iceland travel cost

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.

Related Posts

The Cost of Travel in Mauritius: My Detailed Budget Breakdown

The Cost of Travel in Thailand: My Detailed Budget Breakdown

2023: My Travels in Review

The Cost of Travel in South Korea: My 2024 Budget Breakdown

What’s it Like to Travel in Liechtenstein?

What to Take On the Camino Primitivo: My Detailed Packing List

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.

Leave a reply Cancel reply

Your email address will not be published. Required fields are marked *

How Expensive Is Iceland? When to Visit & How To Save Money

The Currency of Iceland

Accommodation and transport costs in iceland, wining and dining: how much does a meal cost in iceland.

• Shopping in Iceland

Sightseeing in Iceland

• Weekly and Daily Budgets: How Much You’ll Spend in Iceland

Route 1 - The Backpacker

• Route 2 - The Minimalist
• Route 3 - The Traveler
• Route 4 - The Big Spender

Just for You: Package Comparisons

Find out how much a trip to Iceland would cost to help you better budget for your trip. How expensive is Iceland? What’s the condition of the Icelandic currency? Read on to discover our guide on spending and saving money in Iceland.

The nature of Iceland, which boasts glaciers, waterfalls, active volcanoes, ancient mountains, geysers, and black beaches, draws a myriad of international visitors every year, each searching for adventures and memories to last a lifetime. However, there's no reason it needs to break the bank.

If you're hoping to go on self-drive tours around the country, rent a budget car and explore the largest selection of accommodation in Iceland  to stay at. In case you haven't booked your flight, find the cheapest flights to Iceland and make the most of the land of ice and fire!

Top Budget Self Drive Tours

Best 7-day northern lights self drive tour through south iceland to jokulsarlon ice cave, amazing 6-day northern lights winter self-drive tour on iceland's south coast with ice caving, 5-day northern lights winter self-drive tour with the golden circle & jokulsarlon glacier lagoon.

• Discover 18 Tips on How to Save Money in Iceland
• Learn how to steer away from the 9 Worst Tourist Traps in Iceland

This picturesque country holds a reputation other than the allure of its natural wonders. The question on everybody’s minds before they decide to book their flight to Iceland is precisely how much money they will need in Iceland. Is Iceland expensive to visit, or is it possible to travel on a tighter budget?

Iceland currently one of the most expensive countries in the world. In 2018, Icelandic banks made an extensive report about essential travel costs for visitors, and the numbers were staggering.

Staying in hotels is 10-32% more expensive in Reykjavik than in other Nordic capitals; prices of restaurants and lodging exceed the EU average by 44%, while the cost of alcoholic beverages outstrips the same standard by a whopping 123%.

Of course, following the consequences of COVID-19 travel restrictions in Iceland , these numbers can't be considered dependable. But it gives a general idea of how expensive Iceland is compared to other Nordic countries.

Knowing how expensive Iceland is, you shouldn’t get too disheartened; there are multiple ways to travel in Iceland without emptying your bank account.

Top Nature Tours in Iceland

It might surprise some people that a nation of roughly 370,000 people has its very own currency. The currency of Iceland is called the Krona (ISK). It has a long history of independent monetary policies, including being pegged to the Danish krone and the Euro.

The history of the Krona is complicated, with the locals regularly arguing for or against keeping it. What you should bear in mind when traveling to the country is that the currency of Iceland has little value outside its shores. The Central Bank of Iceland determines its worth, and very few banks outside of Iceland ordinarily carry or exchange it.

This is why, when traveling here, you don't need to carry large amounts of currency with you. You can exchange your notes at the airport, but the exchange rate is more favorable if you do so in a bank in Reykjavik.

Also, remember to change your money before leaving to avoid getting stuck with a currency that no bank abroad can accept.

It’s most common for travelers and locals alike to pay for everything on their credit or debit cards. From small food shacks to large shopping centers, everywhere in Iceland accepts card payments, so it may be worth packing light and paying with your plastic.

To make it easier to understand how much you’ll spend in Iceland, all prices have been converted from ISK to USD. However, it’s important to remember that exchange rates do fluctuate constantly. So, the prices quoted here are bound to vary slightly, and you’ll always pay the actual ISK amount.

• See the  Guide to the Icelandic Krona (with a currency converter!)

What you’ll end up paying for accommodation in Iceland largely depends on the type of lodging you select. From cottages in the nature of Iceland and affordable hostels in Reykjavik to Icelandic guesthouses with a local flavor , the variety at hand has a vast price range, and there are indeed options that will suit your particular needs.

• Find out Where to Stay in Iceland
• See also: Top 10 Best Hotels in Reykjavik

Expensive as the overall selection might be, there are very few luxury hotels which most being three star hotels. Despite that, you could pay the same for a hotel as in New York or London. For   three or four-star hotels, the prices range from an affordable 50 USD to 850 USD per night, with most establishments offering free Wi-Fi. Breakfast is generally available, but not always included.

Expensive lodging is the case for visitors and locals; the price of a roof over one's head is soaring. There’s a housing problem on the rise in Reykjavik, where the top percent of the community monopolizes the current generation of renters incapable of investing in homes.

A significant factor in this situation is the staggering number of apartments leased through Airbnb in Reykjavik. If you're considering this route, think about the community you're coming to and try not to exacerbate this problem for the locals.

Consider booking official accommodations, and remember that  renting entire apartments in Iceland  is also available, as is booking people's summer cottages in the countryside, which is much more appreciated. These summer houses offer closeness to nature, tranquility, and exclusivity. They often come with a private hot tub while still being very affordable.

Nobody wants to stay cooped up in a hotel for the duration of their stay, so even if you book the cheapest accommodation with this in mind, booking tours, transportation, and the issue of food still add to your spending.

However, by booking a complete vacation package in Iceland  that combines exciting tours and things to do, as well as accommodation, transportation, and breakfast, you save yourself the jolt when taking care of the bill. You only need to drive from place to place, while everything else will have been taken care of at an affordable price.

Your cheapest bet, however, will most usually be camping. Luckily, that is an option of steadily increasing availability when traveling around Iceland. Camping sites are common around Iceland and allow you to get closer to the nature you're here to see. Camping is the most sustainable option, providing that you leave the area in the same state you found it.

• See also: Camping in Iceland | All you need to know

When camping in Iceland, you still need the means to travel to your selected locations. That is where renting a car in Iceland or booking a  self-drive tour  comes in handy. You’re provided with a vehicle or a camper with a rooftop tent and a detailed itinerary that makes you the guide, enabling you to move around the island and visit sights on your own.

Remember that Iceland is situated on the edge of the Arctic Circle, so camping is an infinitely easier option during the summer months. Camping in the Icelandic winter is an activity reserved for only the most avid trekkers, who are experts in reading the weather forecast , possess all the proper equipment, and have years of experience when it comes to surviving in the wild.

• Check out our  great selection of winter self-drive tours
• See info on What To Pack for Iceland for All Seasons
• See our guide for How to Drive Safely in Iceland

If you're feeling adventurous, there’s also the option of hitchhiking, which is exceptionally safe in Iceland. If you're driving a rental, picking up hitchhikers and suggesting that they pitch in for petrol is an excellent way of saving gas money.

• See also: Iceland's Weather, Climate, and Temperature Year-Round

As for the case of inner-city transport, do not take a taxi unless necessary, and only if you're going to be traveling short distances within the city. It's incredibly expensive. The downtown area of Reykjavik is, in fact, very pedestrian-friendly. It also boasts the public bus service Straeto , where the regular fare is around 4.80 USD and limitless within the hour. Day and month passes are also available for a better price, depending how much you plan to use the bus system.

Public transportation outside the capital is not as good, though. If you’re traveling anywhere outside the city, you should know that renting a small car in Iceland is always a lot less expensive than taking a public bus.

Some newcomers make a big mistake by taking a taxi from KEF Airport to the city. Rent a car, or book the shuttle bus to Reykjavik instead, which will save tenfold.

Top Airport Transfers

In the last few years, Iceland has witnessed a surge in its local food scene, with numerous world-class restaurants sprouting all over the capital, some of which have Michelin stars and mentions!

The possibilities for dining are endless. Traditional Icelandic food is fused with other cuisines or spiced up with exotic ingredients to create venues for fine dining that stand tall amongst the competition.

• See a selection of the Best Restaurants in Reykjavik
• Read our  Vegan and Vegetarian Guide to Reykjavik

Eating out is relatively expensive (the average plate will cost between 15 USD and 40 USD), so the locals consider restaurant dining a treat instead of a regular occurrence. If you're going to be eating out in Iceland every night of your stay, expect your expenses to soar.

Instead, you should research the possibilities and plan for one or two special occasions. As with most things in Iceland, they might come at a cost, but they’re well worth it for the unique and quality experience.

Be careful when you buy fast food like pizza, burgers, or sandwiches. One might think it's more cost-effective, but Reykjavik's casual dining pretty much falls within the same price range as the more refined dining. A pizza usually costs around 15-20 USD - virtually the same as a meal at a nice restaurant.

Eating out in Reykjavik is expensive. The best way to save a buck is to take advantage of lunch hours when numerous inner-city restaurants offer reduced prices or two-for-one deals on selected dishes.

The most economical way of eating food in Iceland is to cook it yourself. If you're purchasing groceries, avoid the supermarket chains 10-11 or Krambudin, the most expensive grocery stores in Iceland. Shopping there might go as far as doubling your grocery bill.

Instead, hit low-price stores like Kronan or Bonus. They have numerous locations in and outside the capital and offer the lowest grocery store prices in Iceland. Kronan in particular, offers a great range of high quality and environmentally friendly products for a low price.

These stores are ideal for lunch-pack shopping before you leave town and embark on your adventures. This way, you can skip the roadside kiosks that tend to offer things like burgers and hot dogs, but for sky-high city restaurant prices!

