel as a Group

If you are considering traveling to Iceland alone or as a couple, you might consider getting some travel companions if you need to save money on the trip. Groups can make everything from cooking meals to apartments to rental cars to private tours less expensive. For example, a $600 rental car split between 4 persons is much more affordable than split between 2 people.

Maybe you have family or friends who are interested in visiting Iceland and willing to join you and split costs? Or if you don’t know anyone and are not averse to traveling with strangers, you may want to check out travel message forums such as this one to see if anyone else is looking for a travel companion to Iceland. Once in Iceland, hostels are a good place to find like-minded budget-focused individuals who may want to share the cost of a rental car or a grocery store bill.

Note that more is not always merrier. If you are traveling in a group of 5 or more adults, you will have more limited options in terms of both transport and accommodation. This could actually increase your costs of travel per person.

If you can’t find travel companions, be sure to compare your travel options. For instance, a group bus tour may seem expensive and beyond your budget, but the prices usually include almost all your major trip expenses including transportation, a guide, lodging, luggage transport, sightseeing, and breakfasts. These may end up working out as less expensive (or about the same cost) than doing it all yourself once you factor in all the costs, especially if you are traveling alone.

10. Do Your Research on Rental Cars

If you decide that you want to rent a car and drive in Iceland, you can save money by comparing car prices, minimizing rental days and understanding your car insurance options. You also want to do what you can to prevent any damage to your car as car services and repairs are expensive in Iceland.

If you are not sure if you want to rent a car or not, I’d compare the cost of renting a car (including insurance) with other options (e.g., joining tours or a Bus Passport). Car rentals are not cheap in Iceland and are not the best option for all travelers.

Compare Rental Car Prices

If you are thinking about renting a car in Iceland, you’ll want to compare prices to get the best deal.

Here are some places to check prices and consider booking:

• Northbound – This online marketplace focuses on rental vehicles in Iceland and is the one we recommend. The websites lists cars, SUVs, vans, and campervans from a number of rental agencies in Iceland. They also allow you to choose from various additional insurances that are unique to Iceland.
• Discover Cars – This is our go-to comparison car rental website for finding rental cars in many parts of the world.
• SADCars – This company rents out older model vehicles and is often the cheapest website. However, it has received worse customer reviews compared to other rental car companies in Iceland. We haven’t used them so can’t offer any personal experience, but may be an option to consider for those on a tight budget. Just be sure to check recent reviews first.

NOTE: You need to be at least 20 years of age to rent a car in Iceland and many companies require drivers to be at least 23 or 25 years of age. Extra rental fees are sometimes charged to drivers aged 25 or younger.

Book in Advance

Don’t wait to decide if you want to rent a car last minute once you get to Iceland, especially in summer. You’ll have fewer options and be at the mercy of the car companies in terms of rates and the remaining cars available. Rates are generally better online than if you call or walk into a rental car agency needing a same-day rental.

Minimize Car Rental Days

Save money by only renting the car for the days you will be actually using it to minimize the number of rental days. Do you really need a car for your entire trip? Organize your trip so that the days you don’t need a car fall together to save money.

For example, it is easy to catch a shuttle to and from the airport to Reykjavík and you can get around central Reykjavík by foot, bike, or public bus. You also don’t need a car if you are planning to take any full day tours such as to go on a guided glacier hike or bus tour out to the Highlands.

Make an Informed Car Insurance Choice

Let me preface this with the fact insurance in Iceland (as in most places) is complicated and we do not pretend to understand it completely or to offer any legal advice. But we will try to share the basics to get you started.

In Iceland you must have basic third-party liability insurance to legally operate a vehicle which is normally covered under the CDW (collision damage waiver) insurance included with your car or campervan rental. Be sure to check that this is included but just about every rental comes with this included in the price since it is a legal requirement.

The Basic CDW coverage generally includes the mandatory third-party liability insurance and accident insurance for the driver and the owner. It may also include additional things like vehicle theft protection.

The basic CDW that comes with most rental cars often comes with a fairly high deductible (~ $1,500 to $3,000) so an accident can still cost you up to that amount. You can generally decrease the deductible by paying a little bit more (we paid to decrease ours down to $0).

The basic CDW coverage included in rental car prices also usually does NOT include windscreen cracks, general physical damage, sand damage, wind damage, paint scratches, water damage, etc. Damage, such as windshield chips, dents, and scratches, are fairly common in Iceland given the gravel roads, wind, and large number of inexperienced drivers on the road.

Parts and labor are expensive in Iceland and these are often even higher when charged by a rental car company. So for instance a chipped windshield could cost you 75,000 ISK to 100,000 (~ USD $581 – $775) as they’ll need to replace the windshield, a dent from someone else opening their door into your car could cost you 50,000 to 200,000 (~ USD $387 to $1,551), and a damaged door from opening it into the wind could cost you 500,000 ISK ( ~ USD $3,878).

It is of course totally up to you if you want to purchase any additional protection beyond the legal amount required, but we would highly recommend getting coverage for at least the most typical kinds of damage, especially if you plan to have the car for more than a couple of days and/or plan to drive on any gravel roads.

The “Super CDW” insurance option upgrade typically includes a zero (or very low) deductible and includes all the general kinds of physical damage to the exterior of the car like paint scratches, dents, chips, broken door hinges, and windscreen cracks. This is what we purchased and it also included theft protection. This gave us much better piece of mind and what we’d recommend to most travelers to avoid any large surprise costs during your trip.

Another common add-on insurance option is “sand and ash protection”. This protects your car from any damage caused by sand or volcanic ash. This is a less common form of damage but sandstorms do happen in Iceland, especially on the South Coast. The primary damage here is that the sand (or ash) will scratch and strip the paint off your car and repainting a car is obviously going to be a very costly expense.

We declined the “sand and ash protection” and were just careful to check the road and travel conditions. You’ll need to use your own judgement as to whether this is something you want to purchase or not.

As with any insurance coverage, no insurance will cover you for any damage incurred during illegal driving such as off-road driving, speeding, drunk driving, and driving on closed roads. They also won’t cover you if you do anything not allowed under your rental car contract, which in Iceland often include things like driving on Highland F roads (some 4X4 rentals in summer are allowed but check your contract closely) or crossing unbridged rivers or streams. Be sure to check the rental car contract associated with your car carefully.

NOTE: If you have CDW insurance included with your credit card (some American credit cards come with this as a feature) or travel insurance, you can usually decline the CDW, but you cannot decline Third Party Liability Insurance or Personal Accident insurance as these are mandatory under Icelandic law. In most situations, it is best to just accept the CDW but you can contact your insurance company and the rental car company about your specific situation.

Regularly Check Travel and Road Conditions

Anyone driving in Iceland should be checking on travel conditions on a daily basis as the weather can change quickly in Iceland and can be pretty unpredictable. Not only will this help keep you safe on the road, but avoiding bad weather and poor road conditions can keep you from incurring costly damage to your rental.

Here are the two websites we recommend monitoring throughout your trip:

• Safetravel.is – safety website operated by the Iceland Association for Search and Rescue
• road.is  – road conditions website managed by the Icelandic Road and Coastal Administration

Closed roads, storm warnings, sandstorms, strong wind warnings, flooding, avalanche warnings, etc. will all be noted on these websites.

If driving in the winter, we recommend reading our tips for driving in Iceland in winter .

11. Consider Carpooling

A rental car or guided bus tour may be too expensive if you are traveling to Iceland on a budget. One way to save money is to join someone looking for passengers to share the cost or you can offer a ride to someone else. If you don’t have the money to rent a car yourself, you can find a fellow traveler to join you in carpooling on a website called  Samferda .

The simple website allows you to put in a request for a ride (you don’t have a car, but want to join a carpool) or request fellow passengers going to the same place in Iceland (you have a car, but want passengers to join you). Be sure to be clear about the cost sharing expectations up front.

You might use this for a one-time travel need (e.g., getting to the airport) or even for your whole trip if you find suitable companions who want to travel to the same places. This is a good alternative to hitchhiking.

12. Pack Wisely to Avoid Unnecessary Purchases

Packing all the things you need for your trip will not only ensure you are prepared, but it will help you save money. It also pays to make sure you have proper protective gear (e.g., a drybag or waterproof cover) to protect expensive items (e.g., cameras, phones) from damage. We experienced this firsthand as waterfall spray caused damage to our camera’s WIFI functions.

It is easy to find high quality clothing and winter gear in Iceland but it is pricey. For instance I checked simple knitted hat prices in a number of stores and had a hard time finding anything under USD $55 (a similar hat would be priced around USD $15 in the United States). Other consumer goods like water bottles, towels, electronics, camping gear, etc. are also much more expensive in Iceland than most other countries.

So it is wise to do some research in advance to know what you’ll need for your trip. Then I’d recommend making a list to make sure you pack what you’d need to avoid having to purchase it in Iceland. We met several people in Iceland who had to purchase warmer clothing, waterproof shoes, or proper hiking gear in the country because they came unprepared.

Check the weather forecast in advance as well as right before you go to know what to expect from the weather. Check out some recommended packing list for the time of year you want to visit, such as this winter packing list for Iceland .

See what you need for any activities you want to do (e.g., snorkeling, skiing, birdwatching, golf, thermal baths) while in Iceland. You probably don’t want to have to have to rent or buy things like binoculars, gloves, swimwear, hiking poles, or ski goggles if you already own them.

No matter when you’ll be traveling to Iceland be sure to have warm layers of clothing (preferably at least a couple of wool items), comfortable waterproof hiking shoes or boots, waterproof and wind resistant outer layers, hat, sunscreen, swimwear (for spas and pools), and a warm jacket or coat. Even in summer, temperatures can be cool and you’ll need warm layers.

A towel is also recommended for most travelers. On our last trip, we packed 2 towels, a regular beach towel and a fast-drying travel towel just like this one . A towel is great for anyone planning to visit the geothermal pools as it will save you from having to rent a towel and many of the pools don’t offer towel rentals. A towel will also likely come in handy if staying in hostels or campsites and is good to use to dry off if you get soaked in the rain or by waterfall spray.

We recommend packing a drybag or waterproof cases (such as these ones ) for your phone and valuables, especially if you plan to visit pools, go on long-distance hikes, join boat tours, or do water sports. For those with pricey cameras, we recommend an inexpensive  rain sleeve to protect them. Backpackers and hikers will also want to make sure they have a waterproof cover for their bags. These items will also help protect your valuables from the spray from waterfalls (if windy, the spray at some waterfalls can drench you pretty quickly!) and rainstorms.

Those traveling in the winter season (this period roughly lasts from November to the end of April) will want to be especially prepared for the rain, snow, wind, and colder weather. We have a winter Iceland packing list to help provide some recommendations and tips.

In the summer months (roughly June to end of August) it won’t generally be as cold so you don’t need full winter gear, but it can still be cold and it never gets hot here. So you’ll still want to be prepared for potential cold weather (check the forecast), rain, and strong winds. We were here for the entire month of June and wore wool baselayers on about 60% of the days as it was cooler and more rainy than a typical June.

For the summer, you’ll want to pack sunglasses (or a hat) and an eye mask.The midnight sun (where the sun sets only briefly) can make it hard to sleep well during the night so we definitely recommend investing in a comfortable sleeping mask . Many hotels, guesthouses, and apartments do NOT have proper blackout drapes or blinds. We also packed a drape clip (a few clothespins will work) to help close gaps in curtains and drapes.

13. Seek Out Less Expensive Dining Out Options

There were no places in Iceland that we ate at that I would describe as “cheap” but there are definitely places you can spend less money than others. At a typical Icelandic restaurant, a starter and main course for dinner for one person will be around 6,500 ISK (~ USD $50) without drinks.

Throughout the country, the most inexpensive meals in Iceland can be found at grocery stores (e.g., pre-made sandwiches, wraps, salads, snack food), fast food chains such as Subway (located only in main cities and town like Reykjavík, Akureyri, and Egilsstaðir), local diners, and gas station restaurants. Many museums and attractions have cafés or restaurants, and these often offer reasonably priced options such as sandwiches, soups, waffles, and cakes.

Many people unintentionally go on a soup and bread diet in Iceland. Soup is often the least expensive option on menus (generally between 1,200 to 1,800 ISK) and offers a reasonably healthy option. Often you get a free refill (or even unlimited free refills!) of soup. Common soup options in Iceland (based on our experience) are fish soup, Iceland lamb soup, and mushroom soup.

Reykjavík is probably the best place to find budget eats in Iceland. You can find cheap eats at hot dog and sandwich stands as well as grocery stores and fast food chains.  Bæjarins beztu pylsur  is a popular hot dog stand that has been serving hot dogs since 1937. You can get an Icelandic hot dog for about 400 to 500 ISK. Waffles are another relatively cheap food you can pick up in many places.

If you have a car, another place you can get a reasonably priced meal near Reykjavík is IKEA ! Believe it or not, the restaurant within this huge Swedish budget home furnishings store is a popular dining spot for Icelanders because of its relatively low prices for food and alcoholic drinks. It is especially popular for those with families as they offer inexpensive children’s meals. We actually ate here on our first visit as we stopped to purchase a towel and were really surprised by how busy it was!

For those driving around the country, the best places for less expensive hot meals throughout Iceland are actually gas stations.  Many of the fuel stations in Iceland (such as the Olis and N1 chains) offer both food you can grab (pre-made sandwiches, snack food, drinks) as well as restaurants serving hot food items such as hamburgers, hot dogs, pizza, fish stew, and paninis. You can get a hot meal for 1,500 ISK to 2,500 ISK.

The food varies across fuel stations based on our own experience from pretty good to not so good, but these places usually offer the best prices in town. Note that not all fuel stations include restaurants or stores, especially those in more remote areas, which may just be a set of automatic gas pumps.

Just be aware that if you are going to a familiar chain like Subway or IKEA, prices will still be higher than you are used to paying. For instance, a Subway sub in Iceland will cost you about double the price of the same sub in the United States, but it is still a good deal considering Icelandic restaurant prices!

If you are trying to set a budget for food, you could probably survive on a budget as low as USD $20/person/day for food, but you would have to work really hard at it! With a really low budget, you will probably need to cook your own meals (see section below), share meals with someone, or be stuck with limited and/or unhealthy options.

A more realistic, and not so restrictive budget, would be around $50/person/day for 3 meals a day. But even at $50/person/day you will still be limited, especially if you enjoy eating at sit-down restaurants. So your budget will really depend on how you want to travel and where you like to eat.

14. Cook Your Own Meals

If you book self-catering lodging or are planning to stay at campsites, you have the option to cook your own meals. Groceries are more expensive in Iceland than in most places in Europe (e.g., last time we were there it was USD $4 for a loaf of bread), but you can still save money if you go grocery shopping and cook your own meals compared to eating out at restaurants. 

To get an idea of recent food prices, costs of alcohol, and restaurant meal costs (as well as other costs of living), you can check out  this website .

Best Budget grocery stores in Iceland

Like in most countries, you can save money in Iceland by shopping at the lower priced grocery stores where the same items can be up to 50% less than in other stores. Budget grocery store chains we recommend in Iceland include Bónus ,  Nettó , Kronan . We recommend that budget shoppers avoid the 10-11 convenience grocery stores which are, on average, much more expensive than other grocery stores in Iceland. 

Most grocery stores, including the 3 budget grocery stores above, have a budget brand for essential items. Look out for these items as they are often the least expensive option in that category (e.g., the least expensive mustard, coffee, or paper towels). For example in Bónus the budget brand is Euro Shopper and Nettó offers Coop and X-tra products.

Grocery bags are not free and plastic bags are not allowed to be sold to customers, so you can save a little money by packing a few reusable bags if you plan to do grocery shopping a lot while in Iceland. Or you can purchase reusable bags in the grocery stores.

How to Find Self-Catering Lodging

You have a lot of self-catering options, including hostels, apartments, and campsites that are geared towards those who want to do their own cooking. Most hotels, guesthouses, and B&B’s do not allow guests to do their own cooking.

Some apartments, hostels, and campsites also offer laundry service options, so if you are traveling for a longer time, that may help you save on hotel laundry service fees. See our guide to doing laundry while traveling  for all kinds of ways to do and to save money on laundry.

Here are some good places to start your search:

• Apartments – Most apartments in Iceland come with cooking facilities and basic cookware.
• Hostels – Most hostels in Iceland come with shared kitchen facilities that allow you to cook your own meals.
• Vrbo – Many of the options on Vrbo come with a kitchen that allows you to cook your own meals. Be sure to read the House Rules before booking to ensure you are allowed to cook.
• Campsites – You can do rustic cooking if you have your own camping stove and some campsites provide shared cooking facilities.

15. Limit Alcohol

Due to high taxes and importation fees, alcohol is very expensive in Iceland, whether you purchase it in a store or order a drink in a bar or restaurant. In fact, alcohol prices in Iceland are about the highest in the world at the moment. The best way to save money is to not drink, but if that is not an option for you, you can try to seek out the cheapest drinking options. 

First of all, the least expensive alcohol is usually available in the duty free shop at the airport. So consider buying your alcohol in either your departure airport (if allowed) or at the Keflavík International Airport once you arrive. For most people, the duty-free shop at Keflavík is going to be the least expensive and most convenient option.

It is often less expensive to purchase a full bottle of liquor or 6-pack of beer than to purchase individual drinks in a bar. However, you are limited in where you can buy alcohol in Iceland and you cannot purchase alcohol at grocery stores or fuel stations. In Iceland you can only purchase alcohol at the duty-free shop at the airport and at state-run stores called  Vínbúdin . You have to be at least 20 years of age to purchase alcohol in Iceland.

If you want to go out, seek out happy hours where you can get find less expensive drink prices and 2 for 1 deals. We found that drinks could be up to 50% cheaper at Happy Hours. Note that most happy hour offers are in larger towns and cities such as Reykjavík (check out the Appy Hour app ) and Akureyri so you may have a hard time finding cheaper drinks in small towns or rural areas.

Drinking and driving laws in Iceland are very strict and you can be arrested for driving with a very low blood alcohol level. Drunk driving is considered a serious offense and fines (even for first time offenses) are very high. So be sure to wait to drink until you have stopped traveling for the night!

16. Drink Tap Water 

Drinks are expensive in Iceland, but tap water is free and safe to drink throughout Iceland. The drinking water in Iceland is of a very high quality. If at any location you are unsure about whether the water is safe to drink, just ask.

In many cafés, fuel stations, and fast food restaurants, pitchers of water are often in a common area for guests to help themselves or are brought to the table in sit-down restaurants. If not, just request water when you order.

Bring a reusable bottle for water with you so you can fill it in sinks and water fountains and not need to pay for drinks or purchase bottled water. If you need to get a water bottle for your trip, we personally like this one and this one . You’ll be saving money and creating less plastic waste. 

NOTE: The hot water in some places in Iceland, notably  Reykjavík, is geothermal water that is pumped in straight from the ground so it has an odor and taste of sulphur. It is safe to drink but doesn’t taste very good and isn’t intended to be used for drinking. However, the cold water comes from a different source and is safe to drink without the odor or bad taste. So just let the water run cold before filling your bottle!

17. Use Fuel Discount Cards

If you are driving, fuel discount cards can save you a little money on fuel and gas station purchases.

If you are in a city or town that has multiple fuel stations, you can compare prices as some are less expensive than others. The two main brands we saw in Iceland were Olis and N1, but there are also others like Shell, Skeljungur, and Orkan. However, in reality, you are often not given many choices in less populated areas and you are lucky to find more than one station to choose from.

But one way to save money is to get a discount card to one (or more) of the fuel chains. To our knowledge (as of May 2022), both Olis and Orkan /  Skeljungur  offer discount cards in Iceland. There is a good chance that if you are renting a car or campervan, that your keys will come with a discount card or discount key fob.

We had a Olis discount card attached to our key fob from our car rental company (on both of our visits to Iceland), but you can also pick up a Olis discount card at the fuel stations. It gave us 3% discount on fuel and up to a 10% discount on the restaurant. The discount applies to almost everything in the fuel station which often carry a bit of everything includes snacks, car accessories, basic groceries, souvenirs, travel things (maps, guidebooks), and meals. The discount does NOT apply to some items like cigarettes.

NOTE: In smaller towns and outside of regular business hours, many of the gas stations are unmanned so you need to have a credit card with a 4 digit pin. If you don’t have a credit card or don’t have a PIN set up (recommend doing this before your trip), you can get pre-paid cards that will work at the pumps such as this N1 card .

18. Seek out Free things to Do

Whereas many of the activities, tours, and museums in Iceland can be expensive, there are also a lot of free things to do in Iceland.

Here are some ideas for free (and inexpensive) things to do in Iceland: 

• It is free to visit many of Iceland’s most popular attractions such as waterfalls, beaches, gardens, public art installations, churches, monuments, geysers, and lava fields. You can easily create an itinerary that is full of free attractions. 
• In Reykjavík, there are loads of things to do for free. For instance, you can take a “free” walking tour (donations are expected), marvel at the Hallgrímskirkja (free to visit, although small fee to climb church tower), taste the offerings at the Hlemmur Food Hall , visit the botanic garden, hike around the Öskjuhlíð, or explore the weekend Kolaportið flea market .
• Make time for free (or inexpensive) outdoor activities like hiking, swimming, snowshoeing, scenic drives, searching for the Northern Lights, birdwatching, climbing, biking, or picnicking. If visiting in winter, check out our Northern Lights photography guide .
• Take advantage of any amenities offered by your hotel. It sometimes pays to stay at nicer hotels. For instance, some hotels offer free on-site hot tub and spa access, swimming pools, binoculars you can borrow for birdwatching, or free bike or canoe rentals.
• You don’t have to pay a lot (or even anything) to visit a thermal pool in Iceland. For instance, the Nauthólsvík beach and hot pool in  Reykjavík is free in summer, and you’ll find free (or inexpensive or donation only) small hot pools throughout less populated areas of Iceland (e.g., Westfjords). Public city pools, found in almost every town in Iceland, are inexpensive and a great place to meet locals.
• Be sure to check for free museum days, festivals, concerts, or other events that may be taking place during your trip. There is almost always something free taking place, especially on summer weekends, in cities like Reykjavík and Akureyri!

19. Take Advantage of Discount Passes & Coupons

One way to save money in many destinations is to check for available discount passes, special offers, and coupons. We list some of the ones we know about below, but we recommend keeping your eyes open for deals as you travel. For instance, a number of attractions offers discounts to other nearby attractions with the purchase of a ticket.

Here are some discount cards and coupons to consider in Iceland:

Reykjavík City Card – The Reykjavík City Card offers free entry to several museums and attractions within Reykjavík including Árbæjarsafn (open-air museum), Reykjavík Zoo & Family Park, National Museum of Iceland, and the National Gallery of Iceland. It also includes free access to the city’s public thermal pools and saunas, free bus service within the city, and restaurant and attraction discount offers. Although not designed for all travelers, it can save you quite a bit of money if you plan to visit several of the included attractions while in the capital and take the bus. We’ve used it on our first trip and saved money using it.

Icelandic Coupons – This is a discount printed brochure (and now also in app form) that gives you a number of discounts to a variety of attractions and services in Iceland geared to travelers, including restaurants, car rentals, spas, bars, and tours. The coupon book is cheap (about 1,500 ISK) and you can often get your money back by using one coupon. The best part is that you can check most of the coupon deals online before purchasing it to see if it will save you money. You can purchase the new app online or the coupon book in Iceland at these locations .

Reykjavík Art Museum – This isn’t a pass but the museum has three separate locations in the capital and if you purchase admission to one site, you have free admission to the other 2 as well. The admission ticket is valid for 24 hours for Hafnarhús, Kjarvalsstaðir. and Ásmundur Sveinsson Sculpture Museum. A good value for art lovers.

Camping Card . – Already mentioned under the camping section earlier, this card should be considered by anyone planning to camp in Iceland. The card allows for up to 2 adults (plus up to 4 children under age 16) to camp for up to 28 nights total (in a tent or campervan) in any of the participating 40+ campsites! You can only stay overnight for up to 4 nights in each campsite.

Hostelling International Membership  — If you are planning to primarily stay in hostels, you might consider becoming a member of this non-profit hosteling organization. Many hostels in Iceland (as well as around the world) are part of the Hosteling International group and members save at least 10% on the hostel rate. You can purchase a low-cost 12 month membership at any participating hostel or buy it online before your trip.

20. Spend Money on Tours & Experiences You’ll Remember

If you are traveling to Iceland on a budget, you will want to spend your money on experiences that are special. Luckily there are loads of free things to do in Iceland! But we recommend that all travelers, even those on a tight budget, to Iceland choose one or two special things to splurge on while in Iceland.

For instance, for many people, the Blue Lagoon is a must-see splurge experience. But for others it might be a glacier hike , snorkeling between the teutonic plates , a reindeer safari , a whale & puffin boat watching tour , a Northern Lights Jeep hunting tour , a beer walking tour , or exploring an ice cave .

Or maybe it is a day exploring the museums in Reykjavík, an evening performance at the Harpa , a night in a “space pod” at the Galaxy Pod Hostel , or a fancy dinner out.

Let your budget and interests guide you in your choices. Just choose experiences that you think offers good value and will be something that you’ll remember long after the trip!

21. Be Prepared!

Finally, we’d like to just reiterate that it pays (literally) to do a little research and be prepared for your trip. One of the main ways people end up spending more than they expected is because they didn’t do much travel research before their trip. People who show up in a country unprepared are much more likely to end up spending more money, especially in an expensive country like Iceland.

If you are traveling to Iceland on a budget, you don’t have to plan out every day of your trip, but do at least a little homework. Read a little about the culture and history of Iceland, know what places you definitely want to visit, understand the currency conversion rates and average prices for things, book things like must-do tours in advance, check the weather forecasts and road conditions, and pack the things you’ll need like waterproofs, warm clothing, and swimwear. Investing a little time in advance will help you save money and travel smarter in Iceland!

You can find loads of information on travel blogs like ours (you’re already doing your research!!), the Iceland official tourism website , and in guidebooks such as this Lonely Planet guide  and this  Rick Steves guidebook . If purchasing a guidebook, choose one that has been published (or edited) in the last year or two.

Just note that there is a lot of outdated (and not so accurate) information out there, particularly on message boards and travel blogs. If you not sure about something and are finding conflicting information, keep searching and try to check a more authoritative source (e.g., official tourism website, well-regarded recently published guidebook, Safe Travel website , the  Environmental Agency ).

If you have any questions, feel free to reach out to us. We don’t know everything but we’re more than happy to give you our own travel advice based on our travels in Iceland. We also have contacts in Iceland and are happy to try to point you in the right direction for anything we don’t know ourselves!

So that’s our Iceland on a budget guide to how to save money in Iceland! Have you been to Iceland? If so, do you have any money saving tips of your own? If you are planning a trip to Iceland, feel free to leave us any comments or questions in the Comments section below. We love hearing from readers!

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Greig Millar Post author

October 16, 2022 at 2:52 pm

Great advice, really clear and helpful! I’m planning a trip to Iceland for my wife’s 40th in February and there is so much to do! We will only be able to stay for 3 days and neither of us have driven abroad before. Looking for your opinion on what the must does are on our visit and ones we can get to easily from Reykjavik.

Jessica & Laurence Norah Post author

October 17, 2022 at 7:45 pm

Glad that our posts have been helpful. I am sure your wife is going to love a trip to Iceland to celebrate her birthday.

So do you have 3 full days total in Iceland? If that is the case, then I’d probably recommend just basing yourself for all 3 nights in Reykjavik. Maybe one day do Blue Lagoon (this can be done on way or to the airport) and attractions of interest in Reykjavik itself. Or if on a small budget, consider doing one of the nice city geothermal pools instead of the Blue Lagoon. Then one day out to the Golden Circle sites (such as Þingvellir National Park, Gullfoss waterfall, the geysers Geysir and Strokkur, Kerid crater). And a third day you could go out to see some of the South Coast highlights (such as Lave Centre, Seljalandsfoss waterfall, black sand beaches, and maybe even all the way out to Jökulsárlón Glacier), or alternatively you could go northwest and see some of the Snæfellsnes Peninsula.

You could do the drive each day from Reykjavik and find lots of things to do. The Golden Circle sites, Blue Lagoon, Borganes, and some of the waterfalls etc. are all easy day trips. But if you want to head out all the way to the glacier lagoon, that is full day of driving so that is best done either as an overnight trip or book a day tour so you don’t need to worry about the drive back.

If you decide to drive and want to head out all the way to the glacier lagoon, I’d probably do one night in Reykjavik (to go to Blue Lagoon and visit city attractions), one night around Selfoss or Hella (after visiting Golden Circle sites), and then one night in Vik (after driving out to glacier lagoon [although this is a pretty long drive so you can decide if you want to go out that far or not], but this is pretty long drive from Selfoss/Hella and back to Vik). Then you’d need to drive to the airport from Vik which is about a 3 hour drive.

Here is a 3 day Iceland itinerary for those who just have 2-4 days in Iceland that I think might help. It can be followed if you are driving or taking tours.

But really if you just have 3 days, it might make sense to just book tours and I’d price it out and weight the pros and cons. This would allow you to just stay in Reykjavik all three nights and not have to move hotels. You would also not need to rent a car or worry about driving, insurance, or parking. If you do that, I would just choose a central hotel that is within walking distance (or easy bus ride) of any city attractions you want to visit and tour bus pick-up point (many will pick up from central hotels).

No matter what you choose, I ‘d recommend planning at least one or two activities, whether that is a glacier hike, ice cave visit, snorkeling, boat ride, whale watching tour, Northern Lights tour, geothermal pool, snowmobiling, horseback riding, food tour, etc. Activities can be a bit pricey but are really worth doing one or two.

Anyway, hope that helps give you some ideas. Feel free to follow-up and happy to try to give more advice.

Best, Jessica

October 18, 2022 at 2:15 pm

Hi Jessica, Thanks for replying your thoughts/suggestions have really helped. We arrive on Saturday the 11th of February at 3pm and leave on Tuesday the 14th at 7.30 so it’s really 2 and a half days. This is where we are staying https://www.booking.com/hotel/is/skolavordustigur-apartment.html?aid=1447673;label=ITC Booked central like you suggested just now need to book the circle and blue lagoon trip plus a northern lights experience. Do you have any suggestions on the best tours/operators and the must sees in Reykjavik city centre, I think we will spend Saturday afternoon exploring. Thanks Greig

October 21, 2022 at 4:57 pm

So that is a a great location in Reykjavik. Since you have limited time, I’d just do a little research on any things you really want to see in terms of museums, attractions, etc. But you are within walking distance of Hallgrimskirkja (the main church), the National Gallery, the National Museum, the Sun Voyager sculpture, the big concert hall, Hljómskála Park, etc. so you can see a lot without needing a bus or taxi. You are about a 25 minute walk (or short bus or taxi ride) to the harbor area which has some nice views, where the whale watching tours leave, and where you’ll find a few museums (Whales of Iceland, Maritime museum, Saga Museum). You are also a 10 minute walk from the main bus station where most of the buses leave for the airport, Blue Lagoon, etc.

In terms of where to look for tours and tour companies, there are several tour operators in Iceland, some big ones being Grayline, Reykjavik Excursions, and Iceland Travel. But we generally recommend looking at tours on GetYourGuide and GuidetoIceland for options and comparing reviews and pricing.

Some tours that may work for you are Blue Lagoon & Northern Lights tour , a classic Golden Circle tour with Kerid Crater , a Golden Circle tour that also includes the Blue Lagoon . So those may give you a good starting point.

For your time at the Blue Lagoon , since this is a pricey experience for many, I would just make sure that whatever you book you have plenty of time. You’ll want a minimum of 2 hours but some people like to relax and spend more time there so if you book a timed tour, just be sure you have the amount of time you want/need there to really enjoy it. You can also buy bus tickets to just go to the Blue Lagoon on a bus such as this one or book transfers to or from the airport that include the Blue Lagoon if it is not included in a tour you decide to do. Just note that if you buy just a bus ticket, you will also need to book your admission ticket to the Blue Lagoon itself.

Hope that helps! Jessica

Michelle Post author

October 11, 2022 at 8:39 pm

Do they have any tours to all parts of Iceland with many stops / over nights etc this site is so helpful especially when needing to travel on a budget . Want to see the places where not many tourists go , too and do the perimeter of the whole country somehow with a tour or any suggestions . Thanks you . wanting to go in late September / early October when it’s cheaper and less crowded .

October 12, 2022 at 3:09 pm

Hi Michelle,

We are glad that our travel articles in Iceland have been helpful in planning your upcoming trip to Iceland. We are happy to try to give you some advice on your trip.

It sounds like you are most interested in doing a trip around the Ring Road. We would suggest at least 7 to 8 days for that trip to ensure you have time to see a number of the highlights. This is a popular tourist route however, but going in the off-season will mean it will be less crowded.

Can you give us some more info to better help you:

1. How many days are you planning to be in Iceland? 2. How many people are traveling? 3. Are you looking to join a guided tour that includes all your transport? 4. What is your budget for the trip? 5. What kinds of things are you most interested in seeing/doing?

Jack Post author

June 19, 2022 at 1:25 am

Thank you for sharing this post, I am planning to visit Iceland soon. I have heard that one of the most helpful tips is to learn some Icelandic. It is very rare language and locals will appreciate that a lot if you can say something in their language 🙂

June 19, 2022 at 7:24 am

You’re very welcome and hope our advice is helpful in planning your trip to Iceland.

Learning some greetings and phrases in a local language is always a good idea and a nice way to show some effort.

However, in Iceland, almost everyone speaks English (I think over 90% of Icelanders) so if you speak English, you will have no issues communicating with people, especially as a tourist. Also, just to note, most of the foriegn born workers (who make up a decent percentage of workers in the hospitality and tourism industry) don’t actually speak Icelandic so if you get a blank face to an Icelandic greeting, that might be why 😉

Wishing you a great trip to Iceland, and just let us know if you have any questions!

Angie Neis Post author

May 23, 2022 at 4:46 pm

Hi Jessica, My family and I are planning a 14 day trip around Iceland this July. I would like to see the best off the beaten path hot springs. Which do you recommend?

May 25, 2022 at 6:54 am

It will depend on where you will be in Iceland and the age/physical ability of those in your group as some do require a bit of hiking to reach.

The hike up to the Reykjadalur valley hot springs is a popular one if looking for a natural setting but still safe (just heed the signs and be careful as some spots can be way too hot). The hike takes about 1 hour each way I think to reach the bathing area.

One of our faves was Laugarfell – two small hot springs located in a lovely setting well away from the main roads. No hiking required to get here. Small fee to visit and there is a changing room, cafe, and a place to stay overnight. There are also great hikes from here, we particularly recommend the waterfalls trail. The nearby Wilderness Centre is a great place to visit (they have a museum exhibition) and to stay (offer historical accommodation) and they have their own hot springs spa that guests can use. A great place to stay for a couple of days if looking for something different. We really enjoyed staying in this area. Need a 4X4 in this area and often not accessible in winter months.

Other small ones to consider are Seljavallalaug Swimming Pool, Hjalteyri Hot Tub, Hofsós Swimming Pool, Laugavallalaug hot spring, Krossneslaug, Gvendarlaug, and Grettislaug thermal pool. We’ve been to most of these.

There are also, of course, the nicer ones like Blue Lagoon, Krauma Baths, Secret Lagoon, Sky Lagoon, etc. If looking for an alternative to the well-known Blue Lagoon, the closest is Mývatn Hot Springs.

I’d also say that the public geothermal swimming pools are great (there are many in Reykjavik and normally one in each larger town) and were not crowded at all in the middle of the days when we visited. They have great facilities, are relatively inexpensive, and are where most Icelanders swim. The Nautholsvik Geothermal Beach is also an interesting option as it has an outdoor beach area in Reykjavik.

Hope this helps you get started! If you have more info on what type of spring or which area of Iceland you are looking, happy to provide more thoughts as you plan your trip to Iceland. There are just so many of them and we’ve been to over 20 so hard to narrow down as each is a bit different.

May 25, 2022 at 9:25 pm

Thank you Jessica, that helps. Is it hard to find open campgrounds town to town?

May 26, 2022 at 4:08 am

We give a couple of links to websites that list a lot of the campsites in Iceland within the Camping section above. So I would use those lists to tentatively plan where you want to stay. You normally don’t need to (and often can’t) book in advance, especially if you don’t need any hookups. But you can also call in advance on the same day to check to make sure they have space and are open. Most campsites are seasonal and are generally open from May to September.

Normally campsite availability is not a big issue, but I would recommend planning to arrive before dark to find a spot and make you have a place to stay the night.

You might check out the costs of the mentioned Camping Card and see if that would save you money based on your trip plans. The Camping Card allows you to stay at about 40 campsites around Iceland and also gives you a few discounts such as on gas and food.

Jan Post author

November 8, 2021 at 10:16 am

This was amazing! I’ve been reading this over and over and I know you published this article a while ago. I’m graduating college this year with my boyfriend and decided to take a trip to Iceland on January 4th, 2022. We booked it at this time because we heard January is the best time to see the northern lights and there was practically no one there. However, learning more, we realized there are less daylight hours and much more snow. Any tips on places we should check out/advice on how to make the most out of January timeline? Additionally, do you have your favorite itinerary for a 6 day self drive?

