Iceland is a breathtaking destination filled with natural wonders, vibrant culture, and unique culinary experiences. Traveling to Iceland on a budget is absolutely possible with careful planning and prioritization. Here’s a brief guide to help you make the most of your Icelandic adventure without breaking the bank.
1. Transportation:
- Opt for budget airlines or look out for flight deals to Reykjavik, Iceland’s capital.
- Consider renting a camper van or joining group tours to save on transportation costs while exploring the island. We used “Bus Travel Island” when we went to Iceland and we will recommend it to everyone looking to go. They had tours for most parts of the main areas of Iceland. There were all day tours with fantastic and knowledgeable travel guides and they were relatively inexpensive for the most part. They were extremely convenient as well as they would pick you up at a bus stop closest to you and drive you around in a bus all day taking you to different spots. It made it so you never had to even rent a car which would save you a lot of money for an extended stay
- Utilize public transportation within cities like Reykjavik, which is relatively affordable. You can also walk everywhere in the city. When we toured the city we walked everywhere. It saved money and was a great way to get our steps in and really take in the entire city
2. Accommodation:
- Stay in budget hostels, guesthouses, or campgrounds to save on accommodation expenses. If you are new here you will know that i preach AirBnb’s when traveling. So often so many people just look to get the nicest hotel in the middle of the city. I can tell you right now hotels in downtown Reykjavik are going to run you over $200 US per night. That is just crazy money to spend for a room in which you won’t even be in for the majority of the time.
- Stay in AirBnB/s – we found a terrific AirBnB in the city. It was a small little downstairs apartment, but we had a bed, bathroom and kitchen. Under $60 US per night and we loved it. It was a short walk to the bus stop and we could walk into the city as well. If you want to splurge on a hotel, then by all means go for it, but if you’re looking to save money, AirBnb’s are the way to go
3. Sightseeing and Activities:
- Explore Iceland’s natural wonders, such as the Golden Circle, which includes attractions like Thingvellir National Park, Geysir Geothermal Area, and Gullfoss Waterfall. All stops on “The Golden Circle Tour” from Bus Travel Iceland.
- Visit Reykjavik’s landmarks like Hallgrímskirkja Church and Harpa Concert Hall, which are often free to admire from the outside.
- Hike to stunning waterfalls like Seljalandsfoss and Skógafoss along the South Coast for breathtaking views. Trek to a glacier and even get to walk on it!
- Hike up to recently active volcanoes like Natthagi, there are volcano tours where you can hike up volcanoes, see the barren landscape and walk on the hardened molten lava!
- Relax in natural hot springs like the world famous Blue Lagoon. This is a must stop when going to Iceland as the beauty of the hot spring along with the scenery is not be missed. You will be relaxing in a natural hot spring with a cucumber mask on while drinking your complimentary drink from the swim up bar at the edge of the world. It’s truly remarkable
- Explore off-the-beaten-path destinations like the Snæfellsnes Peninsula or the Westfjords for fewer crowds and unique experiences. This was my favorite tour on the whole trip. It was a smaller and more intimate bus tour with only about 15 of us total. The places we stopped at there were no crowds and they were beautiful. It really showed what Iceland was all about going from hidden waterfalls to beautiful mountains and black sand beaches.
- See the Northern Lights! If you go to Iceland between September and April, that is when the Northern Lights are most visible because of how much darkness there is. Book a tour or go outside on a night when there is no cloud cover and look up at the sky. take lots of pictures as they are hard to see with the naked eye
- Again all of these places mentioned are stops on the several different tours you can take. If you want to take the driving out of it, especially in the winter time when the roads and conditions will be treacherous, the bus tour route is the way to go, you won’t miss a thing.
4. Food:
- Opt for budget-friendly options like hot dogs from gas stations or Bæjarins Beztu Pylsur, a famous hot dog stand in Reykjavik.
- Visit local bakeries for freshly baked goods like kleinur (twisted doughnuts) or kleina (fried pastries).
- Try Icelandic street food like pylsa (sausage), fish and chips, or pylsur (hot dogs) for a taste of local flavors without breaking the bank.
- If you’re looking for a great meal, I highly recommend the lamb. They are famous for their lamb and wow did it not disappoint. Hlemmur food hall is a fantastic place to eat. They have almost a dozen different restaurants inside ranging from tacos, to fine dining, to pizza, to fish etc. Really anything you could want. We ate there twice and got the tacos one time and got the lamb the next.
- Consider grocery shopping and cooking your meals if you have access to kitchen facilities, which can be more economical than dining out every meal. Pretty much every tour we went on we packed our own lunch. We stopped at the grocery store on our first day and got things for PB&J’s, some snacks like granola bars, nuts, fruits etc, We would typically make a light breakfast such as rice cakes with peanut butter, a muffin or some fruits like bananas and berries to fuel us for the day. A great way to save money and then if we wanted to splurge on a nice dinner we could do that as well .
5. Budget Tips
- Set a daily budget and stick to it by tracking your expenses.
- Take advantage of free attractions and activities, such as hiking and exploring natural landscapes.
- Consider traveling during the shoulder seasons (spring or fall) for lower prices on accommodations and tours compared to peak summer months.
- Bring reusable water bottles and refill them from taps, as buying bottled water can add up quickly.
- As mentioned in the last section, pack lunches and eat breakfast at the Airbnb to save money on food.
Conclusion
Please note that Iceland is not a cheap place to visit. It’s actually one of the most expensive countries in the world to travel to just for the fact it’s a small island and almost everything is imported there.
With that being said it’s one of the most beautiful places in the world and a country everyone should travel to at least once in their lives. Almost everyone there speaks English, so don’t worry about not being able to know the language.
We stayed for 8 days and that was the perfect amount of time in my opinion. We got to do everything we wanted and even got to have an active rest day in there where we had nothing planned and just got to walk into downtown Reykjavik and explore the shops and book stores and restaurants there.
All in all it was a magical experience. Why spend $10,000+ going to Disney World for a few days when places like this exist? For the whole trip I spent under $1900 US. That included the flights, airbnb, tours, food, souvenirs, coffee, you name it. I truly hope this guide helped. For a more in-depth guide, please feel free to check out there FREE EBOOK on Iceland right here! “Iceland FREE eBook“