As for alcohol, Iceland’s relationship with it is rather complicated. Beer prohibition was lifted as recently as 1989, and although Icelanders like to wet their whistle, the accessibility is somewhat limited compared to international standards.

Alcohol is only sold in the state-run liquor store known as Vinbudin  (Icelanders call it "Ríkið," which simply means "The State"), which has limited opening hours. It's always closed on Sundays and public holidays. Therefore, stock up beforehand if you plan to go out or even stay in. However, in these state-run stores, taxes are very high, so the very best bet is to shop duty-free at the airport on arrival!

You should also watch out for what appears to be beer on the shelves of local supermarkets - it's not. Supermarkets are only allowed to sell beverages with a maximum alcohol content of 2.25%. Therefore, these are nearly alcohol-free beers, but many travelers have been fooled by their appearance and become placebo-drunk.

Despite all of this, you can’t avoid hitting the streets at some point, and you shouldn’t since Reykjavik boasts some fantastic high-quality bars and pubs that are a joy to visit. Although the prices are high (roughly 8 USD for a pint), Reykjavik has a vibrant happy-hour culture, where you can hit the bars at the correct times for the best prices.

• See more:  Happy Hour: Reykjavik's Cheapest Bars
• Learn about Best Bars for Craft Beer in Reykjavik

Now that you know how expensive Iceland is don’t expect to save money on shots, mixers, or cocktails since those rarely fall under the happy hour menus. Most happy hours include the house’s red and white wines, and sometimes a sugary cider if beer is not your preferred drink.

Photo courtesy of Von Mathus Gastropub . No edits made

How much is a cup of coffee in Iceland? You may want to consider it an odd treat instead of a daily buy. A cup of latte or cappuccino goes for around 5 USD, tea at about 3 USD (usually with free hot water refills), and a regular black coffee goes for anything from 2.50 USD to 4 USD (depending on if refills are included).

There are a few ways to get around this. Since Iceland is one of the biggest coffee-consuming nations globally, your accommodation might include it as complementary. You'll also find free cups of coffee at most banks intended for customers if you're desperate for a caffeine fix.

Now that you know some prices in Iceland,, avoid buying bottled water . Water from the faucet in Iceland is among the cleanest and purest in the world, full of healthy minerals, and is always safe to drink . Just bring a water bottle with you, and rest assured that every establishment will happily refill it.

Shopping in Iceland 

Photo courtesy of Smaralind mall

When shopping in Iceland, the estimation ultimately depends on what you're here for and what you're willing to spend. Although enjoying Iceland is not solely reserved for the wealthy, shopping here might very well be.

Fashion wear in Iceland is taxed through the roof. For instance, a pair of Levi's jeans is sold with a roughly 40 percent markup compared to Scandinavia, the UK, and the US.

Most locals prefer to do their most extensive shopping online or abroad, heading to discount stores in Copenhagen or Berlin in unison with their travel plans. Icelanders also love to hunt for discounts and sales, in which case the two Reykjavik shopping malls, Kringlan and Smaralind , are the prime destinations.

The city offers a wealth of local design stores, each holding unique and hand-made garments for an attractive price. Shopping vintage is another option. There are a lot of great second-hand stores on Laugavegur street , where you could even score your very own authentic lopapeysa for cheap.

You can also head to Kolaportid Flea Market - the only place in Reykjavik where you can practice the art of haggling. The market is only open during the weekend, and you should go here if you want to pay next to nothing for Icelandic wool products, stamps, postcards, weird knick-knacks, or vintage wear.

Photo from  Wikimedia, Creative Commons, by Karl Gunnarsson.  No edits made. 

The so-called "puffin shops" that litter the local streets might promise a bargain on authentic Icelandic memorabilia if you're looking for souvenirs. But they’re specially tailored tourist traps selling only mass-produced plastic ornaments from faraway lands.

These shops also drive out local businesses, so you should hunt for the more authentic souvenirs at the National Museum of Iceland gift shop, the Handknitting Association of Iceland , or the aforementioned Kolaportid Flea Market.

The best memories you can buy are the numerous adventures you’ll embark on and all the stunning natural sights you’ll behold. Just remember to pack a camera, and you can bring back all those memories.

Top Reykjavik Tours

They say that the best things in life are free. Icelandic nature boasts wonders unparalleled anywhere else in the world. It’s a place where the geothermally active terrain of hot springs and geysers meets with rural coastal villages, in contrast with wild and uninhabited Highlands .

• Discover Iceland's mountains , fjords , and waterfalls
• See also: Glaciers , caves , and volcanoes  in Iceland

Although feasting your eyes on these marvels comes at no cost, you still need the means to get there, a place to stay, and the proper gear and guidance. Nature isn't only there to be looked at; you can and should participate in activities offered to experience it fully.

So when you head to, for example, Thingvellir National Park , a rift valley at the conjuncture of two tectonic plates, you can add significantly to that experience with  snorkeling tours  in the amazing Silfra fissure. Or, if you visit Skaftafell National Park , home to the largest ice cap in Europe, you can embark on a glacier hiking tour  or  venture inside an ice cave .

Luckily, Iceland offers various guided services to make these activities available to visitors. This is the case even with a celestial phenomenon like the northern lights in Iceland .

Though they appear in the winter sky of their own accord, some people work around the clock to calculate their arrival for you by using solar wind readings and weather forecasts. If that fails, most companies offer you compensation for your tour.

That compensation usually allows you to embark on the same tour on a different night to try your luck again, just make sure to check with your chosen tour provider. Therefore, the best way to see the northern lights is to  book a northern lights excursion for the beginning of your stay.

Tours differ significantly in expenses, but we advise you to book packages, as one adventure will undoubtedly leave you thirsty for more. If you buy your tours one at a time, the costs will add up much faster than if you allow the experts to join a few together.

Iceland also offers endless possibilities for hiking and trekking, where you can explore the vastness of the Highlands over a few days while staying in cabins in between. Hikes are a summer activity, but you still need warm clothes, good hiking boots, and food since there are no shops around.

• Read about Hiking in Iceland

Remember always to make a travel plan and then leave the said plan at safetravel.is so you can be located and rescued if you get into trouble. The nature of Iceland should not be underestimated, but if you follow the proper guidelines, you should be fine.

Apart from embarking into the wild, there are also plentiful opportunities to go sightseeing within municipal limits. The capital of Reykjavik possesses a myriad of museums and sights, some of which are free of charge and some of which you can save a buck when visiting by purchasing passes.

• Check out the 13 Best Cheap Things to Do in Reykjavik
• See also:  The Best Museums in Iceland

The Reykjavik City Card is an economical and excellent way to get the most out of your stay in the capital, providing access to a great selection of galleries and museums, all swimming pools in Reykjavik , and public transport.

The pass also gives you a discount on multiple tours and services when you want to leave town, meaning you won't only save money if you stay in the city.  You can purchase a 24 , 48 , or 72-hour Reykjavik Card to meet your needs.

• See also: Top 12 Things to do in Reykjavik
• See also: Secret Spots & Hidden Gems in Reykjavik

Weekly and Daily Budgets: How Much You’ll Spend in Iceland

We hope this article has given you an idea of the different expenses and possibilities when traveling in Iceland. There's nothing left now except to present you with estimated budgets to better your abilities to plan the journey of your dreams. 

The Backpacker's approach to traveling in Iceland includes no transport except  booking the affordable airport shuttle to Reykjavik . Otherwise, they can hitchhike. 

They would camp in the city, where the cheapest option goes for around 23 USD per person. There are also a couple of additional spendings, such as electricity rent or using a washing machine once.

This person would cook their meals, of which rouchly 70 USD should buy them groceries for the week. When we throw in two 72-hour Reykjavik City Cards, showers are covered with daily trips to one of Reykjavik's geothermal swimming pools. 

The Backpacker can sightsee the city, hike up Mount Esja,  and hitchhike to nearby municipalities such as the Reykjadalur hot spring valley in Hveragerdi or the Reynisfjara black sand beach in Vik .

One week's expenses for this approach come to around 300 USD or 42 USD daily for one person.

Extra: Backpacker's Splurge

With one night out, one night eating out, and one budget tour such as a Golden Circle Minibus Tour  for one person, the estimation rises to about 435 USD for the week or around 62 USD per day. 

Route 2 - The Minimalist 

The Minimalist's approach includes hostel accommodation at about 55 USD per night, where cooking facilities enable them to buy groceries for the week for around 70 USD. Let's throw in a case of Icelandic beer for roughly 16 USD to keep the fridge stocked!

This individual would go to a cafe a couple of times and eat out once and allow themselves to purchase one combo tour, such as  Whale Watching and the Golden Circle combo tour , for approximately 202 USD.

They would book an affordable airport transfer from Keflavik Airport  for around 37 USD, but otherwise use the public transport system or rent a small car for one day for around 46 USD.

The Minimalist could spend a day driving along the South Coast or visiting the Snaefellsnes peninsula . A small car will suffice if the season is summer. 

One week's expenses for this route come to about 570 USD or 81 USD daily. 

Extra: Minimalist's Splurge

Booking admission to the luxurious Sky Lagoon and one good night out in Reykjavik , the estimation would rise to around 675 USD for the week or 96 USD per day. 

Route 3 - The Traveler 

The Traveler would book hotels or a guesthouse for around 85 USD per night and rent a four-wheel drive car in Iceland  for the whole week, with gas prices at roughly 2.30 USD for the liter. 

They would hit a cafe three times, eat out maybe four times and buy additional groceries for 62 USD. They might purchase a couple of meet-on-location tours, such as a  horse riding tour in beautiful scenery near Hveragerdi for 67 USD and a  Silfra snorkeling adventure at Thingvellir for 140 USD. 

The Traveler uses their four-wheel drive car to explore the Highland roads and sightsee the wild nature of Iceland and stay outside Reykjavik for several nights. 