November 8, 2021 at 11:33 am

I am excited to hear that you are planning a trip to Iceland in January! We have several articles on traveling to Iceland in winter and have visited in both winter and summer.

While there are fewer visitors in winter, it is still often pretty busy, especially in popular areas. Before the pandemic, the numbers were increasing each year. So I’d still expect crowds, especially at the main tourist hotspots like waterfalls, beaches, viewpoints, museums, etc. Late fall and winter are the best times to have a chance to see the Northern Lights because of the greater hours of darkness, but being able to see them is still very dependent on solar activity and weather during the time of your visit.

We have a 7 day Iceland self drive itinerary that should be helpful to you as it is specifically designed for winter and winter weather. We’d recommend concentrating on Reykjavik and south coast (and also west if have time) for your trip. It sounds like you have 6 full days (or do you just 6 days total including days you need to fly in and out?) so you’ll need to cut a day. If you have more like 5 full days, then I’d consider this 5 day Iceland itinerary instead which works well year round.

I’d also recommend booking any activities you want to do in advance as many require guides and/or equipment to be able to do, whether it is snowmobiling, visiting an ice cave, winter hiking, or going on a whale tour, etc. We have a guide to a number of the most popular things to do in Iceland in winter here.

I’d also recommend reading this article if you plan to rent a car and drive yourself for Iceland driving tips for winter . If you decide to drive yourself, you want to make sure you rent an appropriate car, know about winter driving, and have good insurance coverage (car repairs in Iceland are very expensive).

You are going to have shorter hours and less time to see and do things. Weather can also be worse with rain, snow, or sleet and potentially bad road conditions. In early January, they are going to be very short in terms of the time between sunrise and sunset (4.5 to 5 hours), so that is a good thing to be aware of when you plan your trip and activities. You’ll want to try to ensure you get what you want to see done in between those times and not to spend too much of your daylight hours driving in the car. You can also try to fit in inside activities in the morning or late afternoons when it’ll be dark outside. The best thing you can do is to just plan ahead and book any sightseeing and outdoor activities during those daylight hours. You won’t have much time for sightseeing compared to those visiting in summer, so you’ll want to make the most of it and focus on specific areas each day. Prioritize what is most important for you to see and do each day and focus on that.

For the winter weather, you just need to make sure to dress appropriately and bring the proper winter gear. You can check out this article about what to pack for Iceland in winter for tips.

Anyway, hope that helps answer all your questions. If you have any further questions, just let me know and happy to help!

Wishing you a wonderful trip! Jessica

Luana Post author

July 6, 2021 at 4:38 pm

Thanks for the tips I’ve always wanted to travel to Iceland but I started looking at the prices and my financial conscience and I’m about to give up so far, thank you so much

July 7, 2021 at 1:29 pm

I am glad our budget tips for Iceland are helpful to you. Obviously, it is not a place you might want to travel on a really tiny budget (I’d recommend saving up if your budget is really small and go later or find a cheaper alternative destination) but if you have a decent budget to cover the costs you can definitely do a lot of things to save money whether it is avoiding alcohol, making your own food, getting passes and discount cards, staying in budget accommodation, taking public transit, etc. The biggest thing you can do is to plan ahead, research costs, and book the big things in advance so you know the costs upfront.

If you have any questions as you plan your trip to Iceland, just let us know!

Maggie Hatch Post author

January 5, 2020 at 3:02 pm

Thank you so much for this informative post. My husband and I are hoping to book travel 4/25-5/2 2020 from the US. Do you think the 7 day ring road intermarry would be possible? And do you have any advice for us? We are young 60s, love natural beauty and adventure. Thank you in advance. Maggie

January 7, 2020 at 7:39 am

There can still be snow/ice in April/May so that is something to keep in mind. There will almost certainly still be snow in the Highlands areas but the F roads there are closed anyway during those months.

You can do our recommended 7 day Ring Road itinerary (it is best if you have 8 days for it). But just note that it means moving each night and quite a bit of driving, and as noted, road conditions can still be bad at that time of year. It is a good way to see the highlights and do the Ring Road.

If you don’t want to drive yourself, there are also tours that follow the Ring Road (with a few detours) such as this 9 day tour , and this 6 day tour .

But if you want something more slowly paced and more focused, we’d recommend this 7 day Iceland itinerary which is great for that time of year. It focuses on western and southern Iceland with some time to explore Reykjavik.

Another idea is to consider just choosing a region or two and concentrating your explorations there. This is a more relaxed approach and you’ll get to explore a region more in depth. If you are most interested in hiking, wildlife, or water activities, I’d definitely recommend considering a trip a little bit later in late Spring/early summer.

Iceland has natural beauty all over and the south is really scenic but is the busiest area of Iceland in terms of tourism. If you are looking for less busy regions to explore, East Iceland and Westfjords are two beautiful areas that get fewer visitors and have a lot of undeveloped natural areas. So you might consider one of them.

If East Iceland appeals, we’d recommend considering spending a few days at the Wilderness Centre in East Iceland, it is a museum with accommodation on a farm with lots of activities possible like trekking, horseback riding, Icelandic home cooked meals, stargazing, hot springs, reindeer spotting, etc. We stayed there and can highly recommend it if you are looking for something a bit different.

Anyway, hope that helps give you some different ideas, but it really depends on how you like to travel and what is most interesting to you.

Just let us know if you have further questions as you plan your trip to Iceland. Another good place to get itinerary ideas and advice is our private Facebook group – a friendly group for readers to talk about travel and photography – many of the folks in there have been to Iceland.

Mandy Post author

October 22, 2019 at 8:53 am

Great article! ?? Thank you for the information. I’m travelling to Iceland the first time with my partner and landing at around 10:30pm on 25 Dec. We rented an apartment on Laugavegur 86. The host tell us to take the flybus from the airport to only the BSI air terminal down town Reykjavik, then take a taxi to a guesthouse on Laugavegur 41 to get the keys then onwards to the flat Laugavegur 86-94 (They will pay for the taxi). It will be the Christmas evening. I am concerned if there will be any taxi at the terminal at that hour of the day? The private transfer I have checked is super expensive. Any advice would be very much appreciated!

October 23, 2019 at 11:16 am

The Flybus usually runs according to the flight schedules since they know when the major flights are arriving, but I would definitely check the schedule (to ensure they will be running as normal that day). You can book your ticket in advance.

For the taxi, I think you will be able to get a taxi from the bus terminal on Christmas evening but it may be more difficult than usual as most Icelanders spend Christmas with their families. I’d try to schedule with a taxi company in advance if you know the time you will need to be picked up. Or just have the phone numbers for local taxi companies written down or in your phone so you can call once at the bus terminal in case they are not waiting on arrival. It may also be a good idea to give them a call in advance to make sure they are running on Christmas Day as you don’t want to have to spend a lot of time trying to arrange a ride late at night.

If none of the taxi companies are running (unlikely but good to check before your trip), I’d let your hosts know that you can’t find one and see if they can help you find one or if they are OK paying for a more expensive private transfer arrangement.

Wishing you a wonderful trip to Iceland, Jessica

Blanche Post author

September 25, 2019 at 6:28 am

Hi Jessica and Laurence. This is an awesome guide to Iceland.

First, I’m wondering about credit card usage. Is a PIN really necessary? Or are charge and sign credit cards accepted there? Online articles on these are confusing.

Second, where is the best place to change currency to krona?

Thanks so much.

September 26, 2019 at 1:23 pm

Hi Blanche,

Yes, I think that most places in Iceland can still take the chip and signature credit cards. However, if you are planning to use unmanned gas stations, ticket pay stations, etc. they may not work. So I’d stick to places where there is staff available in case your card is declined.

We just used our debit cards to take money out of ATMs in Iceland to get krona. We find this is normally the best way to do it. ATMs are fairly easy to find in Iceland. We normally use ones attached to a bank when possible, but you can also find them at fuel stations, the airport, etc. Some debit cards and credit cards do not charge foreign transaction fees and if you have such a card, I’d recommend using that when taking out money when traveling abroad. If you are not sure, I’d check with your bank.

Sharon Townsend Post author

September 20, 2019 at 10:19 am

This is a brilliant, informative travel blog for anyone wanting to visit Iceland ! Many thanks for all the information and tips.

September 20, 2019 at 11:55 am

Hi Sharon, Thanks for taking the time to let us know it has been helpful to you! Just let us know if you have any questions as you plan your trip to Iceland. Happy travels, Jessica

Barb Penttila Post author

September 12, 2019 at 4:14 pm

I found your blog very helpful. My husband and I are going to be in Iceland morning of Oct. 12 to noon of Oct 17. He wants to rent a car and drive around the entire country. Is this feasible at that time of year? Also how much daylight will we have?

September 13, 2019 at 1:42 pm

Glad you are finding our blog helpful in planning your trip to Iceland. Now, is it possible to drive around Iceland (I am assuming you mean the Ring Road) in 5 days in October. However, we’d not recommend it. We’d not recommend trying to drive that much any time of the year, just as you will spend way too much time driving and in hotels, and not have enough time to really explore too much along the way.

We’d recommend at least 5 days just explore the main South and Western parts. So I’d recommend choosing an area or two of Iceland you want to explore and do that instead of trying to drive around the country. Or consider staying for longer, we’d recommend at least 7 full days for that drive and you can see our recommended 7 day Ring Road itinerary here .

October weather is generally OK for driving, just check the road conditions before you set out each day. You’ll have about 9.5 to 10 hours of daylight each day. I’d dress and pack for cool weather. Rain and strong winds are common.

With the time you have, I’d recommend taking a look at our 5-day Iceland itinerary and our 7-day Iceland itinerary . Both are designed for all year round, but obviously you’ll need to take into account daylight hours.

Hope that helps!

Ann Flannery Post author

July 28, 2019 at 3:44 am

Hi! My husband and I are self driving in Sept- do you suggest exchanging money or are we able to use credit card everywhere? We are doing the Ring Road. Thanks, Ann

July 28, 2019 at 6:55 am

Hi Ann, I would recommend maybe taking out the equivalency of USD $100 in Icelandic krona your first day so that you have local cash to use for any places that do not accept cards, the card readers are broken (this happened to us a couple of times), your card doesn’t work for any reason, to leave tips, etc. We recommend that in any country you travel to always have a bit of local cash.

But almost all places in Iceland accept credit cards for payment so you shouldn’t need to use cash often (if at all). If you find you have not used the cash by the end of your trip, I would recommend paying for things on your last day in cash as it is very difficult to find places that will exchange Icelandic krona outside of Iceland.

If you need more cash once you start your drive along the Ring Road, you can find ATMs at many fuel stations, banks, etc. along the route in the bigger towns.

Rahul gopi Post author

July 26, 2019 at 11:30 pm

Beautiful place! Lovely pictures! seems like a country worth visiting.

July 27, 2019 at 1:06 pm

Hi Rahul, Yes Iceland is definitely a beautiful country and I hope you have the chance to visit! Best, Jessica

Zara Post author

July 14, 2019 at 10:21 am

Thank you so much for all this helpful info-the first time I’ve heard of the equivalent of hop on/off bus here. Curious if that plus Airbnb would be cheaper than camper van for 2-3 people. If camping is doable in August I know that’s obviously be the cheapest-as long as the bus goes to the camping sites. What are the must sees to put up with the crowds? Otherwise I’m perfectly fine w the road less traveled if you have any refs. You already gave me a good alternative to the blue lagoon.

July 17, 2019 at 1:13 pm

Yes the summer buses can be great especially for hikers and those wanting to explore the South Coast of Iceland. I am not sure if it would be cheaper to do Airbnb + bus or campervan and I would compare rates as it will depend on campervan rates for your dates as well as availability of Airbnb spots near the bus routes.

But yes if you are up for tent camping, that is probably going to be your cheapest option in Iceland. August is a good month for camping as it is warmer. The issue with Airbnb is that you will need to make sure places you book are close to bus stops. You will want to check the route and make sure it corresponds to the places you most want to go/stay. The buses do stop near some campsites so it is possible to do buses + camping as well.

I do think many of the Golden Circle sites are worth visit as well as some of the major waterfalls, but there are so many waterfalls in Iceland that you can also see lesser known ones as well. Glacier Lagoon is also a really pretty site that I think is worth the crowds to see. The Snæfellsnes Peninsula is a really scenic area but can be very crowded in spots.

The least crowded areas of Iceland are East Iceland, the Westfjords, parts of the north, and the inner Highlands. However, even if you are focused on the more popular and most visited South and West, you can still find places to escape the crowds.

I’d choose at least one museum during your trip to learn more about the country and its culture. The Skogar Museum, Herring Era Museum, and Árbær Open Air Museum are a few favorites – museums tend not to be that crowded.

One thing I’d recommend splurging on is at least one cool experience whether that is a boat tour, ice caving tour, special jeep tour, food tour, cooking tour, kayaking, wildlife tour, etc. I’d find an experience everyone is interested in and do that. We really enjoyed the tours and they are some of our most memorable experiences.

Hiking is great in Iceland during August and free 😉 The buses are ideally situated for hikers and you’ll find both short and longer hikes. Hiking is popular in the summer but the trails are not nearly as busy as popular tourist attractions such as the Golden Circle sites and popular waterfalls and beaches. I’d ask around locally where you are staying for suggestions for lesser known routes and trails if you are less interested in the popular trails.

I’d also definitely recommend at least a day exploring the capital city of Reykjavik, there are many attractions but the city is worth it even if you don’t plan to visit any particular place. You can explore it by foot and/or public bus. This is also a good place to go for a nice meal, shopping, and see local art. Lots of great public thermal swimming pools for good prices here, recommend if you have the time. Some of our favorite places to wander around on food are along the harbor area, Laugavegur (lots of shops/businesses along this street), Hljómskálagarður (park), and Öskjuhlíð (forested walking paths).

steve martin Post author

July 9, 2019 at 2:58 am

Amazing tips, every one wants saving when they are going anywhere in travelling ,i think these tips is very helpful for those people, thanks for share this informative blog.

July 11, 2019 at 1:48 pm

Hi Steve, thanks for taking the time to comment and glad you found our article helpful. Just let us know if you have any questions as you plan your trip to Iceland. Best, Jessica

Liesl Post author

July 1, 2019 at 8:00 pm

Do you have a suggestion for outerwear for our trip at the tail end of July? My husband and I both have bulky waterproof ski clothes but I’m wondering if that will be too warm – would a medium-thickness coat with removable shell be better? Thank you for your informative post!

July 2, 2019 at 5:55 pm

Hi Liesl, Yes, at the end of July ski clothes are likely going to be too hot and bulky for Iceland. It rarely gets hot in Iceland but it should be relatively warm during the days (July is normally the hottest month), temps in July are often between 50 and 70 F or 10 to 22 C but you’ll still want to bring a warm jacket or light coat so the medium thickness one you mention should be fine. You’ll also want something rainproof. Best, Jessica

Kons Post author

June 4, 2019 at 2:57 am

hi, my wife & I are intending to go Iceland but we want to do snowmobile which is so expensive. Is there any company you know that offer rental of snowmobile for 2 riders on 1 snowmmbile? my wife would not like to drive. thanks

June 4, 2019 at 8:08 am

Yes, snowmobiles are pretty expensive machines so the costs for the guided tours are usually a bit pricey. But most tours assume that 2 adults are sharing 1 snowmobile. If it is your first time snowmobiling, I’d recommend doing one of the shorter snowmobile tours of 1 to 1.5 hours.

Here are a couple of such options:

– 1 hour snowmobiling trip on Myrdasjokull Glacier (tour location is east of Skogar): here -Golden Circle day tour from Reykjavik plus 1 hour of snowmobiling: here .

Hope this helps! Jessica

kons Post author

June 4, 2019 at 4:19 pm

lol the prices are crazy and we’ll skip for these prices i can take a helicopter ride in Australia. we’ll just self drive from Reyjavkik to Vik to visit the free attractions thanks for your advice

June 5, 2019 at 4:09 am

Hi Kons, Yes, snowmobile tours are kind of pricey, but perhaps you will find another activity that is a a better fit with your budget. Enjoy your trip to Iceland. Best, Jessica

Swati Khurana Post author

May 30, 2019 at 4:00 am

Hi, The article is so informative and cleared most of my doubts. A big thanks for writing it. I am planning to visit Iceland in November with my husband from India. It will be our first international trip together. We are looking for: 1) Budgeted places to stay where we can prepare our food and spend some quality time together 2) Recommendations for day tours as we are not used to the left side steering drive 3) How to check what all food items are permitted from India to Iceland (so that we can save food cost) We would be really grateful if you can cater to these queries. Thanks in advance.

May 30, 2019 at 8:34 am

Glad you are finding our articles helpful in planning your trip to Iceland in November.

1.) The best base for you since you want to do day trips and not worry about driving is going to be in Reykjavik as this is where most day trips leave from and it also means that you can walk or take the bus to visit all the capital’s attractions. Then you will just need to book a shuttle to get you from the airport to Reykjavik and then a return when you leave. You’ll want to look at self-catering apartments (or possibly hostels) as most other types of accommodation (e.g., hotels, B&B’s) do not usually allow guests to cook. I’d checked for self-catering options here on Booking , apartments (I suggest filtering by those with kitchens) on Airbnb , and for more hostel options here .

2.) Yes, there are lots of day tour options from Reykjavik. It depends on how many days you have in Iceland but we would definitely recommend at least a day tour to see the Golden Circle, such as this one , and a trip to Iceland South Coast such as this one . But there are lots of options, and you can see our post about day trips from Reykjavik for more ideas.

3.) You can bring a small quality of food into Iceland without paying import duties but the quantity cannot exceed 3 kg (6.6 lbs) and the total value of the food cannot exceed 10,000 ISK (~ 90 USD). You can NOT bring in meat (raw/cured/heated), eggs, live plants, or any unpasteurized milk products (cheese etc.). So most other things should be OK. For grocery stores in Iceland, the three best budget grocery stores are Bónus, Nettó, Kronan. Bring a reusable bag with your for your grocery shopping to avoid having to purchase one.

Hope that helps, and let us know if you have further questions.

Esther Post author

May 13, 2019 at 12:47 pm

Thank you very much guys! Your info is so helpful! I really want to travel to Iceland on a low budget and I wonder about hiking trails. Are there many of them in Iceland and were could I find more details about them (have you got any list of them or can you recommend any blog/website)? Is it possible to get on few days hikes and getting to the start point and from the end point without renting a car? Many thanks! Esther

May 13, 2019 at 1:10 pm

Glad you found our Iceland budget tips helpful.

Yes, if you travel in the summer months (best time for hiking and to catch buses) then you can take advantage of the special hiking buses, sightseeing buses, and/or hiking passports mentioned. These are designed for travelers without a car (especially for backpackers and campers) and those who want to do some of the popular hiking trails. Most also stop at some of the most popular attractions and towns in Southern Iceland (waterfalls, national parks, etc.). See the Bus Passport section for some more info and links.

Two of the most popular hiking routes are the Laugavegur hiking trail (~ 4 days) and Fimmvörðuháls hiking route (~ 2 days) – both are great options in the summer months and included with most of the available hiking buses. One or both of these sound ideal if you are looking for 2 to 6 days of hiking and don’t mind camping or staying in huts. Easy to time it so you can get round trip bus connections and there would likely be many other hikers along the route doing the same thing.

There are also a number of shorter day hikes you can do like Glymur Waterfall and Mount Esja. Some hikes you can reach by the scheduled hiking buses or regular public bus, but others you’d need to arrange a taxi so probably not ideal if on a budget. For more on the best hikes in Iceland, see this page .

So I’d either do a hiking bus passport to get around, or I’d maybe pick some favorite hikes from a list and then see which ones would be practical for you to get to.

T.R. Post author

March 25, 2019 at 4:24 am

Iceland is a dream place of mine but it’s expensive to go there. I like to witness how amazing AURORA is. Reading your blog inspired me to move forward and work to reach my dream place.

Thank you for the inspiration.

March 25, 2019 at 9:29 am

Hi T.R., So happy that you found our articles inspirational and you can definitely travel to Iceland on a budget if you plan ahead. Iceland prices have come down a lot in recent months so definitely a good time to plan a trip 😉 Just let us know if you have any questions. Best, Jessica

Yvonne Post author

March 13, 2019 at 11:27 pm

Thanks for such great information! I’m really enjoying your blog. Could you tell us more about the outdoor pools that you mentioned? Is there a list online or could you tell us some of your favorite ones? We are planning to visit in May. Thanks again!!

March 14, 2019 at 12:35 pm

Glad you are finding our travel blogs helpful in planning your upcoming trip to Iceland in May. There are lots of inexpensive and free hot springs and pools in Iceland, I think we’ve probably been to a couple dozen ourselves, so it depends a bit on what you are looking for (e.g., do you want any services like showers or toilets) and what part of Iceland you are visiting. But you are really never far from some sort of pool. if you have a specific area in mind, let us know.

But here is a list from a local to get you started that includes local pools and hot springs. I’d also add the Reykjadalur hot springs where you hike up and can bath in a section of a river.

If trying to avoid other tourists, the public pools in Reykjavik are really nice and inexpensive, and almost all have large indoor and outdoor areas with soaking pools of different temperatures, swimming pools, and hot tubs. These are the types of pools where most Icelanders actually go and offer showers, changing areas, and toilets. Many also offer children’s pools and areas.

Pablo Post author

March 9, 2019 at 11:06 am

This is just a wonderful post! I’ve been meaning to visit Iceland for quite some time now and each read like this brings me a step closer I think. Cheers!

March 9, 2019 at 12:19 pm

Hi Pablo, Thanks for taking the time to comment and glad you enjoyed our budget tips for Iceland. Do let us know if you have any questions as you plan your trip. Best, Jessica

Farrah Aviva Post author

March 1, 2019 at 3:21 am

I really like this post – a well written and educated post, all the given points & tips are amazing. Thanks for sharing this wonderful post on traveling on a budget

March 1, 2019 at 7:03 am

Thanks so much for taking the time to comment Farrah. Wishing you a great trip to Iceland. ~ Jessica

Sara Jannsen Post author

February 27, 2019 at 2:29 pm

Hello! I just wanted to say a big THANK YOU for all your great information and advice about Iceland. From itinerary ideas to travel tips to budget tips, your information helped us feel good, save money, and travel well while we were there. We saw so much and did so much, much of it because of all your great blogs.

Thank you! Jannsen Family from the Netherlands

February 27, 2019 at 2:38 pm

Hi Sara, So happy you and you family had a wonderful trip to Iceland and thank you for the lovely comments 😉 We are glad you found our information helpful. Happy travels, Jessica

Ben Knapp Post author

February 27, 2019 at 7:57 am

Lodging prices are out of date. Hostel: $60 per person per night in a shared dorm. Homestays: $175 per night. Hotels: $250 to $600 per night. 600 for peak season in summer. 250 for storm season in February. Car rental: $1000/week winter, $2500/week summer. Winter: $2000 for a week. Summer: $6000+ for a week.

Hostels only, no car, no frills, one daily $30 meal and Kronan the rest of the time: $800.

February 27, 2019 at 8:35 am

Thanks for your thoughts on pricing; however, we disagree with the prices you listed. Our prices given are for the country-wide across seasons for people to use as averages for people who are budget-minded. For instance most hostels from Hostelling International Iceland offer shared dorm rooms from between $20 to $40 at the moment. A quick check of Booking.com shows hotels in Reykjavik (most expensive city) for about $125 for a 4-star hotel and a quick car search shows car hires starting at $400 with basic insurance coverage for this July.

You will of course encounter the prices you are mentioning but with a little of digging and research it is easy to stay and eat for much less as we know from both recent experience (we were in Iceland last summer and the prior winter) and from looking at official tourism data for rates and national pricing data. Also prices have actually decreased this year for those using USD as the local currency in Iceland has fallen and the dollar is much stronger.

Zulfi Post author

February 21, 2019 at 3:10 am

Superb, well written and practical information. Thanks for taking to time share such insights. Very helpful. Hopefully we will follow your tips and enjoy our upcoming vacation in this summer.

February 21, 2019 at 4:00 am

Hi Zulfi, Glad you enjoyed our budget tips for Iceland, just let us know if you have any questions as you plan your trip to Iceland this summer. Best, Jessica

Jason Mars Post author

February 15, 2019 at 1:32 am

Oh wow I love how informative your article is about budgeting. We are traveling to Iceland and your blog posts are the best and we will use them to plan our trip. Thanks for all this great info!

February 16, 2019 at 4:46 am

Hi Jason, You’re very welcome – just let us know if you have any questions as you plan your trip to Iceland. Best, Jessica

Nagesh Lingayat Post author

December 26, 2018 at 1:32 am

Nice budget tips shared! Thanks for this helpful info.

December 26, 2018 at 3:43 am

Hi Nagesh, You’re very welcome. Thanks for taking the time to comment and we wish you a great trip to Iceland. Best, Jessica

Emma Post author

December 9, 2018 at 1:18 pm

I’m happy to read your article on Iceland budget tips. It helps me a lot. Thank you very much, Iceland is in my bucket list!

As I and my partner are beginner hikers, we do need some suggestion about choosing backpack. I’ve been researching but come to a bit of a standstill with an overload of information. We prefer some lightweight ones and fair price under $100. Could you recommend which one is the best for hiking amateur like us?

Thank you for your help!

December 10, 2018 at 4:25 am

First, I would determine what you need the backpack for (short hikes, day hikes, overnight multi-day hikes) and how much you will each need to carry.

In Iceland, most hikes are a couple hours or less, but there are full day hikes you can do and you can string together hikes to be much longer. It is easy to do multi-day hiking trails in the Highlands (summer only) and in places like Hornstrandir Nature Reserve. But if you are brand new to hiking, I’d start only with day hikes on your first trip.

There are a lot of backpacks out there within your budge for USD $100 or less. If you are new to hiking backpacks, I’d recommend going to an outdoor gear shop (e.g., REI, Dick’s, Sports Direct, Go Outdoors, Mountain Warehouse, etc.) and try a few on to get a sense of the types, brands, and feel of them. Two brands we like are Camelbak (especially for day packs) and Eagle Creek . But there are a lot of choices out there.

Wishing you a great trip to Iceland!

Karen Shields Post author

November 14, 2018 at 3:57 pm

Hi, great article! My sister and I traveled to Iceland in the winter of 2016. We had a wonderful time. It should be said that Icelanders are quite helpful and many speak English. As we were on a budget we went to a local grocery and got skyr which is a milk product like (but not) yogurt. And milk for our hotel room coffee. Super helpful was that my sister brought a large and customs approved bag of mixed dried fruit and nuts in her luggage. This quick snack was filling and save us money on snacks meals. Also, DO get the Appy Hour app for drinks savings. Many bars also have snacks or meal specials at happy hour. Such a gorgeous and kind country, happy travels to all.

November 15, 2018 at 4:20 am

Glad you enjoyed our article, and glad you had such a wonderful trip to Iceland. Thanks for sharing a bit about your own experiences and tips for traveling to Iceland on a budget! Bringing approved snacks and buying groceries are definitely 2 good ways to save some money on food and the happy hour app is great for those who want to have a few drinks 😉

Yes, almost all Icelanders speak English and most speak it well. Most people told us that they learned Icelandic, Danish, and English in school and many also study a fourth language (often Norwegian, German, French, or Swedish). In our experience, we only had difficulty talking with immigrants and temporary workers from other countries in Iceland (often working in fishing and tourism) as many of them don’t speak as much English (or Icelandic).

So happy you had a great trip to Iceland and thanks for taking the time to comment and share your experiences!

Valerie Post author

October 26, 2018 at 12:38 pm

Hi. I wanted to print this comprehensive Iceland article, but it is not in a printable format. Can you help me? Thanks.

October 26, 2018 at 12:48 pm

Hi Valerie,

Yes, our posts are intended to be read online (or offline) within our website. Given how long our Iceland on a Budget article is, you are probably better off reading it online rather than printing it off, as it will be a lot of pages of printing.

But you can go to the bottom of the post before the Comments section and go the “Share this Post! “section and you should see different social media and sharing buttons. If you click on “More”, you should get the option to Print the article (printer icon).

If this doesn’t work and you still wanted a printed version, send us an email and we’ll try to help.

Do let us know if you have any questions about traveling to Iceland!

Melanie Gibson Post author

August 9, 2018 at 12:51 am

Thanks for sharing the useful information about traveling to Iceland on a budget…I truly feel so much better about planning a trip here after reading this blog. I will bookmark this for future reference.

November 1, 2018 at 3:20 pm

Hi Melanie, Great, glad it was useful and thanks for taking the time to comment and let us know. Wishing you a wonderful trip to Iceland. Best, Jessica

Issie Post author

August 8, 2018 at 9:19 am

Hi. Wonderful budget travel tips for Iceland! Iceland is an attractive country. I have a plan for camping but it’s my first time, so I need your help. I have no idea to prepare things for the camp. Could you give me suggestion? Firstly, I just buy Hiking Backpack but I still have no idea about other items for camping. Thank you in advance for your suggestions.

August 8, 2018 at 4:00 pm

In addition to a backpack, you’ll probably want to consider all the normal hiking stuff (water bottles, waterproof cover for pack, waterproof bags to store gear, hiking poles, snacks, etc.), navigational gear (e.g., compass, maps), safety gear (e.g., you can rent an emergency beacon), and medical emergency supplies (e.g., first aid kit, emergency blanket). You’ll definitely need warm clothing you can layer, waterproof hiking shoes, waterproof and wind resistant outer layers, a hat, and gloves. If you are planning to do multi-day hikes, you’ll need to bring along camping gear (or rent it once you are in Iceland).

In terms of hiking in the summer, we’d recommend checking out two of Iceland´s most popular and beautiful hiking routes: the Laugavegur hiking trail and Fimmvörðuháls hiking route. Once you decide on which trails you wan to hike, we recommend looking at the bus and hiking passports that will drop you off and pick you up from the locations you plan to hike.

Since it sounds like you don’t have a lot of hiking gear or experience, I’d consider doing a guided hiking trip in Iceland. That way you won’t have to worry about food, transport, accommodation, or getting lost. They will also supply you with a list of the needed hiking gear. Within the scenic Thórsmörk area, here is a 4 day hiking and a 6 day trekking tour . There is also this 10 day soft hiking and sightseeing tour which includes a few hours of hiking each day all over Iceland.

Hope this helps and wishing you a great time in Iceland! Jessica

Denis Mountain Post author

August 7, 2018 at 2:11 am

Wow, you blog is really good it will help me as I am planning to travel Iceland. I have made a list of happy hours but after reading your blog I will try to consume less alcohol.

August 7, 2018 at 3:49 am

Hi Denis, Yes, if you are a drinker than a good way to save money is to drink less or at least purchase alcohol from the airport (cheapest place) for your trip. Happy hours can save you money when you go out, but if you are on a tight budget in Iceland, the best way to save in most cases is to buy bottles at the airport. Hope that helps and enjoy your trip to Iceland! Jessica

Wesley Post author

July 26, 2018 at 5:14 pm

These budget tips are awesome. Iceland would be such a beautiful destination to visit.

July 27, 2018 at 4:38 am

Hi Wesley, Thanks for taking the time to comment and I hope you get a chance to visit Iceland!! Best, Jessica

Rob+Ann Post author

July 20, 2018 at 11:02 am

We’ve heard how notoriously expensive Iceland can be – although we didn’t know alcohol was THAT pricey! – so we appreciate the tips. As we read, though, we realized some of these tips are good for any trip. Tucking these away until Iceland comes into our picture. Thanks for the ideas!

July 22, 2018 at 12:48 pm

Hi Rob & Ann, Yes, Iceland is pricey but with some research and good planning, you can stick to a reasonable budget in Iceland. We’ve been in Iceland about 6 weeks total and I think we’ve drank maybe 4 times – it was just not worth it to us most of the time! And yes, many of these tips (e.g., booking in advance, city discount cards, using public transit, self-catering) we use in travel destinations around the world to save money 😉 Best, Jessica

Kreete Post author

July 19, 2018 at 2:11 am

So may great tips on how to stay within your budget! I have always wanted to go to Iceland and have heard it to be expensive, but just how expensive was a surprise. It does make sense though when you consider the economy and isolation. I will certainly keep this in mind for when I go as it’s one of the best resources out there for someone that only travels on a budget!

July 22, 2018 at 6:04 am

Hi Kreete, Glad you found our budget tips for Iceland helpful and yes, I think a lot of people are surprised by the current prices in Iceland. Hope you have a chance to travel to Iceland in the future! Best, Jessica

Kat Post author

July 15, 2018 at 7:37 am

I didn’t expect Iceland to be that expensive until I saw $3.50 for a loaf of white bread! Somehow it’s a little strange to learn that bananas ( a tropical fruit) is cheaper than bread 🙂 Halfway reading your post, I wondered how can a solo traveller budget for a trip to Iceland? And then I saw the sections on booking tours or day trips. You’re right, booking tours might seem expensive initially but everything is taken care of from accommodation, food and sightseeing. Massive post, guys, but very informative and helpful indeed!

July 15, 2018 at 8:25 am

Hi Kat, Yes, prices for food are a bit crazy! All the Nordic and northern European countries are expensive but Iceland is particularly so, at least right now with its strong currency. It doesn’t produce much of its own food, so most is imported which drives up prices. But even the products it does produce tend to still be expensive (e.g., lamb, fish, vegetables, salt). The cost of an Icelandic lamb main dish was generally about 6,000 ISK.

It is definitely trickier and more difficult to lower costs for solo travelers to Iceland. You can of course do carpooling or find other travelers that want to travel together, but this is not something many travelers would be comfortable doing. Camping costs are generally by person so camping is a good option, and so is hostel beds which are charged per person. Of course, not everyone wants to camp or stay in hostels.

I agree, and I do think that tours are a good option for solo travelers as they tend to work out to be about the same price of doing it yourself, but you don’t have to do all the planning and you also have a guide, the company of other travelers, and you don’t have to worry about things like driving or insurance.

Anda Post author

July 14, 2018 at 2:40 pm

$24 for a bottle of average wine? Ouch! Iceland seems expensive indeed, but it surely looks beautiful. I’d love to visit it, so thanks for sharing these tips. The exchange rate makes a big difference, for sure.

July 14, 2018 at 3:28 pm

Hi Anda, Yes, according to the Numbeo July 2018 data, that is the average price for a midrange red bottle of wine in Iceland (the most expensive average price of any country in the world)! Alcohol though is much more expensive than many other products because it is highly regulated and taxed in Iceland. We only drank a few times in the 6 weeks we’ve spend in Iceland 😉 Jessica

Sara Post author

July 14, 2018 at 6:20 am

This is a fantastic and thorough guide. I’ve been seeing cheap fares to Iceland from our airport, but I noticed that most tours and accommodations were quite expensive during the summer. I really want to see the Northern Lights, so I’m hoping to see the prices go down a bit in the winter so we can take advantage of the fare wars. 😉 The natural beauty of Iceland just looks positively breathtaking though!

July 14, 2018 at 11:31 am

Hi Sara, Yes, there are really good flight deals in many parts of the U.S. to get to Iceland and this is a great way to save money. One of the problems with these low fares is that it indicates to some people that Iceland is a budget backpacker destination and this is really not the case. Many people arrive and are really surprised by the prices – we met many people in Iceland who had not really done any research.

The winter is a good time to find less expensive lodging, particularly in and around Reykjavik, we saw prices much lower during our winter versus our summer trip. Rental cars may also be a bit lower given less demand. But the tours and activities are about the same year round as the costs for them (fuel, guide, gear) are about the same for operators and they tend to just offer fewer tours.

I hope you get to visit Iceland and see the Northern Lights in Iceland some day – we sadly were unlucky and did not see them during our winter trip – maybe next time 😉

Lolo Post author

July 13, 2018 at 7:08 pm

I will have to sit down and thoroughly study this! We’re doing a 19 hour layover in Iceland on our return from the US later in August – sadly we haven’t even booked a hotel, or figured out how to visit the Blue Lagoon or downtown Reykjavik yet. Everything seems so complicated there and so expensive! Thanks so much for sharing this!

July 13, 2018 at 8:17 pm

So happy this has come at a time you can use it for your August trip to Iceland. I would recommend booking your hotel now – prices are high in summer and prices are especially high in Reykjavik and around the airport.

A few thoughts on hotels – If you are looking for a budget place near airport, The Base offers really low prices and has good reviews. We stayed at the Northern Lights Inn last time which is next to the Blue Lagoon (the hotel has a free shuttle to the Lagoon, or you could even walk) and they offer a airport shuttle service (fee).

If you’d rather spend the night in Reykjavik, I’d definitely recommend something central so it is easy to walk to the main attractions you want to see. A couple of centrally located budget options that are not hostels are 101 Guesthouse (some rooms have shared bathrooms) , Northern Comfort Apartments , and Glad’s Guesthouse .

You can save a little money on the airport shuttle by booking a place near the BSI bus terminal so you can just walk to your hotel or guesthouse from there (you pay extra to be dropped off at a specific hotel). We stayed at Guesthouse Galtafell last time (about a 7 minute walk from bus station).

