Budget Travel Tips for Iceland

Iceland is famous for its spectacular nature, but it can also be quite expensive. However, you can save money while ticking off items on your bucket list. DIY nature exploration typically costs more calories than cash, pools are cheaper than lagoons, and some accommodations can be both comfortable and budget-friendly.

Daily Costs (During Peak Season)

Dorm bed in a hostel: 8,000 – 10,000 kr
Basic room for two: 27,000 – 31,000 kr
Self-catering apartment (including Airbnb): 20,000 – 43,000 kr
Public transport ticket: 630 kr in Reykjavík
Coffee: 650 – 800 kr
Sandwich: 650 – 1,800 kr
Dinner for two: 7,000 – 24,000 kr
Beer/pint at the bar: 1,500 kr
Swimming pools: 1,200 – 1,400 kr

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

1. Pick the Right Kind of Flight

Iceland serves as a convenient transfer hub with numerous airlines offering competitive deals. Utilize search engines like Dohop or Skyscanner to find affordable tickets. Keep in mind that peak season lasts from June to August, so consider traveling during off-peak months for lower fares, albeit with fewer flight options.

Base yourself near Þingvellir for its many hiking routes © terrababy / Getty Images

2. Choose One Region and Explore It Well

Driving the Ring Road is not a necessity. Save on transportation by selecting a single region as your base and explore it thoroughly. This approach can uncover hidden gems and offer tranquility. One excellent region to consider is Hvalfjörður, located about an hour’s drive from Reykjavík, which provides proximity to Þingvellir National Park and beautiful hiking trails.

3. Embrace the Elements in Iceland’s National Parks

Consider camping in one of Iceland’s many campsites, especially those in national parks like Skaftafell. Campsites offer free entry, beautiful surroundings, and affordable rates of around 2,000 kr per adult per night. Night temperatures can be chilly, even in summer, so pack warm clothing and blankets.

4. Road Trippers Should Consider Hiring an RV

For road trip enthusiasts, renting a camper or RV can enhance flexibility. A two-person campervan generally costs around 17,000 kr per day during peak season but may drop to 7,500 kr per night in the off-season.

5. Consider Budget Hostels or Farm Stays

Iceland offers numerous HI (Hostelling International) hostels across the country. Prices generally range around 20,000 kr per night during shoulder season and up to 30,000 kr in summer. Farm stays are also an option for those interested in experiencing local life while enjoying Iceland’s nature.

6. Summer Travelers Can Stay at a Boarding School Turned Hotel

In summer, consider staying at the Edda hotels, which function as hotels during the summer months and student accommodations during the school year. Both locations in Akureyri and near Egilsstaðir offer good value for double rooms under 20,000 kr.

Traveling as a family or with a larger group? Look to rent a country cottage like Icelanders do © Nikolay Tsuguliev / 500px

7. Summer Houses Are Good Value for Group Travelers

Icelanders often enjoy group getaways to summer houses. Renting a cottage can be an economical choice for families or friends, with over 500 available options.

8. Look Out for Last-Minute Deals

If spontaneity appeals to you, keep an eye on booking platforms for last-minute offers. Often, travelers can snag great deals due to cancellations, allowing for budget-friendly accommodations without sacrificing quality.

The Blue Lagoon isn’t the only hot pool option. Save some money at Nauthólsvík in Reykjavík instead © Try_my_best / Shutterstock

9. Soak Up Icelandic Bathing Culture

Embrace Iceland’s bathing culture of relaxation without over-spending. Public pools offer affordable rates around 1,000 kr, significantly cheaper than spa baths. These communal experiences are popular among locals and provide a unique cultural immersion.

10. Buy a Reykjavík City Card

Explore Reykjavík efficiently with the Reykjavík City Card. Available for 24, 48, or 72 hours, it grants access to various museums, galleries, and public transportation, proving to be a cost-effective choice for tourists.

To save money on the road, pack your own lunch and BYO flask of warm drinks © Getty Images / iStockphoto

11. Reserve Eating Out for Special Occasions

To manage your expenses, limit dining out and instead buy groceries from supermarkets like Bónus, Krónan, or Nettó. Prepare your own meals, pack lunches, and plan special occasions for restaurant visits.

12. Weigh Up the Cost of Bus Fares vs. Car Hire and Rideshares

Investigate bus routes in Reykjavík and consider purchasing passes for savings. If traveling as a group, ridesharing can be more economical than public transportation.

Internal flights can be cheaper than the bus, but you will miss out on Iceland’s stunning scenery © WanRu Chen / Getty Images

13. A Flight from Reykjavík to Akureyri Can Be Cheaper Than the Bus

Sometimes flights from Reykjavík to Akureyri are cheaper than the bus fare, making flying a viable option for some travelers. Although the bus offers a scenic experience, flights are conducted in about 40 minutes, a significant time-saving for those in a hurry.

14. Nature Is Right There, Free to Enjoy

Regardless of where you stay in Iceland, explore the abundant natural beauty surrounding you. Whether it’s taking a stroll along nearby beaches or hiking in lush landscapes, nature offers priceless experiences that are often free.

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