A week like that would come to about 1,380 USD, or 197 USD daily. 

Extra: Traveler's Splurge

With one all-included Beer & Food Tour in Reykjavik for 77 USD and admission to the world-renowned Blue Lagoon , the week goes up to 1,594 USD or 227 USD per day. 

Route 4 - The Big Spender 

The Big Spender might book a nice hotel for 235 USD per night and a cottage in the countryside for 118 USD per night. That way, they could enjoy the full extent of gorgeous rural landscapes and the capital city.

They would rent a luxury car for seven days at 95 USD per day and go on three combo tours for 490 USD. 

They might hit a cafe five times during the week and eat out every night. They wouldn't hesitate to match their meals with wine and craft beer, doubling restaurant expenses. 

The Big Spender could, of course, spend a lot more, but this data is meant to showcase a week where the goal isn't to spend money but to see Iceland off a budget.

This approach would leave the week at 2,720 USD or 388 USD per day.

Extra: The Big Spender's Splurge

If this individual wants to splurge, the sky's the limit. Why not add a helicopter tour , exploring Iceland from above and maybe even touching down on an actual glacier for 590 USD? 

Now that you've seen the different approaches to estimated Iceland budgets, you can compare the costs with self-drive tours and all-included travel packages. 

A week's self-drive tour around the whole country, with a car, accommodation, breakfast, and a Blue Lagoon voucher such as this one is 754 USD, where added meals and gas expenses would bring the estimation to 140 USD a day. 

This would top the Traveler's approach - while including more comforts and a lot more sightseeing. There are also budget self-drives, such as this budget-friendly Golden Circle & South Coast tour , available for 743 USD that don't have breakfast or vouchers - ideal for the Minimalist!  

A package such as this customizable Icelandic Wonders tour offers Reykjavik accommodation for five nights, one night at a country hotel, two bus tours, and a Blue Lagoon voucher, all for 1,092 USD. 

Add a few night outs to that, and the estimation would come to 210 USD per day, which matches the Traveler's approach and tops the Big Spender route by miles in being economical. The possibilities are endless, but this should give you an idea.

PLEASE NOTE that all prices listed are subject to change, and we do our best to keep them updated to show the correct information. If you have any additional questions on the costs of traveling in Iceland, don't hesitate to ask them in the comments below, and we will answer them as soon as possible.

Popular articles

Guide to Iceland | The Story of the Leading Travel Agency of Iceland

The Complete Guide to the Midnight Sun in Iceland

Top 20 Most Beautiful Waterfalls in Iceland

22 Photos of the Aurora in Iceland

Mountains in Iceland

Other interesting articles.

Tour Bus Stops & Pick-Up Locations in Reykjavik | All You Need to Know

Guide to the Icelandic Krona (with a currency converter!)

7 Crucial Tips for Group Travel in Iceland

Download Iceland’s biggest travel marketplace to your phone to manage your entire trip in one place

Scan this QR code with your phone camera and press the link that appears to add Iceland’s biggest travel marketplace into your pocket. Enter your phone number or email address to receive an SMS or email with the download link.

Top things to do in Iceland

Book your complete trip with the best companies only

Visit a Live Volcano

Visit the Blue Lagoon

Go on a Road Trip

Do the Golden Circle

See the Glacier Lagoon

South Coast Tours

Find the Northern Lights

Explore an Ice Cave

How Much Does an Iceland Trip Cost? (2024 Iceland Budget)

Iceland is known for being an expensive destination and after visiting Iceland three times and helping over 30 people plan their Iceland trips, I’ve gotten a good sense of the average Iceland trip cost. While it is pricey, your Iceland vacation cost can still be within reach if you build your Iceland budget carefully.

To be honest, I’ve seen everything, from people who found a cheap flight, stayed in hostels, and signed up for group bus tours to keep costs down, all the way to luxury travelers who book private drivers, luxury hotels, and go all out with adventure experiences. Did someone say private helicopter rides?

So how much does a trip to Iceland really cost? It depends on what type of experience you are looking for, what kind of traveler you are, and ultimately, how much you want to spend. And while I wouldn’t recommend taking big bus tours, if that is the only way you can see Iceland, it is still worth it to visit this incredible country.

There are few places in the world that have touched my soul and captured my heart like Iceland has. For its raw beauty, fire and ice extremes, vast emptiness (outside of main tourist stops), to the endearing quirkiness of the Icelandic culture, it is a place I will return to again and again.

The good news is that Iceland has greatly expanded its hotel inventory, which helps balance supply and demand. The exchange rate from U.S. Dollars to Icelandic Króna has also been trending in the favor of American tourists recently. And, Play Airlines has brought a budget airline option back to Iceland.

Average Iceland Trip Cost

I’ll cut to the chase and give you the bottom line on how expensive a trip to Iceland can be, but be sure to read on to see the breakdown and ways that you can save money in each category. The average trip to Iceland cost adds up to about $300-350 per person, per day including airfare. (Based on current exchange rates) This assumes budget airfare, budget accommodations, limited organized activities, self-driving, and being careful in your food choices.

If you are traveling solo, your best bet will likely be staying at a hostel or renting an Airbnb. Though it definitely helps to travel with others so that you can split the costs.

Since hostels and bus tours aren’t our things, I’ve based the average cost for a trip to Iceland for a family of four staying in nice (but not extravagant) hotels or guesthouses and renting a car for a self-driving vacation. I’ve also included a few activities since I think it would be a shame to get to a bucket list destination like Iceland and not get to take part in a few adventures. But keep in mind, that there is enough natural beauty and hiking available that you can easily bypass these to conserve your budget.

The average Iceland trip cost for a family spending a week in Iceland is around $8,545 including airfare. Yup, that is about $1,220 a day for the entire family. Of course, I have worked with families of five that have spent $25,000 on a 10-day trip, and couples who have spent $5,000 on a week-long trip. I’ve even planned an Iceland vacation for a solo traveler that cost them only $2000, all costs included, for a five-day trip. Making Iceland one very versatile vacation.

Iceland Budget Tips

Note: This post contains affiliate links. If you click a link and make a purchase, I may receive a small commission. 

If you want to save some money, my partner Hidden Iceland offers my readers 10% off scheduled group tours if you use promo code WE3TRAVEL. We have traveled with Hidden Iceland and highly recommend this company for its expertise, professionalism, and friendliness. See all their available tours . You can also book private tours or get help planning your whole itinerary — just be sure to mention We3Travel when you contact them.

You can visit Iceland on any budget, at least in theory, but here are some suggestions for keeping costs down:

• Try camping instead of staying at hotels or guesthouses. You can rent a campervan that fits two people for about $130 a night, up to about $300 per night for larger campervans. You can camp for free in Iceland but if you are in a camper van, you will probably want to stay at a campground with facilities so budget another $10-50 per night for a campsite reservation.
• If you don’t want to camp, you could also stay in hostels, which will run you around $40-100 per person per night in Reykjavik.
• Airbnb or vrbo is another option for vacation rental apartments and cabins, which is a great option for families compared to renting two hotel rooms because there are only a few hotels in Reykjavik for families that offer family-size rooms with beds enough for 4-5.
• Food is one of the especially high expenses in Iceland so to save money, purchase and prepare your own food or buy snacks at the gas station convenience stores. If you want a foodie experience, you are going to pay through the nose for it so get used to sandwiches, burgers, and those famous Icelandic hot dogs.
• Avoid paid attractions like the Blue Lagoon and costly excursions like off-roading tours and focus instead on scenic drives, stops at waterfalls, and nature hikes.
• Stay in the countryside and avoid the biggest tourist spots instead of Reykjavik as things are going to be more expensive in the capital city. I was surprised by how affordable the accommodations are in the Westfjords and Snaefellsnes Peninsula .

Before you worry about having to convert and carry a ton of cash around Iceland, don’t stress. Almost everywhere takes credit cards in Iceland. Be sure to read my Iceland tips for some caveats.

How Much Does an Iceland Trip Cost?

Let’s break down the average Iceland budget. As with other posts where I’ve broken down vacation costs for Italy , London , Greece , and Paris , this post outlines pricing for two adults and two children between the ages of 6-11, traveling from a major airport hub in the United States during the summer high season, such as NYC to Reykjavik , and spending a week in Iceland.

I find that in Iceland, some hotels list their prices in Euro, and most show rates in Icelandic Krona. To make it easier, I’ve converted to U.S. dollars to create an even playing field.

I can’t even count the number of emails that I’ve gotten from people traveling to Iceland that start with “I found a great airfare to Iceland next month (or some other close time frame)…” I then go on to pop their bubble about how expensive the rest of the trip will be.

Once WOW went out of business, prices went up a bit but I still have found rates on IcelandAir or Play Airlines from Boston for about $300-500 per person, roundtrip. However, you then need to build in the cost of checked luggage (unless you are an amazing packer Iceland will typically mean a checked bag) and seat selection. This can easily add another $100-200 per person.

I highly recommend signing up for a membership to Going to get alerts on flight deals and set up preferences for your dream destinations.

If you want to find the best way to accumulate points and miles through credit card spending and sign up bonuses, I’d suggest downloading the  Travel Freely app  to track your credit cards and learn how to earn points.

Total airfare cost ($500 per person, round trip x 4 people): $2,000

Accommodations

If you are traveling solo, it is easy enough to stay in a hostel to save money on accommodation in Iceland. But most families will prefer either a hotel or Airbnb/VRBO. A rental will certainly save you money as there are only a few hotels that offer family rooms .

Most Reykjavik hotel rooms either have a double bed (two twins pushed together) or two twin beds. Occasionally you can find a triple or a family room, but a family of four often needs to reserve two rooms. A nice hotel in downtown Reykjavik with a family room will cost between $400-600 per night. You can also get two rooms at a moderate hotel for about $150-250 per night each.