From the airport, there are a few bus companies running shuttles that run between the airport and Reykjavik, and they are always around after each flights lands. We’ve used the FlyBus . You can also get a shuttle to take you to the Blue Lagoon and then Reykjavik.

With only 19 hours, I think concentrating on the attractions in Reykjavik and the Blue Lagoon is probably what you will have time for. There is a free (donation expected) walking tour in Reykjavik that is a good intro to the city. The Blue Lagoon is expensive but it is a fun experience and although the entry is timed you can stay in the pool as long as you want. Just be sure to book your ticket in advance (they often sell out most of their time slots in advance during the summer) as you have to have a reservation.

If you are arriving in the morning, you’d also have the option to perhaps take a day tour and you could do one like this that takes in the Golden Circle highlights and includes a stop at the Blue Lagoon. Just note that for most tours stopping at the Blue Lagoon, that you still need to book a Blue Lagoon ticket in advance online.

OK, hope this helps. Feel free to reach out if you need more help in planning your Iceland stopover!

July 16, 2018 at 3:20 pm

Thanks so much for your informative tips! Will definitely take them to heart! Unfortunately, our layover kinda sucks and we arrive at like 12:10pm and leave the following morning at around 7am. So we miss a lot of the tour options but will likely need a hotel for the short few hours. Our flight to the US was really last minute so we didn’t get very good times. But, we will try to make the most of it!

July 18, 2018 at 10:57 am

Hi Lolo, Yes, that is a very short layover and you get in late to join most tours. But you should still have plenty of time to go to the Blue Lagoon and see a few highlights in Reykjavik! Enjoy, Jessica

Ericka Post author

July 13, 2018 at 6:04 pm

Great budget tips for Iceland! Iceland is a place that my husband and I both want to visit one day. I’ve saved this for future reference.

July 13, 2018 at 6:26 pm

Hi Ericka, Thanks for taking the time to comment and I hope these tips come in useful when you and your husband starting planning your Iceland trip! Best, Jessica

Anisa Post author

July 13, 2018 at 12:45 pm

Great tips! I haven’t been to Iceland yet, so pinning this for future reference. And thanks for introducing me to Numbeo, that seems like a very useful site.

July 13, 2018 at 6:25 pm

Hi Anisa, Thanks, yes I hope these budget tips help you save money if you travel to Iceland. The Numbeo website is useful but not 100% accurate, but it is great for determining cost of living and can be helpful in getting an idea for travel costs of things like food, meals, and fuel. Best, Jessica

Seana Turner Post author

July 12, 2018 at 4:06 pm

Wow – I found this so interesting. I had no idea Iceland was so expensive. It seems that for my situation, the smart thing to do is to put Iceland on the back burner for a time when their currency weakens. These are great tips if you really want to go now. It is a beautiful country, and for some it might be worth it. I’ll keep an eye on the exchange rate. If we go, definitely following your tips. I’m thinking we will pass on a rental car as much as possible!

July 12, 2018 at 4:38 pm

Hi Seana, Yes, if Iceland is on your “some day” list then I think waiting for the currency to weaken a bit against your own is a good idea. If you are wanting to go now, these tips should at least help you save money on your trip.

You can definitely visit Iceland without a car, its easy to do it by either booking day trips or doing a multi-day guided tour. You can also do the Bus Passports in the summer which can be a good value and allows you to reach the main hiking trails or visit the most well-known attractions, particularly in the South.

Happy travels, Jessica

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My Actual Iceland Trip Cost: Detailed Budget Breakdown

Adventurous Kate contains affiliate links. If you make a purchase through these links, I will earn a commission at no extra cost to you. Thanks!

How much does an Iceland trip cost? A LOT OF MONEY! Ha. This is a famously expensive destination. But in all seriousness, Iceland gives you quite a bit of value for that money.

Recently my friend Amanda from A Dangerous Business and I took a 13-day road trip to Iceland in August 2022. This is one of the best trips I’ve taken in a very long time — but holy hell, was it expensive!

We were traveling at peak season, plus it was the biggest travel summer in three years, making it a popular time for travelers (and expensive time for both rental cars and gas).

I know it can be helpful to see what other people paid for trips to Iceland, so here’s a detailed Iceland trip budget. I hope this is helpful for you to plan your own Iceland trip!

Table of Contents

Is Iceland Expensive?

Yes, Iceland is very expensive. It’s one of the most expensive countries of the 80+ I’ve visited, up there with Sweden and Australia, though I think Norway and Switzerland are a TINY BIT more expensive than Iceland.

There are reasons for this. Iceland is an isolated island, and they have to import the vast majority of supplies. Most fresh produce is grown outside Iceland and shipped in.

And like all of the Nordic countries, Iceland has a high cost of living. It’s not as jarring for locals, who earn high salaries — thanks in part to more than 90% of Icelandic workers being part of a labor union — and having their taxes pay for healthcare, education, infrastructure, and an excellent quality of life.

The time of year has a huge impact on your costs, too. Summer travel — considered mid-May through August — is much more expensive, and for good reason. Summer is the best time to travel Iceland, as everything is open, weather is at its best, tons of tours are running, and the roads are in much better condition.

Winter can be much cheaper and far less crowded, but keep in mind it can be very cold, very dark, and you may have to deal with winter storms and road closures.

Your Iceland trip cost can be as low as $100-150 USD per day if you hitchhike and camp or stay in hostel dorms. More realistically, I think $250+ USD per day will land you a much nicer trip .

In August 2022 we spent around $400 USD for gas to drive the Ring Road in its entirety, plus a few detours like Snaefellsnes and Húsavík.

We found the cheapest non-terrible hotel rooms with shared bath to be around $82 per night , but in expensive areas like Lake Myvatn, that could be as high as $300+.

The cheapest item on restaurant or gas station menus is a hot dog, usually for around $6 USD . An entree in a restaurant is often $25-30. But the best way to save money is to buy groceries.

How I Budgeted My Iceland Trip

Tracking travel expenses is a relatively new thing for me. People have often asked me for budget breakdowns, but I haven’t kept close track until I started using YNAB (You Need a Budget) software in 2020.

Guys, YNAB is the best thing I have ever done for my finances. It literally changed my life. My finances are so much better than they used to be, and I have a much better system of budgeting for trips and saving up over time!

If you want to try YNAB, you can get a free monthlong trial through my link . (If you sign up, they’ll give me a free month of YNAB.)

During your free monthlong trial, join in YNAB’s live Zoom tutorial sessions — they have several each week. They’re super helpful. And join the YNAB Facebook group and/or subreddit. It takes a bit of time to wrap your head around, so make the effort. I promise you it’s so, so worth it.

Since I started YNAB, along with Profit First, I allocate 30% of my travel blogging revenue to operating expenses — 20% to admin and 10% to travel costs. (You can do the same by budgeting a set amount for travel per month or per paycheck.)

Over time I automatically transferred that money directly into my “General Travel” category, then the “Iceland Trip 8/22” category, and as I made expenses before and during the trip, automatically deducted from money set aside for that trip.

As soon as Amanda and I decided to do this trip, we booked flights, our rental car, all accommodation, and several activities. We kept track of Iceland costs on a Google Docs spreadsheet. After arriving in Iceland, we took turns paying for mutual expenses on the road, like gas, but paid other expenses separately, like food. We used credit cards for every single purchase.

After the trip, we went through our credit card bills and added our mutual expenses to the spreadsheet, saw who had paid more, and Venmo’d the difference. Easy!

We kept track of everything in USD, as it was easier for us to just go by our actual credit card statements than go through and convert lots of receipts.

Our Travel Style

In an expensive destination like Iceland, it’s smart to drop down a travel level . I usually stay in mid-range hotels with occasional high-end splurges, as does Amanda, but on this trip we stayed in the cheapest budget hotels with non-terrible ratings, often with shared bathrooms.

Food-wise, we mainly ate in restaurants and cafes. A few hotels included breakfast. We bought groceries for breakfast in Akureyri.

Additionally, many accommodation prices were actually charged in Euros, not Icelandic Kroner, and the Euro dropped significantly against the US dollar between when we initially booked (June 2022) and when we traveled (August 2022).

For example, our Akureyri Airbnb was set to charge us in two payments of 334.39 euros. They ended up charging us $359.17 for the first payment and $342.88 for the second payment thanks to the euro dropping.

Finally — if you’re traveling with a friend, I can’t overstate the importance of being on the same financial page. Have conversations early and often about how you want to spend your money, with specific numbers, before booking anything.

Luckily, Amanda and I were in agreement on our priorities. We cared about spending lots of money on activities and didn’t care as much about food or accommodation (save a few cool spots).

Amanda published a post about a 10-day Iceland itinerary that is definitely worth checking out!

Total Cost of Iceland Trip: $4303.11 each or $8606.21 for two

This is for two people sharing accommodation, car rental, and gas, and paying for their own activities and food.

I tracked every expense except Amanda’s airfare and food, but for cost-for-two purposes, let’s assume she spent the same amount as me on those two categories.

• Airfare: $548.20 for Kate (approximately $1096.40 for two)
• Car Rental and Ground Transportation: $2608.04 for two or $1304.02 each

Accommodation: $2371.80 for two or $1185.90 each

Food: $690.60 for kate (approximately $1381.20 for two), activities: $1,141.81 for two or $570.91 each, restrooms: $6.96 for two or $3.48 each, souvenirs: $0.

Airfare: $548.20 for me

• Flixbus, Prague Florenc to Vienna Airport: $50.98
• Vienna to Reykjavík on WizzAir: $260.14
• Reykjavík to Prague on Play: $237.08

Airfare can depend on a million different factors; this is simply what I spent flying from my home in Prague. Amanda flew from her home in Cleveland via a layover in Boston. These flight prices include checked luggage; I didn’t end up using checked luggage, so they could have been cheaper.

There are direct flights from Prague to Reykjavík on Play, but they get in at 12:30 AM and I didn’t want to deal with that (especially since that would be 2:30 AM to my Prague body — and then you have to rent a car, drive 45 minutes to Reykjavík, check into the hotel…)

Prague’s bus station is an 8-minute walk from my apartment, so sometimes I just book a flight from Vienna and take a 4.5-hour bus directly to the Vienna airport. Vienna’s WizzAir flight to Reykjavík gets in at a much more reasonable 6:30 PM, so that worked for me.

How to Make it Cheaper: It’s hard to siphon down airfare costs, but you can save by flying carry-on only or planning a trip during the winter. For cheap flights from North America, I recommend booking 3-6 months in advance as soon as you spot a good fare.

Car Rental and Ground Transportation: $2615.30 for two or $1307.65

• Car rental, 12 days: $1991.32
• Extra driver fee: $25.65
• Gas: $400.71
• Tunnels: $54.30
• Parking: $40.77
• Ferry: $102.55

Car Rental: This was our biggest expense of the trip, not least because there has been a car rental shortage since COVID began. This was the price for an automatic sedan (we got a Toyota Corolla) for 13 days. Our rental was at Europcar, right in the airport terminal; this was a priority for me, as I wanted to get out quickly and many rental companies are located a 15-20-minute drive from the airport.

Gas: We filled up gas most days and tried to fill up frequently, as gas stations are often far apart.

Tunnels: There is only one paid tunnel in Iceland, just east of Akureyri. Many people driving the Ring Road only pass through the tunnel once, but our schedule and itinerary had us going through it five times total for an average of $10.86 each time.

Parking: While free in most locations, we ultimately paid for parking at Fagradalsfjall Volcano ($7.33), Kirkjufellsfoss ($5.13), Hverir ($5.05), Skaftafell for Svartifoss ($7.26), Kvernufoss ($5.33) and Seljalandsfoss/Gljúfrabúi ($10.67).

Ferry: We took the Westman Islands ferry round-trip with our car for $102.55. We could have done it without the car for cheaper, but we both enormously appreciated how much easier having a car made things.

How To Make it Cheaper: Renting a manual car is cheaper than an automatic car, but you need to be willing to drive a manual car. Renting from an off-site car rental spot is a good option for saving a bit more. You can also plan an itinerary that doesn’t go through the tunnel five times!

• 201 Hotel in Kópavogur, near Reykjavík (1 night): $177.34
• Hamralid 9 Guesthouse in Grundarfjördur (2 nights): $185.94 for two nights or $92.97 per night
• Hvammur 2 Guesthouse near Blönduós (1 night): $82.05
• Airbnb rental in Akureyri (3 nights): $702.05 for three nights or $234.02 per night
• Sel Hotel in Myvatn (1 night): $347.06
• Lyngas Guesthouse in Egilsstadir (1 night): $146.79
• Hotel Smyrlabjörg near Jökulsárlón (1 night): $213.12
• Puffin Hotel in Vík (1 night): $277.21
• Glamping and Camping in the Westman Islands, plus linens (1 night): $93.40
• Asahraun Guesthouse near Selfoss (1 night): $146.84

As you can see, our search for budget stays led to an enormous range of accommodation costs — from $82.05 to $347.06 per night! Our average cost of accommodation was $182.45 per night.

All of our hotels offered private rooms; some had shared bathrooms. We shared a single room everywhere except the Airbnb apartment in Akureyri, which had two bedrooms.

In terms of value for money, I think that we enjoyed immense value at Asahraun Guesthouse near Selfoss, with our adorable little hobbit house, hot tub on site, and lots of cozy amenities. The shower was shared with two other houses but we had our own toilet and sink, which was great.

And Hvammur 2 Guesthouse near Blönduós was a cheap and cozy place that reminded me how hostels used to be: people hanging out, watching TV together or cooking in the kitchen. We never even got formally checked in; we just got an email with our room number and were told to enjoy ourselves!

The worst value? Sel Hotel in Myvatn, by far, at $347.06 per night for a basic twin hotel room with private bathroom and breakfast included. Yikes!

Lake Myvatn in general was shockingly expensive and super-crowded. I’ve heard you can save money by staying in Húsavík instead; it’s an hour’s drive away.

How to Make it Cheaper: These were the cheapest non-terrible hotels we could find during the peak summer months, two months before our trip. You can also stay in hostel dorms or camp for less.

Hiring a camper van sometimes ends up a bit cheaper than a budget hotel, but the difference isn’t usually significant. Don’t get a camper van to save money; only get a camper van if you want that style of trip.

• Groceries: $20.32
• Lunch Kate bought for 2 at Godafoss: $11.24
• Kate’s restaurant expenses: $674.82

Iceland is not a place you go to for the food. The food isn’t terrible, but it isn’t special, either, and I don’t think there’s much of a need to splurge.

We mainly ate at restaurants and cafes throughout our trip. Though we generally kept things cheap, we did have the occasional splurge (Gott in the Westman Islands was lovely, as was Naustið in Húsavík, and we enjoyed langoustine sandwiches at Z Bistro in Höfn). We only had a few alcoholic beverages throughout the trip: a fancy cocktail each at Gott, and I sampled a few local craft beers throughout the trip.

We bought groceries to cover our three breakfasts in Akureyri (yogurt, fruit, bread and butter).

How to Make it Cheaper: Self-cater all the way. Shopping at the grocery store is one of the easiest ways to save money in Iceland. If you do eat out, usually the cheapest thing on the menu is a hot dog, whether at a restaurant or gas station.

Activities are where we went nuts. Keep in mind that this trip was for work reasons, though. We had a lot we wanted to write about!

Paid Activities

• Thermal Baths: $427.04 for two or $213.52 each
• Tours and Activities: $541.20 for two or $270.60 each
• Museums: $155 for two or $77.50 each
• Outdoor Attractions: $18.57 for two or $9.29 each

Thermal baths included Krauma in Reykholt ($71.82 for two or $35.91 each), the Forest Lagoon in Akureyri ($87.17 for two or $43.59 each), GeoSea in Húsavík ($80.04 for two or $40.02 each), Myvatn Nature Baths in Myvatn ($86.62 for two or $43.31 each), Vök Baths in Egilsstadir ($87.17 for two or $43.59 each), and Vestmannaeyjar Swimming Pool in the Westman Islands ($14.22 for two or $7.11 each).

Tours and activities included whale watching in Húsavík ($157.02 for two or $78.51 each), horseback riding in Húsavík ($167.35 for two or $83.68 each), and a RIB boat trip in the Westman Islands ($216.83 for two or $108.42 each).

Museums included the Bjarnarhöfn Shark Museum in Bjarnarhöfn ($20.52 for two or $10.26 each), Herring Era Museum in Siglufjördur ($32.02 for two or $16.01 each), Whale Museum in Húsavík ($25.34 for two or $12.67 each — included a small discount from our whale watch), Jaja Ding Dong Eurovision Museum in Húsavík ($14.44 for two or $7.22 each), Petra’s Stone Collection in Stöðvarfjörður ($21.46 for two or $10.73 each), and Eldheimar in the Westman Islands ($41.22 for two or $20.61 each).

Outdoor attractions included Stokksnes , including Viking Village ($12.88 for two or $6.33 each), and Kerid Crater ($5.69 for two or $2.85 each).

Free Activities

And a nice thing about Iceland is that lots of outdoor activities are free!

• Hiking to the volcano (paid parking)
• Free waterfalls: Svodufoss, Bjarnarfoss, Glanni, Reykjafoss, Goðafoss, Dettifoss, Gufufoss, Folaldafoss, Nykurhylsfoss (Sveinsstekksfoss), Skógafoss, Hestavadsfoss, Gluggafoss
• Free waterfalls that charged for parking: Kirkjufellsfoss, Hundafoss/Svartifoss, Kvernufoss, Seljalandsfoss/Gljúfrabúi
• Free canyons: Rauðfeldsgjá Gorge, Kolugljúfur Canyon, Stuðlagil Canyon, Múlagljúfur Canyon, Fjaðrárgljúfur Canyon
• Free lagoons and beaches: Skarðsvík, Djúpalónssandur, Jökulsárlon, Fjallsárlón, Diamond Beach, Reynisfjara Beach
• Free outdoor sites: Saxhóll Crater, Hvitserkur, Hofsós basalt columns, Skútustaðagígar, Dimmuborgir Lava Field, Grjótagjá Cave, Hverir, Seydisfjördur Rainbow Street, Eggin í Gleðivík
• Free churches: Ingjaldshólskirkja, Búðakirkja, Stykkishólmskirkja Víðimýrikirkja, Grafarkirkja, Hofskirkja
• Free indoor sites: Akureyri Christmas House
• Free viewpoints: TOO MANY TO COUNT.

Comped Activities

As travel bloggers, Amanda and I wanted to pay for things on this trip ourselves and have full editorial freedom, rather than get free stuff and feel indebted to companies.

Still, thanks to our connections, we were kindly offered comped entry for two hot springs that we planned to cover anyway (and one I had previously covered two months earlier): the Sky Lagoon and Hvammsvik.

• Sky Lagoon : $143.82 for two or $71.91 each (Pure Package, which I think is the package most worth it)
• Hvammsvik : $100.24 for two or $50.12 each

Best Activities Overall

Almost everything we did was excellent and I would happily do again. At the same time, I understand that most travelers are going for fun, not work, and need to pick and choose their spending more carefully than we did.

For thermal baths, I absolutely adored the modern, funky Vök Baths in Egilsstadir, with the gorgeous natural facilities of Hvammsvik second. GeoSea is a great place with spectacular views on a nice day, and if you’re basing in Reykjavík, the Sky Lagoon is worth it if you include the Seven-Step Ritual.

For paid activities, one of the best things we did was our RIB boat trip in the Westman Islands . It was so fun, we immediately regretted doing the one-hour trip instead of the two-hour trip!

Also, if you want to go whale watching in Iceland, do it in Húsavík if you can, not Reykjavík. The whale watching is significantly better there, and I know too many people who saw nothing on their Reykjavík whale watches.

And for museums, I LOVED THEM ALL. But I was deeply moved by Eldheimar , which tells the story of the 1973 volcanic eruption in the Westman Islands, and the Herring Era Museum in Siglufjördur is outstanding, especially its final building. Petra’s Stone Collection was an unexpected delight.

What to skip? The only thing I would skip would be the Myvatn Nature Baths ; it felt a bit ramshackle in comparison to the other baths.

How to Make it Cheaper: Go to local swimming pools instead of fancy baths; every town has them and they’re a great option for a cultural experience (especially with kids). Go all in on free outdoor activities; you’ll always have plenty to do.

• Restroom near Hvitserkur: $3.66 (we held the door so we only had to pay once)
• Restroom at Studlagil Canyon: $1.15 each or $3.30 for two

I was going to call this category “miscellaneous,” but literally the only thing left was restrooms.

(Let me add that it’s helpful to have Apple Pay if you have an iPhone — that way you can just scan it and run in if you sprinted to the bathroom from your car and left your wallet behind. Hehehe.)

How to Make it Cheaper: Lose your shame and just pee out in the open, man.

Yes, zero! I had actually been in Iceland in May and bought a small lava sculpture for my living room (around $35) and a gift for my fiancé Charlie (around $15), but I didn’t feel the need to buy anything on this trip.

Spending is purely discretionary, but I know a lot of people who like to buy Icelandic sweaters (they’re called lopapeysa ), yarn, and jewelry.

For me, my photos are my souvenirs. These are what I truly treasure.

Travel Insurance: Already Paid For

I am not buying travel insurance anyore because I get it for free. My bank account in the Czech Republic comes with free travel insurance as long as I deposit a significant amount of cash per month. A great benefit.

If you don’t already have travel insurance — and trust me, you need it — I recommend World Nomads for most travelers , which I used for years before moving to the EU.

How to Save Money in Iceland

In such an expensive country, you want to cut costs wherever you can. Here are my top tips for saving money:

Travel in the winter (October to April). It’s a completely different experience from summer travel, which is high season, but airfare, accommodation, and car rental — three of your biggest expenses — tend to be much lower. Plus, you can see the Northern Lights.

Travel with a friend. As much as I love traveling solo in Iceland, I saved SO much money by splitting accommodation, gas, and car rental with Amanda!

Book your trip super-early. The good accommodation — especially the good CHEAP accommodation — tends to sell out first.

Spend limited or no time in the most expensive destinations. I found the most expensive destinations to be the capital city of Reykjavík, Lake Myvatn, the Golden Circle, and the South Coast. Places like Snaefellsnes and the rural north were much cheaper by comparison.

Book guesthouses with shared bathrooms. These are common in Iceland. Shared bathrooms usually lower the price of an equivalent room with ensuite bathrooms, and most of the time it’s not a nuisance whatsoever.

Consider non-hotels: hostels or Airbnb rentals. Hostels with shared dorms will always save you money; Airbnbs can go either way.

Consider camping. It’s a different kind of trip, but it’s much cheaper than staying in the cheapest hostels or guesthouses! But if you don’t already have equipment, you’ll need to pay to rent it.

Use a credit card that covers car insurance. I haven’t paid for supplemental car rental insurance ANYWHERE since I got my Chase Sapphire Preferred card. This and several other credit cards provide a car insurance benefit.

Rent a car with a manual transmission. ONLY if you can drive one and are willing to drive one in Iceland.

Consider taking the bus. You can take buses along the Ring Road, though keep in mind stops are limited and this won’t get you to most places without supplemental hitchhiking. Many public transportation routes shut down in the winter.

Consider hitchhiking. Iceland is one of VERY few countries where I would ever consider hitchhiking, as it’s extremely safe. Please do your research beforehand.

Don’t take Icelandic króna out at the ATM. In our 13-day trip, we didn’t use cash ONCE. So we always got a good rate with our credit cards, and there was no extra cash at the end of our trip! (You may want to take out a small amount — think under $50 — in case you come across any donation-only attractions.)

Pack carry-on only. It will save you luggage fees. You can book accommodation with on-site laundry halfway through your trip (which we did in Akureyri), or pack fabrics like merino wool that you can wear several times without smelling.

Self-cater your meals. Shopping at grocery stores will save you so much money over going to restaurants. Look for Bónus, the cheap grocery store chain in Iceland.

Eat at gas stations. It’s not THAT gross, I swear. Many gas stations serve decent cheap meals. This is the closest thing you have to McDonald’s in Iceland.

Get into hot dogs. Wherever you go, hot dogs are usually the cheapest thing on the menu. Often even cheaper than a little bowl of soup!

Bring a water bottle and refill it everywhere. Iceland has excellent tap water. There is zero reason to buy bottled water.

Skip the alcohol. Alcoholic drinks tend to be very expensive in Iceland. If you want something nicer to drink than water, I suggest Collab — an Icelandic soda with collagen and caffeine. It comes in several fun fruity flavors and I tried to try them all!

Spend your time visiting free natural attractions. You saw how many waterfalls and canyons and cool outdoor sites we saw, all for free!

Hike, hike, hike. You might occasionally need to pay for parking, but for the most part, you can hike for hours for free.

Go to swimming pools instead of fancy hot springs. They’re a cultural experience and super fun. And if you have kids, THIS is where you should go instead of the fancy spots.

More on Iceland:

• 35 Awesome Things to do in Reykjavík, Iceland
• Things to Know Before You Visit the Blue Lagoon, Iceland
• Why Iceland is Great for First-Time Solo Female Travelers

My Favorite Places in Iceland:

• How to Visit Kvernufoss, My Favorite Iceland Waterfall
• A Look Inside the Sky Lagoon, Iceland
• Sail Through the Sky with FlyOver Iceland
• Snorkeling Silfra: The Cold Neon Waters of Iceland
• How to Visit Studlagil Canyon, Iceland
• Visiting Stokksnes and Vestrahorn Mountain, Iceland
• Guide to the Gorgeous Tröllaskagi Peninsula, North Iceland
• Are the Vök Baths Iceland’s Best Geothermal Spa?

How much did your Iceland trip cost? Share away!

7 thoughts on “My Actual Iceland Trip Cost: Detailed Budget Breakdown”

I love a good spreadsheet! But since discovering Splitwise for traveling in groups, I haven’t looked back. You essentially do the same thing- each person enters what they spent on dinner, etc and how it should be split. The app tallies who owes what on a running basis. At the end of the trip, you settle up and can pay/receive right from venmo. Even my digital-averse travel buddy uses it- and she’s one who until a couple years ago would write me a check for what she owed after I tallied the spreadsheet… 🙄 you might totally be aware of it already but wanted to throw it out there… Thank you for all your great content- even for this “older lady”. Husband and I head to Prague on Wednesday!!!

I enjoy how your blog is in general not about budget travel. I find those blogs to be very repetitive and perhaps sometimes people could be missing the forest for the trees, or penny wise and pound foolish – although they certainly serve a certain sector.

Anywho, it completely makes sense to provide info on how to visit Iceland (or other extremely expensive places) on a budget. Because otherwise, a lot of us would simply never visit! I think this is why I have held off on Japan, Sweden, Switzerland.

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My 2018 trip to Iceland and the Faroe Islands cost about $6500 over 18 days. I traveled with a partner and things like lodging and car rental were shared expenses. But flights from the US cost a chunk, then we flew to and from the Faroe Islands and to and from Akureyri. Once we got grounded in a snowstorm and needed to book a hotel until the storm cleared, while also paying for the Airbnb for where we were supposed to go.

We did had a car for 9 days. Did a lot of self catering outside of Reykjavik. Did lots of hikes. We capped lodging at $150/night, except for a splurge at the end for 2 nights.

Activities add up quickly – snorkeling the Silfra Fissure, horseback riding, touring ice caves. And nice meals in Reykjavik do as well. They were having their annual food festival and brought in chefs from all over (Paris, New York, etc). So it was definitely worth the splurge.

I think the main takeaway from your post is to lower your expectations with meals and lodging – and try to make it work, if it’s a place you truly want to experience. That all makes perfect sense!

I’ve been thinking a lot about the Faroe Islands lately! Would love to get back there. And I agree with you. Many of the super-budget blogs are just too abstemious for my taste these days. (Not to mention the dudes who creep into their 40s and still hit on 20-year-olds in the hostel bar.)

Which Czech bank offers free travel insurance? (I live there and haven’t heard anything about this!)

Unicredit! Their top tier account. Requires 40k czk/month deposit.

This is so helpful, I’ve been worried about adding Iceland to my travel list because of the costs so it’s good to see what the required budget could be. Also really great tips on how to save overall!

Thank you for the great tips! We kind of locked into August due to school breaks but the rest of this was very helpful. We’re going to have a big group with lots of kids so saving money is important 🙂

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How to Visit Iceland on a Budget: The Ultimate Guide

Once a sleepy, relatively isolated island, Iceland has recently become one of the hottest travel destinations on earth.

When I first went to Iceland in 2009, right after the country’s famous 2008 financial collapse but before the 2010 volcanic eruption of Eyjafjallajökull, most people were dumbfounded as to what would draw me to this remote speck of land in the North Atlantic. By my fifth trip, in 2015, people no longer asked what drew me to Iceland. They knew—thanks to a plethora of press about Iceland and the staggeringly beautiful photos all over Instagram—and they were planning their own trips too. Now, if you haven’t been to Iceland yet, you probably know someone who has, and if you are reading this guide, it’s likely you are itching to go next.

Visitors go to marvel at the country’s surreal landscapes: its windswept beaches, snow-capped mountains, and steaming geothermal valleys. To pet the friendly, adorably fuzzy Icelandic horses. To soak in hot springs in the snow, stare in awe of the Northern Lights dancing overhead, stand atop Europe’s largest glacier, or bask in the spray of the continent’s most powerful waterfall.

For a small country (roughly the size of the U.S. state of Ohio), Iceland is incredibly diverse, and packs so much punch into a compact space. Here’s your ultimate guide to the wild, rugged, and stunningly beautiful country of Iceland.

How much does a trip to Iceland cost?

Iceland is expensive, there’s no getting around it. Food, activities, and hotel prices are on par with major cities like London and NYC. Think: $100 minimum for a charmless hotel room, $10 for a beer, $35-$40 for a dinner entree in a mid-range restaurant.

How much you spend will depend factors like what level of accommodation you choose, if you opt for a rental car, how many tours you take, how often you eat out, if you like to have a few drinks, and so on. A minimal budget for Iceland is $60-80 USD per person per day — and that’s staying in a hostel dorm, cooking most of your own meals, skipping tours, and taking buses.

A mid-range budget is more like $200 USD per person per day. That provides some wiggle room for nicer accommodation, a rental car, a tour or two, and a few more meals out—though you could easily spend more.

However, there are ways to cut costs. Use HotelsCombined to break down both hostel and hotel options. In summer, camping is a great option; campsites cost about $10 per night and have showers and wifi. Buy snacks and meals at local grocery stores, and refill your water bottle from the tap (fun fact: Iceland’s tap water is among the cleanest on earth). If you plan to drink, do as the locals do and stop by the airport duty free to save big on liquor. You can also check the weekly Reykjavik Grapevine for happy hour deals. And while there are some things you can’t do without a tour ( glacier trekking , for example), many of Iceland’s best sights are free or cost just a few dollars.

Getting there

From the U.S. and Canada, Delta, Icelandair, American Airlines, Air Canada, and others connect dozens of airports with Iceland’s Keflavik international airport, which is located in the southwest about 45 minutes from Reykjavik. To find the best flights prices, use a broad search engine like Skyscanner (which includes budget airlines) and select “entire month” to identify the cheapest dates to fly.

From Europe, it’s even cheaper and easier to reach Iceland. In addition to Icelandair, several European carriers serve the island, including easyJet , British Airways, Wizz Air, KLM, and SAS. Prices from London start as low as $43 USD for a quick 3 hour flight. All of these airlines will appear in Skyscanner search results.

For travelers going to Europe from North America (or vice versa), Iceland is an easy stopover. All flights on Icelandair stop in Iceland, where passengers are allowed to extend their layover  before continuing on, though this must be arranged at the time of booking. You can also extend your layover yourself with a multi-city search engine like Skyscanner or Momondo by following our guide to free extended layovers .

The budget airline WOW Air was instrumental in making Iceland more accessible and affordable to reach from both North America and Europe, but unfortunately, the airline went bankrupt in March 2019. Fortunately, the airline is under new ownership, and flights are scheduled to resume in October 2019, starting with 2 planes in operation, then 10-12 planes by summer 2020. If the airline operates like before, expect base prices as low as $99 each way, as well as frequent sales, especially around holidays like New Years and Black Friday. But like any budget airline , watch out for extra fees, as they charge for everything from carry-on luggage to bottled water.

Natural wonders

Iceland is known for its otherworldly landscapes. There are volcanic black sand beaches, absurdly shaped basalt cliffs, turquoise waterfalls, abundant hot springs, multi-colored rhyolite mountains, puffing volcanoes, brilliant glaciers, and more. Best of all, you don’t even have to venture far from Reykjavik to see these natural wonders. Among the highlights are Reynisfjara black sand beach, the multi-tiered Dynjandi waterfall, Jökulsárlón glacial lagoon, Vatnajökull glacier, the Reykjadalur hot spring valley, and Katla volcano.

Pools and hot springs

The same geothermal activity that produces Iceland’s volcanoes produces its hot springs—and lots of them. Some of the notable ones include Laugarvatn Fontana Spa , Secret Lagoon , and Myvatn Nature Baths . Nearly every town in Iceland has a geothermal pool open all year round (admission costs only a few dollars). Of course, the most famous hot spring is the Blue Lagoon, a man-made pool fed with mineral-rich milky blue geothermally heated water. It’s located between Keflavik airport and Reykjavik, making it a great stop at the beginning or end of your trip. If you're based in Reykjavik, consider booking a return transfer with instant confirmation on GetYourGuide or Viator .

The Golden Circle

The Golden Circle is a route that connects three of southwest Iceland’s most popular sights. In one day, you can watch a geysir erupt at Geysir, marvel at the thundering Gullfoss Waterfall, and walk between the rift of the Eurasian and North American tectonic plates at Thingvellir National Park . Not technically en route but worthy of stopping for are the nearby Friðheimar tomato restaurant and greenhouse, Fakasel Horse Theatre, Laugarvatn Fontana Spa , and Secret Lagoon . If basing yourself in Reykjavik, the top sights in The Golden Circle can easily be seen in a day trip booked with immediate confirmation and pickup from your hotel on GetYourGuide or Viator .

While Iceland’s natural wonders deserve the bulk of attention, Reykjavik itself begs space in your itinerary too. This small, cosmopolitan city is the northernmost capital in the world and home to two-thirds of Iceland’s population. It also offers plenty to do, especially in inclimate weather. See the multimedia exhibits and excavated millennia-old Viking longhouse at the 871 +/- 2 Settlement Exhibition , wander the stunning Harpa opera house, or shop the Kolaportið weekend flea market. Reykjavik’s nightlife is also not to be missed. On weekends, locals hit the streets around 1am and the clubs stay packed until 4 or 5 in the morning.

The Northern Lights

The Northern Lights, or Aurora Borealis, can be spotted over Iceland from early September to early April. However, seeing them is never guaranteed despite Iceland being one of the best places to see them. Good solar activity and a clear night sky are essential. The Icelandic Meteorological Office forecasts the conditions on a scale of 0-9, and brilliant shows can be seen when the level is as low as 2-3. Generally it’s best to see the lights away from the city, but when they are particularly strong they are visible from Reykjavik. For more tips on seeing the Northern Lights, check out our guide here .

Sample Itinerary

While you could, technically, drive the entirety of Iceland’s Ring Road (the main highway that encircles the island – not to be confused with the Golden Circle) in about 24 hours, it’s far better to allow at least a week to take in all the sights—and allow for any weather delays.

The itinerary below assumes a trip in late spring, summer, or early fall. In winter (and especially if you don’t have experience driving in snow), it’s highly recommended to stick to the south coast, Golden Circle, and Reykjavik.

Day 1: From the airport, drive about 20 minutes to the Blue Lagoon . Soaking in its milky blue water is the perfect way to relax after hours cramped in a small airplane seat. Head southeast and stay the night in the small town of Selfoss . If not driving, book an airport transfer ahead of time.

Day 2: Drive east along Iceland’s south coast for a day filled with waterfalls, including Urriðafoss , Seljalandsfoss , and Skógafoss . Admire the cliffs at Dyrhólaey and then step out onto the black sand beach at Reynisfjara . Stay the night in the small village of Vik .

Day 3: Spend the day in Vatnajökull National Park, home to two huge glaciers Skaftafellsjökull and Svínafellsjökull . Join an ice-climbing tour or hike through the park’s Skaftafell wilderness area to the Svartifoss waterfall. In the afternoon, head farther east to Jökulsárlón , a stunning iceberg-dotted glacial lagoon where you can view the lagoon from shore or join a boat tour. Spend the night in Höfn , a seaside fishing village.

Day 4: Drive north to the quirky town of Seyðisfjörður in the less trodden East Fjords. Visit the Skaftfell Center for the Arts, head out on kayaking tour of the fjords, and snap instagram pics of the domed Tvisongur sound sculpture and the rainbow walkway leading to the blue Seyðisfjarðarkirkja church.

Day 5: Continuing northwest around the island, visit the most powerful waterfall in Europe, Dettifoss (just be prepared for a bone-jarring drive on a rough road) and then stop for a short hike around Ásbyrgi , a deep, horseshoe-shaped canyon that legend says was formed by the hoof of a Norse god’s eight-legged horse. Spend the afternoon in Húsavík , the whale watching capital of Iceland. If it’s whale season (spring through fall) go on a whale-watching tour; if not, stop by the Húsavík Whale Museum.

Day 6: Swing by the Mývatn Nature Baths , the north’s less-crowded version of the Blue Lagoon, and stop to marvel at Goðafoss , the “waterfall of the gods.” Spend the night in lively Akureyri , Iceland’s second-largest city.

Day 7: Complete your circuit of Highway 1, the Ring Road, by driving back to Reykjavik . See the view from the top of Hallgrímskirkja, the city’s iconic church; learn about Icelandic history at the 871+/- Settlement Museum, which features an ancient Viking longhouse and interactive exhibits; and treat yourself to a fantastic fish dinner at one of the city’s great (but pricey) restaurants.

Day 8: Explore three of Iceland’s most famous attractions, which together are called the Golden Circle. Start at Kerið ; the volcanic crater lake isn’t technically part of the Golden Circle, but it’s on the way. Then head to Gullfoss , a massive waterfall that rivals Niagara Falls, and on to Geysir . Though the eponymous geyser here no longer erupts, a geyser called Strokkur does every 15 minutes or so. You could break up the day with a visit to one of the nearby hot springs, like Laugarvatn Fontana Spa or the Secret Lagoon. Then finish the loop with a stop at Þingvellir National Park . The site of Iceland’s first parliament, it’s also where two tectonic plates meet, and you can walk in the rift between them. If you aren't driving, a day tour is the easiest way to see the Golden Circle's highlights, and can be booked through GetYourGuide or Viator .

Day 9-10: With a few more days in Reykjavik, plan some organized activities, like riding on an adorably stout Icelandic horse, snorkeling in the Silfra rift, caving, an Icelandic cooking class at Salt Eldhús or a food tour or pub crawl of the city.

If you have an additional few days, add on the Snaefellsnes Peninsula (Rauðfeldsgjá, Arnarstapi, Hellnar, Öndverðarnes, and Stykkishólmur), the Westfjords (Ísafjörður, Dynjandi, Patreksfjörður, Látrabjarg, Rauðasandur), or both. Another option would be to detour off the Ring Road into the interior Highlands (only from late May to mid-September) and camp overnight at Landmannalaugar.

If you’re limited on time, base yourself in Reykjavik. Allot one day for the city, one day for a day trip along the south coast or Golden Circle, and reserve one day for an activity like snorkeling the rift at Silfra or riding an Icelandic horse.

Where to Stay

As Iceland’s popularity has grown, so has the number of accommodation options available to travelers. Iceland now offers a wide variety of accommodation through the country, though Reykjavik still has the most options. On the budget end, prices start at around $30-50 per night for a dorm bed in a hostel. A one-bedroom Airbnb or double room in a guesthouse is typically $100-$150 per night. Check both Airbnb and HotelsCombined to see the cheapest prices across major booking sites for homestays, hostels, and hotels.

In Reykjavik, the no-frills Guesthouse Sunna goes for around $100 per night and offers small kitchenettes, a free breakfast, and a great location near Hallgrimskirkja church. Worth a splurge at around $250 per night, the Kvosin Hotel and Room with a View both offer stylish, modern rooms with kitchens and excellent city views in the heart of downtown.

Outside the city, you’ll find a range of hotels, lodges, Airbnbs, farmstays, guesthouses, b&bs, and cabins ranging from $100-$300 per night. Airbnb and Hey Iceland list apartments, cabins, guesthouses, and farm stays around the country.

Iceland’s peak season is June-August and it’s easy to see why. Nearly the entire country is accessible, the sun shines for almost 24 hours per day, the weather is generally mild, purple lupines and other wildflowers dot the startlingly green landscape, and temperatures range from 48F-55F (8C-12C). However, this is also when prices are at their highest.

Low season is the cold winter months of November–February (aside from New Year’s Eve and the annual Iceland Airwaves festival). Prices are at their lowest during these months—as are the temperatures, though Iceland’s winter temperatures are actually on par with New York City’s. Averages hover around 36F-39F (2C-3C), but strong winds can make it feel colder.

While you can still do many activities in the winter (even snorkeling!), there are some parts of the country you can’t visit, such as the interior Highlands, and you need to allow more flexibility in your plans in case a storm makes travel impossible on some days. These downsides, however, are offset by an increased chance to see the Northern Lights.

Iceland’s shoulder seasons are March-May and Sept-October. During these months the weather is relatively mild, crowds are fewer, and prices are lower. In May, spring flowers begin to bloom. In September, the lichen on the hills turns beautiful shades of yellow and orange. By March and October you may see some snow. There’s also a chance to see the Northern Lights, which are generally visible from early September to early April.

Eating & Drinking

Iceland isn’t known for its cuisine, at least outside its less enticing foods like boiled sheep’s heads and rotten shark. While those foods are still consumed on special feast days like Þorrablót, they bear little resemblance to modern Icelandic food.

Among the can’t-miss dishes that one must sample on a visit are:

•       Tender, free-range lamb, served braised, grilled, or in soup
•       Sweet langoustines (Norwegian lobster) served grilled with garlic and butter or in creamy soups
•       Skyr, a low fat yogurt-like dairy product used in dips and desserts or eaten on its own
•       Fish like cod, wolffish, plaice, haddock, and halibut.

As with accommodation, Reykjavik is home to the most options when it comes to dining in Iceland. For a splurge, head to Ko l, which serves creative cocktails and specializes in grilled fish and meats, or check out Dill , Iceland’s first Michelin-starred restaurant, which serves a prix fixe menu focused on using traditional ingredients in new ways. At either, expect to spend about $100 per person for dinner, not including drinks.

For a mid-range meal, try Icelandic Fish and Chips , which offers a healthier take on the classic dish, with fish fried in organic spelt batter and potatoes served with low-fat skyr-based dips. There’s also Eldsmiðjan, an Icelandic pizza chain, or Noodle Station , which serves hearty bowls of chicken or beef soup for around $13.

The cheapest meal in the country is also one of the most quintessential: the hot dog. For $4, get one loaded with raw and fried onions, ketchup, sweet brown mustard, and remoulade. The most famous place to get one is in Reykjavik at Bæjarins Beztu Pylsur, but you can find them at just about any gas station or convenience store in Iceland.

Alcohol is extremely expensive in Iceland, with a beer costing around $8-$12 and cocktails ranging from $15-20, however, many bars offer happy hour specials. There are several craft breweries in Iceland (sample their beers at bars like Kaldi or Bryggjan Brugghús) and a growing craft cocktail scene (like at the aforementioned Kol or Slippbarinn) . If you’re up for a challenge, try Brennivín, an anise-flavored liquor that’s known as “The Black Death.”

Transportation

Iceland has one of the highest rates of per capita car ownership in the world, and a correspondingly poor public transportation system. The FlyBus (cheapest on GetYourGuide ) provides affordable, reliable transport from Keflavik airport to Reykjavik and within Reykjavik there are city buses and taxis (though the downtown is compact and easily walkable). But if you want to go exploring beyond Reykjavik—and you should—your best bets are to either join a tour (we recommend browsing GetYourGuide and Viator ) or rent a car. Car rentals cost about $100 per day (more if it’s peak summer or you want 4WD) and gas costs almost $2 per liter. Use BookingBuddy to find the best price across major car rental websites from one place.

During the peak summer months, a network of long-distance buses connects Reykjavik to major towns and points of interest, including the interior Highlands, but you’ll need to plan ahead as there’s often only one bus per day. Some travelers have reported great success with hitchhiking as well, but this is only recommended during peak summer; in off season or on less-traveled roads you could be waiting hours until the next car comes by.

For longer distances when you don’t want to drive, internal flights are another option. From Reykjavik’s city airport, you can fly to Akureyri in the north, Isafjordur in the Westfjords, Egilsstaðir in the East Fjords, or to the Westman Islands. Search Skyscanner by “entire month” to find the cheapest dates to fly.

While most of Iceland’s main attractions and natural wonders are free (or cost just a few dollars), there are several things you simply can’t do on your own and will need a tour to do, such as glacier trekking , snowmobiling , ice caving , whale watching , horseback riding , and snorkeling or diving between tectonic plates at Silfra Rift (in some of the clearest water in the world).

These tours don’t come cheap; plan for at least $100-$200 per person. Even pricier, but worth the splurge: a helicopter tour or a journey “ Inside the Volcano ,” in which you descend via an open-topped metal basket into the belly of a dormant volcano.

Given Iceland’s incredible natural beauty, it’s probably no surprise that most activities are outdoors. If you’re looking for something indoors—or just want a break from the adrenaline—check out the hands-on classes at Salt Eldhús cooking school.

Iceland is one of the safest countries in the world when it comes to danger from other humans, but that doesn’t mean there’s nothing to watch out for. Iceland’s dangers come in the form of volatile weather, the power of nature, and the people who take needless risks by ignoring those factors. There are steaming hot pots that can scald you, sneaker waves that can pull you out to sea, and winds so strong they can rip an opened door off a car. Driving can also present danger, especially for those unfamiliar with wintery conditions. There are one-lane bridges, blind heads, and frequent road closures.

Stay on marked paths, respect warning signs, obey the posted speed limits, never drive off-road (it’s strictly illegal and comes with huge fines), always check the weather before heading out, and if you’re not comfortable driving in the conditions, don’t.

Packing for Iceland

No matter what time of year you visit Iceland, it’s wise to bring layers, a hat and gloves, waterproof pants, hiking boots, a fleece jacket, sunglasses, and a waterproof windbreaker. Add more layers in the winter, and include a few lighter layers for the summer months.

If you plan to spend time in Reykjavik, add in some jeans or other clothes you’d be comfortable wearing in another major city. Locals may don fleece and gore-tex out in the countryside, but on the streets of Reykjavik, they are the definition of Nordic chic.

It’s one more example of Iceland’s many dichotomies. The land of fire and ice is both untamed and totally civilized, modern and traditional, extremely safe and a little dangerous. It’s a small country with landscapes that are larger than life and natural wonders that look completely out of this world.

The Thrifty Gist

• A trip to Iceland won’t come cheap. Minimize costs by focusing on free activities, staying in basic accommodations (or camping), and cooking most of your own meals.
• Use Airbnb and HotelsCombined to see all homestay, hostel, and hotel options. Use BookingBuddy to compare car rental prices across major websites, and Skyscanner to find the cheapest flights, including budget airlines (choose “entire month” for your dates to find the cheapest date to fly).
• There’s no bad time to go to Iceland, though peak season means higher prices and more crowds. For temperate weather and fewer fellow tourists, go March–May or September–October.
• With eight days or more you can make a circle of the entire island along its Ring Road, but even with less time, you can see a good chunk of Iceland’s main attractions.
• An adventure in Iceland is about just that: adventure. Make the most of a trip with activities like snorkeling, horseback riding, snowmobiling, and hiking that take you out in the beautiful countryside. Use GetYourGuide and Viator to browse tour reviews and book with immediate confirmation and free cancellation.
• Remember that nature is a powerful force in Iceland; respect warning signs, stay on marked paths, leave no trace, and use common sense.

How to Visit Iceland on a Budget (of €250!): Everything You Need to Know

Iceland is a world on its own. It often feels like you are so far away from earth and civilization, because of how isolated each place feels and how unworldly the backdrops are. From grand mountains, stunning waterfalls, the most intricate rock formations, black sand, unreal glaciers to mere nothingness, it’s a country where you drive for a bit and the scene is always changing. It’s definitely one of our favorite countries in Europe because of how unique and beautiful it is, which is why, we want to show you how to visit Iceland on a budget.

This travel guide is for those who would like to see Iceland affordably and in a do it yourself way. We will tell you how to visit Iceland on a budget of 250 euros , the itinerary we followed, and how we managed to catch the Northern Lights two out of the four nights we were there.

Contents hide How to go to Iceland Where to stay and how to get around Iceland Where to spend the night with your campervan in Iceland When to go to Iceland for the Northern Lights What to do in Iceland: A 5 Day Self-Drive Itinerary Day 1: Reykjavik to Snæfellsnes Peninsula Day 2: The Golden Circle Day 3: Vik - Jokulsarlon - Fjallsárlón - Skaftafell Day 4: Skaftafell - Skogafoss Seljalandsfoss - Gluggafoss Day 5: Local Hot Tub/Sauna Center - Reykjavik How much did it cost to go to Iceland Our Final Thoughts

How to go to Iceland

Poland (any city) or milan to keflavik through wizz air.

We find that Poland is the best and most affordable point to take a flight to Keflavik. Not just Warsaw but any Polish city that serves flights to Keflavik would be a good choice. A one-way flight from Poland can start from 20€. I know that sounds insane, but we mean it because that’s around how much we got the flight for!

With Wizz Air , we also have the annual membership where it lowers your flight fare by 10€ to a minimum amount of 9.99€. We think that this membership is so worth it to have. It’s around 30€ per year and you can easily pay it off by going on three flights.

Another great point to fly from that we saw was quite affordable and is a recently added route in 2020 by Wizz Air is Milan. The prices are about the same as with Polish cities. So depending on where you are currently and where you want to take the trip from, we recommend these two routes. Since we live in the Alps, the next time we go to Iceland, we will definitely be flying from Milan instead.

Our tip : When booking your tickets, you have to be flexible, but there is one important thing to have in mind – your arrival time . You most definitely don’t want to arrive in the middle of night and have to check in a hotel (which is pricey!) for only a few hours.

Where to stay and how to get around Iceland

There are a lot of accommodations to choose from in Iceland such as hotels, bed n’ breakfasts, and even Airbnbs , but these are all crazy expensive. The most basic ones can start from 60€ per night. Even then, it’s really rare to see that rate especially if you want to go around the country. Then you’ll also have to rent a car if you choose to stay in any of these accommodations.

So what we did – and what we highly recommend doing if you’re the adventurous and offbeat type – is to combine transport and accommodation by renting a campervan. We promise you it’s pretty comfortable (these campervans have heaters!) and it’s absolute freedom at your fingertips. It’s the cheapest way to get around and stay in Iceland. You also don’t rely on anyone for scheduling tours, check in times, etc. 

Kuku Campers

After reading many positive reviews, we came across Kuku Campers and rented their simple camper with a heater for 4 days at a price of 160€ (about 200$), which makes it 80€/person.

It cost us 20€ per night/person to have your own transportation and place to stay in Iceland. Not bad huh? Thanks to a seasonal promo, sleeping bags, pillows and blankets were included. Did we mention there was also a heater in the van? Which is an absolute must to survive the cold winter nights.

The campervan itself was a Renault Kangoo Maxi, which offers just enough space to sleep in. The 190x130cm bed transforms into a couch and a folding table allows you to cook inside. Kitchen items are stored at the back of the van and you can put your belongings under the seat.

Gas was a big part of our expenses. At a rate of 1.5€/liter and 740 km trip along the Southern coast of Iceland (the Ring Road) it did cost us around 60€ (30€/person) for the whole trip.

Our tip : Bring a top loading duffle bag for your camper van trip as it is more convenient to slide from under the bench and find items.

Where to spend the night with your campervan in Iceland

Now that you have your campervan, where should you stay? It’s important to take note that unlike in other countries, wild camping is NOT allowed in Iceland. Please respect this as much as possible. Things do get a bit more complicated in the winter as more than half of the campsites are likely to be closed, so if you’re left in a dire situation, do respect the environment you stay in and leave no trace behind.

Thankfully, campsites in Iceland are relatively affordable compared to the cost accomodations on the island. A campsite will be about 10-15 euros. The ones we went to had warm showers, a dining area and sometimes, even a kitchen.

When to go to Iceland for the Northern Lights

With increased chances to see the mesmerizing auroras, we find that winter is the best time to go to Iceland. It is also the cheapest time of the year to travel to Iceland and the low season when you consider factors like flights and campervan rentals.

Even though this time of the year has harshest weather conditions and less light, you are in for a once in a lifetime experience. October and March are great times to visit when considering the price, the temperatures & amount of daylight.

You’ll have to come prepared with winter proof gear though, which is detailed in our winter road-trip packing list.

• READ OUR CAMPER VAN PACKING LIST FOR A WINTER ROAD TRIP •

What to do in Iceland: A 5 Day Self-Drive Itinerary

There are so many things that you can do in Iceland. We were only there for 5 days and 4 nights so naturally, we had to choose a route to go to. In this self-drive itinerary, we didn’t do the entire Iceland Ring Road Itinerary .  But our itinerary does give you a taste of a bit of everything. We covered Reykjavik, the Snæfellsnes Peninsula, the Golden Circle, the South Coast and even as far as the Glacier Lagoons near the East Fjords.

Below is a map of the route we followed, which we will discuss by day.

Day 1: Reykjavik to Snæfellsnes Peninsula

Gerðuberg cliffs.

Lava Rock Formations / Berserkjahraun Lava Fields

About 30 minutes away from Gerðuberg Cliffs is a stunning field of lava rocks. It’s not such a well known place but it is absolutely amazing. It feels like what other planets could like especially during the winter time. Layers upon layers of lava rocks over a backdrop of snowcapped mountains, it was unlike anything we’d ever seen.

Kolgrafarfjördur Viewpoint

Kirkjufellsfoss mountain and waterfall.

After our hike, we ended our day in the Snæfellsjökull National Park, but only in the area of Gatklettur. It’s a coastline cliff with some beautiful views and sort of feels like you’re in Ireland but with snow. As we were already going to see the black beach in Vik, we chose to skip the Djúpalónssandur Black beach in the national park, but you can also include this to your itinerary if you want as it’s not so far off.

Northern Lights at Snæfellsnes Peninsula

Our first night, we went to sleep early and put an alarm for 1am, hoping to catch the Northern Lights. The forecast was low, but one thing to note about the appearance of the Northen Lights – if the sky is clear, even if the lights aren’t strong, they will likely appear at some point. We detail more about the factors involved in the search for the lights in another blog article. 

Since the skies were clear on this side of the island during our first day, we wanted to try our luck in seeing it. With a little bit of patience, there it was amidst the coast of Snæfellsjökull.

Day 2: The Golden Circle

For our second day, we had breakfast in our van and drove straight to the Golden Circle. 

Hvalfjörður

Thingvellir National Park

After Hvalfjörður, we drove to Thingvellir National Park which is about 40 minutes away. Due to an unexpected snow storm, we were not really able to discover the place as it was closed down. So instead, we just sat there for an hour with the whole world in white all around us. It was the craziest and most surreal driving experience we had as it was pure white everywhere. Thankfully, we were not alone and got to feel safe with many other cars and vanlifers.

Strokkur and Gullfoss Falls

Once the storm had died down and since the plan for Thingvellir National Park fell through, we decided to head straight to Strokkur and Gullfoss Falls. These two spots are very iconic in Iceland. Strokkur is a popular and active geyser known to erupt every few minutes. It dramatically shoots out hot water into the air up to 40 meters high. Afterwhich, nearby is Gullfoss Falls which is famous for its multi-step cascade along a bend of the Hvitá River. This is another otherworldly spot to see in Iceland.

Secret Lagoon Hot Spring

Our last stop for the day was this more offbeat geothermal pool called Secret Lagoon . If you don’t want to pay crazy prices for a lagoon that also has less people, this is the spot to go to. We’re glad we didn’t go to the Blue Lagoon and found this place instead.

Since we were headed to Vik the next day, we ended our day in a nearer campsite in the charming town of Hella. At this point, the weather wasn’t too good with the snowstorm earlier that day and the sky full of clouds. So there was no chance to see the Northern Lights.

Day 3: Vik - Jokulsarlon - Fjallsárlón - Skaftafell

This was our longest driving day as we went from Vik to Jokularson / Fjallsárlón and back to Skaftafell. Between Vik and Skaftafell is mostly nothing so have some good music on and just watch the world of Iceland change from grand backdrops to pure nothingness but even that nothingness is still one of the most amazing things you’ll ever see.

Reynisfjara Beach

Our first stop for the day is Reynisfjara Beach which is an hour away from Hella. This is quite a famous black beach with some intricate rock formations. It almost feels like stepping to another planet as you walk through the black sand.

Fjallsárlón / Jokulsarlon

We really wanted to see the ice glaciers so this was our longest drive in the whole trip. From Vik to these two glaciers, it’s about a little bit more than a 2 hour drive. We started our day early as usual so we got to the glaciers around 2PM, making only a quick stop for lunch. These glaciers are one of the most amazing things you’ll ever see in your life with Jokularson being the largest one in Europe. They are so intricate and unique. We suggest spending lots of time in this place and just appreciating it. We stayed here till sunset.

Among the two glaciers, we liked Fjallsárlón more. It was more peaceful and hidden. There were only about 10 people in this spot as opposed to Jokulsarlon, which is why we enjoyed it more. The sunset colors reflecting on the glacier was stunning. It was one of the most magical experiences we had in Iceland. We ended our day in a campsite in Skaftafell, which is also where we start our exploration on Day 4.

Day 4: Skaftafell - Skogafoss Seljalandsfoss - Gluggafoss

So this was our chillest day where the focus was seeing Iceland’s plethora of waterfalls. Since the Northern Lights forecast was supposed to be good during our last night, we wanted to have a relaxed itinerary, so that we could have the energy to search for them once it got dark.

Skaftafell National Park

We started our day in Skaftafell National Park, having breakfast and doing a little hike along it’s trails. You could literally spend days in this beautiful park if you wanted to.

It is known for its glacier walks, if that’s something you’re interested in doing. It’s also a great place to be up close to the famous Icelandic horses, the purest breed of horses in the world.

Skogafoss - Seljalandsfoss

After a morning in Skaftafell, we drove for around 2 hours back to the sights we had passed through on our way to Vik — particularly all the waterfalls. Skogafoss and Seljalandsfoss are literally a 10 minute drive from one another. We cooked and had our late lunch amidst the beautiful backdrop of Skogafoss. It’s free and there’s a nice hike up to the waterfall. Seljalandsfoss is also another beautiful waterfall. It’s much taller, but we actually preferred Skogafoss more.

About 30 minutes away from Seljalandsfoss and 10 minutes from our campsite that night is our favorite waterfall in Iceland called Gluggafoss. It’s not touristy at all and not very well known which is why we adored it so much. We were the only ones in the spot except for a few Icelandic photographers taking nature shots. Here we spent the sunset, taking a hike around, relaxing with the view of the waterfalls and enjoying our traditional apero. 

Inner Highlands (Keldur) - Northern Lights

After registering at our campsite in a charming b&b called Smáratún, we had dinner and rested for a bit. Once it was completely dark, we started our chase for the Northern Lights. We drove inwards towards the highlands, which is one of the best places to see the Northern Lights due to the lack of civilisation, in a completely unknown place called Keldur. Here we waited, prayed for the best and to our absolute delight, at approximately 8:30pm, the lights started to appear.

The show during this night was way more impressive than on our first day. It was actually the most perfect way to end our last night in Iceland. The lights gave us an impressive 1 hour show, dancing with slivers of red, white and purple falling into the sky. It was the most beautiful thing we had ever seen in our lives. In another blog article, we detail the factors that made us hopeful that we would see a great show that night. Many people have the assumption that just because you go to Iceland, you’ll be able to see the Northern Lights right away but it actually requires more research, luck and patience than that.

Day 5: Local Hot Tub/Sauna Center - Reykjavik

Our flight was fortunately still at the end of the last day so our agenda was just to relax and finally get a chance to look at Iceland’s capital, which we skipped on our first day.

After dropping off our campervan at around noon, we walked around Reykjavik and then visited one of the many Local Swimming/Hot Tub/Sauna Centers. These places are absolutely awesome! It’s affordable and a great way to feel refreshed. We wanted to be able to feel fresh before we boarded the plane since we had already spent the rest of the day roaming around the city. It was the best way to end our trip.

How much did it cost to go to Iceland

Here’s a quick breakdown of the total costs for this Northern Lights travel guide. It is calculated for one person, considering that you are flying from an airport where Wizz Air (Polish Cities or Milan) operates to and from Keflavik.

Roundtrip Flight : 50€ Luggage (Shared) : 15€ Campervan Rental (Shared) : 80€ Gas (Shared) : 30€ Groceries (Shared) : 25€ Campsites : 30 € Swimming Pool / Hot Tubs / Sauna Admission Fees : 20 €

Total Cost Per Person with Campervan Rental and Roundtrip Flights (5 Days, 4 Nights)   = 250 EUR

Our Final Thoughts

It seems like a lot for so little but we promise, it’s possible! Iceland is one of our best adventures to date and unlike anywhere else we’ve been to before. By pursuing this trip, we want to show others that it’s possible to visit Iceland and chase your dreams of seeing the Northern Lights without a crazy budget or tour. This to us is the ultimate budget travel guide you won’t see anywhere else!

So if you’re up for a little DIY travel and van adventure, then this is the best how to visit Iceland on a budget itinerary for you. You get to see a bit of everything while also seeing the more hidden spots of the country and slow driving through its areas. Remember the best things in life are in its simplicity, and it’s especially true in Iceland, under a thick snow coat, the enchanting auroras, and the independence of van life. If you have any questions, don’t hesitate to let us know in the comments below!

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Is copenhagen worth visiting 10 reasons to love denmark’s capital, is trogir worth visiting 8 reasons why you will love croatia’s hidden gem, 35 thoughts on “how to visit iceland on a budget (of €250): everything you need to know”.

thanks so much for sharing, I`ve always wanted to see the northern lights in person, reading your post makes me know this should be a must do,

Awesome, happy to know it could be useful to you. It’s truly amazing to witness!! All the best xxx

We’re glad you liked it! Hopefully, it can be useful to you. Don’t hesitate to come back if you have any questions!

Your photos are great and I love the way you capture Iceland. I have never traveled there but have always wanted to. I love your ideas on traveling on a budget.

Awww it just warms our heart! Thank you so much 🙂 We hope you’ll get to see Iceland one day, it is magical!

Beautiful pictures! Iceland is on my bucket list, so I will definitely keep this post in mind when I am able to travel again!

Thank you for your kind words, Sarah! We hope these budget tips will be useful when the time comes. Feel free to contact us if you need anything in the planning stage 🙂

Wow, sounds like a campervan is the way to go in Iceland! This sounds like an amazing adventure!

Campervan is definitely the way to go 🙂 And the best adventure too! Thank you!

Iceland sounds amazing and your pictures are absolutely beautiful. Now I have to add Iceland to my Bucketlist.

Awww thanks! And yes Iceland was also number one in our bucket list! You’ll for sure make it 🙂

Wow sounds amazing – and your photos are incredible! I’ve always heard Iceland is expensive so it’s great to know it can be done cheaply without sacrificing seeing the awesome sights!

Thank you, we’re glad you liked it and happy to know the guide can be useful for you. It’s truly doable in a more affordable way if you’re up for the adventure! Let us know if you have any questions in the future.

Your photos of Iceland in the snow, frost, ice are truly amazing. When I came to the island, I went in January but had nothing but sun, rain and wind. So I saw more black sand, lava, green grass and mud everywhere. 😀 I was luckly when I went, as it was after the economic crash of 2008 so I stayed in the capital and went for the luxury hotel option so I was paying London prices. If I went to Iceland today, I would need a bank loan so this guide on how to do it on the cheap is welcoming. I really want to get back to the country soon, I miss the landscapes and nature.

I have been to Iceland but didn’t do it for anywhere as cheaply as this, so well done. Absolutely loved your photos especially the Northern lights. I visited at the end of April so missed out on them. It was also nice to see how much snow there was in your photos as there was a lot less when I went. Great write-up with good advice for first-time visitors on a budget.

Thank you so much for your kind words, Angela! We hope you’ll get to come during the winter next time!

Yes, I’ve been wanting to visit Iceland since forever and I’ve been postponing it forever for 2 reason – expense & international driver’s license. Good to know it can be done in a budget. I didn’t know about the Wizz Air annual membership. I need to look into it. Thanks for the tip about arrival time. Will keep it in mind when booking. Its super awesome that you managed to see the northern lights as well. Its time for me to clear those exams & get the IDP.

We wish you luck with getting your international driving license, Bhushavali! It’s something we didn’t consider as my EU driver’s license is valid. We were as surprised as you when we checked the fares, as we always thought of Iceland and Scandinavia as extremely expensive. Please let us know if you need tips with the van rental or the itinerary when the time comes. 🙂

BEautiful! This could be our next destination for our van camping trip this year, hopefully! And, so nice to see some Filipinas going around places with a van! I loved van camping, too. It’s exciting, isn’t it? My husband and I don’t live a van life; we just enjoy traveling with our George ( camper van). It’s also good to know about the costs of traveling to Iceland, especially the campsites. Have more exciting trips, girl!

Yes do it, Iceland is amazing, you should definitely road trip the country with a van!! And I know, I’m so glad that I’m not the only one. Nice to know that you’re going around Europe with a van too. Ours is called Gaston, we don’t exactly do “van life” we’re more weekend van lifers and longer trips during the Spring and Summer, of course. Thanks a lot and you have great trips ahead too!!

This looks like another planet. The landscape is breathtaking. I love the detailed guide. And the lava rocks are on my list, as is the black sand beach. I really hope to do this leisurely drive someday.

Visiting Iceland is an awesome experience and a huge plus that you only spent on a budget. Both of you are so good in managing your travel finances. The Northern lights are hard to resist. I am sold!

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I’m impressed, I’ve never heard of anyone spending such little amount of money in Iceland before! I can’t believe all your food cost just €25, I remember paying that for a hamburger at one restaurant in the middle of nowhere! Brings back great memories of our trip to Iceland though, what a spectacularly beautiful country.

Thanks a lot, Iceland is truly beautiful! Yes it’s definitely possibly to spend little, we never ate out in Iceland as we cooked in our campervan! So if you want to have a more offbeat and adventurous experience for a lower budget, then a road trip all the way through Iceland is the best thing to do.

Love this! Every time I hear about Iceland, I also hear about how expensive it is. It’s good to know that it’s possible to do it on a budget. And to do all this for just 250€ is quite an amazing achievement, I must say. As a solo traveler, I’d have to pair up with someone else to keep it that low. But thank you for the tips on how to get the cheapest flight tickets to Iceland. I think I might get the membership too.

Yes, it will cut down your costs if you split it with somebody else and you’ll be able to drive/do things on a budget. The Wizz Air membership is so worth it, we’re glad these tips helped you out. Thanks a lot and hope you get to go to Iceland sooner than later!! Don’t hesitate to get back if you have any other questions.

We did a similar trip last year but in autumn. I can see how gorgeous the same places continue to look in winter, from your photos, with a layer of snow. We also rented a campervan and it was a fantastic idea not only because it was super cheap as compared to staying in hotels but also because of the flexibility it allowed us to have. We spent 10 days on the road and it was an epic trip. One of the best of my lifetime!

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Wow didn’t know Iceland was that cheap! Also, how cold is it? I would love to go, but the weather is one of the things that holds me back

Very interesting route, great photos.

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14 ways to experience Iceland on a budget

Apr 4, 2024 • 7 min read

Make your krónur go further in Iceland with these budget tips © Sam Spicer / Getty Images

Iceland is famous for its spectacular nature, but also for being spectacularly expensive.

However, you can save a buck while ticking things off your bucket list. DIY nature exploration costs more calories than money, pools are cheaper than lagoons, and some accommodation is comfortable for your wallet without being short on comfort.

Here are our tips on how to make your krónur go further in Iceland , along with a guide to daily costs.

Daily costs (during peak season)

Dorm bed in a hostel: 8000–10,000kr Basic room for two: 27,000–31,000kr Self-catering apartment (including Airbnb): 20,000–43,000kr Public transport ticket: 630kr in Reykjavík Coffee: 650–800kr Sandwich: 650–1800kr Dinner for two: 7000–24,000kr Beer/pint at the bar: 1500kr Swimming pools: 1200–1400kr

Average daily cost (three meals, accommodation and activities): 25,000–45,000kr

1. Pick the right kind of flight

Iceland is a convenient transfer hub, so there are many airlines and some good deals to be found. Search engines, like  Dohop or  Skyscanner , can help you find a fair-priced ticket to Iceland. Peak season months include June, July and August, so fares tend to be lower during other months – but there will also be fewer flights. Travelers from London Gatwick who want to explore the wonders of the North should consider flying direct to Akureyri  with EasyJet  instead of going via Reykjavík .

Ready to plan your trip further? Here's our guide to the best time to go to Iceland

2. Choose one region and explore it well

Driving the Ring Road is not a must. Save money on transportation by making one region your base camp and exploring it in detail, finding more peace and quiet and possibly discovering something unexpected. One region that works well for this is  Hvalfjörður about an hour’s drive from Reykjavík, close to Þingvellir National Park and many hiking routes , such as Síldarmannagötur over to Skorradalur valley and to Glymur waterfall (open in summer, only). In the North,  Eyjafjarðarsveit off Akureyri has farm-fresh food, horseback riding, quirky museums and hiking opportunities, including of Kerling mountain . If you’re not set on a specific destination, you could start by finding the most economical accommodation and make it your base camp in Iceland.

3. Embrace the elements in Iceland's national parks

Bring a tent and sleep at one of Iceland’s many  campsites . Some of them are located in nature reserves or national parks, such as Skaftafell and Ásbyrgi in  Vatnajökull National Park , and  Þórsmörk , a forested oasis in the southern highlands. National parks have free entrance and some of the most beautiful campsites, with costs around 2000kr per adult per night. You can also  rent a tent for as little as 1050kr per night. Mind that nights are chilly, even at the height of summer, so bring warm clothing and blankets. In other seasons, camping is for hardened adventurers only.

4. Road trippers should consider hiring an RV

If you’re planning a road trip, why not bring your bed? Hiring a camper/RV gives you increased flexibility. A two-person campervan costs around 17,000kr per day during peak season but prices sometimes drop to as little as 7500kr per night at other seasons. Two of the most popular companies are  CampEasy and  Indie Campers . However, you are required to stay at campsites overnight and pay the same rate as other campers. Note also that not all campsites are open year-round.

5. Consider budget hostels or farm stays

There are  18 HI (Hostelling International) hostels around Iceland, from hip urban settings to the middle of nowhere. The rooms are typically double or twin with shared bathrooms and kitchen facilities. The rate varies but is often around 20,000kr per night for a double room in the shoulder season and 30,000kr in the summer. You can find lower rates in the off-season but some hostels close. Also  check out KEX Hostel in Reykjavík,  Backpackers in Akureyri and  Tehúsið in Egilsstaðir, as well as farm stays , where you can learn about Icelandic rural realities while enjoying nature.

6. Summer travelers can stay at a boarding school turned hotel

Open in summer only, the Edda hotels (now part of the Iceland Hotel Collection by Berjaya) accommodates students the rest of the year. There are two: one in Akureyri in the North and one near Egilsstaðir in the East. You can get a double room with shared bathroom facilities for under 20,000kr in Akureyri. Both hotels are centrally located in each respective region and make for a good base for exploring nearby attractions.

7. Summer houses are good value for group travelers

Icelanders love countryside breaks in cottages, or summer houses, as they’re known, in every season. Many families have their own or rent one from their labor union, but it’s also possible to  rent a cottage  as a visitor – there are over 500 – a good option for larger families or groups. For a mini cottage experience, try  camping pods .

8. Look out for last-minute deals or home swaps

If you’re okay with being spontaneous, it could pay off to browse booking pages like  hotels.com or  booking.com . Sometimes a good deal pops up last-minute due to cancellations, which you can jump at if it fits your schedule.  Airbnb is an option, too, with a range of rooms to villas at a great price range. Icelanders Icelanders are avid travelers themselves, so if you're up for trading homes and even vehicles, try sites like Homelink and  Intervac .

9. Soak up Icelandic bathing culture as Icelanders do

Bathing doesn’t have to leave your finances feeling blue. Taking a dip in a chic spa bath costs around 7000kr, but in a public pool roughly 1000kr and children often swim for free. There are typically slides and always a hot tub. This is where the locals go, so it’s more of a proper Icelandic experience. Beachside hot tubs, popular among sea swimmers, are also an economical choice. These include  Nauthólsvík in Reykjavík,  Guðlaug in Akranes,  Drangsnes in the Westfjords , and Hauganes in the North.

10. Buy a Reykjavík City Card

The capital has a lot to offer and you can experience it all with  the Reykjavík City Card . The 24-, 48- or 72-hour-card gives you access to a large selection of museums and galleries, every swimming pool in Reykjavík, the Family Park and Zoo. It also functions as a bus ticket and includes various discounts. A 24-hour card costs 5040kr, which quickly pays off when you're sightseeing in the capital. You can even use it for the ferry to Viðey island and the bus to Mt Esja, popular for hiking.

11. Reserve eating out for special occasions

To save money, avoid cafes and restaurants and buy food at supermarkets ( Bónus ,  Krónan and  Nettó are the least expensive). Make lunch packs, have picnics and, if you have access to a kitchen, cook your own dinner. For alcohol, go to the state-run  wine store , or plan ahead and save money at  duty free . If you do want to eat out, you can sometimes find good deals, especially for lunch. For example, you can get the fish of the day and a soft drink at  Slippbarinn , Reykjavík Marina, for 2500kr. Also, most bars have happy hour.