Renting a vrbo apartment will save you a significant amount, as long as you are comfortable as an independent traveler. You should be able to find an apartment in the city large enough to fit everyone for about $300 per night. And if you have been saving up your hotel loyalty points, Hilton Honors and Marriott Bonvoy members are now in for a treat with multiple properties now available in or near Reykjavik.

Full-service hotels in the countryside will start at around $150 per night for a standard room and $350 per night for a family room. There are also some guesthouses that start around $150 per night per room or lower, especially in less crowded areas.

In the countryside, there is a large selection of vacation cabins available on vrbo . Expect to pay about $200+ per night for a cabin that sleeps four. Just plan in advance if you want to stay in popular locations along the south coast or by the Glacier Lagoon, as these sell out early.

If you are looking to do Iceland on a budget, renting an Airbnb or VRBO is the way to go unless you want to camp or stay in hostels, as covered above.

Total accommodation cost: assuming an average of $300 per night (if you primarily use vacation rentals) x 7 nights = $2,100

Find more places to stay in Iceland:

When visiting Iceland, if you want to get away from crowded bus tours and see the country or drive the Ring Road, you will need to rent a car. If you don’t rent a car, you will need to take a shuttle bus (about $30 per person) from Keflavik airport into downtown Reykjavik and then arrange group tours with pick up and drop off from there. Just don’t take a taxi as those can run about $150 one way between the airport and Reykjavik.

Car rentals can be pricey and you may be tempted to save money by skipping the insurance. Before you do, check with your credit card or car insurance provider because you probably still need to buy the ash and rocks coverage. Insurance can greatly increase the cost of the rental car, but you may need it.

There are plenty of budget car rentals but before you book, double-check their hours and location (how far from the airport, shuttle hours), and see the cost of add-ons so that you can compare apples to apples. (See other tips for Iceland car rentals .)

If you are visiting in the winter, you will definitely want an SUV or four-wheel drive. Otherwise, if you are sticking to the Ring Road, a four-wheel drive isn’t necessary. However, access to some hikes and activities will be on gravel roads and you will be more comfortable (and less likely to sustain damage from rocks) in a car with a higher clearance. I’ve seen a sedan get stuck on a rock in the parking lot for a hike before and people literally had to lift the car to get it off. Luckily it wasn’t totally ruined.

Also, keep in mind that to drive on the interior “F roads”, you will need a car that is allowed on those roads. Since many of those roads aren’t passable for much of the year or are extremely hard to navigate (I’ve literally seen a road sign in the middle of a field of snow), I wouldn’t bother with F roads.

The other thing to pay attention to is that you will want to make sure that your car is large enough to fit luggage for your family. Unless you are a super light packer, you will probably need checked bags for Iceland to make sure you are prepared for any weather. (See my Iceland packing list for tips!) I would recommend either a station wagon or an SUV for a family of four.

I use Auto Europe to check for the cheapest car rental rates in Iceland. Don’t forget to budget for gasoline as well (and please, if you rent a diesel car, make sure you use diesel petrol!). Currently (December 2023), gas costs about $8.82 per gallon.

If you don’t want to drive, your best bet is to stay in Reykjavik and take tours that offer pick-ups from the city as day trips. If you want to hire a private driver-guide, you should expect to pay around 120-350 per person, so at least $500-1500 for the day.

Total car rental cost: A station wagon with insurance and unlimited miles will be approximately $650-1,200 for a week. Also, add about $300 for gas if you are driving a lot.

You have probably heard that food in Iceland is expensive. If you have traveled to Scandinavian countries in the past, then you are probably used to high food prices, but for many, it can be a shock. This is especially true in the nicer restaurants in Reykjavik .

In Iceland, even a hamburger can run you $15 and most fish entrees will be closer to $30+. So dinner for a family of four can easily cost $100.

I’ve talked to many people who have felt Iceland was the most expensive place that they have traveled to when it comes to food. My advice is to splurge on one meal but keep the rest casual to keep the costs down.

You will want to try some of the specialties like Arctic char, langoustines, lamb, and if you are brave even try some reindeer or puffin. But to balance out those specialties, you can have a hearty lunch of meat soup or lobster bisque with bread. In the countryside, you can find many restaurants that offer buffets of amazing fresh, homemade food that will fill you up for hours so try to have a light breakfast, one large meal, and one lighter meal.

There is also no need to buy bottled water in Iceland as clean tap water is readily available (although it could have a bit of a sulfur smell at times), just be sure to bring along a refillable water bottle. You can also save by stopping at one of the markets, like the BONUS grocery store, and picking up supplies, especially if you are staying in a rental home or apartment.

Be sure to check out my recommendations on where to eat in Reykjavik .

Total food cost for a family of four: $200 x 7 = $1,400 (keep in mind that this can vary widely depending on if you cook and how much you splurge)

Tours and Activities

How much you spend on tours is entirely a personal preference. You can plan a private helicopter tour for over $3,000, or you can take a free hike. And just about everything in between. There are also plenty of free things to do in Reykjavik too. I would recommend trying at least a few of these unique things to do in Iceland.

Whatever you do, don’t feel like you need to take a tour for everything. You don’t. For example, you can easily do the Golden Circle and Thingvellir National Park on your own full-day road trip. But you may want to splurge on something like a glacier hike or an ATV tour that you CAN’T do on your own.

You can also forgo the touristy and expensive Blue Lagoon (if you go you need to book in advance), in favor of other hot springs around the country, like Krauma, the Sky Lagoon, the Secret Lagoon, or Fontana Spas.

There are a few things that I always recommend to clients. First, this is the land of ice and fire. Do at least one activity that takes you out onto a glacier (the ice part) such as:

• A glacier hike (minimum age 10-14 depending on provider) – see my age-based guide on things to do in Iceland with kids
• Snowmobiling on a glacier
• Ice cave trip (winter only)

Another option is to take a boat tour of the Glacier Lagoon .

For the “fire” part, I would recommend either a lava tube cave tour , a stop at the Lava Center , and/or a visit to at least one hot spring or spa.

There are so many fun things to do in Iceland. If you are adventurous, I would recommend splurging on something like a super jeep tour or ATV/buggy adventures.

I would recommend staying away from large group bus tours (e.g. Reykjavik Excursions) and instead book a small group or private tour with my partner Hidden Iceland . You can save 10% on scheduled group tours with Hidden Iceland using promo code WE3TRAVEL or for private tours, just tell them I referred you when you contact them.

If you can splurge on a few activities, here is what they would cost (based on current exchange rates):

• Secret Lagoon (2 adults, kids are free) = $47
• Into the Glacier (2 adults, 2 kids) = $727
• Lava Cave tour (2 adults, 2 kids) = $122
• Super jeep tour (2 adults, 2 kids under 11) = $1052

Total Activities Cost for 2 adults and 2 kids under 12: $1545

Total Iceland Budget: $8,545

So yes, Iceland vacation costs are high. If you look closely at the breakdowns, you can find ways to save money. You can also easily spend more. This was meant to be a guide to how much a trip to Iceland costs based on my experience helping so many families. Larger families or groups will cost more. Couples or solo travelers will be much less.

Traveling off-season will save you money (see my tips for visiting Iceland in the winter. ) You can also reduce the number of days you stay. If you stick to just one region, you can actually pack a lot into just five days, but I wouldn’t recommend staying any less.

Plan Your Iceland Trip

This article was sponsored in part by Moon Travel Guides. All opinions are my own.

Planning a trip to Iceland can make your brain hurt as you try to decipher between all of the words ending in foss (hint: that’s a waterfall), jökull (glacier), or vik (bay) and struggle with the logistics involved in mapping out an Iceland road trip. I’d recommend ordering a copy of Moon Travel Guides’ Iceland with a Road Trip on the Ring Road .

This guidebook provides options for a variety of itinerary ideas and road trips (with helpful maps!) It offers honest advice on where to eat, where to stay, and when to go, including a helpful phrasebook! Even after three visits to Iceland, I’ll be digging into this guide with up-to-date information to plan my next trip too.

Where to Go in Iceland

If you need some help deciding where to go in Iceland, be sure to check out our guides and itineraries:

• Iceland five day itinerary on the South Coast
• Four days in the Westfjords
• Day trips from Reykjavik
• Day trip to the Snaefellsnes Peninsula

PIN THIS FOR LATER

Save Save Save Save Save Save Save Save Save Save Save Save Save Save Save Save Save Save Save Save Save Save Save Save Save Save

Tamara Gruber is the Founder and Publisher of We3Travel. A former marketing executive and travel advisor, Tamara is an award-winning travel writer and recognized expert in family travel. Tamara is a member of SATW and the Adventure Travel Trade Association, and serves on the Board of the Family Travel Association. She is also the publisher of YourTimetoFly.com and the co-host of the Vacation Mavens travel podcast.

Find this useful? Share it!

Publish Date: November 23, 2023

1 thought on “How Much Does an Iceland Trip Cost? (2024 Iceland Budget)”

We did AirBNB’s and avoided the capital. Saved us lots! Iceland was my milestone 50th country!

Comments are closed.

SIGN UP FOR OUR NEWSLETTER & RECEIVE A FAMILY VACATION PLANNING KIT!

We3Travel.com will use the information you provide on this form to send you newsletters. You can unsubscribe at any time by clicking the link in the footer of any email you receive from us, or by contacting [email protected] . By clicking below, you agree that we may process your information in accordance with these terms.

Start typing and press enter to search

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!

Iceland Travel Guide

Last Updated: April 1, 2024

Iceland is a magical place. It’s the land of sheep, northern lights, volcanoes with unpronounceable names (try saying “Eyjafjallajökull”), rugged landscapes, waterfalls, mountains, and natural hot springs. Its stunning, scenic landscape feels out of this world.

Iceland quickly became one of my favorite countries after my first visit. It’s such a beautiful island filled with warm, welcoming people and sweeping vistas you won’t find anywhere else in the world. I have relished every subsequent visit to the country.

However, Iceland is expensive.

Traveling here on a budget is difficult as Iceland is definitely not a cheap country (and the growing influx of tourists is only increasing prices further).

Fortunately, it is possible to see a lot without going broke if you plan ahead. You won’t be living large if you’re here to backpack, but Iceland is worth the expense.

This travel guide to Iceland can help you plan your trip and see the sights without breaking the bank!

Table of Contents

• Things to See and Do
• Typical Costs
• Suggested Budget
• Money-Saving Tips
• Where to Stay
• How to Get Around
• How to Stay Safe
• Best Places to Book Your Trip
• Related Blogs on Iceland

Top 5 Things to See and Do in Iceland

1. Visit the Mývatn Nature Baths

Mývatn is quieter and less expensive than the famous Blue Lagoon (more on that below). The water from the underground hot springs is pulled from depths of up to 2,500 meters (8,202 feet) and reaches 37–39°C (98–102°F). The pool’s iconic milky blue color is created from the reflection of the sun on silica-rich water. Grab some local geyser-baked bread that they sell at the little cafe and relax, or enjoy a cocktail from the swim-up bar. After your soak you can head in for a geothermal steam bath, naturally created from the steam that rises through the floorboards. The Northeast area of Iceland where the pools are located is abundant with wildlife, so you might even spot local birds while you swim. Admission to Mývatn Nature Baths is 6,490 ISK.

2. See the Northern Lights

Seeing this natural phenomenon was one of the most awe-inspiring things I have ever witnessed. Aurora Borealis is named after the Roman Goddess of dawn and the north wind. They are a stunning sight that is caused by electrically charged particles as they speed into the earth’s atmosphere. They’re only visible in the arctic regions of the world, as the earth’s magnetic field is weaker there. The lights are best admired in remote places away from city lights. The best time to catch them is from mid-September to mid-April. However, it depends on the weather. The longer you stay, the better your chances. If you don’t have a car, you can take a Northern Lights tour from Reykjavik for 7,700 ISK.

3. Tour Reykjavik

Reykjavik is awash in cozy cafes, high-energy clubs, friendly pubs, and brightly colored wooden row houses. It’s super small and worth a few days to get a feel for the art and cafe culture of the city. Reykjavik translates to ‘smoky bay’ and was named for the steam that rises from the hot springs. It’s the northernmost capital of the world and despite its intimate size, the city is home to about 60% of Iceland’s population, making it one of the liveliest places in the country. Foodies will love the ever-expanding culinary scene where you can try options ranging from fine dining to tasty street food. If you’re a night owl, you’ll love the party scene here but be warned: they don’t go out until about midnight and drinks aren’t cheap!

4. Check out the Jökulsárlón glacier lagoon

Located in the southeast of Iceland within Vatnajökull National Park, this ice flow is one of the most popular attractions in the country. It’s the deepest lake in Iceland and is formed from the melting glaciers. Deep blue water is littered with icebergs which move through the lagoon towards the Atlantic Ocean, and you might spot seals perched on floating chunks of ice or swimming in the frosty water. Over the past 50 years the lake has grown significantly due to rising temperatures and currently covers 18 square kilometers (11 square miles). I enjoyed just sitting down and listening to the ice crash into each other on its way out to sea. For an up-close look at the glaciers, consider exploring the lagoon by boat.

5. See the waterfalls

Iceland is the king of waterfalls with over 10,000 cascades to explore. Dettifoss is the most powerful waterfall in Europe with a huge volume of water cascading over the falls every minute, at 45 meters (147 feet) tall and 100 meters (328 feet) wide. Gullfoss is one of the biggest waterfalls in Iceland and is close to Iceland’s famous golden circle (its name translates to ‘golden waterfall’). Seljalandsfoss is beautiful and you can walk behind the falls to get up close and personal with the powerful water. And then there’s Skogafoss which can be found along the Skógá River, and Svartifoss, which is surrounded by towering black cliffs.

Other Things to See and Do in Iceland

1. soak in the blue lagoon.

While I found the Mývatn baths to be a more relaxing and less expensive option, you cannot deny that Iceland’s most famous geothermal pool is the country’s top tourist attraction. It might be crowded and expensive, but there’s nothing like it in the world. This huge, milky-blue spa is fed by mineral-rich heated seawater from the nearby geothermal plant. Add the silvery towers of the plant, rolling clouds of steam, and people covered in white mud, and you’ll think you’re in the twilight zone – in a good way! Admission with a drink, towel, and mud mask is 14,000 ISK.

2. Take a Game of Thrones tour

The harsh climate north of the Wall in HBO’s hit series was predominantly filmed in Iceland. Explore the film locations on a guided tour, with both single- and multi-day options available, to get a behind-the-scenes look at this epic series. An 8-hour day tour starts at 15,470 ISK.

3. Explore Thingvellir National Park

This national park and UNESCO World Heritage Site is interesting for two reasons: it’s the original site of the longest-running parliament in the world (Vikings held political meetings here in the 10th century), and it’s also where the North American and European continental shelf plates are being torn apart (you can actually scuba dive between the plates for around 35,000 ISK). It’s one of the main stops in the Golden Circle and has several trails if you want to get out and stretch your legs. There are also some campgrounds here if you want to stay the night. Admission is free.

4. See Maelifell Volcano

Found in Myrdalsjökull Glacier Park north of Vik, Maelifell’s perfect cone shape gives this volcano that ‘classic’ volcano look. During the summer, snow melts to reveal a lavish green surface covered with moss. There is plenty to do and see in the surrounding park which is full of volcanoes, hot springs, and hiking trails. During the winter, a lot of the roads in the park close, so the summer season is the best time to go if you want to see the volcano up close. You can get to the volcano in 90 minutes by car from Vik.

5. Check out the geysers

Volcanic activities underneath the surface of Iceland have created a lot of geysers, underground springs, and thermal pools. Strokkur, in the southwest of Iceland, is currently the most popular geyser in the country. It erupts every 15 minutes and shoots a spray of water over 10 meters (32 feet) into the air. Geysir (from which the English word geyser is derived), was the first popular geyser known to tourists, though it no longer erupts frequently (you can still visit it though). There is no admission to see Strokkur (or Geysir, which is nearby). Arrive early to beat the hordes of tourists that come by bus as this is a main Golden Circle tourist stop.

6. Drive the Golden Circle Tourist Trail

The Golden Circle is a 230 kilometer (140 mile) route that includes some of the most popular sites near Reykjavik, including Gullfoss, Thingvellir, and Geysir/Strokkur. This is the main route for tourists visiting for just a day or two and lots of tourist buses drive this route. Other stops include the Kerið volcano crater, Hveragerði greenhouse village, Skálholt church, and the Nesjavellir or Hellisheiði geothermal power plant. If you have a vehicle, start your day early to beat the buses. You can drive the whole route in a few hours. If you don’t have your own car you can take a guided tour of the Golden Circle for 9,555 ISK.

7. Hike the Laugavegur trail

This 55 kilometer (34 mile) trail runs between Landmannalaugar and Þórsmörk and is a popular hike. Considered one of the most extraordinary hiking trails in the world, it offers a gorgeous variety of landscapes, including mountains in various colors, hot springs and glaciers, rivers, and lakes. Its well-worn trail, cozy huts, steady stream of trekkers, and frequent signposts make it a relatively safe and logistically easy venture. You can stay in huts for around 10,200 ISK per night, or camp in the designated areas outside the huts for just 2,500 ISK. You can hike the entire trail in 3-5 days.

8. Hike the Fimmvörðuháls Trail

If the full Laugavegur hike is too much, try your hand at the shorter (but equally as stunning) Fimmvorduhals trail. Stretching between Þórsmörk and Skógar, this trail can be done in a day or broken up into a two-day adventure. You can either camp or book one of the mountain huts located along the route. Just be aware: the huts sell out fast! The trail is moderately challenging so you’ll need to have solid footwear and be in good shape. Make sure you have rain gear as the weather can change quickly. Hiking is free if you don’t camp and there is a bus that can take you from Þórsmörk back to Skógar if you parked your car there (it’s 8,000 ISK each way).

9. Go fishing

Iceland is famous for its fish. With tons of salmon, trout, cod, and haddock, fishing here is incredibly popular and a big part of Icelandic culture and cuisine. You can find fishing tours from Reykjavik as well as more remote destinations like the Westfjords. They’re pretty much available everywhere! Expect to pay around 16,000 ISK for a three-hour fishing tour.

10. See the Skaftafell Ice Cave

These beautiful ice caves in Vatnajökull National Park attract adventurers from around the globe. The caves are part of the largest ice cap in the country and the second-largest in all of Europe. They are only accessible in winter. Guided tours take you into the caves where, armed with an ax and crampons, you can explore this otherworldly landscape. Tours start at 19,200 ISK per person and last around 4 hours.

11. Go whale watching

Iceland is home to some 20 different species of whale, as well as dolphins and harbor porpoises. Minke, fin, and humpback whales are the most commonly seen, and orcas and sperm whales appear regularly as well. The prime whale-watching season is from April to September, with most tours leaving from the south (Reykjavik) or north (Akureyri). Tours start at 10,000 ISK and go up from there. They usually last 2-3 hours.

12. Visit Landmannalaugar

Located in the interior highlands, these multicolored rhyolite mountains, lava fields, and volcanoes are a popular tourist destination for anyone looking to get off the main tourist trail. The striking landscapes look like a different planet. Horseback riding trips can be done here, starting at 11,000 ISK for a one-hour guided tour. For a short day hike, try the Sulpher Wave Trail. It takes around two hours. Note: to get here you need to drive on F-roads, which means you’ll need a 4×4 vehicle.