12. Weigh up the cost of bus fares vs car hire and rideshares

Check bus routes for the Reykjavík area on  Straeto  and available payment methods on  Klappid . You can, for example, buy a 24-hour pass you can use 10 times, which costs 2500kr, while a single ticket costs 630kr. Children 11 years and younger ride the bus for free. If you’re traveling in a group, bus fares quickly add up so it could be cheaper to share a taxi, including from Keflavík Airport.  Hreyfill is one of the larger taxi providers. Also compare prices from car rentals, which are usually lower during offseason, and  car sharing . You can also  rent a bike or a scooter . In Akureyri, public buses are free and most other places are small enough to explore on foot.

13. A flight from Reykjavík to Akureyri can be cheaper than the bus

The bus from Reykjavík to Akureyri costs 12,540kr one way. If you’re lucky you can get a plane ticket for less (see  Icelandair ) and the flight takes 40 minutes vs a bus ride of 6.5 hours. However, you get the added bonus of a road trip experience and sightseeing out the window. If you’re planning a lot of excursions, it might make sense to rent a car or even join a tour. A lot of people take advantage of  car pooling .

14. Nature is right there, free to enjoy

Wherever you’re based, pay attention to the surrounding nature. Stroll the nearest beach, hike the nearest mountain, find the nearest forest (see Wapp for trails). When in doubt, ask the locals. In the capital area, Úlfarsfell, Heiðmörk or Grótta are many people’s favorite spots. In Akureyri, they might mention Kjarnaskógur or Krossanesborgir. In Egilsstaðir, Selskógur would likely come up. Iceland may be pricey, but the fresh air, birdsong, rustling of leaves, crashing of waves, mountain views and the connection with nature is priceless.

This article was first published May 1, 2015 and updated Apr 4, 2024.

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Budget Breakdown: Real Cost of a Trip to Iceland

This post may contain affiliate links, meaning if you buy or book through one of these links, I may earn a small commission .

Curious about the real cost of a trip to Iceland? Perhaps you’ve heard about how expensive this Nordic island can be.  I had some initial sticker shock myself when booking our first trip to Iceland. 

After an initial high upon finding really good flights to Reykjavik, my husband, Aaron, and I were quickly brought back to earth when friends and family started warning us about how expensive of a place Iceland is. Talk about a buzz kill…

However, when I started planning my trip and actually got into the details, I realized there were definitely ways to manage our Iceland trip cost.  We just needed to plan out what we were willing to spend ahead of time, and then stick to it. 

Thanks to really good planning, Iceland was completely worth the visit and money well spent on mind-blowing and unforgettable experiences. In fact, Aaron and I just made a return trip in January 2022, if that tells you anything. Below, I am going into exactly what we spent, in order to help you understand what to expect when booking your own trip.

Here is our actual Iceland Trip Cost (in USD):

The above shows what my husband and I actually spent on a recent 4-day trip to Iceland .  Our budget was definitely not on a shoe-string, but also wasn’t luxurious. We prefer to select a few areas to splurge, while saving in other areas.

There are many factors that will make our actual expenses higher or lower than yours will be, which I am discussing below. For each category, I will suggest ways to reduce costs, as well as tell you what splurges are worth it. After all, doing some of Iceland’s bucket list-worthy experiences are worth the investment!

Travel Savvy Tip

Don’t look at this budget as a lump sum! That’s the quickest way to get intimidated and assume Iceland is unattainable. The truth is, you won’t pay the full amount at once. You’ll buy your flight, lodging, and rental car right away, and then likely pay nothing for a few months.

Once it gets closer to your trip, you’ll start looking at tours you may want to do, as well as make restaurant reservations. When you get back home from your trip, you’ll pay off any remaining vacay expenses you’ve incurred.

Breaking it into chunks like this is a much more approachable way to afford the cost of a trip to Iceland!

Iceland Trip Cost Breakdown:

Since Iceland is an island in the North Atlantic, you will need to arrive via plane into Keflavik Airport (KEF). Some major cities, like Boston and Chicago, offer direct flights to KEF, which is forty minutes outside Reykjavik, Iceland’s capital. 

Direct flights are best to take whenever possible, as they are normally the most cost effective. Once upon a time, Icelandair had a direct flight out of Cleveland, but that ended after a short six month stint. Unfortunately, Cleveland, like most other US cities, now requires a connection to fly to Iceland.

Here is what the $1,002.07 that my husband and I spent includes:

• $568.47 for both of our round trip flights from Cleveland to Boston.
• $433.60 for only my round trip flight from Boston to Reykjavik; credit card points covered Aaron’s entire flight.

To find the best fares, vigilantly monitor flights prices on Google Flights or Skyscanner around the season you are planning to travel.

Solo travelers should budget around $500-$700 total for airfare; everyone should read the below tips to avoid overpaying for flights :

• Be flexible with your travel days, as weekend flights can be crazy expensive. Play around with searching different departure and arrival days, and you’ll be amazed what a difference that can make.
• Travel during the low season (November through April), when there is an overall drop in prices.
• Last but not least, the tip that has helped me the most:  Sign up for a credit card with travel rewards points. We’ve gotten countless free flights thanks to our cards, simply due to points earned on every day purchases. We’ve had great experiences using both the  Capital One Venture  and the  Chase Sapphire Reserve .

Transportation

While it might not be necessary to rent a car while in Iceland, it is what I recommend doing.  Assuming you want to explore sights along the Golden Circle and South Coast, the alternative is paying for multiple bus tours. If you are traveling alone, the cost difference might not be huge, but it increases quickly when traveling in a group of two or more. 

The $590.56 Aaron and I paid above includes the following:

• $321.62 to rent an automatic, 4-wheel drive vehicle with snow tires. Consider using SADcars for inexpensive rental options.
• $16.97 for parking in Reykjavik. Even street parking in Reykjavik usually requires paying at a machine. Sometimes, certain sights do as well, although it isn’t common.
• $173.83 for gas. This is mostly due to my husband and I driving 10 hours roundtrip to the Jökulsárlón glacier lagoon.
• $78.14 taking Lyft to and from the Cleveland and Boston airports.

Try not to be too nervous about the unpredictability of Iceland’s weather. Checking road conditions here before going out is a huge help, as the site’s map shows you which roads are clear, slippery, and impassable. In bad conditions, you could still try to join a last-minute tour instead.

Also, joining a tour could ultimately be the overall best option for you, if you don’t mind exploring with a bunch of other people! There are plenty to choose from in Iceland, from a simple bus transfer to Reykjavik to touring the Golden Circle .

Solo travelers renting a vehicle will spend roughly the same as the above total.

A couple years ago, I would’ve said to hands-down book an Airbnb to save money. However, Airbnb isn’t quite the budget lodging option it once was, with fees constantly increasing.

The way things stand now, I would definitely consider both hotels and Airbnb’s, since prices can often be quite similar. For both options, generally the more outside of main tourist areas you stay, the lower room rates will be. Pricing is also cheaper during the low season, from November to April.

The price I have above of $1,519.50 includes the following:

• $1,302.20 for four nights at the Canopy by Hilton Reykjavik City Centre . The hotel was a little bit of a splurge, being chic and well-located in a part of town I really like. Hey, it was a birthday trip! Plus, we paid extra to include breakfast in our stay.
• $217.30 for one night at Fosshotel Glacier Lagoon . My husband and I were doing an early ice cave tour the next morning, so it made the most sense to spend the night on the South Coast.

Solo travelers would possibly pay the same as above for a similar room, or maybe even less for a smaller room. If you prefer hostels, there are several options in Reykjavik to choose from.

Choosing to prepare food rather than dine out during your Iceland stay could help save you money. However, beware that even groceries in Iceland are quite expensive, and will add up.

Bear in mind that this option works best if you are staying in an Airbnb with a kitchen. Of course, the mere fact of having a kitchen on our October 2018 Iceland visit didn’t motivate us to prepare food. We did eat breakfast in, but that’s only because we brought granola bars from home.

On our January 2022 trip, we stayed in a hotel and did not have our own kitchen for preparing food. Therefore, we didn’t bother with buying groceries during our stay. The $3.04 shown above was for water bottles purchased at a gas station while we were on the road.

Food & Drink

Food and drink is the category where if you’re not careful, your budget may start to unravel.  Food and drink can indeed be quite pricey in Iceland.  Think double of what you would typically spend for the same thing at home. 

There are several ways to spend less in this area, which I’ve listed below. While we put many of these into practice during our October 2018 trip, I will admit on our January trip to Iceland we threw it all out the window (it was my birthday!):

• Opt not to drink while in Iceland , although you may want to try at least a couple of their breweries.  Aaron and I are really into craft beer, so we knew this was an area we were would splurge in.
• Bring food with you from home .  We like to bring Cliff bars with us to eat as breakfast or snacks.
• Go to the grocery store and prepare lower cost meals at your Airbnb.  This is easier said than done, since it takes extra time and effort. On our 2018 visit, Aaron and I intended to do this, but we never made the effort to grocery shop.
• Feeling extreme? Do what a friend of ours did and just eat ramen for four days.  Not really our style, since food is a big part of travel for us, but to each their own.

I recommend budgeting about $100 a day on food for couples, and about $50 a day for solo travelers. This should comfortably allow you to eat out twice a day at moderately priced restaurants and cafes.

If you are going to splurge on any part of your trip, experiences is the area to do it.  The $760.05 above includes the following activities:

Seeing the northern lights was a top priority for me, so we went all in and splurged on the Super Jeep tour.  It was worth it!

Additionally, as we were visiting during ice cave season, the ice cave tour was a last minute addition on a whim. Again, worth it. A bright blue ice cave is definitely not something you can see every day!

Here are some tips for experiencing Iceland while keeping the cost of your trip as low as possible:

• The Blue Lagoon is the most famous hot spring in Iceland, but certainly not the only one worth visiting. It’s also quite pricey at around $91 per person; the newer Sky Lagoon is just as magical and significantly cheaper.  If you are on a tight budget, it’s wisest to see what the other hot springs have to offer.
• Rent a car to self-drive the famous Golden Circle and South Coast routes.  Tours can run $100-$150/person for a minibus, but less for a huge bus.  A rental car allows you to see more sights at your own pace and lets your money go a bit further.
• Look for bigger northern lights bus tours, which are much less expensive than Super Jeep tours.

Don’t forget to take advantage of free things to do in Iceland!

• Simply look for the northern lights on your own
• Explore Reykjavik and see the Harpa concert hall, Sun Voyager sculpture, Hallgrímskirkja Church
•  Natural sights along the Golden Circle and South Coast are largely free, except the rare small parking fee

Iceland Trip Cost: Miscellaneous Expenses

• Shopping: $44.60 Chances are you’ll want to leave Iceland with a memento from your trip. Just be careful that you don’t blow your budget! The $44.60 we spent was on some locally made yarn.
• Cell Phone: $40 You may need an international plan to make sure your phone works during your trip. Under Verizon, I pay $10 for every day I use cellular data abroad. It’s a bit pricey, but worth it for how often I rely on my phone for Google Maps and last minute restaurant searches. Aaron keeps his phone on airplane mode so that we only pay for my phone.
• Pet Boarding: $284.01 While it’s ideal to have a friend or family member watch your pet for free, that isn’t always possible. When Aaron and I travel together, we always pay to board our dog in a cozy little “suite” at his vet office.

As you can see, Iceland can be expensive to visit, but there are ways to manage it.  Hopefully this will help you plan the cost of your trip to Iceland so you have an incredible experience in the “Land of Fire and Ice”! 

Are you planning a trip to Iceland soon?

Related Posts

Are these Euros or Dollar? If it’s Euros it’s still extreeeeemely expensive. So sad, I would like to see Iceland. Greetings from Vienna Dorie from http://www.thedorie.com

Hi Dorie, this is in dollars. You can definitely make this less expensive. For example, this budget would be for two people in the same household. If it’s for one person, or multiple people splitting expenses it would cost way less money. I also gave some other examples of ways to make it cheaper in the article. It’s definitely possible to see Iceland for cheaper than this, so don’t give up if it’s your dream! 🙂

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Travel Blog | Travel Inspiration

How to Visit Iceland On A Budget

This article will take you through ten ways you can explore Iceland on a budget, plus eight iconic things to do in Iceland that are FREE!

Unless you’ve been living under a rock, you’ve heard about the beauty of Iceland.  It has striking natural beauty and a rugged, dramatic landscape – it really is packed full of breathtaking sights!

And you’ve probably also heard that it is expensive to visit.  So if you’re thinking about visiting, you may to know how to have a cheap holiday to Iceland.  After all, you don’t want to max out your credit cards or run out of money halfway through your trip! 

Disclosure: This article contains affiliate links. These are links to products or experiences I recommend and if you were to buy something after clicking on them, I might earn a small commission at no extra cost to you. Any earnings go towards the upkeep of this blog, which I appreciate.

Table of Contents

What Is The Cost To Travel To Iceland?

How expensive is iceland.

A lot of the northern European countries are expensive compared to the rest of the world – but, according to Numbeo’s Cost of Living Index , Iceland ranks as the eighth most expensive country in the world in 2023. And according to this report , staying in hotels is 10-32% more expensive in Reykjavík than in other Nordic capitals; prices of restaurants and lodging are more than the EU average by 44%.

My experience bears this out: I think Iceland is up there as probably the most expensive place I’ve visited (more than Denmark and Sweden). To give you a flavour, I couldn’t find a hotel room or an Airbnb in Vik for less than £300 when I went a couple of years ago in the summer.  And budget hotels with shared bathrooms were not less than £120 a night for my dates.

Is It Worth it?

Yes, yes, a thousand times yes! 

Iceland has one of the most spectacular landscapes in the world, in my opinion.  The Land of Fire and Ice is well-named: it has the largest ice cap in Europe, with stunning glaciers, glacial lagoons and icebergs – plus, it sits on a diverging tectonic plate line, so it has tonnes of dramatic volcanoes, geysers and hot springs. In fact, there has been a volcano spewing molten lava into the landscape since March 2021!

But even though it is worth spending money on, there are ways to minimise the cost.  Here are ten tips on how to visit Iceland on a budget.

10 Tips To Visit Iceland On A Budget

1. book a short stay.

OK, let’s get this one out of the way: the easiest way to avoid spending a lot in Iceland is to go for a short among of time. I’ve known people who went to Iceland for a few days only, and they loved it.  There are plenty of day trips you can do from Reykjavík ; the Golden Circle is one of them.

However, I don’t recommend a short stay – because there is so much to see in Iceland, far too much for 3-4 days only!  I think you’d want a week there, minimum – and ideally more. There is just so much good stuff to see that is far from Reykjavik, in particular in South Iceland , but also in North Iceland and East Iceland.

So keep reading, because there are better ways to avoid breaking the bank on your Iceland trip…

2. Consider Peak Season (Hear Me Out…)

It is important to think about what time of year to visit. So, when should you visit Iceland?

Now, the usual logic would be to go in the off-season because accommodation prices are cheaper.  And that could be a very good option.  October to April is the low season in Iceland – and the bonus of going to Iceland in winter is that you might see the Northern Lights , which are visible in dark skies.  You’ll also see Iceland covered in snow, which looks very cool.

However, my recommendation is that you consider going to Iceland in the summer season, which is the peak season.  I know that sounds counter-intuitive for a blog about visiting Iceland on a budget, but bear with me…

Although prices might be higher in June, July and August, the days are so much longer . Iceland has close to 24-hour daylight in June and very long days in July and August also.  What this means is you can explore for longer each day: you can see and do more during daylight hours.  This makes summer great value because you effectively get more Iceland for your bucks.

Now, this doesn’t mean you have to cram a million things into every hour of daylight, but you definitely have more options to explore the beautiful island in the summer versus the winter (when you may only get 5 hours of daylight).

For example, on one day in Iceland on my first trip, in early June, I visited the Hallgrimskirkja cathedral in Reykjavík; picked up a rental car; toured the Golden Circle (including walking the faultline at Thingvellir, watching geysers erupt at Geysir, standing on the misty edge of Gullfoss waterfall and walking around Kerio crater); stopped in a doctor’s surgery in Selfoss for an hour (I thought I’d broken my thumb – but I hadn’t); checked into a hotel in Skógar, had dinner and also visited Skógafoss waterfall. This photo of Skógafoss was taken at 10:30 at night.

I would have been able to see less than half of these things during the small number of daylight hours in winter (I mean, I wouldn’t have wanted to do the doctor thing anyway, but you get my point). This is why overall, I think peak season actually works out great value.

3. Be Flexible About When You Fly

Iceland is served by flying routes from both Europe and North America, with 26 airlines flying there. Icelandair, Delta Air Lines, British Airways and Play offer regular direct flights to Reykjavík’s Keflavik airport. In addition, budget airlines Easyjet and Wizz also fly there from Europe.

If you’re planning Iceland on a budget, use a comparison site to find a good deal on prices for flights. If you’re flexible about which airline and what time you fly, you will get the best deals. I like Skyscanner for finding flights because it seems to have the most comprehensive coverage and Kayak for the way that it gives a prediction about whether prices will go up or down.

4. Shop Around For Car Hire

There is a lot you can do by taking bus tours in Iceland – but you’ll have more freedom and flexibility if you hire a car and drive yourself around.  And it is a wonderful country in which to drive. The landscape is so dramatic and compact that you’ll see tonnes of beautiful scenery just from the roadside. Check out my guide and itinerary for driving the Ring Road In Iceland .

For budget car rental in Iceland:

• Shop around : There are lots of options that allow pick up from the airport or in Reykjavík, which could be a good option if you want to spend some time in Reykjavík before hitting the road (why pay for a car while you’re exploring a walkable city like Reykjavík ?).
• Ensure you have a credit card : prices are better if you have a credit card as a guarantee (and there aren’t many options if you don’t have one).
• Go for a small car : outside of Reykjavík, most of the roads are single lanes and fairly narrow, so you don’t want a big car anyway. On my first visit, my husband and I hired a tiny Peugeot 107 because it was cheap. It did look rather comical because my husband is 6’5”, but it was perfectly fine!
• Only hire for the days you need it : if you fancy a day or so in Reykjavík before or after hitting the road, use public transport those days and the airport shuttle – no need to have a hired car wasting money parked in the city.
• Book in advance : this is always good advice – and it is of course also true for other costs, like accommodation.

Rentalcars.com is a good place to start researching budget car rentals in Iceland.

5. Go Basic On Accommodation

Accommodation is a big part of the cost involved in travelling anywhere. And for me, it is often the first thing I try to cut back if I need to reduce costs – I’d rather have more time in the place than have somewhere gorgeous to sleep.

Some of the low-cost accommodations you could try if you’re visiting Iceland on a budget:

• Camping – I used Googlemaps to find campsites, but there’s also info on Visit Iceland
• Hostels – check Hostelworld.com
• Budget hotels – try Booking.com
• Apartment rentals – search Vrbo.com

For my first trip to Iceland, my choice of accommodation in Iceland was a mixture of apartment rentals and budget hotels with shared bathrooms.  I don’t love a shared bathroom, but it was worth it because the savings I made meant I was able to afford to stay in Iceland for more days.

On my second trip, I tried campervanning around Iceland , which did save me money. Although the van was more expensive to hire than a car, the cost of campsites was much less than other accommodations. Overall, the combined cost of car hire + accommodation worked out less than if I had had a cheaper car and stayed in budget hotels.

I didn’t go for ‘proper’ camping (ie tents) or hostels. I’ll always trade a fancy room for some exciting adventure out in the country I’m visiting, but I’m not fond of camping in tents, especially in cold places (even in Iceland in summer , it will feel chilly to most people!). And I disavowed hostels some years ago, after a particularly bad one in New Zealand (more on that another time, maybe…).

If you want some specific recommendations, check out my list of Iceland Ring Road hotels , which includes some budget options.

6. Plan Your Route With Prices In Mind

You will likely find that accommodation prices vary from place to place, and also according to how far in advance you are booking. Therefore, if you’re exploring Iceland on a budget, you may need to plan your trip around where you can find a cheap place each night.

For example, on my first trip, I found that was easier to find low-budget accommodation in Reykjavík than it was elsewhere in the country . So when I visited the Snæfellsnes peninsula , rather than staying there, I stayed in Reykjavík and made the journey around Snæfellsnes as a day trip from there, which saved me quite a lot.

Similarly, on my first trip, the picturesque town of Vik in South Iceland seemed to be in demand for my dates and prices were very high.  So instead, I stayed in nearby Skógar and Hof, visiting Vik as I travelled in between the two, rather than spending an expensive night there.

Be prepared to flex your route a little to save some cash!

7. Minimise Food Costs

Eating in Iceland on a budget is definitely doable.  Here are some options to save money on food:

• Self-cater if you can: If you have kitchen facilities in your Airbnb, hostel or campsite (and most campsites do), you can self-cater.  Netto, Bonus and Kronan are the less expensive stores from which to buy food – but check their opening hours in advance, because they may not be open late in the evening. Avoid the more expensive 10-11 chain, and stores near tourist attractions, as they can be over-priced (I got majorly ripped off buying milk and a snack in a shop next to Goðafoss  waterfall!)
• Avoid restaurants : even if you can’t self-cater, you can eat cheaply by avoiding restaurants, especially for evening meals.  I found that service stations had surprisingly good selections of lunchtime options, including fresh sandwiches that were perfect for life on the road. 

Oh, and drink the tap water!   It is well-known that Iceland has amazingly clean water in the taps – so don’t waste money by buying bottled water. This will also avoid plastic, which is one of the ways you can be kind to Iceland .

8. Eight Iconic FREE Things To Do In Iceland

There are so many things to do in Iceland on a budget. The spectacular landscape is what Iceland is all about – and much of that is easily accessible without paying entrance fees, once you have transportation sorted.

Here are some of my favourite FREE things to do in Iceland – all of which are Icelandic icons:

I’m told there are 10,000 waterfalls in Iceland, and there are loads you can see without needing a guide or a tour. My personal favourite is the majestic Skógafoss (pictured earlier), and I also really my brief visit to Foss a Síðu , which is situated right on the Ring Road .

Glaciers and Glacial Lagoons

You have to pay to hike on glaciers, go into ice caves or do boat rides on glacial lagoons, but it is free and easy to see many glaciers and lagoons themselves.  If you go to only one, make it Jökulsárlón in South-East Iceland, where you can see the Breiðamerkurjökull glacier and the huge icebergs floating in its lagoon. And if you want a second one, nearby Fjallsárlón is smaller but less busy and really serene. Read more about how to experience the glacial lagoons of Iceland .

Some of the most spectacular mountains in Iceland are easy to visit for free.  For example, the iconic Kirkjufell , which is featured in Game of Thrones, is right by the road just outside the town of Grundarfjorour in the Snæfellsnes peninsula .  You have to be an expert climber to climb it though!

Black Sand Beaches

The most famous black sand beaches are Reynisfjara and Diamond Beach , but there are other moody black beaches, especially in South Iceland – and they’re free to wander. Just give the surf a healthy distance, though: tourists are known to get caught by the waves and some have died – so be careful!

For more inspiration about black sand beaches, do check out my guide to the 9 most stunning and easy-to-reach black sand beaches in Iceland .

Plane Wreck

The very instagrammable Sólheimasandur plane wreck is free to visit – though be warned, it is a long walk from the car park!

Icelandic Churches

There are lots of picturesque churches in Iceland, including the Black Church at Búðir or the turf church at Hof. You may not be able to go inside, but you can explore wander around and admire them without paying anything.

Meet An Icelandic Horse

Once you get on the road, you will see a lot of these tough little beauties in the fields, so just pull over and see if one will come to the fence to meet you. But don’t call them ponies – they’re definitely called horses!

See The Sun Voyager

This modern homage to Iceland’s Viking heritage is a lovely scenic spot in Reykjavík, and you can visit it on my free self-guided walking tour of Reykjavik .

9. Select Your Paid Activities Carefully

If you’re travelling to Iceland on a budget you may want to avoid paid trips and activities altogether. However, if you’ve saved money on transport and accommodation, you may be happy to spend a bit on some activities – but you need to choose wisely! I say this because in my experience, some are worth the price tag and some are not.

One of the famous attractions in Iceland is the Blue Lagoon , an open-air hot pool surrounded by black rocks and filled with water heated by the earth.  The price of visiting the Blue Lagoon depends on the package you select and the time of day that you go and it is best to book in advance to guarantee a ticket at the times you want.  On my visit, I chose the Comfort package, which is the ‘basic’ one, and the best price I could get was around £70 per person. Which I think is a lot for an hour or so in a hot pool.

Was it money well spent?  Honestly, no.  The water wasn’t hot enough to offset the chill in the air, the facilities were basic and the place was full of people taking selfies. In hindsight, I would have preferred to spend that money on another night In Iceland exploring the dramatic landscape .

In contrast with the Blue Lagoon, for a similar price, you could take a boat tour of the glacial lagoon at Jökulsárlón for around £65 per person (depending on the exchange rate). The Zodiac tours use small boats, which go fast to the snout of the glacier and can get really close to the huge, ancient icebergs – it is exhilarating and worth every penny!

10. Bring Your Own Booze

According to Numbeo, the cost of alcohol in Iceland is 123% more expensive than elsewhere – it is so expensive in the bars and pubs! Therefore, if you drink alcohol, you will want to stock up at the airport when you arrive in Iceland, and bring it with you on the road. 

You will find the duty-free shop in the baggage claim area of Keflavík airport – and you have this one chance to stock up before you enter Iceland and get hit with seriously high bar prices. Each person has an alcohol allowance of 6 units which could give you, for example, a bottle of spirits, a bottle of wine and a six-pack of beer.

I found it amusing how much the duty-free store is geared around alcohol – there is hardly anything else on sale there, just a few snacks and crates and crates of booze when I came through! 

So, that’s how you can visit Iceland on a budget

I hope these tips prove to you that it is possible to explore this wonderful country without breaking the bank.  I’m confident you’ll love the place as much as I do.

Now, for more inspiration about what to do in Iceland, check out my itinerary for driving Iceland’s Ring Road in 7 days and my review of doing an Iceland super jeep tour !

If you like this article, I'd be delighted if you shared it!

About The Author

Martha Knight

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10 thoughts on “how to visit iceland on a budget”.

Wow you’ve really inspired me. So much useful advice too!

Thank you! I appreciate the encouragement ☺️

All very true; we went in September days not too long nor too short and no snowy roads for getting into Landmannalauger a stunning place. Our best accommodation / rental package was found via the youth hostel service, most were fine but Vic was dire but we could sort ourselves out for food and concentrate on photography which is why we went.

Thanks for sharing your experience, Phil! I’m thinking about visiting Iceland again – not immediately, but I’d love to be able to see that volcano erupting! 🌋

Love this! I spent an entire month in Iceland and was entirely flabbergasted by the prices. I never would have thought that going in summer could save money, because of the longer daylight hours. I went in October and even before winter the days are sooo short. So this actually makes perfect sense because all of Icelands landmarks are outdoors. Great tips

Thank you so much! The 24 hour daylight is a strange phenomenon to get used to, but it does mean you can see a lot in a day! I love how green Iceland is in early summer also 🙂

I was lucky to visit Iceland around 7 years ago, and I think the prices have increased a lot since then. These are all great thoughts on how to save money. I love your idea about visiting during the summer to max out your amount of daylight. I went in winter, so we only had 8 hours of daylight each day! It definitely impacted the amount of things I could see.

And I agree with you… even with the high costs, Iceland is SO worth the visit. Such a beautiful, magical place.

Thanks so much for your feedback, Danielle! I completely agree that it is worth the visit, even though it is expensive – its one of the most spectacular places I’ve been!

Hi there, what a great guide. completely agree on the going to Iceland in peak season, you get worth for your money. May I also add one more tip about money in Iceland, while you can use your card at a lot of places, there is still stuff you need cash for like bus tickets etc. and also if you have cards that charge fees, its better to use ATMs.

In my experience, ATMs in Iceland have very different fees and withdrawal limits and all of them charge some fee so worth finding those ATMs with lowest fees. I landed up using the ATM Fee Saver app – it gave me a list of ATMs in Iceland with low-fees and higher withdrawal limits. Worth trying out and adding to your list of tips, it will help a lot of travellers going to Iceland!

Good point, thanks Paula!

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If you want to travel Iceland on a budget but are scared of all those warnings about it being one of the most expensive destinations in Europe, then you’ve come to the right place. This guide will run through 17 ways that you can save cash while going between the amazing waterfalls and black-sanded beaches of this iconic island.

Of course, budget travel here isn’t really that easy. The country charges a premium on most things, from hotels to food to alcohol, at least when compared to other places on the continent. Most people will spend lots seeing the main sights and hopping in the hot springs.

However, it doesn’t have to be that way. We think there are good opportunities to reduce what you spend by planning wisely. That could be anything from traveling during the winter low season to eating at local petrol stations and using buses to get around.

Table of Contents

Travel Iceland on a budget: Getting there

There are many things you can do to lower the cost of your trip to this beautiful country, especially if you plan wisely. Traveling to Iceland on a budget isn’t too difficult if you follow at least one of the tips below:

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Fly off season.

Summer is by far the busiest and the most expensive time to visit Iceland, so the flights during that time will cost you a premium. You can save a lot by traveling outside of the months between June and August. On average, January is the cheapest time to fly to Iceland, with prices as low as $40 return from London and other European destinations.

Travel with low-cost airlines

There are several European low-cost airlines connecting Iceland with the rest of the continent. Those will usually charge extra for things like baggage and food, but if you’re willing to forgo these luxuries, you can find some real bargains. Airlines such as Wizz Air, EasyJet, Norwegian, and Vueling offer plenty of routes with flights at rates as low as $15 dollars from some European cities!

A new Icelandic budget airline, Play, that started operating in 2019, has joined other carriers in offering low-cost flights to many destinations on the continent. They are also starting new direct routes to Boston and Washington in the near future, with flight prices beginning at $140 one way.

Use price comparison websites

Just as when it comes to finding cheap flights to any destination in the world, you should use flight comparison websites to get the lowest rates over to Iceland. With the help of the useful Google Flights calendar, you will be able to see how the rates change depending on your dates. Other websites, such as Momondo and Skyscanner, will show you graphs and lists of the cheapest times and destinations for flights to Iceland.

Travel Iceland on a budget: Getting around

Iceland is known for its undeniable natural beauty throughout the whole island. From craggy mountains and volcano to gurgling waterfalls, wild beaches and lagoons, there is a lot to see in this stunning country. You may not be able to get to all the attractions if you’re on a tight budget, but there are a few ways to whiz around Iceland on a budget…

Use public transport

Although there are no trains in Iceland, there are extensive Strateo bus routes throughout the country, so it’s possible to get around without having a car. The passes are relatively inexpensive, so it’s an especially good option if you’re traveling alone. The downside is that the buses are quite slow and won’t take you straight to the major attractions, but rather from one point to another.

If you’re on a really tight budget and want to minimize your spending while traveling around, you can opt for hitchhiking. Iceland is one of the safest places in the world, with very low crime rates. That means it’s considered a fantastic place to hitchhike. You should bear in mind, however, that it will be much harder to find a ride the further you go away from Reykjavik especially in the remote areas of the Westfjords. It is also not reliable, so we wouldn’t recommend it if you’re tight on time.

By far the best way to travel around Iceland is by renting a car. Of course, car rentals can be quite expensive, especially in the summer, but you can find some really good deals if you go off season. In January and February, car rentals start at around $200-$250 a week for the most economy options. That’s in comparison with more than $800 at the height of the summer!

Although you can save a lot by renting a car in the winter, some places may not be accessible due to poor weather. You can also lower the cost of your car rental by going as a group. Spreading the price of the car between four people will leave a much smaller hole in your wallet than if you go as a couple or solo.

Travel Iceland on a budget: Finding cheap accommodation

Accommodation in Iceland can be very pricy, especially if you stay in luxury lodges. That said, bedding down in less fancy places can be surprisingly cheap. Here are a few ideas on finding affordable accommodation on the island.

One of the best ways to travel Iceland on a budget is to go for a camping holiday. There are plenty of campsites around the country, with prices ranging between $10 and $20 for a night. Wild camping, however, is illegal, so make sure to check where the campsites are beforehand. Camping is only possible during the warmer months, but you can avoid the crowds by going in the shoulder seasons, either in April or September. The good news is that you don’t need to book campsites in advance. In fact, most don’t even take bookings.

Book in advance

Accommodation in Iceland will take a big chunk of your budget, especially if you stay in luxury lodges. If you’re searching for the best value stays, it’s worth starting to look well in advance, as those are likely to sell out first. Use websites such as Booking.com for discounts and to compare the rates.

Avoid summer

The prime time to visit Iceland is between June and August when the days are the longest and the weather is at its best. That means that everything will be a lot more expensive, though, as this is when most visitors come to explore the beautiful country.

By avoiding the busiest months, you can often find some hefty discounts on accommodation, especially if you visit during the unpopular winter months . At Hótel Laugarbakki, for example, the cheapest room costs over $2,800 for a week in the high season, but that goes down to around $1,100 between November and March!

Travel Iceland on a budget: Eating & drinking

Like most things in Iceland, eating and drinking is much more expensive than in most countries. A meal at the most budget-friendly restaurants will cost you between $25-$30 per person, but there are a few ways to save some bucks on food and drinks:

Choose cheap dining options

Popular fast-food chains like Subway and KFC exist in Iceland. And, although they aren’t as cheap as in many countries, you will still find that they cost less than most dining options. Other places to find more budget-friendly meals are petrol stations. Whether you go for ready-made sandwiches or a hot meal, they should save a whole lot more than if you ate at upscale restaurants.

Cook your own food

Eating out is very expensive here, so you can save a lot by cooking your own meals. Make sure you choose the appropriate accommodation that allows for that. Although groceries are pricier than in most places across Europe, they should still be much cheaper than restaurant food . You can save even further if you do your shopping at cheaper chains such as Bonus, Kronan, or Netto.

Drink tap water

Don’t ever buy bottled water in Iceland! Tap water here is one of the cleanest and tastiest in the world, so there is no need to spend money on plastic bottles from the shop. Just make sure you bring a refillable container and enjoy your fresh, mountain water from the tap.

Buy duty free alcohol

One of the things that really cost a bomb here is alcohol. Like most other Scandinavian nations, Iceland has high taxation on alcoholic beverages, so don’t be shocked if a night out in Reykjavik leaves you out of pocket. If you want to drink alcohol in Iceland without spending the big dollars, it’s best to buy your drinks at the airport’s duty-free shops before entering.

Travel Iceland on a budget: Activities

Some activities can be pricy in Iceland, but there is a lot to do here for little to no money. Here are a few ideas.

Don’t go to the Blue Lagoon

You may have seen photos of those turquoise hot springs on your Instagram feed, but they don’t come cheap. The cheapest tickets start at around $46 and can cost more than double during the most popular times. Although the Blue Lagoon is a great experience, there are plenty of natural hot springs across the country that don’t cost a penny! You will need to hike to the Reykjadalur hot spring river, but anyone can use it without any entrance fees. Another place, the Grotta lighthouse footbath, is right in the capital itself.

Iceland is a hiker’s paradise, offering endless trails across beautiful national parks. Unlike many activities, hiking is free, and you don’t need to pay anything to enter national parks here. In the summer, you can purchase a Highland Hiker Passport for discounted bus rides to the most popular hiking routes in Laugavegur and Fimmvörðuháls from Reykjavik. There are no entrance fees to visit Skogafoss and Glymur waterfalls, either, but you will need to pay for parking there.

Take a free walking tour

One of the best ways to explore Iceland’s capital is with one of the free guided walking tours. You will learn a lot about Icelandic history and culture from the local experts, all without having to pay big dollars. You will only be asked for a small donation at the end, but this is technically voluntary.

Travel Iceland on a budget – a conclusion

Traveling Iceland on a budget isn’t the easiest thing to do. This country is beautiful and striking, but it’s also one of the most expensive places in Europe. Still, there are ways to cut the cost of a trip. They include traveling during the low-season winter months and opting for cheaper hotel and food options, not to mention hiking and bathing in free hot springs.

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Travel Iceland on a Budget

• 7 Icelandic Car Snacks

Where is the cheapest gas in Iceland?

Cheap accommodation in iceland.

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Iceland is an expensive country, that’s a fact BUT there are budget friendly ways to go about visiting. Let me guide you through...

Panoramic view of Kirkjufell mountain and waterfall in Iceland

There are a few things that come cheap in Iceland so let’s start by easing in with those facts:

• Drink the tap water   – s ome cultures have embraced bottled water for their daily consumption, especially in Europe and North America. However, the tap water in Iceland is among the purest in the world (maybe the purest), so there is no need to worry about impurities or anything else that you might not like to find in your drinking water! Because of this, everyone drinks tap water in Iceland. You can buy a reusable bottle and stock up on tap water before every trip. You might even be able to refill at rivers if it’s clear you are good to go!
• Swimming pools are under 1000 ISK   – a visit to one of the numerous swimming pools Iceland has to offer is cheap and a great way to shower, especially if you are staying in a tent or a camper van.
• Visit waterfalls it’s free   – at this moment every single waterfall in Iceland can be visited without a charge. Make the most of it. Here is a list to help you:   Top 10 most beautiful waterfalls in Iceland .
• Take the bus in Reykjavik   – it’s much cheaper and there is a very efficient app to help you try checking out   bus.is   it’s super helpful.
• Hitchhike   – This is the safest country in the world. Even solo travelers are hitchhiking a lot. Also, a good way to meet locals and get tips.