13. See Kirkjufell Mountain

Near the small town of Grundarfjörður in western Iceland, this iconic mountain juts out from the landscape. Surrounding this striking mountain are a bunch of waterfalls. If you come in the winter, it’s a gorgeous place to spot the northern lights. The mountain is one of the most photographed sights in all of Iceland (you’ve probably seen it on Instagram).

14. Hike the Snaefellsnes peninsula

Stretching out from the west coast, this peninsula is topped by a large national park. It’s a great place to take a hike or a stroll along the windy and winding coast. There are numerous hills and mountains to climb, including Snæfellsjökull. If you’re feeling adventurous (and have the money!) book a glacier walking tour for 17,000 ISK. These tours take you out over the remote glacier where you can hike, peer into crevasses, and learn about this martian landscape.

15. Search for puffins

Puffins can be spotted nesting all over Iceland between mid-April and mid-August. The larger populations are found on the Westman Islands and in the Westfjords, as well as in certain parts of the East Fjords. While you can try and spot some yourself (ask locals for help!) you can also book a tour to see them up close. Tours cost around 8,900 ISK.

16. Take a culinary tour

If you want to learn more about Icelandic cuisine and try some local favorites, take a culinary tour in Reykjavik. Companies like The Reykjavik Food Walk take you to 5-6 local restaurants for a 3.5-hour tour for around 16,000 ISK. You can try local dishes, learn how they are made, and get first-hand experience of Iceland’s unique cuisine.

17. Visit the National Museum of Iceland

This museum in Reykjavik contains informative exhibits about the first settlers to the island, Christianity in Iceland, the island under both Norwegian and Danish rule, and the independence movement. While not terribly large (you can probably get through it in a couple of hours at the most) it’s a great visit if you are interested in knowing more about the history and culture of the people. General admission is 2,500 ISK.

18. Take a course at the Icelandic Elf School

The Icelandic Elf School is a school that teaches students and visitors about Icelandic folklore. They teach about the “hidden people” and the 13 different kinds of elves that the school believes inhabit the country of Iceland. This is probably one of the strangest things to check out while in Reykjavik, which makes it one of the best. While the 9,058 ISK cost might be a little high, you also get a meal of pancakes and jam, teas, and chocolates to go along with the 3-4-hour lecture!

19. Visit the Penis Museum

The Phallological Museum, colloquially known as the Penis Museum, is a small institution home to the world’s largest collection of penises and penis-themed art. There are almost 300 items in the museum, including whale penises and (allegedly) troll penises! It’s a small museum but it’s incredibly informative — if you’re not too shy! Admission is 2,500 ISK.

Iceland Travel Costs

Hostel prices – A bed in a hostel dorm with 8-10 beds costs around 4,500-7,500 ISK per person per night. Private rooms cost 18,000-28,000 ISK. Free Wi-Fi is standard and most hostels also have self-catering facilities.

Many hostels in Iceland charge extra for linens/blankets. You can bring your own, however, you cannot use a sleeping bag instead. Additionally, many of the hostels around the country are HI hostels which offer 5-10% discounts to members.

For those traveling with a tent, campgrounds are available all around the country costing 1,600-2,700 ISK for a basic plot for two people without electricity. Wild camping, while technically legal, is frowned upon by locals.

Budget hotel prices – Expect to pay between 13,500-20,000 ISK per night for a double room with a private bathroom (usually with breakfast included). Free Wi-Fi is usually included, as well as other basic amenities like AC and a coffee/tea maker.

Since hotels are so expensive in Iceland, I much prefer to rent a room or apartment on Airbnb. Private rooms can be found for around 13,000 ISK while entire homes/apartments cost at least 19,000-25,000 ISK. Prices double when not booked early.

Food – Fish, lamb, and dairy are the main staples of Icelandic cuisine. Food here is very similar to what you’ll find across Scandinavia. Smoked lamb, cured meat, dark bread, and skyr (a local yogurt) are all incredibly popular. Haddock and herring are some of the most widely eaten fish. Shrimp is very common too. If you have a sweet tooth, be sure to try snúður (a cinnamon roll with chocolate on top).

If you are going to eat out here, expect to pay around 2,500 ISK for a cheap meal of local cuisine. You can find kebabs, soups, and other quick eats for around 1,500 ISK or less. Fast food (which is rare here) usually costs around 2,000 ISK for a combo meal.

For cheap meals, consider grabbing a hot dog (you can find them in every city and at gas stations). They cost around 500-650 ISK. Surprisingly, a decent place to eat cheaply in Iceland is at the gas stations. Most gas stations sell everything from deli sandwiches, pizzas, Icelandic soups, hot meals, fruit, and they have whole aisles of candy! It’s decent fast food and some of the cheapest you’ll find (albeit not the healthiest).

If you want to splash out, a three-course meal with a drink costs around 6,500 ISK.

Beer costs around 1,400 ISK. A latte/cappuccino is around 615 ISK. Bottled water (which you won’t need here) is around 270 ISK.

If you plan on cooking your own food, a week’s worth of groceries costs around 9,500 ISK. This includes basic staples like pasta, rice, seasonal produce, and a little bit of meat.

Backpacking Iceland Suggested Budgets

On a bare-bones backpacker budget of 7,000 ISK per day, you can camp, cook all your meals, hitchhike to get around, skip drinking, and do free activities like hiking or visiting waterfalls. If you plan on drinking, add 1,000-2000 ISK per day to your budget.

On a more reasonable backpacking budget of 10,500 ISK per day, you can stay in hostel dorms, cook most of your food and have a couple of cheap fast food meals, enjoy a drink here and there, take public transportation to get around and do a couple paid activities like museum visits in Reykjavik.

On a mid-range budget of 23,000 ISK per day, you can stay in a private Airbnb, eat fast food with the occasional traditional meal, split a car rental to get around, drink a little more, and do more paid activities like a puffin tour or whale watching.

On a “luxury” budget of 36,000 ISK per day, you can stay in a budget hotel, eat out at cheap restaurants serving local cuisine, drink out at the bar a few times, rent your own car, and do more expensive excursions like glacier hikes or scuba diving. This is just the ground floor for luxury though. The sky is the limit!

You can use the chart below to get some idea of how much you need to budget daily, depending on your travel style. Keep in mind these are daily averages — some days you’ll spend more, some days you’ll spend less (you might spend less every day). We just want to give you a general idea of how to make your budget. Prices are in ISK.

Iceland Travel Guide: Money-Saving Tips

Iceland is an expensive country to visit. Almost everything is imported, taxes are high, and there’s not a lot of local industry. But that doesn’t mean the country has to break the bank. In fact, there are many ways to save money in Iceland thanks in part of all the free outdoor activities you can do! Here are a few ways to cut down your costs:

• Hitchhike – Iceland is one of the easiest and safest countries in the world for hitchhikers (in fact, it’s the safest country in the world!). You can find rides throughout the country, though it’s especially easy in the southern part of Iceland. While harder, it’s also not impossible to find a ride in the off-season or in the less populated northern regions. One way to find rides is by asking around in hostels — people are usually driving the main Ring Road (M1) that circles the country. That’s how I found my rides.
• Bring a water bottle – The water in Iceland is incredibly clean and drinkable. In fact, you can fill up directly from streams and rivers! LifeStraw is my go-to company for reusable water bottles as their bottles include built-in filters to ensure your water is always clean and safe.
• Camp – Camping is available everywhere in Iceland. You can camp in designated campgrounds for under 2,400 ISK per night and some hostels allow you to put up tents too. You’ll need to have your own gear and sleeping bag. If you plan on camping often, consider purchasing the Campingcard as it can save you quite a bit of money.
• Bring your own sheets – Like in other Scandinavian countries, many hostels in Iceland charge you a fee for bed sheets if you don’t have your own (pillows are free!). Linen fees usually begin at 1,350 ISK; however, some hostels are starting to include them for free. Usually, they will allow you to bring your own blankets but not a sleeping bag.
• Don’t drink – Due to high taxes, it’s very expensive to drink in Iceland. Save money and don’t drink. Ok, maybe once in Reykjavik since its nightlife is world-famous. But other than that, don’t. You’ll save a bundle and feel a lot better. No one wants to hike a volcano with a hangover!
• Cook your own food – With dining out being so pricey, I found the best thing to do is go grocery shopping. Buy everything you need (such as eggs, cereal, pre-made sandwiches, and pasta) and cook it yourself. Most hostels, guesthouses, and campsites have kitchens. Shop at BONUS food stores as they have the cheapest prices.
• Eat hotdogs – If you are going to eat out, eat at the sandwich and hotdog stalls you find throughout the cities. They offer the cheapest (although, not the healthiest) food in the country. You can also find cheap hotdogs at many gas stations, too.
• Stay with a local – Iceland has a very active Couchsurfing community. I stayed with hosts in Reykjavik and Akureyri. Getting involved with the community here is a surefire way to save money, get local insights, meet wonderful people, and get a free place to stay.
• Use Samferda – This website can help you find passengers (or rides). It’s especially popular in the larger cities and it’s cheaper than the bus.

Where to Stay in Iceland

Iceland has tons of hostels all around the country. They are the cheapest form of accommodation. My favorite places to stay are:

• KEX (Reykjavik)
• Hafnarstræti Hostel (Akureyri)
• Akureyri HI Hostel (Akureyri)
• Start Hostel (Keflavik)

For more recommendations, check out this list of my favorite hostels in Iceland

How to Get Around Iceland

Public transportation – The larger cities of Reykjavik and Akureyri both have a reliable public bus network, although both cities are small enough that you can walk just about everywhere. Strætó is the public bus network and you can plot your route on their website. Bus fare is 490 ISK.

Bus – Using buses to travel around the country is the best option if you don’t have a car. The Strætó bus network goes all around the country (though some regions aren’t covered and routes can be a little infrequent).