BYO (or BYOB) restaurants are relatively rare in Iceland, and they don’t tend to advertise the fact. But locals and hostel staff can point you in the right direction.

Also, there are local apps available to tell you when drink offers, happy hours and limited-time opportunities are available (usually in Reykjavik).

Icelandic beer

• Eat casual – There are ways to enjoy Icelandic food without breaking the bank. Look into street food, casual food and hostels. Icelanders love their hot dogs, and if you’re in a city you’re never too far from one! Sandwiches are also quite plentiful, but not quite as cheap. In fact, we recently published a guide to cheap eats in Reykjavik to help get you started.
• Take a hike  – most mountains around Reykjavík are well marked and busy with locals all year round so this makes a great option. You can take the city bus to the roots of both Mt. Esja and Mt. Úlfarsfell.
• Share the cost - w hether you’re traveling alone or with a group, you might want to consider sharing some of the costs: A good example is car rental. Many of our tours are either self-driving  or begin at a site that you get to yourself. And the financial difference between one person renting a jeep and four of you doing it is, as you might imagine, substantial.
• Hit the flea market - it can be a good idea to check out the Flea Market in Reykjavik called Kolaportid these are where you can pick up bargains, often ones that you won’t find anywhere else. How does a cute souvenir sound? Or maybe a tasty street food snack? A flea market is the best place to pick up these kinds of things at low prices.
• Make the most of our deals - make sure to browse through our 2023 vacation packages to ensure you're saving as much as possibe while exploring all there is to see in Iceland.

Budget-friendly grocery shopping in Iceland

This is where you will find the cheapest groceries.

Budget friendly grocery shopping mall in Iceland

Opening hours Mondays – Thursdays: 11:00 to 18:30 Fridays: 10:00 to 19:30 Saturdays: 10:00 to 18:00 Sundays: 12:00 to 18:00

To find your nearest Bónus shop   click here .

7 Icelandic Car Snacks or Food to buy at the grocery shops – Ideas!

When you travel to a new country its often super fun to visit a grocery store. The only thing is that with a new language and new things in the shelfes you often don’t know what to get, let alone if you are trying to keep your budget. Fear not, I am here to help. Here are my ultimate fav, go-to snacks when I am trying to save some money but need car snacks for an Icelandic road trip.

Skyr   – the Icelandic yogurt, tastes amazing and usually comes in containers with spoons. Perfect for keeping in the car and is okay still when not super warm.

Sómi or Júmbó sandwiches   – This family-owned company has been making sandwiches since 1978.

Kókómjólk   – Chocolate milk from Iceland. Every local’s favorite.

Hleðsla   – Protein milkshake comes in different flavors.

Flatkaka með hangikjöti   – This literally means flat baked/cooked bread and hanging meat. This is a very original dish in Iceland. So buy flat bread, Icelandic butter, and hangikjöt. Spread the butter over the flatkaka and then put a slice of hangikjöt on top, close it with another flatkaka and you have yourself the most Icelandic snack EVER!

Kleinur   – A bag of twisted doughnuts will go along the way on a road trip.

Traditional Icelandic twisted doughnuts

Harðfiskur   – Dry fish, this is another Icelandic delicacy, best served with A LOT of butter. But be aware, this smells. Like a lot!

And for those who have a sweet tooth check out   The Ultimate Guide to Icelandic Candy .

Now that Iceland has Costco that’s where you will find the cheapest gas. If you have a membership load up before leaving Reykjavík.

After that on the list is usually where there is only self-service. So the golden rule for buying gasoline for the best price around Iceland is going to the gas stations that don’t have any other service, no shop, no employees or anything.

This usually means:

Atlantsolía

Hotels are usually expensive especially in summer so if you are looking to save a little money with accommodation these are your options:

A common, popular choice and they are available everywhere! Just try booking with notice.

If you are okay with sleeping on a random person’s coach do! This is the ultimate cheap option.

This option is getting to be very popular amongst Icelandic people. My sister does it all the time and loves it but again with this option, you need to start planning with a good notice.

Camper vans

A great idea when visiting Iceland in summer. You get 2 for 1, car and accommodation. Just be careful to park where it’s allowed!

Iceland has a wonderful camping culture, and if you do it right, it can slash accommodation costs.

This is something to consider even if you’ve never camped before: Icelandic campsites are among the best you will ever encounter, and many of them have excellent facilities (bathrooms, showers, kitchens, and sometimes even stores). Thanks to some glorious nature (possibly the reason you’re considering visiting in the first place), camping is hugely popular among locals and visitors alike. As luck would have it, we recently wrote a  comprehensive guide to camping in Iceland !

Camping site in Iceland

Instead of a fancy hotel, consider one of the country’s many hostels. These accommodations range from quite rustic to surprisingly comfortable and luxurious. These characterful spots tend to reflect their owners’ charming tastes and oddities – from 70s style décor to quirky uses of space.

Hostels also tend to have good spaces for cooking and eating your own meals, for those of you who want to avoid eating out and keep those costs down.

HI Iceland is a non-profit organization with a chain of hostels located throughout Iceland. It’s worth your while registering as a member as there is a great value to be found here.

If you’d like to treat yourself to a hotel stay, Arctic Adventures has a range of accommodation at various points of the price scale.

Budget Friendly Tours – under 15.000 ISK.

Secret hot springs in Iceland

There is no need to be afraid of tours in Iceland where you are on a budget it’s just all about finding the right tour.

An excellent choice – covers all the highlights, Gullfoss waterfall, Strokkur geyser and Þingvellir national park and then also includes a dip in the amazing Secret Lagoon at the geothermal paradise Flúðir.

Golden Circle and Secret Lagoon – 11.990 ISK

FROM REYKJAVÍK – pick up included or still under the price limit.

Frozen Gullfoss waterfall in Iceland

Whale Watching from Reykjavík harbor – 10.990 ISK

The royalty of the sea. There are a few things in this world as breathtaking as seeing a whale in its natural habitat. This is an experience you will never forget. Also, the company is so certain that you will see a whale that if you don’t, you can come back for no extra cost!

Whale watching in Iceland

Lava Caving – 9.980 ISK

Explore the magic of the underworld . You thought Iceland was beautiful above ground, try going under. Here you will get to experience the charm of the volcanic activity of Iceland. A half day tour and one of the most budget-friendly tours in Iceland.

Guided tour in Lava cave, Iceland

Hot Spring Hunt – 12.990 ISK

Drive to Hveragerði e. Geyser Garden and hike up to alluring Reykjadalur e. Smokey Valley. Really get to know the geothermal activity of Iceland, surrounded by steam and smoke for mud pits and hot pools before soaking in a hot river that flows through the river. This tour is great in summer and winter!

People bathe in hot spring river, Iceland

Reykjavík pub crawl – 14.990 ISK

Feeling like having a drink? Why not get a lesson in how to drink, Icelandic style!

Friends enjoying drinks at the pub in Iceland

Icelandic horseback riding – 11.400-12.500 ISK

Oh, the magic of riding an Icelandic horse . There is a reason Icelanders are so fond of this animal. The Icelandic horse has the fifth gate that no other horse breed has, it’s called tölt and it’s the softest out there. They are also known to be friendly, passionate and have big personalities. You just must try riding one!

Small-group horseback riding tour, Iceland

Glymur waterfall hiking tour – 12.990 the pick up 2000 ISK extra.

This stunning waterfall is located inside the fjords Hvalfjörður. It was once the highest waterfall in Iceland but the Icelandic landscape is always changing so now it’s the second highest. The hike is gorgeous going through a cave and fertile hills. The story of the Glymur waterfall and surroundings is even more magical, we recommend the read.

Glymur waterfall in Iceland

FAR FROM REYKJAVIK – You will need a car to get there

Glacier hiking on Sólheimajökull, Glacier Experience – 9.500 ISK

If you choose the early tour at 09:30 it’s only 9.500 ISK per person – that’s a price you will not see anyplace else. This is a great way to explore the Sólheimajökull glacier just about 2,5 hours drive out from Reykjavík. Perfect on the same day would be a visit to Seljalandsfoss and Skógafoss waterfall .

Sólheimajökull glacier in Iceland

River Rafting in Gullfoss canyon – 13.990 ISK

This is the true local experience. Icelanders celebrate graduations, weddings, anniversaries and much more with rafting trips . Join them for the great price of 13.990 ISK per person. You can add a beer tasting tour for only 2000 ISK extra. A great way to spend the day and close to the Golden Circle .

Guided rafting tour in Iceland

Hiking tour in Landmannalaugar – 12.990 ISK

We just can’t get enough of this place. Landmannalaugar is a geothermal paradise in the Highlands of Iceland. You’ll need a 4×4 car to get here but it’s so worth it even just renting it one day. The hike is in the most stunning setting ever, colorful rhyolite mountains and lava fields before bathing in a hot pool located under a lava wall. Hello, paradise!

Hiking in Landmannalaugar highlands, Iceland

Whale Watching from Dalvík – 9.990 ISK

The North is known to be a playground for numerous whale species who nest near Dalvík and Akureyri . I swear it’s like they are planning to put on a show for us. This is a tour you’ll remember forever .

Whale watching tour in Dalvik, Iceland

Glacier hiking in Skaftafell, Glacier Wonders – 10.990 ISK

Skaftafell is located about 5 hours away from Reykjavík. It’s a nature reserve and for many Icelanders the most beautiful place in Iceland. Here you will find Vantajökull the biggest glacier in Europe and from is an outlet glacier called Falljökull. This is the glacier you hike on during the Glacier Wonders tour . A must-do while visiting the area.

Glacier hiking in Iceland, photo by Norris Niman

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The Cost of Travel in Iceland: My 2024 Expense Report

Iceland is one of the most visually spectacular countries I’ve ever been to.

From the breathtaking landscapes to the welcoming locals, the wonders of this country were obvious from my first cold steps on Icelandic terrain. 

During my time spent traveling in the Land of Fire and Ice , I gazed in awe at waterfalls streaming from towering mountains, explored a volcanic crater-turned-lake, stood mere steps away from an active geyser, skipped over black sand beaches, and crunched my way across turquoise glaciers.

But today, we’re here to talk about the prices.

Iceland has a reputation for being expensive — one of the most expensive countries in Europe, in fact — and things have only grown worse since the pandemic. Most shockingly of all, accommodation that I stayed at a year ago has now doubled in price[!]. It really is quite shocking.

But you know what? This is the case for practically every single major tourism destination right now, in Europe and further afield. Prices everywhere are skyrocketing, but there are still some ways that you can keep your costs down.

I’m going to be sharing all of those with you today.

The most expensive time of year is mid-June through to August, so you can expect prices to double again during these summer months.

Once you leave Reykjavik, however, you’ll find prices on food and accommodation dip to a more comfortable level. And with free activities scattered all over the island, there’s plenty of ways to keep your costs even lower.

So how much does it cost to travel in Island? In this article, I’m going to be sharing exactly how much you can expect to spend in 2024. Note that I’ve mentioned all prices in USD, since there are more visitors to Iceland from the United States each year than anywhere else.

The Ultimate Iceland Itinerary

Before I start diving into the nitty-gritty details of costs, I want to first go over where I visited in Iceland and how you can spend two weeks seeing the most epic parts of the country.

Iceland, fortunately, is one of the easiest countries to plan a road trip in. Why? Well, there’s essentially only one road!

That is, of course, an exaggeration, but the Ring Road of Iceland is the main road in the country and it encircles the entire island. Taking a road trip, then, is all about circling your way around the country and choosing the most epic spots. Here’s what I recommend, taking a counter-clockwise route from Reykjavik:

Day One: Reykjavik Day Two: Selfoss Day Three: Vík Day Four: Höfn Day Five: Egilsstaðir Day Six: Mývatn Day Seven: Mývatn Day Eight: Akureyri Day Nine: Sauðárkrókur Day 10: Ísafjörður Day 11: Staðarhólskirkja Day 12: Midhraun Day 13: Reykjavik Day 14: Reykjavik

How to Save Money on the Cost of Accommodation in Iceland

As always with travel, it’s possible to cut your accommodation costs down to zero if you have the time and patience to seek out an offer.

Housesitting  is a great option for  free  accommodation. This is where you’ll take care of somebody’s house while they’re away, and usually look after their pets, too. It’s best for long-term travellers or retirees as you can’t pick and choose dates and destinations, so you need to have a lot of flexibility as to where you go and at what time of year. If you  do  have that freedom, it’s a wonderful way to cut down your travel expenses, soak up some home comforts, and live like a local for a while. I have friends who have housesat in castles before! For free!  Trusted Housesitters  is the best site for getting started with housesitting, as they have the highest number of listings.

I’m suspecting, though, that for most of you, you’re not interested in the free accommodation and just want somewhere clean, safe, and affordable to rest your head each night. If that’s the case, there are several options available for you.

The first of these are  hostels . In Iceland, you’ll come across hostels dotted all over the country, although most of them are unsurprisingly in Reykjavik. They’re one of your best options for saving money as a solo traveller.

Hostels in Iceland  are on a par with the rest of Northern Europe, and you can expect to spend around  $40 a night for a dorm bed  for a well-reviewed hostel in Iceland, with the price increasing to about  $6 0 a night  for the absolute best of the best.

When it comes to private rooms in hostels, you can expect to spend around  $150 a night  for a clean, basic room in a good location, so if you’re travelling with friends or with your partner, it doesn’t always cost a lot more to grab some privacy over settling for two beds in a dorm room.  $200 a night  will get you an exceptionally well-reviewed private room in a hostel.

I use  HostelWorld  to find the cheapest hostels, as they tend to have the greatest number of listings at the lowest prices.

But what about the hotels? That’s what most of you are interested in learning about anyway!

The Cost of Accommodation in Iceland

If you’re travelling as a couple and were getting worried by the cost of private rooms in hostels that I talked about earlier, I’ve got some good news for you. There’s much more competition when it comes to hotels, so they can often be cheaper and nicer than their hostel equivalents.

In this section, I always like to share my favourite accommodation for a destination: where I chose to stay, how much I paid for it, and what I thought about the property. Here’s my choices for Iceland:

Reykjavik: Freyja Guesthouse ( $145 per night for a deluxe double room)

Not only is this guesthouse one of the highest-rated properties in Reykjavik on Booking, but it’s also one of the most affordable options, too. And I loved this place. It’s in the perfect location for exploring Reykjavik, right around the corner from the iconic Hallgrímskirkja church. The rooms are clean and cozy, and I especially liked the little kitchenette that let me save a bit of money on breakfast and drinks. It’s run by the most incredible family, and there are even free bikes for guests to use at any time. This place offers exceptional value for money in Iceland!

🇮🇸 Don’t forget to check out my post on the 19 Best Things to Do in Reykjavik !

Selfoss: Ásahraun Guesthouse ( $127 per night for a, um, barrel)

Now, I don’t know about you, but whenever I come across the opportunity to sleep in an unusual style of accommodation, I always leap at the chance. Life is too boring to spend every night in a hotel, right? … Right? So that’s what brought me to Ásahraun Guesthouse , where you can stay in a, um, barrel. Yes, you read that correctly. But in all seriousness, it’s such a cool spot and way, way nicer than you’re expecting. It receives a remarkable score of 9.5 on Booking, and that’s all due to the incredible setup. For your money you get to stay in the cosiest barrel-style room with its own fridge and kettle, have access to a hot tub (if you’re lucky you might spot the Northern Lights from it), and be fully immersed in the incredible natural surroundings. There’s a high-quality shared kitchen to prepare meals if you’d like to, and the owners are absolutely lovely and fully committed to helping you have the best stay ever. I wouldn’t be surprised if this ended up being the accommodation highlight of your time in Iceland.

Vík: Guesthouse Galleri Vík ( $287 per night for a double room)

This is such a wonderful place to stop for the night, and we were so glad we chose to do so. It’s cosy, comfortable, and clean, with a welcoming owner who makes amazing homemade waffle dough and jam: there’s a waffle iron in the room so you can put it all together for a delicious breakfast. The guesthouse itself is in a great location in Vik, right in the centre of town and within walking distance to that beautiful black-sand beach.

Höfn: Old Airline Guesthouse ( $133 per night for a double room)

Now, I’m not going to say that my favourite thing about this guesthouse is the fact that it had a washing machine and dryer, but I will tell you that it was very much appreciated after several days of road-tripping! The accommodation itself is right in the heart of Höfn, close to all of the best restaurants (I recommend Pakkhús for dinner; it’s the best restaurant in town!) as well as a supermarket and petrol station. The room was clean, spacious, and bright, and the hosts couldn’t have been nicer. All in all, this was a really good (and affordable) place to stay for a night on our road trip!

Egilsstaðir: Hotel 1001 Nott ( $284 per night for a double room)

This was one of priciest places we chose for our road trip but the beautiful location and epic views from the room made it more than worth it. You’re nestled in between the mountains and the lake here, with hot tubs to take a dip in (I recommend doing so at sunset) and even a waterfall to stroll to. A delicious breakfast is included in the price: for other meals, you can either eat onsite or drive 5km back down the road to Egilsstaðir. I’d definitely suggest having dinner at the hotel at least once, though: the food there is absolutely delicious (reindeer burgers for dinner, anyone?) This would be a particularly wonderful option if you’re in Iceland on a romantic getaway.

Mývatn: Vogafjós Farm Resort ( $251 per night for a double room)

Mývatn doesn’t have much in the way of accommodation, and most of what it does have doesn’t receive the greatest reviews. This property stands out from the crowd, then, and we loved loved staying there! You’ve got cosy wooden log cabins to sleep in, helpful staff who can help you make the most of your time in the area, and you’re just 10 minutes from the local thermal pools. Throw in an excellent restaurant in a cowshed a three-minute walk away that’s run by the same family (breakfast there is included), and you’ve got yourself an excellent stay in Mývatn.

Akureyri: Hafdals Hotel ( $233 a night for a twin room)

This hotel is just outside of Akureyri — a five-minute drive to the centre — but it’s worth staying a little way out of town because it lands you with some spectacular views instead. You’ll be looking over the city, gazing out at the fjords, and admiring the river while you stay here, in a clean and modern hotel, with a lovely owner, and a delicious breakfast. This is a great place to base yourselves while day-tripping around the north of Iceland, too.

Sauðárkrókur : Karuna Guesthouse ( $113 a night for a twin room)

We considered staying in Blönduós for this night, but the accommodation was so poorly-rated there, that we decided to opt for Sauðárkrókur instead. And what a great idea! This guesthouse felt like a steal — it was one of the cheapest places we stayed in Iceland, but it didn’t feel like it: we had the best sleep of our trip in those comfortable beds (plus blackout curtains — always appreciated!), and the owner was absolutely wonderful. The free food she left out for breakfast was so appreciated (freshly baked bread!), and the views across the fjords were magnificent. All in all, a great place to stay.

Ísafjörður : Tangs ( $260 a night for a 4-person apartment)

If you plan on venturing into the Westfjords, this is the place to stay ! It’s an apartment, rather than a hotel, and located in the centre of town within walking distance to everything. The place is clean, spacious, and stylishly-decorated, and even offers free bicycles for guests to use. And trust me — as somebody who has stayed in over 100 Airbnb apartments over my years of travel — this apartment has one of the best-equipped kitchens I’ve ever come across. Oh, and having a washing machine and dryer were a huge bonus after many days on the road!

Staðarhólskirkja: Miðjanes Reykhólahrepp ( $90 a night for a double room)

This cosy guesthouse and working farm (wait until you taste the fresh milk from the cows!) was such a lovely place, with beautiful views over the ocean — great for sitting in the living room and bird-watching. You’ve got access to a communal kitchen and living room, which resulted in so many new friendships, and the owner has tons of useful advice on where to go and what to do. It’s a little isolated, so soak up those peaceful vibes, because you’ll be heading back to Reykjavik in just a couple of days!

Midhraun: Lava Resort ( $176 per night for a double room)

This is the cutest collection of cottages ever! You’ll be staying in beautiful surrounds in an adorable cottage , with plenty of nearby trails to wander along while you’re here — I recommend the one that takes you out on to a nearby lava field. The cottages have plenty of amenities with fully-equipped kitchens, plenty of storage space, and a laundry room to get any washing done. It’s perfect location for exploring everything the peninsula has to offer!

My average cost for accommodation in Iceland was $189 a day between two people. 

The Cost of Transportation in Iceland

Let’s talk first about the costs involved in getting to Iceland. For all of my North Americans and Europeans out there, you’ll most likely be pleasantly surprised by the prices.

When you check flight prices on Skyscanner , you’ll be greeted by a wall of IcelandAir flights. And the great news about that is that IcelandAir offers free stopovers in Iceland whenever you opt to fly between Europe and North America. I utilised this when flying from Washington D.C. to London several years ago and it was epic . I was able to stop in Iceland for three days on my way over at no additional cost, so I used that time to explore the Golden Circle.

If you’re planning a trip to Iceland itself, know that you’ll be looking at around $400 for return flights from the east coast of the U.S. to Reykjavik.

If you’re in Europe, flights are inexpensive. From London, you’ll be looking at around £70 return. For other major flight hubs within the continent, such as Paris, Madrid, Milan, and Berlin, flights will usually be around €150 return — not too bad at all!

Don’t forget to have a quick check of Secret Flying before you book your flights either — there may be a bargain up for grabs that coincides with your travel dates!

But what about transportation within Iceland?

Iceland is made for road-tripping. If you’re planning on spending a week or two within the country, it’s the absolute best way to get around. Renting a car within the country is inexpensive and navigating is easy — you simply follow the iconic Ring Road around its 1,300 kilometres — or 828 miles — until you end up back in Reykjavik. The roads are well-paved and there’s hardly any traffic, which makes for an incredibly easy road trip.

I used RentalCars to find my car in Iceland; they check prices across all of the major hire companies to surface the cheapest options out there. Within Iceland, you can expect to pay between $38 and $52 a day for a rental, which really isn’t too bad at all. If you’re not having any success with RentalCars, take a look at the Iceland-based Northbound , as you can sometimes pick up a deal through there.

Self-drive tours are popular within Iceland, although I don’t personally believe they’re necessary — it’s so easy to drive around Iceland on your own!

With these self-drive tours, you essentially pay for somebody to put together an itinerary, get you a rental car, book your accommodation for you, and even provide you with breakfasts. But there’s plenty of itineraries available online for free (I shared mine in the previous section!), it’s easy to find your own rental car online, and it’s better to head out to local restaurants to try the breakfasts anyway. Icelandic Nordic Visitor has dozens of self-drive itineraries to sign up for — as an example, a 7-day self-guided tour starts from $1586 per person .

If you’re considering a self-drive tour, I’d urge you to save your money and use it on nicer accommodation.

If you can’t drive, or don’t want to, there are buses and tours that can help you see the country without needing your own set of wheels. Straeto gives some great bus routes for traveling in and around the capital city, but public transport in general is hit and miss outside Reykjavik: there isn’t a lot of it, and it doesn’t necessarily go where or when you want it to. Here are some typical prices for transport in Iceland:

• Flight from Reykjavik to Akureyri: $66
• Flight from Reykjavik to Seydisfjordur (EGS): $96
• Single bus ticket in Reykjavik: $4.50
• Bus from Reykjavik to Stykkisholmur: $38
• Strætó Bus app fare per month : $76
• 3-day bus pass in the Reykjavik area: $41
• 1-day bus pass in the Reykjavik area: $18

The Cost of Food in Iceland

We all must eat and thank goodness for that because both the traditional and contemporary cuisine in Iceland is top notch. I know, I know — Iceland doesn’t have the best reputation for cuisine, with rumours abounding of fermented shark and smoked puffin, but dig a little deeper and you’ll find plenty of treats.

First and foremost, you can’t leave the country without eating a hot dog. That’s right, a hot dog . This popular street food has made a tasty name for itself in Iceland and you’ll find them everywhere. It’s a dish that’s cheap, good, and easy to find, from basic street cart varieties to fancy or vegan versions in restaurants all over the country.

Prices vary, but expect to pay somewhere between two and four dollars . Start by heading to Bæjarins Beztu Pylsu, a hot dog stand that by now has achieved near-legendary status in Reykjavik, so that you know what a good one is meant to taste like!

Moving on from the street food options, if you plan to eat out, breakfast will be your cheapest meal. Budget around $10-25 , depending on how hungry you are. Expect to pay around the following prices:

• Coffee: $3 for filter, $4-5 for latte/cappuccino
• Croissant: $4
• Skyr (thick, tangy yoghurt) and granola: $7
• Hafragrautur (Icelandic oatmeal): $10
• Salmon/bacon, potato, and scrambled eggs: $21

Lunch tends to be a relatively light affair in Iceland; think soups, salads, and sandwiches rather than large, heavy meals. Expect to pay somewhere between $15 and $25 , based on where you are in the country and whether you’re still full from breakfast! Some typical options include:

• Soup is a common lunch meal, although the type you’ll see on menus changes with the season. Expect lamb or thick, chowder-like fish and potato during the colder months, and tomato or a lighter fish soup during summer. $17
• Open-faced sandwiches on rye bread with salmon, ham, cheese, or hummus and vegetables: $14
• Chicken or fish salad: $19

Alternatively, you’ll find a few restaurants offering a lunch buffet with a range of options for a set price: this is a good way of trying different Icelandic dishes, and is a good way of saving money, since it’s cheaper than eating out at dinner time. Having a larger meal for lunch and something small for dinner might not be traditional, but it is cheaper, especially outside weekends! You’ll pay around $25-40 per person for this.

Dinnertime will likely be your most hefty splurge, where you can expect to spend anywhere from $25 to $50 or more for a meal and a drink.

Reykjavik Fish Restaurant is a great spot to get a feel for Icelandic fare with their standard fish and chips dish costing $22 , and several other tasty seafood options on the menu.

Reykjavik’s Islenski Barinn, or the Icelandic Bar, is where you’ll want to go to if you’re craving a local vibe with traditional Icelandic eats. Yes, it’s a bar but no, you won’t find your typical boring bar food. From puffin on crumpet to lamb and salmon hotdogs to shark bits and reindeer burgers, you can expect a more upscale and unusual pub experience. Prices aren’t too bad, however, at around $15 for smaller dishes and $25-35 for larger ones.

When it’s time to treat yourself, find Von Mathús in HafnarfjordurIf. The best thing about Von Mathús is you get to soak up the classy, contemporary setup and splurge on the delectable food, without the wild prices of fine dining. The menu isn’t large, but it’s well thought out and delicious. A 3-course set menu costs $76 , or you can pick and choose from the a la carte offerings instead. When it comes to drinks, be sure to check out the happy hour offerings; they run practically all day (11:30 am to 2 pm/4 to 8 pm)! 

Speaking of happy hour, it’s kind of a thing in the capital. Loft Hostel is very popular thanks to the rooftop terrace that yanks locals and visitors in from the street, begging them to sit and sip for a while. They have beer deals from 4 to 8 pm daily. 

Veður Bar & Café is a classy establishment that loves sharing their discounted beverages. So much in fact their “happy hours” stay happier longer. Beer and wine is discounted every day from 2:00 to 7:35 pm (yes, they are precise on their cut-off time), starting at $6.50 , a bargain by Icelandic standards! There’s also a cocktail “hour” from 7 to 9 pm that pulls in the patrons, with drinks from $16 . You should also know, Thursdays are a special day at the Vedur: that’s when bubbly flows for only $7.50 .

Of course, if you opt to not drink, it will definitely lower your costs. Alcohol isn’t cheap in Iceland, especially if you are buying it a full price in a pub. Your best option for a tipple is to load up at the grocery store, where local beers cost around $4 for a 500ml can, imported beers run a dollar or two more, and the average midrange bottle of wine goes for approximately $20 . 

If you have access to a kitchenette in your hostel or hotel, then buying food at the supermarket is the cheapest overall option. Groceries are comparable to what you might spend in the U.S. — here are a few examples:

• a gallon of milk: $6.50
• a pound of chicken fillets: $10
• a dozen eggs: $6
• a load of bread: $3.50
• a pound of cheese: $9

Whenever possible, shop at Bonus: there are over 30 of them around the country, they’re easy to find (being bright yellow), and they offer the best discounts on food. 

The average price for eating out in Iceland is $79 a day

The average cost of food when cooking simply at home in Iceland is $18 a day

The average cost of food when combining both eating out and cooking is $51 a day

The Cost of Activities in Iceland

Iceland is Mother Nature’s playground. It feels like there’s almost no limit to the outdoor activities and sightseeing on offer in this geographic wonderland. That, on top of the nightlife, daytime biking adventures, and a strong gastronomic scene, make it very easy to keep busy. 

The first thing you’ll want to do when you arrive is head to the Blue Lagoon . One of the biggest tourist attractions in the country, it’s absolutely worth taking a dip in the milky-blue waters, but expect to share the experience with many others. It’s popular for a reason!

We opted for the $148 package that includes a silica mud mask, free drink (we chose champagne!), and towel. If you’re not into commercial tourist activities, fear not: solitude and free hot springs aren’t hard to find as long as you’re up for the adventure. 

Reykjadalur Hot Springs requires an hour-long hike to get to but once you arrive you have a whole river to soak in. Grotta Lighthouse Footbath is in Reykjavik and is easy to access but note the word “foot” in the name: it’s not very deep, but it is unique!

There’s a wide range of day trips available to visitors from Reykjavik through Get Your Guide for those of you who are short on time. They’re great options if you’re taking that three-day layover between the US and Europe that I mentioned earlier: some of the best day tours include:

• a south coast day trip , where you walk behind a waterfall, walk on the black sand beaches of the southern coast, visit the southernmost village in the country, and check out the Sólheimajökull glacier: $101
• going lava tunnel caving , where you take a guided tour through the Raufarhólshellir lava tubes that were formed after a volcanic eruption over 5000 years ago: $108
• a Golden Circle day trip that takes in the best waterfalls, lakes and geysers in the southwest of the island, and includes seeing where the North American and Eurasian tectonic plates meet: $74
• a small-group trip to the Snæfellsness Peninsula , visiting the Berserkjahraun lava fields, Snaefellsjokull volcano, and Kirkjufell mountain along the way, not to mention a delightful seal colony: $146
• An ice cave day trip , where you get to hike across Myrdalsjokull glacier (crampons provided!) and walk inside the incredible ice caves of Kötlujökull glacier: $204

One of the most memorable moments from our trip was hiking the Sólheimajökull Glacier, where we were able to rappel down crevasses and drink the most delicious 400-year-old water. 

Biking is also a fun way to sightsee in the capital, at least when the weather is good. If you’re feeling more adventurous, you can book a tour to navigate other parts of the country on two wheels as well. Reykjavik Bike Tours offer guided day trips to the Golden Circle, Coast of Reykjavik and Westman Isles, to name a few. Prices for bike rentals start at $29 while guided tours vary depending on location.

Driving the rural roads of Iceland is one of the best ways to see and feel the essence of the country. Beginning in Reykjavik, the Golden Circle is a 190-mile loop that offers a wealth of natural beauty. Big ol’ blocks of ice, more commonly referred to as glaciers, black sand beaches with natural ice sculptures the size of me, funky moss, and tiny elf houses line the route around the circle. There’s something remarkable to see around almost every corner. 

The great thing about the Land of Fire and Ice is the best things are often free. Exploring the more remote parts of the island and soaking up the natural beauty is the best way to experience the country on a budget, whether that’s by car, bicycle or foot. Even walking out of your hostel can be a beautiful experience with the right vantage point!

And, of course, there’s the Northern Lights. 

I can’t write an article on Iceland and not highlight the lights! We went in late September with the goal of seeing that incredible night sky. That’s quite early for the lights to appear, so it was a bit of a gamble, but a gamble we won. Soaking in our hot tub, we were able to gaze up in awe at the illuminated fluorescent swishes dancing above us. It was a moment I’ll never forget.

If you can, book your trip during the months of September to March and hunt down those lights. You won’t regret it! 

The average cost of activities in Iceland is $29 per day

The Cost of Travel Insurance in Iceland

I’m all about ensuring that every single one of my readers understands the importance of travel insurance. When you work in the travel industry, as I do, you’re inundated with news of destitute backpackers on GoFundMe who fell ill while travelling, didn’t have travel insurance, and now can’t afford the hundreds of thousands of dollars needed to be airlifted home for medical care. It happened to an old school friend of mine just last year. In short, if you can’t afford travel insurance, you can’t afford to travel.

Travel insurance  will cover you if your flight is cancelled and you need to book a new one, if your luggage gets lost and you need to replace your belongings, if you suddenly get struck down by appendicitis and have to be hospitalised, or discover a family member has died while you’re overseas and need to get home immediately. If you fall seriously ill, your insurance will cover the costs to fly you home to receive medical treatment.

I use  SafetyWing  as my travel insurance provider, and recommend them for trips to Iceland. They’re one of the few companies out there who will actually cover you if you contract COVID-19. On top of that, they provide worldwide coverage, don’t require you to have a return ticket, and even allow you to buy coverage after you’ve left home. Finally, they have a clear, easy-to-understand pricing structure, which is always appreciated. A two-week trip to Iceland costs $21 with SafetyWing.

How Much Does it Cost to Travel in Iceland?

So how much can you expect to spend on an incredible trip to Iceland? At the end of these budget breakdowns, I always like to pore over my receipts, tally up my every expense, and tell you guys exactly how much my travel adventures cost.

A two-week long road-trip in Iceland, during which I was travelling on a mid-range budget as part of a couple and moving almost every day, came to the following:

• Accommodation:   $189 per day for two people ( $94.50 each )
• Transportation:   $46 per day for two people ( $23 each)
• Food:   $51 per day
• Activities:   $29 per day

Total amount spent per day: $197.50 each

Sure, it’s not the cheapest vacation option out there, but I promise you: Iceland is so, so worth the money! It really is one of the most remarkable places I’ve ever been.

So what do you think? Is Iceland more or less expensive than you expected? Have the prices put you off or made you all the more determined to get over there? And, as always, let me know if you have any questions and I’ll reply to them all in the comments below!

Further reading.

• Best Things to Do in Reykjavik: Don’t forget to check out my in-depth guide to all the best things to do in Iceland’s capital!
• 22 Mind-Blowing Things to Do in Iceland : All of my favourite things to do in Iceland!
• How Much Does it Cost to Travel?: If you enjoyed this budget breakdown, I’ve got a whole lot more to share with you! I’ve been recording my travel expenses for 13 years and counting, and have published over 70 detailed expense reports on my site.
• How to Find Cheap Flights Around the World: My biggest and best tips and tricks for scoring a great deal on flights.

Lauren Juliff

Lauren Juliff is a published author and travel expert who founded Never Ending Footsteps in 2011. She has spent over 12 years travelling the world, sharing in-depth advice from more than 100 countries across six continents. Lauren's travel advice has been featured in publications like the BBC, Wall Street Journal, USA Today, and Cosmopolitan, and her work is read by 200,000 readers each month. Her travel memoir can be found in bookstores across the planet.

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Great photographs of Iceland! The waterfalls are amazing. $41 dollars a day is completely reasonable if not downright cheap. Thanks for laying of the expenses so clearly.

This post is so helpful! Money is always something I’m worried about when traveling.

Thanks for this post it was super useful in planning our trip to Iceland! Your pictures are so inspiring too!

Thanks for this useful guide! Planning my two week road trip to Iceland now that I’m fully vaxxed and can’t wait to see some of these beautiful landscapes with my own eyes. Your article helped so much with my trip planning.

I guess prices must have shot up since you went there. I was just pricing rental cars and for the cheapest car I could find, it was over $4500 for 12 days. The self-guided tours that included budget accommodation and a cheap car were a bit cheaper, but were $5000 for 2 people for 12 days.

What dates are you looking for, Brett? I’m happy to have a look and see what I can do. I’m seeing prices of $700 for a 12 day hire for September, for example.

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How to Enjoy Iceland on a Budget: Tips, Tricks and Free Things to Do

Hostelworld Blog | Posted on January 30, 2018 |

In the last few years, Iceland has jumped straight to the number one country on almost everyone’s bucket list. With its insane landscapes, friendly locals and incredible natural phenomenons (did someone say hot springs?), it’s no wonder we’re all jumping on the plane to Reykjavik. Time and time again though I hear the same criticism of this beautiful country: it’s just too damn expensive. Well…  yes, you will be paying a little more for your fermented shark (Iceland’s National dish) than your typical food in somewhere like South East Asia or Eastern Europe, but don’t let that stop you! If you’re looking to travel this amazing country without the expensive price tag, then we’ve got you covered! There are plenty of amazing experiences to be had in Iceland on a budget – even some that won’t even cost you one Icelandic Krona.

Iceland on a Budget tips

Drink the tap water.

Put DOWN that bottle of Voss! Not only can you drink the water in Iceland, but you should! Iceland’s water is so pure that you can pretty much drink straight from any free-flowing stream you come across. Ok, so I’m no scientist, but my understanding is that it’s alkaline water, which means it has a pH level above 7 and will keep that body of yours healthy AF! It’s not chemically purified as that’s already covered by the lava filtration. So ditch the expensive bottles and get back to nature.