A bus from Reykjavik to Akureyri costs 7,100 ISK, while Akureyri to Husavik is around 2,500 ISK. Reykjavik to Vik is 3,850 ISK. Keep in mind though that these are public buses that will get you from point A to point B — there are no stops at attractions. You can look up routes and schedules on the Strætó website or download their app.

There are other bus/tour companies geared specifically towers travelers in Iceland, however, including:

• Reykjavík Excursions
• SBA-Norðurleið

Reykjavík Excursions departs from Reykjavík and offers tours and day trips, but they also have an “Iceland On Your Own” deal where you can buy passes and be more flexible with your route (prices depend on where you’re going).

Trex Hiker is catered specifically for hikers and runs people between Reykjavik and popular hiking routes like Landmannalaugar and Þórsmörk.

Flying – The two main domestic airlines within Iceland are Icelandair and Eagle Air. Destinations covered include Reykjavík, Akureyri, Grímsey, Ísafjörður, and Egilsstaðir (among others). The biggest airport outside of Reykjavík is in Akureyri. A flight here would allow you to cross the entire country in about 30 minutes. If you’re short on time but still want to visit the north, flying is your best option. Expect to pay 15,000-17,500 ISK for a one-way ticket.

Car rental – Renting a car is the best way to travel to Iceland. Small cars cost as little as 6,200 ISK per day and you can split the costs with traveling companions. SADcars and Iceland Car Rental are two of cheapest car rental companies in the country.

If you’re on a budget and have extra space in your car you can use the website Samferda to find passengers.

When to Go to Iceland

Your experience in Iceland will be largely influenced by the time of year you visit. June to September is the best time to visit, as temperatures are pleasant and average between 10-15°C (50-59°F). The days are long and the sun only sets for a few hours. This is also when tourism is at its busiest.

The spring and fall months (shoulder season) are both excellent times to visit as well. The crowds have thinned out, and although temperatures are chilly — ranging from 4-7°C (40-45°F) — there’s still a lot of sunshine. You’ll also get cheaper accommodation too.

Winter (from October to April) can be harsh, but it’s still an interesting time to visit. The days are short and temperatures drop below freezing. However, there are plenty of opportunities to see the northern lights. Driving conditions are hazardous though so this isn’t a good time to rent a vehicle.

How to Stay Safe in Iceland

Iceland is the safest country in the world! You will not be the victim of any crime here. There’s no murder here and no petty crime. I mean I wouldn’t leave your valuables unattended but that’s not beause of locals but because of travelers! Your biggest concern here is the elements. Iceland’s environment can be harsh and unpredictable, especially in the winter. The Iceland Meteorological Office and the Icelandic Road and Coastal Administration are two valuable websites to check in with as you travel.

If you go out hiking, bring water, sunscreen, and rain gear. The weather can change rapidly.

If you rent a vehicle, make sure you are careful with the doors. The wind here is extreme and can rip car doors right off your vehicle (this is surprisingly common). Always make sure you have comprehensive insurance coverage when you rent a car.

F-roads (rugged dirt roads) should only be driven on with a 4×4 vehicle. Don’t try driving on them without one!

Scams here are non-existent, but if you’re worried about getting ripped off you can read about common travel scams to avoid here.

If you experience an emergency, dial 112 for assistance.

The most important piece of advice I can offer is to purchase good travel insurance. Travel insurance will protect you against illness, injury, theft, and cancellations. It’s comprehensive protection in case anything goes wrong. I never go on a trip without it as I’ve had to use it many times in the past. You can use the widget below to find the policy right for you:

Iceland Travel Guide: The Best Booking Resources

These are my favorite companies to use when I travel. They consistently have the best deals, offer world-class customer service and great value, and overall, are better than their competitors. They are the companies I use the most and are always the starting point in my search for travel deals.

• Skyscanner – Skyscanner is my favorite flight search engine. They search small websites and budget airlines that larger search sites tend to miss. They are hands down the number one place to start.
• Hostelworld – This is the best hostel accommodation site out there with the largest inventory, best search interface, and widest availability.
• Booking.com – The best all around booking site that constantly provides the cheapest and lowest rates. They have the widest selection of budget accommodation. In all my tests, they’ve always had the cheapest rates out of all the booking websites.
• HostelPass – This new card gives you up to 20% off hostels throughout Europe. It’s a great way to save money. They’re constantly adding new hostels too. I’ve always wanted something like this and glad it finallt exists.
• Get Your Guide – Get Your Guide is a huge online marketplace for tours and excursions. They have tons of tour options available in cities all around the world, including everything from cooking classes, walking tours, street art lessons, and more!
• The Man in Seat 61 – This website is the ultimate guide to train travel anywhere in the world. They have the most comprehensive information on routes, times, prices, and train conditions. If you are planning a long train journey or some epic train trip, consult this site.
• Rome2Rio – This website allows you to see how to get from point A to point B the best and cheapest way possible. It will give you all the bus, train, plane, or boat routes that can get you there as well as how much they cost.
• FlixBus – Flixbus has routes between 20 European countries with prices starting as low 5 EUR! Their buses include WiFi, electrical outlets, a free checked bag.
• SafetyWing – Safety Wing offers convenient and affordable plans tailored to digital nomads and long-term travelers. They have cheap monthly plans, great customer service, and an easy-to-use claims process that makes it perfect for those on the road.
• LifeStraw – My go-to company for reusable water bottles with built-in filters so you can ensure your drinking water is always clean and safe.
• Unbound Merino – They make lightweight, durable, easy-to-clean travel clothing.
• Top Travel Credit Cards – Points are the best way to cut down travel expenses. Here’s my favorite point earning credit cards so you can get free travel!

Get My Guide to Iceland!

It cuts out the fluff found in other guides and gets straight to the practical information you need to travel and save money in one of the most beautiful and exciting destinations in the world.

• My favorite things to see and do
• Money-saving tips
• Budget advice
• Transportation advice
• My favorite non-touristy restaurants, markets, and bars
• And much more!!

Details: Over 190 pages of budget travel advice Return policy: No risk, 7 Day, 100% Money Back Guarantee

Get the Iceland Guide Now!

Iceland Travel Guide: Related Articles

Want more info? Check out all the articles I’ve written on Iceland travel and continue planning your trip:

13 Iceland Road Trip Tips: What You Need to Know Before You Go

The 9 Best Hostels in Iceland

The 7 Best Tour Companies in Iceland

Visiting Iceland: Detailed Itineraries for the Land of Fire and Ice

22 Free (Or Cheap) Things to Do in Reykjavik

The 13 Best Things to Do in Iceland

Get your  free travel starter kit.

Enter your email and get planning cheatsheets including a step by step checklist, packing list, tips cheat sheet, and more so you can plan like a pro!

• Where To Stay
• Transportation
• Booking Resources
• Related Blogs

How Much Does An Iceland Trip Cost in 2024: Detailed Budget Breakdown

Written By: The Planet D

Iceland , Travel Planning

Updated On: June 11, 2024

An Iceland vacation is never ‘cheap,’ even if you plan it on a strict budget. The country is known as an expensive destination. You’ll need to get savvy to save money on your trip to Iceland . The average Iceland trip cost is $200-300 per day – without factoring in the most extortionate (yet fantastic)  things to do in Iceland.  

Certain activities, like  snorkeling between the tectonic plates , can cost that just for one trip. And you’ll need to factor in rental car costs if you plan to venture anywhere outside of Reykjavik, the capital city, that day trips don’t cater to. All things considered, you can quickly see how things add up. Maximizing your budget as much as possible is essential so you don’t miss out on memorable activities and experiences. So, let’s figure out an Iceland budget together.

Table of Contents

How Much a Trip to Iceland Costs

When you visit Iceland, all your decisions impact your final Iceland trip budget – be it rental cars or private rooms. In this guide, we’ll provide you with all the average trip cost factors so you can build an idea of what budget you’ll need as an individual visiting Iceland. We’ll cover everything, from accommodation prices to food costs and the costs of some of the most sought-after tours.

Airfare Cost

Airfare won’t be a massive part of your Iceland travel budget. Depending on where you travel, the average price of flights is only a few hundred dollars. The average flight from the east coast of the US to Iceland is just $450 return, which gets even cheaper when you are flying to and from Europe. Compared to flying to other destinations, especially Australasia, Iceland is not expensive to reach airfare-wise.

Even then, you can save money when visiting Iceland by taking advantage of off-season flights and using air miles. Look into airline reward programs like British Airways, Qantas, and Delta SkyMiles. Airline loyalty programs get a bad rep for not actually being worthwhile. Still, choosing wisely and actively saving points can be a great tool to get cheap flights. Always compare flight prices by using websites and tools like Skyscanner – always using a private browser, of course, since those pesky cookies hike up prices on flights you view.

How flexible are you with your Iceland vacation as well? It is worth noting that if you fly from Europe to North America with Icelandair, they offer a complimentary layover in Reykjavik , which you can extend to anywhere between 1 to 7 days if you’d like a mini trip to Iceland. This is a brilliant way of squeezing in an Iceland vacation at a cheaper price than direct flights usually cost. If you are already making this journey, knowing about this little tip is handy. Why not take advantage of a stopover you’ll already be making and take advantage of Icelandair’s typically cheaper flights? Just picture it; you could combine London, New York, and Iceland in one trip.

As you can see, your Iceland vacation cost will not be massively impacted by flight prices. However, if you want to take extra steps to reduce the cost of your trip to Iceland, there are a few tricks you can have up your sleeve. You should budget $500 maximum for return flights to Iceland from North America or Europe with a mid-range airline.

But if you fly off-season and from specific destinations like London, you can snag flights for as little as $100 return. The more flexible you are, the lower your airfare budget needs to be. And, of course, the more ready you are to fly outside of peak season, the better deals you’ll find. Our advice is to get hunting on Skyscanner or a flight comparison tool equivalent.

• Budget: $500 for return flights or under $200 if you are flexible and departing from Europe.