📷: @suetzi.sherin

Stay at a hostel

If you want to enjoy Iceland on a budget, then it should go without saying that you’ll need to find some cheap accommodation. Luckily, Iceland has some awesome hostels spread around the country, which makes your road trip budget even better. I stayed at the Bus Hostel in Reykjavik, which features some seriously 70s chic vibes and possibly the comfiest blankets you’ll ever find in a hostel. Kex Hostel, housed in an old biscuit factory, is also a great choice in the capital if you like your accommodation to have a quirky style, or perhaps try the Hoscar Award winner Loft-HI-Hostel if you want to try spotting the Northern Lights from its rooftop terrace! Akureyri (known as the capital of the north) is another popular town to visit, with the Akureyri Backpackers charming everyone who stays here, whilst Midgard Base Camp in Hvolsvöllur is the perfect hostel for checking out Skógafoss, Seljalandsfoss and the black beach in Reynisfjara.

📷: @likealocaltravel

Make friends and cut down on coach trips

If you’ve done your research on Iceland you’ve definitely put the Golden Circle on your To Do List! What a lot of people don’t know though is that all three attractions that make up the Golden Circle are actually free. To save on costs, get some of your hostel buddies together and hire a car for the day. You’ll drastically cut down on your spending and still get to see Geysers erupt, Waterfall’s creating rainbows and incredible sunrises over the Thingvellir National Park free from entry costs!

Buy your alcohol Duty-Free

If you’re planning on trying out some of Iceland’s local bars, you’ll be surprised to discover that alcohol is quite expensive. That’s because drinks of the boozy variety are heavily taxed, which isn’t great news for budget travellers. So what can you do? Buying a bottle Duty-Free (either at your departure airport or when you arrive at Keflavík) is your best option, as it means you can have a drink or two before you go out. Alternatively, keep an eye out for bars with Happy Hour – as long as you’re aged over 20. Yup, Iceland’s drinking age doesn’t extend to 18 or 19 year-olds, but at least you’ll save more money this way.

📷: @realedebora

Skip the Blue Lagoon and try Landbrotalaug Hot Springs….

You’ve probably seen the ridiculously picturesque pools from the famous Blue Lagoon Hot Springs. While these springs will take your breath away, they’ll also get in the way of your plan to explore Iceland on a budget. Why not ditch the expensive man-made pools and immerse yourself in a free natural hot spring instead? The country is littered with plenty of completely free thermal springs. My favourite natural spring is Landbrotalaug, located about 2 hours north of Reykjavik. Here you’ll find one small, deep spring that looks a bit like you’re soaking in a witch’s cauldron and a second larger, shallower spring. If you’re lucky and no one is around you can go al naturale … Just make sure you can grab your clothes easily in case a big group of Russian men rock up. That was awkward for all involved.

…. or Hveravellir Hot Springs!

You didn’t expect me to write about only one hot spring now did you? Located between Langjökull and Hofsjökul glaciers you’ll find Hveravellir, a unique nature reserve with a man-made pool heated by volcanic activity. This geothermal pool is just sitting in the middle of nowhere, which gives it this mysterious and enchanting vibe. The beautiful water colour is almost begging you to jump in and enjoy the natural heating! You can fit about 20 people in here, so get a road trip going with your new hostel buddies and soak up those medicinal properties in the water. Perfect for curing the hangover caused by too much Brennivín, Iceland’s signature liquor.

📷: @stekyszabo

Pick up local treats at the flea market

If you find yourself in Reykjavik over the weekend, stop by Kolaportid Flea Market! Flea markets are one of my favourite places to people watch and stroll around looking at all the weird and wonderful things people have collected. It’s also one of the best ways to see Iceland on a budget, because it’s free! Pick yourself up a genuine Icelandic sweater, find a vintage hat or check out the hand-made jewellery. It’s all undercover which makes it the perfect rainy day activity. There’s a food area in the same building where you can sample delicious items like black lava salt or kleinur (Icelandic donut). It’s also the best place to buy your fermented shark, because you know, when in Iceland…

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Free things to do in Reykjavik

Einar jónsson sculpture garden.

📷: @aludeawakening

The Sun Voyager

Artist Jón Gunnar Árnason wanted this sculpture to be ‘a promise of new, undiscovered territory’ and a symbol of ‘light and hope’. Over time this sculpture has become instantly recognizable as a symbol of Reykjavik, standing proudly overlooking the ocean. Take a stroll down to the water’s edge in Reykjavik and watch the sun set across the sea and behind the mountains for the perfect ‘make your friends jealous because you are in Iceland’ shot.

📷: @jcstomper

While Reykjavik might not be ready to rival Berlin’s street art scene, for such a small city it is quickly becoming a top contender. This should definitely be part of your Iceland on a budget itinerary. You can spot countless wall murals taking up entire buildings on just a short stroll through town. A lot of the work is commissioned by the city, while others are anonymously done in the cover of darkness. One of my favourite pieces is part of a collaboration called ‘Wall Poetry’ which combines street art and music, questioning how these creative processes interact. So put on your good walking shoes and take yourself on a self-guided tour through the city streets in search of some of these amazing pieces.

📷: @anneofgreatmistakes

The Harpa Hall

Sitting quietly on the edge of the city you’ll find the unique Harpa Concert Hall. It’s dramatic and angular structure makes it really quite intense from the outside. However, the tessellated and minimalist interior is a great place to people watch and check out what shows are coming to Iceland. If architecture isn’t really your thing, maybe you’ll like the fact that this building starred in the latest series of ‘Black Mirror’?

Elliðaárdalur Valley

Hidden in Reykjavik’s city centre you’ll find the hidden gem, Elliðaárdalur valley. Perfect for enjoying a stroll, taking some snaps or exploring the wildlife. There are plenty of little paths with the stunning Elliðaá river winding through. Ideally, cut down on food costs by bringing a little picnic with you!

📷: @torykvinna

Catch a Glimpse of the Elusive Northern Lights

You’ve probably seen advertisements for the northern lights tours and already decided they are out of your budget. I agree, who would want to fork out all that Icelandic Krona in case the lights don’t even show! Unfortunately, natural phenomena’s can be like that.. mother nature can be selfish really. An expensive out of town tour may give you a good chance to see the lights, but if your plan is to see Iceland on a budget, why not do the D.I.Y version and head down to the Grótta lighthouse on the Seltjarnarnes Peninsula in Reykjavik. This is the best spot in the city to try to spot those sneaky lights!

📷: @rachatimee

Get a Free Foot Spa

If you head to the Seltjarnarnes Peninsula during the day you’ll be able to find a little hot spring perfect for dipping your tired feet in! Ok, no one’s going to give you a pedicure, but still, after a day of exploring the city, it’s heavenly to rest your tied toes while staring out over the Atlantic. This is also a great place to bird watch as there’s plenty of species that frequent the area.

📷: @mariatius

Free things to do in Iceland on a Budget

Reynisfjara black sand beach.

Now, being from Australia I’m the first to admit to being a bit of a beach snob. I’m used to pearly white sand and crystal blue water. So when someone told me about the black sand beach I wasn’t all that excited. Well. I. Was. Wrong. This place is a photographer’s paradise, plus there’s no better way to enjoy Iceland on a budget than a bit quality time with your camera. You’ll find black sand all around the country, but the most iconic area is located in the south of the island, called Reynisfjara beach. The pitch black colouring due to lava and the angular basalt rocks that surround it gives this beach an eerie vibe perfect for a moody Instagram post. Locals say that the creepy rocks that tower the beach are actually petrified sea trolls that were trying to steal a ship! Or maybe it’s just from lava flowing, cooling, and cracking into hexagonal shapes. I guess we’ll never know for sure.

Abandoned Plane

I’m not sure why, but I find abandoned sites just so hauntingly beautiful. Close by Reynisfjara beach, lying forgotten on the black sand is the wreckage of a US DC-3 Airplane. Amazingly, everyone on board survived this 1973 crash and it now rests alone just waiting for photographers to come and capture its beauty. It will take you about an hour to walk to the wreckage, but in my opinion, it’s well worth the trip. Be careful if you decide to climb inside: it’s a crash site so there are lot of wires and old metal in this wreckage. Depending on your taste in music you may be enthusiastic to find out that it featured in Justin Bieber’s ‘I’ll Show You’ video clip. Or maybe that will make you like it less. Whatever, just don’t skateboard down it like he did. Not cool, Biebs.

Meet an Icelandic Horse

I feel like there’s still an 11-year-old girl in me that just wants to be friends with a pretty horse. Icelandic horses kind of look like fat little pony’s, since the breed has a thick coat and is considerably smaller than common adult horses. Plus they just look so damn majestic against the intense Icelandic scenery. Don’t go jumping any fences (Icelandic people are so nice, so don’t go disrespecting any farmers you hear!) but if one happens to walk up to the fence line, then a little scratch behind the ear should be fine. Unfortunately, I think security will find out if you try to smuggle one home with you though.

❓ What are some of your top tips for enjoying Iceland on a budget? Comment below and let us know! 👇

Hostels in Iceland  |  Cheap flights  |  Cheap car hire

About the author

Alex Nissen is just a girl from the most isolated city in the world gallivanting her way across the globe. Check out her adventures at www.likealocaltravelblog.com  or on Instagram .

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Learn how to easily plan your dream trip to Iceland with helpful guides and tips!

Best (And Worst) Time To Visit Iceland (Month By Month!)

February 19, 2022 //  by  Iceland Trippers //   Leave a Comment

Deciding on the best time to visit Iceland for your needs is one of the most important parts of planning an Iceland trip. If you are unsure where to start, we have made it super easy for you by explaining what you can expect month by month.

This complete guide to the months and seasons of Iceland will fully prepare you for your trip. All of the most common questions are answered, such as when to see special things like the Northern Lights, lupine flowers, and puffins.

Planning your trip to Iceland last minute?

Make sure to book your hotels and tours in Iceland in advance to ensure availability! The longer you wait, the more difficult it gets. Here are my top picks for your trip :

Top Experiences And Tours In Iceland:

• Golden Circle Full Day Tour From Reykjavik (Likely to sell out!)
• Silfra Snorkeling Tour (Includes photos + only small group)
• South Of Iceland Full Day Trip (Our pick!)
• Whale Watching In Reykjavik (On a luxury yacht)
• Northern Lights Bus Tour (Great to go with a local)
• Ice Cave Tour And Glacier Hike (Likely to sell out)

Tickets You MUST book in advance:

• Keflavik > Reykjavik Bus Airport Transfer (Skip the line!)
• Sky Lagoon Entrance Ticket (Includes 7-step spa ritual)
• Blue Lagoon Entry Ticket With Drink (Likely to sell out!)

Top picks for places to stay in Iceland:

• Hotel South Coast (Great central location)
• Grandi Reykjavik (Includes free breakfast)
• Hotel Kria (Close to black sand beach)
• Hotel Skaftafell (Mid-range price)

Iceland is amazing , but it is also a country that must be taken seriously. Winter in Iceland is beautiful, but you must plan accordingly if that is when you are planning to visit. However, even summer has its drawbacks.

Not to worry, we have all the information you need to check off all of your Iceland dreams. The best months to visit Iceland might depend a little bit on the season, but it depends the most on you!

Get a FREE printable “Hidden Gems In Iceland” E-book by joining our private  Iceland Facebook Group  and sharing your photos and asking for tips and tricks.

High and Low Seasons for Visiting Iceland

Like any popular tourist destination, Iceland has an “on” season and an “off” season. These times are otherwise referred to as high and low seasons (with the in-betweens being called shoulders).

The high season is when the majority of the tourists come to visit. This is generally due to the nice weather and ease of access. This is when most people plan their Iceland itinerary !

But just because the weather is colder in the low season does not mean you should not visit! Many people enjoy the low and shoulder seasons more because there are fewer crowds and it is cheaper, making it the best time to travel to Iceland for a lot of people.

You might be surprised to learn that there are indoor and outdoor activities for all of the seasons. Iceland is beautiful inside and out no matter when you visit.

High Season: June-August

Summer, summer, summer! This is the high season in Iceland for the obvious reasons: weather and temperature. It is undeniably the best weather to visit Iceland with much more sun and higher temperatures.

However, this is also by far the most expensive time to visit Iceland. Airfare, hotel fees, food prices–everything costs a pretty penny during the summer.

Not to mention the crowds. The high season is high season because it is when most people visit Iceland.

While the cost and the crowds are pretty big negatives, the high season has phenomenal positives as well. Especially if you are wanting to go to Iceland for the great outdoors. Most roads will be open during this time as well.

At the end of the day, it is all about your priorities. If weather and being able to spend the maximum time outside every day is your top priority, you are going to want to come to Iceland during the high season.

Shoulder Season: Sept-Oct & April-May

Shoulder seasons are the traveling industry’s best-kept secret. Okay, so it is not super-secret, but it still is not something people talk about as much as they should.

We hear about the high and low seasons all the time, but not so much about the shoulder seasons. They are the very beginning and the very ending of the classic tourism season.

This means that there are still more people than in the low season, but not the huge crowds of the high season. Prices are a little higher too, but still generally reasonable.

The best part of the shoulder season is that the weather is still reasonable. It may not be as great as the high season, but still totally tolerable!

Low Season: November-March

The low season in Iceland is during the typical winter months. For a country named after ice, Iceland’s winters are not that bad!

While there are some road closures, the country is still quite explorable and traversable during the cold months. And if you are coming to see the Northern Lights, this is the time to do it!

This is also the time to come if you are on a serious budget and need to take advantage of the low season prices. Traveling does not have to empty out your bank account.

The lack of crowds makes it the best season to visit Iceland on a budget! There are some trade-offs for coming during the off-season in Iceland, but there are some definite benefits too. This is actually our favorite time to go!

As we said above, the best time to visit Iceland depends on your Iceland priorities!

Visit Iceland in Summer if You:

-Love the idea of 24-hour sunshine.  Ah, the midnight sun–you are not alone if this is on your bucket list ! If you have dreamt of Iceland’s 24-hour daylight, the summer might be the best time for you to visit.

-Are enamored with the brilliant green of summer.  Iceland starts greening back up in the spring, but summer is the best time to visit Iceland if you want to see green everywhere.

The iconic lupine flowers bloom in June and July as well, creating swatches of purple across the landscape. If you want to photograph these flowers make sure to time your trip right.

-Want the best chance to spot whales. Whale watching is a popular tour in Iceland. The magnificent beasts can be spotted offshore from April through October, but the peak time to see them is in the summer.

In summer, more species are in the area and boat tours are less likely to get canceled because of weather.

-Plan on camping. Since the weather is calmer and less unpredictable during the summer, camping in Iceland is a better option for this season. You will have the least rainfall and less wind. This is especially good if you are tent camping.

-Are not bothered by crowds. Everyone loves the gorgeous, summer Iceland scenery. And we mean everyone . Iceland is a super crowded place in summer so keep that in mind.

If you hate crowds, you can still do alright coming in the summer. You will just want to visit the less popular places in the country. They may be less popular, but Iceland is amazing no matter where you go.

-Are totally invested in the traditional sense (read: financially).  If you are not concerned about how much your trip to Iceland is going to cost, that saves you a lot of seasonal concerns.

Iceland is stunning in the summer, and we cannot blame you for wanting to visit when everything is so vibrant.

Just keep in mind that it is already expensive to travel to Iceland, let alone during the summer. During the high season, top tourist destinations and locations charge top dollar for everything.

Visit Iceland in Winter if You:

-Want to spot the Northern Lights.  You can see the Northern Lights in the fall, but there is a caveat. You will have to stay up until around 2 am. If staying up all night is not your vibe, then winter is the best time to go to Iceland to see the Northern Lights!

In winter, there are not many daylight hours. The sun is only up from around 11 am to 3 pm. However, the increased darkness means a better chance of spotting the Northern Lights. Around midnight is the best time to spot them, but earlier or later is possible too.

-Want to visit an ice cave. The incredibly-formed ice caves are some of the best natural features in Iceland and can only be visited in the winter. Tours are lead from November to March.

-Love a good winter wonderland.  There is just something magical about the way snow completely changes Iceland’s landscape. Many people absolutely love coming to Iceland during this time of year because of this.

If you love the beauty of winter, then it is the best time to visit Iceland! Keep in mind that snow has drawbacks since some roads will be closed.

-Want to stand out from the crowd.  While a lot of people enjoy Iceland in the winter, the number of people who go is nothing compared to the summer.

If you are looking to do something a little different and unique, winter just might be the best time for your visit to Iceland. It certainly is not a bad time!

Visit Iceland in Fall if You:

-Do not like crowds but still want to see the Northern Lights.  Even though this is the off-season, it is prime viewing time for the Northern Lights.

This is because the weather is so nice! You do not have to freeze to see the Northern Lights, just come during the fall.

An extra bonus is that there are really not very many tourists during this time. Fall is the best time of the year to visit Iceland if you want to miss the crowds and do not mind coming when it is a little colder.

-Love fall colors. Iceland is not a country that is typically praised for its fall foliage, mostly because there are not many trees. However, what trees there are turn golden along with the grasses, to create a beautiful landscape.

-Want to experience the Iceland Airwaves music festival.  If you have not already heard about it then you might not know what a big deal the Iceland Airwaves music festival is. But if you have heard of it then you already know that it is a must-see!

It is a super popular music festival that happens each fall in Iceland. Usually, it is held sometime in November, but do an internet search to find the exact date.

If you love music, this festival is a great addition to your Iceland plans! Fall is the best time to go to Iceland to check it out!

Visit Iceland in Spring if You:

-Love puffins!   Spring is the best time to visit Iceland if you want to see puffins . These adorable birds start arriving around April for their yearly nesting.

Puffins are some of the cutest birds out there, and you can find them all over! If you are coming to catch sight of or photograph them, just check in advance to make sure they will be in the area where you are going.

-Want to road trip without snow.  As we said above, some of the roads can close in the winter. Spring is the best time to come to Iceland for better weather and open roads. That melting snow also helps to make the waterfalls flow stronger.

Not to mention that the world is coming back to life in the most beautiful way! There is something about the colorful bursts of color against the gray of winter that makes spring like no other season.

Best Time to See Northern Lights in Iceland

If you are interested in the Northern Lights, you are interested in Iceland! While there are many different places to see the Northern Lights in the world, Iceland is hard to beat.

Especially considering that there are places where you can watch them from a hot tub! The Northern Lights In Iceland are a huge draw, and if they are the reason you are coming you are not alone!

If you are wondering what is the best month to see the Northern Lights in Iceland, there are a few choices. It is possible to see the Northern Lights any month between the end of September and the end of March.

Just like the sun is out all night during summer, the nights are very long in the winter. The closer to mid-winter you visit, the longer the night and thus the higher chance of seeing the lights.

You definitely will not be able to see them during the summer! Winter is when you should book your Iceland trip if the Northern Lights are a priority.

Cheapest Time to Visit Iceland

Unfortunately, Iceland is one of the more expensive countries to visit. We have gone over and over because we believe the experience is worth the money .

However, there are things you can do to make your trip much less expensive. One of those things is visiting during the Iceland off-season.

If it is your goal to do Iceland without dumping a ton of cash, we absolutely recommend the shoulder seasons or winter. Visiting right before or right after the high season of summer can save you a lot of money.

If saving money is a high priority, winter is absolutely the best time to visit Iceland. And pro tip: use grocery stores to cut down on costs even more!

Iceland Weather Breakdown by Month

So far we have been referring to entire seasons, but we know that is kind of broad. Especially when you are planning the trip of a lifetime!

That is why we are going to break everything about Iceland Weather down month by month . This way you can know exactly what to expect.

After all, sometimes the best time to visit Iceland is simply when it best fits into your life. Whenever you make the trip, our month-by-month breakdown will help you make the most of it.

Iceland Weather in January

Happy New Year! January is a great time to visit Iceland. During this time of year you will find highs of about 36 ° F and lows of about 27 ° F.

Is that warmer than you expected? For a country named after ice, Iceland’s winters are actually quite moderate when compared with a lot of other places in the world!

That being said, January in Iceland is the coldest and windiest month. You will want to bring warm clothing and dress appropriately! Expect lots of snow and ice.

Iceland Weather in February

Honestly, the temperatures do not change much in February. What does change is the hours of daylight!

At the beginning of January, you will only get about 4 hours of daylight a day. By the end of February, this increases to about 10 hours.

February is a great month to come because there is more daylight but the crowds and costs are still at a minimum. Check out our post on things to know before you visit Iceland in February!

Iceland Weather in March

March continues with the increase in daylight hours, with about 13 hours of sunshine a day by the end of the month.

Winter weather continues in Iceland in March , although it starts sticking more to the mountaintops and less to the streets. As with most places, the weather is also better in southern Iceland than in northern Iceland.

However, it is still cold pretty much everywhere. We are getting closer to spring, but you would not really know it yet. The temperatures are still averaging between 27 ° F and 36 ° F.

Iceland Weather in April

The weather finally begins to make a bit of a change in April. Temperatures range between 32 ° F and 41 ° F during this warmer month.

What is more, there is a lot less snow! Spring starts to show its face about this time, with the country beginning to green back up again. Migratory birds start to return, including puffins.

We are also looking at around 17 hours of daylight in April as we officially move out of the low season and into the shoulder season. Don’t forget to check out this post about visiting Iceland in April!

Iceland Weather in May

May is seriously one of the best times to visit Iceland! Especially if you love the sun! The days have 20 hours or more of sunlight. It is also the driest month, with the least rainfall.

The highs are also much closer to 50 ° F, which means you almost do not even need a jacket depending on where you are from.

Of course, you will still want to bring your jackets . While the weather is much more temperate, there will still be some cold days. However, it is totally livable and the country is also becoming so much more green!

Iceland in May is also still shoulder season, which means you will not have to try so hard to find your own space while enjoying the sunshine.

Iceland Weather in June

Welcome to high season! While it is called the high season because it is most popular among tourists, June in Iceland is also the high season for the longest days.

If getting the most out of each day is important to you, then June is the best month to visit Iceland. You can explore for many more hours in daylight.

June nights only last for about 3 hours, beginning around 11:30 PM! Yeah, blackout curtains are a big thing in Iceland summers!

While the highs average around 52 ° F, they can get much higher than that. June is the beginning of summer, and also the beginning of real warmth.

Iceland Weather in July

Now, if you are interested in heat rather than warmth , July might be a better time to visit Iceland. It is the best time of year to visit Iceland for heat, as the hottest month of the year. It is also the least windy month.

The weather in Iceland in July is generally extremely pleasant during this time of the year. While the nights are a little longer, at about 4 hours long, they do not increase by much!

Keep in mind that “hot” does not mean the same thing in Iceland as it does in other places. The average highs are around 56°F. That is part of why it is one of the most popular times to visit because it does not get any warmer than this.

Iceland Weather in August

August is the last month of the high season. While the beginning of the month is still as warm as July, temperatures start to go down by the end of the month.

August is the best time to go to Iceland if you do not mind the crowds due to the fairly standard daylight hours. The sun sets around 9 PM and rises around 5 AM. August has the least cloudy days as well.

Do keep in mind that August in Iceland goes quickly from summer to fall. By the end of the month, the slight bite to the air will have you wishing for warm pumpkin pie and spiced apple cider.

Iceland Weather in September

September still has great sunshine for Iceland, but it does go down to just below 12 hours by the end of the month. It is the warmest month with a chance to see the Northern Lights.

Temperatures are still quite nice, and we are back in shoulder season. This means that you can enjoy the nice weather and decent daylight hours without all the crowds of summer.

By the end of the month the likelihood of snow increases. If you visit Iceland in September , you will want to pack your warm clothing!

Iceland Weather in October

October in Iceland is still technically part of the shoulder season, but it is starting to feel much more like the low season of winter. Daylight is down to about 8 hours a day.

In addition, the average temperature is dropping back down to about 41 ° F. While it is not absolute winter yet, the weather should be taken into consideration at this point.

Bring warm clothes and waterproof ponchos. October is the wettest month in Iceland with an average of 14 days with precipitation.

Although it is colder, October is the best time to visit Iceland if you want to explore with as few crowds as possible. The roads are still open and you can still go pretty much everywhere you want.

Iceland Weather in November

Welcome to winter and the off-season in Iceland. November begins the coldest time of the year, although December and January are colder. This is when the snow starts to fully cover the island.

The average temperature is 38 ° F, but it can get much colder. Daylight only lasts about six hours.

We love to visit Iceland in the low season, and really do think it is one of the best times to visit Iceland. You just have to be prepared for the lower temperatures and the weather.

Iceland Weather in December

The last month of the year is one of the coldest months, second only to January. Temperature highs only reach about 39 ° F. It gets as cold as 21 ° F.

In addition, Iceland in December sees quite a lot of precipitation and snow. Daylight hours are generally pretty short.

However, this does make it and January the best time to visit Iceland for the Northern Lights! However, it is also the cloudiest month, meaning the lights can get obstructed.

Iceland Events and Activities by Month

While the weather is a big deal, sometimes it is not as important as what you can do. After all, most weather is survivable if you plan and dress accordingly.

If you are more curious about what is going on than what temperature it will be, we have you covered! We have broken down the events and activities you can do during each month of the year.

You might be surprised by some of your options, especially during the winter!

Iceland in January

Can you even go wrong with New Year’s Eve when you are celebrating in a different country? Especially Iceland!

The country takes this holiday seriously with partying on New Year’s Eve, sleeping on the first, and shopping on the second.

And then there is Christmas–that is right, Christmas extends into January in Iceland, with the last day being on the 6th. If Christmas is your favorite holiday, then the end of December and the beginning of January is definitely the best time to visit Iceland.

Another great January tradition in Iceland is Thorrablot . This pagan celebration was canceled when Iceland went Christian but has had a resurgence in the last couple of centuries.

It is a week-long celebration of an Icelandic tradition that will not disappoint. If you want to feel like a local, prepare yourself for some things you have never eaten before, like rotten shark meat, boiled sheep’s head, and congealed sheep’s blood.

Iceland in February

February is beloved for the Winter Lights Festival . As a celebration of bright and happy things, you will love the way they light the streets with brilliant fluorescence to chase the darkness of winter away.

Öskudagur is basically Icelandic Halloween. The kids dress up in great costumes, and instead of the “trick or treat” chant, sing for their candy.

The Icelandic Food and Fun Festival is a fantastic festival that celebrates Icelandic cooking. And not even the kind that uses blood and rotten shark meat! It is all about using ingredients native to Iceland and enjoying all the culinary joys the country has to offer.

Iceland in March

Did you know that Iceland had its own prohibition period? Beer with an alcohol level of over 2.2% was banned for the majority of the 1900s but legalized again in 1990.

Iceland celebrates this legalization with the unofficial holiday, Beer Day, on the first of March every year! We think you can probably guess what the main activities are. (Drinking beer.)

DesignMarch is similar to the Food and Fun Festival in that it is a celebration of Icelandic creativity. The event features purely Icelandic products and goods.

Continuing in a similar fashion, the Reykjavik Folk Festival honors centuries of traditional music and song.

Iceland in April

Iceland celebrates Easter for days just like Christmas. Honestly, we do not know why more countries do not do holidays like this! Celebrating with just one day is so minimal!

Easter lasts from Holy Thursday to Easter Monday in Iceland. It is generally spent with family, rather than with huge parties.

April’s other holiday is the first day of summer. Given the dark of winter and the light of summer, and the very small in-betweens, Iceland actually does not traditionally recognize spring and autumn as seasons. So summer starts in April!

Iceland in May

The Reykjavik Art Festival is a big deal in May! People come from all over the world to participate in and experience creativity and fun.

If art is not your thing, May still might be the best time to visit Iceland with the Rite of Spring Festival. We know, we know, we just told you there is no spring in Iceland.

But when Iceland gave up its traditional calendar, they adopted spring and autumn into their new calendar. And they like to welcome spring with heartfelt jazz and folk music!

Iceland in June

It should come as no surprise that a country that willingly eats rotten shark meat celebrates the sea! Iceland’s Festival of the Sea happens in June, and it honors the country’s long tradition of seafaring.

Iceland also celebrates its independence from Denmark every June 17th. Like the 4th of July in the United States, Iceland National Day is a country-wide affair filled with parades, concerts, and general enjoyment of Icelandic culture.

Summer Solstice takes advantage of the Midnight Sun with all-night rock concerts. You can also join the locals in watching the sun set and rise all within the course of 2-3 hours.

Another unique Iceland festival is the International Viking Festival . It is a days-long holiday event that pays tribute to Iceland’s fierce Viking history.

Iceland in July

Innipukinn Festival is another music festival that happens in July. If you are not already getting the sense that you can hit up a music festival basically anytime you visit Iceland, well, you can. Icelandic people really love their music, okay?

They mix things up a bit with LungA , a festival specific to the Icelandic town of Seyðisfjörður . This festival still has music (as any good festival does) as well as art!

Iceland in August

Verslunarmannahelgi–say that five times fast, we dare you! Honestly, if you can pronounce it once we will be impressed. Verslunarmannahelgi happens the first weekend of August and is a quick bank holiday (kind of like Labor Day in the US). People generally celebrate by going camping.

Gay Pride comes the second weekend of August, and nowhere celebrates it as Reykjavik does! With parades, parties, and concerts, this is truly a vibrant and fantastic event.

If you like running, (like, really like) then the third weekend of August is the best time to visit Iceland! This is when the Reykjavik Marathon occurs, and it is another event that attracts people from all over the world!

The marathon wraps up with Menningarnott , a fantastic cultural celebration with cultural events, fireworks, and you guessed it, great music!

Iceland in September

The capital city of Reykjavik has two festivals in September, making it the best time to visit Reykjavik if you are wanting to have some fun during the shoulder season.

First is the Reykjavik International Literary Festival . This one is not just a big deal to Iceland, it is actually the biggest literary festival in Northern Europe!

Next is the Reykjavik International Film Festival . There is just something about literature and film that make them go hand in hand. Both of these festivals draw people from all over the world, but especially the film festival!

Iceland in October

Iceland Airwaves is another music festival but centers on indie and alternative music rather than the traditional folk and rock music of so many other festivals. Of course, folk and rock music still abound!

Iceland also celebrates Halloween in October, although they have not been celebrating it as long as other countries and do it a little differently. It is more of an adult holiday, but still features costumes!

Iceland in November

November does not have a whole lot going on in the realm of festivals and events. What it does have, though, it makes sure to do well.

Frostbiter is Iceland’s Horror Film Festival. So while Iceland does not have much going on in November, it is still the best time to visit Iceland if you love horror!

Iceland in December

Sorry not sorry, but Iceland has the best Christmas lights. Seriously, you have to check them out! Because the country is so dark all the time in December, they go all out with the Christmas lights.

And the way they make such a contrast against the dark? Unbeatable.

Everything about Iceland Christmas is simply unbeatable. From the concerts to the food to the country’s own unique and fun traditions, you will absolutely love it.

New Year’s Eve is filled with fireworks, bonfires, and singing. There are even costumes!

And they do not wrap things up and go to bed at midnight. Iceland New Year partying lasts long into the early hours of the next day.

December is the best time of year to travel to Iceland if you love all the December holidays!

When is the Worst Time to Visit Iceland?

Honestly, there is really no bad time of year to visit Iceland as long as you plan accordingly. After reading this article, you should have a good idea of what each month has to offer in terms of weather, natural events, and festivals.

As long as you visit when you want to and pack according to the season , you will be in Iceland at the right time.

If you want to see the Northern Lights, summer is the worst time to visit Iceland. But, if you want clear roads for your rental car and warm weather, then winter is the worst time to visit.

So, When is the Best Time to Visit Iceland?

At the end of the day, the best time to visit Iceland is 100% up to you! Whatever your interests are and your budget will determine when you should visit this amazing country.

After all, this is your trip to Iceland. Plan it around what you want to see and do.

Do you want the midnight sun and purple, lupine flowers? Come during summer. Hate crowds and overpaying, but want decent weather? Give shoulder season a try. Does your Iceland bucket list involve the Nothern Lights or ice caves? Winter is your best bet!

Iceland is gorgeous year-round, and you really cannot go wrong no matter when you visit!

We hope our guide to the best time to visit Iceland has been helpful! Feel free to let us know when you decide to go in the comments below. What is your favorite time to travel to Iceland?

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Meandering Wild

The best ways to get around Iceland: A guide to travel

Iceland, the land of fire and ice, beckons adventurous souls seeking to explore its hidden corners and embrace its majestic wildlife. Getting around this breathtaking country requires careful consideration, as it offers various modes of transportation, each with its own set of pros and cons.

Navigating Iceland can be an enchanting adventure, and the key to unlocking its secrets lies in choosing the right mode of transportation. Depending on your preferences, budget, and itinerary, you have several options to explore: car rental, bus travel, taxis, tours, and even flights for covering vast distances between regions.

The ideal mode of transportation depends on your travel preferences, budget, and the level of exploration you seek. If you crave independence and wish to explore off-the-beaten-path wonders, a car rental is your best bet. Combine this with ferries to really explore hidden corners.

For guided experiences and seamless transfers, tours and buses offer convenience. Taxis suit short journeys within cities, while flights become essential for covering long distances efficiently. Consider your itinerary and priorities to make an informed choice on the best way to get around Iceland.

In this comprehensive guide, we will delve into the best ways to traverse the Icelandic landscapes, ensuring that you have a memorable and rewarding experience while uncovering the country’s natural wonders.

This article contains links to products and services that I think you will find useful. I may earn a commission on any purchases you make at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Read more  HERE

Car rental in Iceland

For ultimate freedom and flexibility, renting a car is the preferred choice for many travellers. Driving allows you to discover Iceland at your own pace, deviating from the beaten path , and stumbling upon untamed beauty.

The island’s Ring Road provides an accessible route to numerous attractions, while F-roads open up remote and wild regions. Embrace the feeling of driving through diverse landscapes, from cascading waterfalls to volcanic terrains.

Pros and Cons of Car Rental in Iceland

Renting a car in Iceland is the epitome of freedom and adventure. Having your own wheels allows you to set your schedule and uncover hidden gems. The flexibility to stop at any viewpoint, explore remote areas, and chase the Northern Lights at your leisure is unbeatable.

However, car rental comes with certain challenges, particularly for solo travellers or those unfamiliar with driving in challenging weather conditions. Iceland’s weather can be unpredictable, and road conditions may vary, especially during winter. Experience driving in winter conditions and a travel partner really is essential to safely hire a car during the winter months. Additionally, renting a car can be expensive, especially if not booked in advance.

Cost of Car Rental in Iceland

Car rental costs in Iceland vary depending on the type of vehicle, rental duration, and the time of year. In peak tourist seasons, such as summer, prices tend to be higher. Compact cars are generally more affordable, while 4×4 vehicles are necessary for F-roads and off-road adventures .

Buying fuel in Iceland

Petrol (gas) stations are not found everywhere in Iceland so it is worth filling up whenever you see a petrol station, especially in the more remote areas. While the lack of fuel stations is not a concern on the main routes around the country, it could pose problems in the more remote regions of the Westfjords and Highlands.

Generally, fuel stations in Iceland are self-service and payment is made by credit card, although there are some that are staffed. Don’t be concerned if a hold is put on your card when you pay for fuel, it is usually released within a few days.

Parking in Iceland

Given the low density of cars and the vast open spaces in Iceland, parking is not usually an issue. Most attractions have large car parks although some have parking meters or links to pay for parking online. Parka.is is the most widely used app for parking in Iceland and internet access is not usually a problem.

Parking in Reykjavík can be more difficult. Most parking is paid although there are some free areas around Hallsgrímskirkja and the National Museum of Iceland. Other streets have spaces but require you to buy a ticket to park there. Prices range from 200ISK (£1.20) to 385ISK (£2.30) for each hour.

If you street park always make sure you park in the same direction as the flow of traffic or you will be fined. Also, check that you are not in a private parking area.

Toll Roads in Iceland

There is only one toll road in Iceland . Vaðlaheiðargöng tunnel was newly opened in 2020 in north Iceland outside Akureyri. The tunnel connects the east bank of the Eyjafjörður fjord and Akureyri shortening the journey along the Ring Road Route 1 by 16km.

The fee for the tunnel for a normal car is 1,500ISK (£8.85) for each trip with larger vehicles costing 2,500ISK (£14.75). The fee has to be paid online, in full within a 24-hour time frame either before or after using the tunnel. You can pay for a single tip via the veggjald.is website  here  

If you want to avoid the toll then it is possible to drive around the peninsula following Route 83 and Route 84 through Svalbarðseyri . It is a longer drive but passes through some beautiful landscapes.

Things to Consider When Renting a Car in Iceland

• Book in advance to secure better rates and availability.
• Choose a vehicle suitable for your itinerary and the season.
• Familiarize yourself with Icelandic road rules and conditions.
• Purchase comprehensive insurance coverage for peace of mind.
• Plan extra time for unforeseen delays due to weather or photo stops.

Bus travel in Iceland

Bus travel is a practical option for those who want to minimise driving responsibilities. Iceland’s bus network covers most major towns and tourist destinations, offering scheduled routes with experienced drivers. While it may lack the spontaneity of driving yourself, it provides a relaxed way to witness the scenic wonders while engaging with fellow travellers.

If you want to travel into the Highlands the bus service to Þórsmörk and Landmannalaugar is a great alternative to a full tour or attempting to drive yourself.

Pros and Cons of Bus Travel in Iceland

Bus travel in Iceland offers a stress-free experience, especially for those who prefer to leave the driving to professionals. It also provides a chance to connect with fellow travellers

However, bus travel may come with limitations on spontaneity, as you’ll be adhering to scheduled routes and timetables. It may also be less suited for exploring remote areas that aren’t covered by standard bus routes.

Travel by bus in Iceland is good for getting around Reykjavík and Akureyri but outside of the urban areas timetables can be sparse. If you do want to travel by bus then make sure you plan your itinerary around the bus schedules.

Cost of Bus Travel in Iceland

Bus travel in Iceland is relatively affordable, with various ticket options catering to different routes and durations. Multi-day passes or tourist cards can provide cost-effective solutions for extensive travel. To see Reykjavík and explore the landmarks the Hop-on-Hop-off bus is a good option.

• Single bus ticket in Reykjavik 470ISK (£2.80) 
• Night bus 940ISK (£5.60)
• Disabled passengers, seniors over 67 years old and young people between 6 and 17 years old 235ISK (£1.40).
• Children under 6 years old travel for free.

Buy tickets HERE

Things to Consider When Taking the Bus in Iceland:

• Research and plan your routes in advance.
• Check the timetables and ensure you arrive at bus stops on time.
• Consider purchasing multi-day or flexible passes for better value.
• Purchase tickets and plan your routes using the Strætó website and app

Taxis in Iceland

Taxis are readily available in urban areas and are ideal for short trips within cities or towns. Although they can be expensive for long-distance travel, they offer convenience, especially during unfavourable weather conditions or when you need a quick transfer to your destination.

Is there Uber or Bolt in Iceland?

There is no Uber or Bolt in Iceland. If you need a taxi, speak to your host or hotel reception who will be able to book one for you. Outside of Reykjavík and Akureyri taxis are limited.

Pros and Cons of Taking Taxis in Iceland

Taxis in Iceland are convenient and readily available, particularly in urban areas like Reykjavik. They offer a door-to-door service, making them ideal for short trips or when public transportation is limited.

However, taxis can be expensive, especially for long-distance travel or excursions to remote areas. Pre-booking may be necessary, especially during peak tourist seasons, to ensure availability. In more remote areas the use of taxis is very limited and you may need to look at car hire to really get off the beaten track.

Cost of taxis in Iceland

Taxis in Iceland charge based on a metered system, and rates can be higher during evenings, weekends, or public holidays. Be aware that additional fees may apply for baggage or special requests.

Taxi prices in Iceland, like other services in the country, are quite high. Below, you can see an example of taxi fares:

• Minimum fare: 730ISK (£4.30)
• Each kilometre: 341ISK (£2)
• One hour wait: 7,920ISK (£46.71)

Taxis between Reykjavík and Keflavik Airport

One of the most common taxi service routes in Iceland is between Reykjavik city centre and Keflavik Airport . The price of this journey is not fixed and varies according to traffic. It usually takes around 45 minutes and can cost between 16,000ISK (£95) and 20,000ISK (£120).

If you are looking for an easier taxi fare then it may be easier to take the FlyBus to the airport and stay in Keflavík overnight. The taxi fare from Keflavík to the airport is only about 2,000ISK (£12).

Things to Consider When Taking a Taxi in Iceland

• Use official taxi services to ensure safety and fair pricing.
• Inquire about the estimated fare before starting your journey.
• Consider ride-sharing options or group taxis for cost-sharing.

Tours in Iceland

For an immersive experience with in-depth insights, guided tours are unbeatable. Joining a tour allows you to focus on the wonders around you, leaving all logistics in the hands of experts. Whether it’s a thrilling glacier hike, a fascinating Northern Lights tour, or a wildlife excursion, tours cater to various interests and time constraints.

Pros and Cons of Taking Tours in Iceland

Tours in Iceland offer curated experiences, expert guides, and hassle-free logistics. The tours will allow you to travel and learn from experienced guides, who often share fascinating insights about the country’s history, geology, and culture.

However, guided tours may follow fixed itineraries, limiting spontaneity. Additionally, popular tours can get crowded during peak tourist seasons.

Cost of Tours in Iceland

Tour prices vary depending on the type of activity, duration, and inclusions. While some tours may seem expensive, they often cover equipment, transportation, and knowledgeable guides.

Things to Consider When Taking a Tour in Iceland

• Research and choose reputable tour operators.
• Check reviews and ratings to ensure high-quality experiences.
• Select tours that align with your interests and fitness levels.
• Flights in Iceland:

Flights in Iceland

When time is limited or you want to explore the distant corners of Iceland , domestic flights become invaluable. They connect major towns and remote areas, granting access to otherwise inaccessible locations and saving precious time.

Each region of Iceland has a small airport and these can become a lifeline in the winter months when roads are closed. If bad weather comes in flights will be cancelled but IcelandAir will always rebook as soon as the weather improves.

Pros and Cons of Flying in Iceland

Domestic flights in Iceland are a time-efficient way to cover vast distances between regions. They offer a bird’s-eye view of Iceland’s mesmerizing landscapes, and they’re essential for reaching remote areas not accessible by road.

However, flying may not allow for the same ground-level exploration and connection to the landscape that other modes of transportation provide. It’s also a pricier option compared to buses or car rentals.

You also need to think about transport when you arrive at a regional airport. Buses are limited and taxis can be expensive so a hire car may be your only option.

Cost of Flights in Iceland

Domestic flight costs depend on factors such as the distance, the season, and the airline. Booking in advance and being flexible with travel dates can help secure more affordable fares.

Things to Consider When Flying to Iceland

• Consider the trade-off between time saved and ground exploration.
• Check luggage restrictions and additional fees before booking.
• Book flights early for better availability and pricing.

Ferry travel in Iceland

Ferry travel in Iceland offers a unique and scenic way to explore the country’s stunning coastline and nearby islands . While not as extensive as other modes of transportation, ferries provide a delightful experience for those looking to witness Iceland’s beauty from the sea.

The two ferry journeys most commonly found on a road trip around Iceland are to the Westman Islands from Landeyjahöfn to Vestmannaeyjar and the Bladur ferry across Breiðafjörður between Brjánslækur and Stykkishólmur.

Pros and Cons of Ferry Travel in Iceland

Taking a ferry in Iceland grants you the opportunity to see the country’s rugged coastlines, majestic fjords, and picturesque islands from a different perspective. It allows for a leisurely journey, with ample time to enjoy the breathtaking views and possibly spot marine wildlife along the way.

However, ferry routes can be limited, and the availability of services may be seasonal. Additionally, if you’re on a tight schedule, ferry travel might not be the most time-efficient option, especially if you need to cover long distances.

Cost of Ferry Travel in Iceland

Ferry ticket prices in Iceland vary based on the route, duration, and cabin options. Shorter ferry trips between nearby islands tend to be more affordable, while longer journeys along the coastline may be relatively costlier.

Things to Consider When Taking a Ferry in Iceland

• Check the ferry schedule and availability in advance, especially for less-frequented routes.
• Dress warmly and be prepared for potential weather changes during the voyage.
• Consider booking a cabin for longer journeys to ensure a comfortable experience.

Accessibility in Iceland

Iceland aims to be an inclusive and accessible destination for travellers with disabilities. Many attractions, accommodations, and transport services have taken steps to cater to the needs of all visitors.

Useful resources for Iceland travel

• Iceland Tourism Official Website
• Car Rental Companies in Iceland
• Bus Schedules and Routes in Iceland
• Guided Tours and Activities in Iceland
• Domestic Flights in Iceland
• Ferry Routes and Schedules in Iceland
• Ferry Services to Icelandic Islands
• Icelandic Maritime Administration

Planning your travel around Iceland

Exploring Iceland’s hidden corners and wildlife is a journey of a lifetime. By choosing the right mode of transportation, you can craft an experience that perfectly aligns with your preferences and goals. Whether you opt for the freedom of car rental, the convenience of guided tours, or the adventure of bus travel, Iceland’s beauty will undoubtedly leave an indelible mark on your heart. Embrace the diverse landscapes, encounter unique wildlife , and immerse yourself in the enchanting magic of Iceland, a place where nature reigns supreme.

• Car rental offers freedom, but weather and cost considerations apply.
• Bus travel provides guided experiences and cost-effectiveness.
• Taxis are convenient but can be expensive for long-distance travel.
• Tours offer expert guidance and curated adventures.
• Flights are time-efficient for covering long distances, but exploration on the ground is limited.
• Ferries can be limited and you will need to plan ahead to fit your itinerary.
• Iceland aims to be inclusive for travellers with disabilities.

Planning a road trip to Iceland? Read all my  Iceland Travel Guides

I'm Suzanne the traveller and photographer behind Meandering Wild. With over 30 years of experience travelling to different corners of the world in search of wildlife and remote locations nearly all of the advice on this website is from my own exploring.

The Cost of Traveling in Iceland (and How to Save)

01/21/2022 by Kristin Addis 58 Comments

Iceland has increasingly become a more popular tourist destination thanks to its incredible landscape and cheap flights from Europe and North America. While the country is expensive, Iceland is the kind of beautiful that makes it worth the cost of visiting, and there’s so much that you can see and do, even if you  only have 48 hours  or in my case, 11 days. 

That’s a pretty short trip for me, considering I tend to spend a month or longer in each country I visit. That wasn’t in the cards for Iceland, but by splurging on certain things and saving on others, my buddy, Maksim, and I were able to enjoy the country with maximum freedom and minimal costs.

My personal spend for 11 days in Iceland was $937 before the flight, or $93 per day. This was back in 2016, so the following price breakdown will include 2022 prices as well. Prices have increased since then, and the current per-day price is closer to $150 per day.

Here’s the breakdown:

What Does it Cost to Travel in Iceland?

Accommodation in iceland.

Maksim and I might have been able to stay for a bit cheaper in Reykjavik had we gone for a hostel dorm room, but I honestly feel like those days are behind me now after doing dorms for 2 years straight in Southeast Asia. We rented an Airbnb flat with two warm and cozy rooms and a nice big living room and kitchen. If you’re traveling alone, this flat is a great pick. Expect to pay between $50-100 per night on Airbnbs in Reykjavik, depending on how many people you are traveling with.

Here are hostel suggestions , and here are hotel suggestions , if you’d prefer to go those routes.

There are hostels and pensions all along the Ring Road that you can stay in as well, but I much preferred  renting a 4×4 camper van , which would probably work out to almost the same price. Additionally, with a camper van, you can go anywhere you please, and that kind of flexibility allowed us to camp right next to a glacier lagoon, near famous waterfalls, and within the highlands that are fun to explore. 

Transportation in Iceland

I took an airport transfer from the airport to the hotel nearest to my apartment rental in Reykjavik and then got a $75 rental for the two days that we were staying in the city from SADcars. We ended up with a full tank when we rented the car and had only just finished it when we returned it. They don’t have a policy that you have to refill the gas before returning the car, so that saved us some cash!

As for driving the ring road, I feel that there’s no better option than a 4×4 camper van, as I mentioned before. It allowed us to see some waterfalls and explore the highlands that aren’t accessible without a 4×4 car. We also saw the northern lights three out of the seven nights we were  camping the ring road , simply because we had flexibility. Plus, we could stop any time we wanted to take photos.

Gas is expensive in Iceland as well, but when split between two or even three people, it’s doable.

Food is very expensive in Iceland. A basic grocery store sandwich will set you back $12!

The cheapest grocery stores are Kronan, Netto, and Bonus. Most of the cheaper stores are closer to Reykjavik, so stock up on imperishables before you leave.

A big way that Maksim and I saved money was by cooking everything ourselves in the camper van, which has a sink, stove, and cookware. We never even set food in a restaurant in Iceland. Maybe we missed out, but this was our way of saving money so that we could splurge on other things.

Each morning we had muesli and tea, for lunch we made our own sandwiches, which is much cheaper, for snacks there was boiled eggs, cookies and crackers with cream cheese, and for dinner often sausages and potatoes or pasta with pesto that Maksim brought with him from Germany.

As for drinks, the water in Iceland is free and safe to drink as long as it’s the cold water and not the bubbling sulfuric stuff (obviously).

If you think you’ll want alcoholic drinks during your trip, make your purchases in duty free before your home departure or on arrival at Reykjavik airport. (Update: You can find liquor outside of the airport but they’re expensive, and beer is weak and expensive as well).

Connectivity

If you have an unlocked phone, definitely get a Vodafone SIM card! It only cost me $15 for 3 gigabytes of data which was shockingly good all over the country. Maksim and I didn’t even need to use our GPS because the coverage was so good. We just used Google Maps on our phones to navigate.

Travel off-peak season to save

Maksim and I actually cut our expenses down significantly by traveling during off-peak season. In the spirit of full disclosure, I was also provided a media discount for my 4×4 rental. Regardless, you can expect just about everything, from car and 4×4 rentals to accommodation, to be about double the price during high season, which is during the summer. Most of the campgrounds are also free during the off season since there’s nobody around to manage them, but they still remain open to discourage back-country camping and off-roading.

You also have almost no chance of seeing the northern lights in the summer, which was too important to me to miss.

Maksim and I spent a little over $80 each for a whale watching excursion , and that was amongst the cheapest tours available in Iceland. If you take tours instead of self-driving, plus pay for accommodation and food in restaurants, you’ll end up spending more than we did by doing things independently.

Thankfully the natural attractions don’t have any admissions fees, so once you pay for your transport, food, and accommodation, your major costs are covered, especially if you visit during low season.

Could we have spent less? Yes, where there’s a will there’s a way, but our method gave us comfort and ultimate flexibility which was exactly what I wanted for my Iceland adventure.

The Perfect Ring Road Itinerary

What to pack for iceland, about kristin addis.

Kristin Addis is the founder and CEO of Be My Travel Muse, a resource for female travelers all around the world since 2012. She's traveled solo to over 65 countries and has brought over 150 women on her all-female adventure tours from Botswana to the Alaskan tundra.

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cheeesefries says

01/21/2016 at 12:02 pm

Thanks for the tips! I am trying to plan a fall/winter trip and the campervan seems like the way to go for us. I’m a dude that loves a good shower from time to time. Are there facilities at the campsites and are they available to use outside of summer?

Kristin says

01/22/2016 at 3:26 pm

There are showers at most of them that are coin operated but I think the cooler way to go, and usually for the same price, is to visit the public bath houses. It’s popular with locals and you get a shower AND a dip in a nice warm pool. More details here: https://www.bemytravelmuse.com/iceland-ring-road-camping/

Karen Farber says

01/21/2016 at 3:13 pm

great tips and guide! Would love to visit Iceland soon!

01/22/2016 at 2:03 pm

Alchohol is sold in special alchol stores in Iceland, not in supermarkets, you can buy 5% beer and other strong alchohol in our liqour stores; ATVR You can find these stores in almost every town, take a look at the locations here http://www.atvr.is

01/22/2016 at 3:23 pm

But duty free is still much cheaper 😉

01/23/2016 at 6:35 am

yup thats true, but the statement about the percentage in the beer is not true ?

01/24/2016 at 6:40 am

It seems like you actually can but it’s just very expensive. Iceland has a history of alcohol prohibition.

01/08/2017 at 5:26 pm

Yes, a history of alcohol prohibition that ended more than 27 years ago.

01/08/2017 at 5:49 pm

There’s a liquor store in almost every town, but alcohol is not sold in supermarkets. The cheapest beer (half a liter in a can) is around $2.30

01/25/2016 at 4:38 pm

This is rad Kristin thanks for the tips. And Sad Cars, HA! What a funny name. I’ve always thought it’d be crazy expensive, and even though that’s about x3 more than my normal daily budget, it’d doable especially with another person. And I feel ya about hostels, getting to the point where they are a bit annoying. Thanks for the tips, been following the entire trip and want to go this year. Also, just a heads up, I think the links to the “read more” articles at the bottom are a bit funky.

Place4Papers says

01/26/2016 at 9:04 am

Great post, thanks. I’ve been visiting Iceland in three- to five-day chunks. The country is pretty expensive.

01/28/2016 at 10:47 am

It is, but it’s worth it.

02/04/2016 at 10:49 am

Great post!

would you mind telling me what you cost for gas was?

02/05/2016 at 6:29 am

It’s a bit cheaper now than it was in years past. I think it was €1.14 per litre

02/22/2016 at 12:39 am

Another great, informative post. Iceland has been on my list for a long time. I was going to go this summer but the country went on strike so I had to cancel. I think I want to go during low season like you and see the northern lights while I’m there. I agree about Airbnb. You can find some nice ones there for a pretty low price too! Beautiful photos. Like the light effect on the car and northern lights shot!

Liyana says

06/21/2016 at 5:17 pm

I read that you purchased the Vodafone SIM Card wtih 3GB data for 13euros! Where’d you get yours from? I checked out the prices on their website online and they’re not that cheap :/

06/23/2016 at 4:15 am

I just walked into a store Reykjavik. This was for just data, no calling or texting. Maybe it’s only a deal in person.

08/20/2016 at 7:08 pm

Here is the starter kit you likely were able to get: https://vodafone.is/english/get-online/

Cameron says

12/16/2016 at 8:12 pm

Hi, Kristin! I’m thinking of driving the Ring Road solo in May and hadn’t considered renting a camper – do you think sleeping in a camper would be safe for a solo female traveller? I’ve traveled Europe alone before but always stayed in hostels. Any thoughts on this? Thanks so much, and I’ve loved reading your Iceland posts. The photos are stunning! (And make me want a new camera haha)

12/16/2016 at 8:28 pm

Iceland is the safest country in the world according to multiple sources, so I’d personally go for it!

12/17/2016 at 8:33 pm

Awesome, thanks so much 🙂

01/08/2017 at 5:45 pm

Absolutely safe.

Anonymous says

01/29/2017 at 5:19 pm

One of my female friends rented a camper van solo and had zero problems.

12/22/2016 at 9:35 pm

Damn, the $9 sandwich better taste amazing 😀

Sandwiches are expensive in sandwich shops, but $9 for a sandwich in a grocery store is just not correct. 1000 kr. might be accurate for gas stations and 10/11 maybe, but for normal grocery stores, sandwiches go for around $5 (even cheaper if they’re the store brand).

01/09/2017 at 6:07 am

The sandwhich price is exaggerated, last year the general grocery store price was around 4€ and today it’s 6-7€ (price changing due to the strengthening of the Krona, not raised prices locally.

I believe the author is going off convenience store prices at best even THEN the price sounds off.

01/09/2017 at 12:23 pm

It’s what I personally paid for a premade sandwich, so that’s what I’m going on. Glad to hear it’s a bit cheaper now 🙂

01/09/2017 at 12:33 am

This article is a bit misleading… the sad car you took is definitely not a camper and the go campers on the photo is at 249 EUR per day and you DO have to fill it up with gas before you drop it off again… How did you fit that into the 93 USD per day budget?

01/09/2017 at 10:32 am

I noted that I had a media discount in the post, and I also noted that the sad car and camper are two seperate things. Not misleading, maybe just misunderstood by you 🙂

01/09/2017 at 2:10 am

You say ” Additionally, with a camper van, you can go anywhere you please and that kind of flexibility allowed us to camp right next to a glacier lagoon, famous waterfalls, and to explore the highlands.”

That´s not true, the low in Iceland only allow you to drive on roads and stay over night on a camp side. You can not drive anywhere you like and camp anywhere you like!

You can by cheaper alcohol in vine stores “Vínbúð”

01/09/2017 at 12:14 pm

The glacier lagoon permits camper vans, the campsite was right next to the waterfall, and the 4×4 allowed us to access the highlands.

Michelle says

01/20/2017 at 6:13 pm

I thought I saw in your posts, a recommendation for a local place to buy traditional sweaters in Reykjavik but now cannot locate it. Did I imagine it? If so, any recommendations? Thanks!

01/23/2017 at 10:29 am

That must have been on another site because I didn’t do any shopping there. Sorry!

01/30/2017 at 7:22 am

My wife and I are planning a trip in early September for 8 days. Is it necessary to have 4X4 during our visit?

01/30/2017 at 11:55 pm

Not if you skip the highlands and some of the waterfalls I visited. I noted here where we needed the 4×4: https://www.bemytravelmuse.com/iceland-ring-road-itinerary/

02/19/2017 at 6:20 am

I’m travelling to Iceland for 5 days in March. Did your $93 per day budget include your accommodation costs? All of our accom/transport is already booked, so just trying to work out how much spending money to take!

02/21/2017 at 8:30 am

I slept in the camper van so yes.

02/27/2017 at 3:05 pm

Great article! Can I ask which month you visited in? I’d love to see the Northern lights but I don’t want to have travel restricted from closed roads…

Thanks in advance:)

03/01/2017 at 11:05 pm

October. Some roads were closed due to flooding, though.

drosegarcia says

03/04/2017 at 1:52 pm

Hello! I am wondering how much the cost was to rent the 4×4 camper with your media discount? I am trying to figure out costs for a fall trip and am wondering how much it will be, I will also be getting a media discount 🙂 thanks so much for your articles. they are wonderful!

03/04/2017 at 11:38 pm

The cost is exactly what I noted in the post for my share, and I split that with my friend Maksim

04/08/2017 at 7:15 pm

Hi Kristen, thank you for sharing 🙂 you said you slept in a camper van, where you cold? If so what kind of gear did you have? My friend and I are going in July and camper van sounds fun.

04/09/2017 at 3:12 am

It has a little space heater in it so it was fine!

06/08/2017 at 4:32 am

Hey Kristin, Love your blog! I would love to feature a link to this post about Iceland on a new website I am getting ready to launch – would you be interested?

06/08/2017 at 5:32 am

You’re welcome to link to me!

06/28/2017 at 3:26 pm

Hi Kristin, I am a solo female traveler planning on hiring a camper van at the end of October to early November this year. I read some posts on other site and a lot of locals are strongly advising against hiring a camper van (due to strong wind gust it may get tipped over etc.). How was the weather when you were there and did you have any issues with wind?

07/04/2017 at 8:24 am

My camper van was a converted SUV so it was fine! Its incredibly windy so it’s more the doors you need to worry about. Hold onto them when you open them!

09/08/2017 at 1:24 am

Hi Kristin A question on costs if I May? Not counting exchange rate variance and not exactly sure of the type of 4X4 you got (I’ve gone for the cheapest in this instance) the cost of the 4×4 alone is $1940 which divided by 2 is $970. How can the total cost be $937? Thanks

09/08/2017 at 12:52 pm

I received a media discount for my 4×4 however May might be high season, therefore it is almost double the price, and the prices appear to increase year over year.

Shalini says

10/08/2017 at 12:07 am

Nice article.. Can I commute on my own, using public transport incase I don’t hire a camper van. I don’t know driving n I plan to travel solo. How is the connectivity? Also are there hostels across all major tourist attractions?

10/09/2017 at 4:36 am

Yes there are hostels, and I am not totally sure about buses since I didn’t take any, but there are definitely tour buses!

Firass says

01/10/2018 at 3:53 pm

Hello kristin! Great post I did enjoy all the tips..In fact I’m planning to go next summer to Iceland along with 2 friends (still can’t decide between June, July or september).. we’re mainly interested in hiking and long exposure photography so the idea of a camper van was a great discovery! Well the country is a bit too expensive so please can you estimate what would a 7-9 days trip cost it would help me a lot (camper van for 3 people + gas + food+ whale excursion+ glacier excursion) we might opt for some night stays in hostels too for good night sleep and bathing.. Many thanks again! Greetings from Lebanon.

01/11/2018 at 11:33 pm

Hi Firass, I can’t really estimate that for you, but this is supposed to be a guide to help you figure it out. Hope it helps!

09/09/2018 at 7:54 am

What time of the year you went?

09/09/2018 at 6:18 pm

Jessica says

12/28/2021 at 6:00 am

Love your idea of the camper van. Where did y’all park to sleep and where were you able to shower? Going to Iceland in Sept 2022.

12/28/2021 at 10:42 am

We parked in campsites and the showers were easy since every town has a public bathhouse.

How to do a family trip to Iceland on a budget

Posted on Last updated: 29 January 2024

Iceland is known for its breath-taking beauty but also its extortionate prices, especially in Reykjavik . Despite a tourism boom in recent years, there are actually signs that this growth has eased off significantly , partly due to the rise in the value of the Icelandic krona. And if you’re planning a family trip to Iceland, cost is always a massive factor when deciding on a destination.

Disclaimer: This is a collaborative post with information drawn from different travel bloggers. Furthermore, this post contains affiliate links. Should you click on a link to purchase, it is at no extra cost to you, but I get a small commission that goes towards the running of this blog. 

However, cheap flights with EasyJet are still tempting UK families, and after our 5 day Iceland road trip , we realised that it is still possible to keep to budget on a Iceland family trip. After all, so much of the natural wonder of Iceland is free to explore! So much so, we returned exactly a year later to do a North Iceland itinerary .

Read: Tips for family travel on a budget

Where would we be without our Lonely Planet Guide ? There’s also a specific Iceland Road Trip edition .

• Thiruvengadam, Meena (Author)
• English (Publication Language)
• 352 Pages – 03/15/2024 (Publication Date) – Lonely Planet (Publisher)

• Averbuck, Alexis (Author)
• 128 Pages – 04/15/2022 (Publication Date) – Lonely Planet (Publisher)

We also recommend you purchase a good Iceland road map ( click here ), in case your tablet or Google Maps fails.

• Marco Polo (Author)
• 1 Page – 03/25/2020 (Publication Date) – MAIRDUMONT GmbH & Co. KG (Publisher)

TIME YOUR VISIT RIGHT

Go out of season.

If you visit Iceland outside of the main tourist season, then you’ll be able to get more value for money on your trip. Flights and accommodation can be substantially more expensive over busy periods, such as summer and Christmas, so if you avoid these times it can save you a fair amount of cash! There are plenty of  must see sights in Iceland , which can be visited no matter what time of year you visit! If you’re looking to save money, the cheapest months to visit Iceland tend to be May and September.

(Sam and Natalia, Something of Freedom – follow on Instagram )

Travel before your kids are 7

Families with young children never pay full price admission fees for their kids. We didn’t find any admission fees charged for kids under age 7. Fees for special tours and attractions such as the Blue Lagoon, the Lava Tunnel and Hallgrimskirkja observation deck are charged only for visitors over age 13. Fees charged for children aged 7-13 at tours, museums, public pools or buffets are usually half price of less the adult fees.

(Catherine, We Go With Kids  – follow on Instagram )

BE CLEVER WITH FOOD & DRINK

Bring food from home.

We booked a hotel that had some kitchen facilities and took some food from home! This meant we were only buying the perishables in Icelandic supermarkets and limiting our food costs. We planned meals and lunches before we went and this way we kept our costs down.

(Leona, Wandermust Family  – follow on Instagram )

Shop at Bonus

If you’re self-catering and need to buy food in Iceland, you’ve got to be careful where you you go, as you can be caught out by high prices in many grocery shops too.   Bonus is a large supermarket chain that sells pretty much everything you’ll need.  There are stores all over Iceland and they have generally the best prices. You won’t miss a Bonus shop – just look out for the huge pink pig logo.

You’ll have to factor shopping into your daily schedule though, as Bonus stores don’t open until 10am or later and usually close by 6.30pm.  Don’t get so distracted by Iceland’s beauty that you forget to shop!

(Emily, Kids and Compass  – follow on Instagram )

Avoid convenience stores

On our first night in Reykjavik we got in late, we were tired and hungry so we headed to the first shop we could find, a little convenience store just up from our apartment to pick up a few things to get us through till we could find a supermarket. This would turn out to be a huge lesson for us and the prices of food in Iceland! It was crazy expensive ($6.00 Australian dollars for a small bag or Doritos and $7.50 for a 1.25L bottle of Pepsi!) We thought it was expensive until we found a scanner in the local Bonus supermarket and realised just how much we paid! So our best tip is AVOID THE CONVENIENCE STORE!

(Bec, Wyld Family Travel  – follow on Instagram )

Bring your own grocery bags

Grocery stores in Iceland charge for bags and since the country is already so expensive, this is an additional expense you may not expect. If you are from Europe, this may sound normal to you, but in other parts of the world including much of North America, this is not standard practice. Buy a cheap cloth bag back home and roll it up and pack it in your suitcase. They will help you save the earth and save a little money during your time in Iceland!

(Victoria, Iceland Trippers  – follow on Instagram )

If you do eat out, get take out

Most restaurants have a take-out menu with significantly lower prices than their dine-in equivalents, and visitors can avoid the hefty service charges by ordering takeaway. During our family’s 10-day Ring Road trip, we enjoyed take out pizza, fish and chips and hot dogs without paying the break the bank dine-in cost.

(Catherine, We Go With Kids – follow on Instagram )

Drink tap water

A great way to keep your  trip costs down in Iceland  and help the environment at the same time is to bring a reusable water bottle with you and drink the tap water! The tap water in Iceland is safe to drink and as a lot of the water source comes directly from natural springs it is also incredibly delicious. Given Iceland is notoriously expensive, not buying bottled water is a great way to save money while visiting this beautiful country!

(Michael, The World Was Here First – follow on Facebook )

Buy duty-free

You can save a lot of money on alcohol in Iceland by buying it at the duty-free shop at Keflavik airport. Customs limits the amount of alcohol you can bring into Iceland to 1 liter of spirits plus 1 liter of wine OR 1 liter of sprits/wine plus 6 liters of beer OR 2.25 liters of wine. That’s for adults 20 years or older. Since taxes on alcohol in Iceland are high, expect to save around 700 ISK on 6 packs of beer and over 5000 ISK on bottles of liquor. Cheers to cheap alcohol in Iceland!

(Bertaut & Alexis, World Travel Adventurers  – follow on Instagram )

SELECT ACCOMMODATION CAREFULLY

Stay in air bnbs.

When I looked at hotel prices in Iceland I was in shock so I investigated Airbnbs more thoroughly. I found not only could I get them much cheaper than hotel rooms (especially if you would need two rooms) but in many cases they were really special places. Once we stayed in a quaint cottage with a grass roof, and another time in a very fancy designer-home on a lake. My very favourite was a cabin at the foot of Mt Kirkjufell in the west of Iceland, one of the most beautiful spots of all. Airbnbs in Iceland are not only a great budget saver but a way to really see places you otherwise wouldn’t.

(Amanda, Not A Ballerina  – follow on Facebook )

Rent a campervan

For those outdoorsy types, bundle your vehicle, lodging and meals into one economical package by renting a campervan! Not only will you save money, but this allows for opportunities to experience Icelandic life and culture more intimately by shopping for groceries at the supermarket and swimming at local public pools. Furthermore, campgrounds are in gorgeous locales, and you can wake to remarkable beauty right outside your van doors ( no cost for kids at campgrounds )! And if all the stars align, your family just may grow closer together, with a trip to last a lifetime in the memory banks!

(Valerie, Wanderlust Wookies – follow on Instagram )

We’d love to travel Iceland in our Mazda Bongo !

Stay in YHAs

We booked to go to Iceland just before we got married so wanted to do the trip as cheaply as possibly. We joined the youth hostel association and booked into youth hostels all the way round the island. All the rooms were doubles rather than dorms and many were en suite. We saw loads of mainly Japanese families using the youth hostels and cooking for themselves to save money. There was only one youth hostel we decided we couldn’t stay in, and we should have trusted the reviews. Definitely a great way of doing Iceland more cost effectively.

(Karen, Mini Travellers  – follow on Instagram )

CONSIDER HOW YOU’RE GOING TO GET AROUND

Self-drive rather than paid excursions.

At first glance hiring a car in Iceland may seem expensive but when you compare it to booking a place on a few paid excursions it really is the better option. You can keep the cost of car hire down by shopping around and checking out reviews. A few car hire companies are based at the old army base, which makes them cheaper again. Remember Iceland is a small country and nothing is very far away so it really won’t inconvenience you at all.

If you are feeling nervous about driving in Iceland my advice to you is don’t! It’s really straightforward and there really aren’t many cars on the road. Your biggest challenge will be the weather, but as long as you are cautious you will be fine. I navigated heavy snow drifts during my trip to Iceland and honestly it was fine.

With a hire car you will also cover a lot more ground and see more sights than taking paid excursions which makes it better value for money again. You are not at the mercy of timed stops or waiting for 60 people to get on and off a coach at every stop.

(Zena, Zena’s Suitcase  – follow on Instagram )

Download maps.me to your phone

Hiring a car abroad anywhere gets expensive once you start adding on things like insurance and GPS. But in Iceland, where your purse strings will be really stretched, it’s important to make savings wherever you can. Starting with your car hire. I suggest you decline the fancy GPS at a mouth-watering €13/day and instead download the free phone app  maps.me . If you download the Iceland map, you will have GPS directions on your phone available to you without any internet connection. I bring a phone holder which clips into the air event and voila, GPS for free! On a weeks road trip in Iceland, this will save you €91!

(Leanne, The Globetrotter GP – follow on Facebook )

Check car insurance and credit card insurance company to see if you’re covered on rentals

When renting a car in Iceland, it is advised to take full car rental insurance including the ash and stone coverage. This can actually close to double the cost of the car! It pays to call your insurance company or credit card first to see if they offer any insurance on car rentals so that you can waive purchasing the insurance on-site. It is surprising how expensive it is to rent a car in Iceland.

(Tamara, We 3 Travel  – follow on Instagram )

BE SELECTIVE WITH YOUR ACTIVITIES

Find free activities.

Iceland can be hard on your wallet, but one of the most wonderful aspects about travelling in Iceland is that the outdoor activities are endless and free. If you are on a tight budget, rather than taking a tour there are so many incredible hikes and famous waterfalls to visit that won’t cost you a penny (ensure your kids have good footwear). Some of our favourites were hiking from Arnastapi to Hellnar and getting up close to the famous Kirkjufellsfoss waterfall.

(Celine, Family Can Travel  – follow on Instagram )

Book last minute tours in Reykjavik

If you decide that an organised tour is what your holiday needs, get the best price you can. Stroll down Reykjavik’s main street once a day and you’ll pass all of the big travel agents and tour operators. They all post great last minute deals in their windows or on sandwich boards outside to catch walk-in business. You’ll get the very best last minute bargains to see the Golden Circle, go whale watching or whatever tempts you.

(Danielle, Live In 10 Countries)

Go to local pools and skip the Blue Lagoon

Visiting geothermal pools is one of the best things you can do in Iceland with children. But unless you’re prepared to spend a week’s salary on one pool, a family visit to the famous Blue Lagoon is not really the best option. You may have heard about the Secret Lagoon, Myvatn Nature Baths, or Fontana Wellness Lagoon – these are all fantastic Blue Lagoon alternatives – and although much cheaper than the Blue Lagoon, they can still be rather pricey.

I have good news for you though. A soak in warm geothermal waters in Iceland can be much more affordable than you think. And you don’t have to share a pool with hundreds of strangers. Visit local swimming pools! They are plentiful all over Iceland and they are always heated, often with at least a few hot tubs in different temperatures. Some public swimming pools even have saunas, water slides, or special heated pools for babies and toddlers.

Prices vary per location, but in general shouldn’t cost more than USD 5-10 for an adult, often free of charge for kids .

(Jurga, Full Suitcase – follow on Instagram )

If your planning to spend some time in Reykjavik with kids, make sure you read: Things to do in Reykjavik with kids .

Get the Reykjavik City Card

The Reykjavik City Card is an awesome way to save money on attractions that families will love. This card gives you unlimited access to 8 museums, 5 art galleries, 8 swimming pools, and the Reykjavik zoo for 24, 48, or 72 hours, and free use of city buses. I bought a 24-hour Reykjavik City Card, and used it for 4 attractions, which would have cost double otherwise!

The Reykjavik City Card is available at the Official Tourism Centre in Reykjavik, and many hotels. Prices start at ~ $35 USD for an adult for 24 hours, and $15 USD for a child.

(Nina, Nina Near and Far – follow on Instagram ) 

Or if you really want to save… avoid Reykjavik altogether!

One sacrifice worth making to truly enjoy Iceland on a budget is avoiding Reykjavik city altogether. The main reason for this is to avoid the temptation of the restaurants and bars where prices for just a burger with crisps [not chips/fries] can set you back £19! Although there are happy hours, a beer can set you back £8 and a glass of wine £11 in Reykjavik too. 

(Gemma, Two Scots Abroad )

TRAVEL GEAR

Make sure you have all the right travel gear with us before we go and purchasing clothing whilst in Iceland is a very expensive option. Those natural woollen Icelandic jumpers look very cosy, but they will set you back at least £100. Pack layers (including thermals), good quality waterproof jackets (we love these 3-in-1 jackets from Mountain warehouse ) and trousers, as well as waterproof hiking boots and woolly hats and gloves.

Check our our packing list for Iceland

(Jenny, TraveLynn Family )

You may also like to read: 5 Day Iceland Itinerary with kids The BEST Blue Lagoon alternatives in Iceland What to pack for Iceland