Accommodation Prices

Accommodation prices in Iceland are steep. It’s surprisingly steep, actually. Accommodation costs are one of the largest chunks of the average trip budget when visiting Iceland. Even the most basic of hotel rooms are extremely expensive, even more so when looking at mid-range hotels and – God forbid – luxury hotels. It is also worth noting that the cheapest hostels and best value-for-money properties get snapped up quickly. In remote areas of Iceland, you quickly become short on options. Compare prices when booking accommodation in Iceland, but also make sure you don’t stall too much and book far enough in advance to avoid missing out on the best prices.

If you act quickly and book in advance, the  average price  for a budget hotel is $150 per night. For a three-day trip, you can expect to pay around $499; for a week, you are looking at $1,047. If you don’t book in advance, these prices rise as you are left to front bills to stay in more luxurious hotels and vacation rentals than you usually would choose. It also pays to consider location, as certain areas will have more expensive hotel rooms, like on the Ring Road and Golden Circle.

Typical prices average $150 per night, but remember that this is across all over Iceland as a general average. Be prepared to spend more in certain areas. When planning a trip to Iceland, cost is a huge factor when choosing accommodation, and you need to be fast-thinking to get the best deals.

These are a few examples of average accommodation costs in different Iceland hotels:

Hofn Cottages

Hofn Cottages  are as budget-friendly as accommodation gets in Iceland. These basic cabins cost just $70 per night; you get your own patio and cooking facilities. These sell out quickly. But their remote location means slightly cheaper prices.

Reykjavik Konsulate Hotel

This  mid-range hotel  in Reykjavik costs approximately $250 per night, but you can see why. It has a trendy design and an onsite wellness center and gym. It is a glossy version of a mid-range stay in the capital, and it has a great location to enjoy central Reykjavik.

Hotel Ranga

This  luxury hotel  costs upwards of $500 for an average room. It is a brilliant example of top-tier luxury in Iceland. If you sleep through the magical phenomenon, you get a star gazing observatory onsite and even northern light wake-up calls. Oh, and you get volcano views out of your window.

• Budget: $150 per night for the average rate for a cheap hotel.

Transportation

Regarding transport in Iceland, you need to realize one major thing – transport barely exists outside the realm of rental cars. Tourists fly into Iceland’s Keflavik International Airport, located just outside of Reykjavik’s capital; from there, you can organize a shuttle service into the city center. Reykjavik itself is really walkable and a tiny city, much more like a town than an actual city, let alone a ‘typical’ capital city.

Iceland has a minimal bus service. It isn’t safe to rely on public transport in very remote areas. We wouldn’t recommend it if you are venturing out of Reykjavik or the main settlement areas.

If you stay in Reykjavik and don’t rent a car, you can organize tour experiences to take you to the main tourist attractions. For instance, you can get tours to the Blue Lagoon , Golden Circle , and Ring Road on the  South Coast.  

You can also get tours to experiences like horseback riding on black sand beaches , hiking on glaciers , seeing exploding volcanoes, and snorkeling between the tectonic plates at Silfra . The caveat is that you will pay hundreds of dollars for each of these experiences, almost like paying for mini holidays on your actual holiday. If you don’t want to rent a car, you can still enjoy Iceland, but be prepared to splurge a little on booking private tour day trips. It will rocket the total cost of the average Iceland budget.

The best way to get out of Reykjavik and  see  Iceland is to book a rental car . If you are wondering ‘how much does it cost to rent a car,’ it depends on which car rental companies you look at, what season you visit, and whether you want a camper van or not. The cheapest option is a car, for which you can buy a tent and camp or book cheap hotels.

Or you can spend more upfront on a camper van and have the whole road trip experience, saving money on accommodation. With rental options, you could embark on the classic week road trip along the South Coast and complete the classic  Ring Road road trip.  It is the most liberating form of transportation around Iceland. And you’ll save loads of money by avoiding the aforementioned expensive organized day trips while opening up to more free attractions and off-the-beaten-track experiences.

•  Budget: $350 plus $100 petrol for a week of hiring a rental car, or approximately $870 on transfers for day trips and airport journeys.

Food is another significant expense when it comes to visiting Iceland. When calculating a trip to Iceland cost, you must set aside at least $500 per week as a food budget. For $500, you can afford a few meals at local restaurants, a food shop at one of the cheaper grocery stores, and a few drinks on a night out. Food prices are high in Iceland, especially for imported and taxed goods. However, you can soon chip the price tags down if you are flexible with trying local brands.

Need an idea of what food prices are in Icelandic grocery stores? They aren’t extortionate, but you can see that some products have much higher prices than others. You should also have an ISK to USD calculator ready, as the conversion is a little whacky. Average food prices include:

• $1.60 for milk
• $3.20 for white rice
• $3.50 for a loaf of bread
• $2.20 for a bottle of water
• $14.90 for a block of cheese
• $19.60 for 1kg of chicken fillets

It is also worth mentioning that Iceland is famous for its hot dogs. A standard tip for saving money is to snack on a hot dog for lunch instead of sitting in at local restaurants. The sausages are served on little takeaway carts and are one of the most traditional, budget-friendly  Icelandic dishes .

They date back to the Viking era and are called ‘bjuga’ sausages. Bought at little street stands, these hot dogs cost as little as $2.50 – a real bargain. This fun little tip might be more aimed at novelty than genuine money saving, but the spirit and overall meaning are spot on. Avoid sitting down regularly to eat to save money, and remember that local specialties are your best friend.

Remember that if you want to enjoy grocery store food in Iceland, you must have cooking facilities. And this is where the accommodation crossover comes in. You should book accommodation with private kitchen facilities in an apartment or a shared kitchen in a hostel or homestay environment.

By choosing this accommodation setup, you can easily still have a food budget of $500. If you stay in a hotel and don’t have access to a kitchen, expect prices of around double the same period. The average meal price is nearly $120 for two people at a mid-range restaurant, which quickly adds up.

Food is $500 per week if you eat out a couple of times and have a kitchen in your accommodation. Alternatively, your food budget will be closer to $ 1,000 per week if you expect to eat out daily.

• Budget: $500 per week for eating out a couple of times and then cooking in with grocery-bought food, or $1000 for eating out all week.

Tours and Activities

Entertainment prices are where the majority of your budget will come in – especially if you don’t hire a car and instead rely on guided day trips. These guided excursions can reach prices of over $300, and if you plan on doing 4-5 activities, you can see how this starts to add up. You can take guided trips to the Golden Circle, whichever volcano is exploding and attracting enamored tourists, and do things like snorkel between the tectonic plates or spot the northern lights. All these things come at a cost, but at the same time, you don’t want to miss out on any dream excursions. This little conundrum is what makes visiting Iceland so expensive. And also, so impressive – you wouldn’t want to stay somewhere with nothing to see, would you?

Recommended Tours in Iceland

Below are some of the top tours in Iceland. Don’t forget to plan ahead when  visiting Iceland!

• Reykjavik: Golden Circle Full-Day Tour with Kerid Crater ( Most Popular In Iceland )
• Silfra: Fissure Snorkeling Tour with Underwater Photos (Our Favourite)
• Húsavík: Big Whales and Puffin Island Speedboat Tour (Likely to Sell Out)
• From Reykjavik: Golden Circle, Kerid, & Secret Lagoon Tour (Best Deal)

One way to make this cheaper is to rent a car. Specific day trips, especially ones to see natural beauty spots or spot the northern lights, are easily replicated for free apart from petrol costs if you rent a car. By paying a single upfront fee for a car rental, you can pick fascinating tours and complete them independently – like the Golden Circle, Ring Road, and things like the best Icelandic waterfalls.

Sure, things like a boat tour to see whales or glacier hiking experiences require a guide. Still, lots of Iceland can be visited independently with a rental car. Even northern lights hunting can be done by yourself and without a guide. To be honest, most Northern Lights tours are just guessing and driving to remote spots anyway. Download one of the many maps and get up-to-date information on predictions so that you can go out it alone, much cheaper.

Alcohol prices can get really expensive in Iceland, so we suggest stopping by a duty-free shop or cutting alcohol to cut costs. Nightlife can get understandably expensive in Iceland, so while partying can be fun and a short night out can be budget-friendly in Reykjavik (when in Rome, right?), stick to just the odd night out if possible.

It is worth adding that clothing is an additional cost when enjoying day trips and activities in Iceland. You will likely need to invest in a winter wardrobe with some merino additions; thermal clothes are necessary during most months in Iceland. You can’t compromise on this, and we’d recommend making the most of clothing sales in the run-up to your trip to Iceland. With proper clothing, you will be warm. And if you aren’t warm, how will you enjoy your experience? Make the most of your money by investing smartly in suitable clothing for your activities beforehand.

So, how much should you budget for tours and activities in Iceland? And what should you budget for the additional cost of purchasing suitable clothing for each tour beforehand? These are our budgeting stats for a week in Iceland without a car rental:

• $1,200 for four-day trips with an organized tour operator, including transportation.
• $200 for suitable clothing, including two Merino top and bottom base layers and shoes.
• $200 for a couple of nights out in Reykjavik.

Total: $1,600

As you can see, having a car rental makes a considerable difference when budgeting for tours and activities in Iceland. These are our stats for a week in Iceland with a car rental:

• $400 for four-day trips, including two organized tours without transportation and two free experiences.

Total: $900

• Budget: Without a car, expect to pay around $1,600 over a week-long period, while with a car, this totals up to about $900.

Overall Trip Cost

So, if you’ve been frantically trying to add things up, don’t worry; we’ve got you. This is how much traveling to Iceland costs, not including your travel insurance. We’ll acknowledge the main influencing factors in each budgeting area – whether you rent a car, visit in off or shoulder seasons, and book accommodation with cooking facilities. This is precisely how much you should budget to visit this beautiful country.

Airfare costs approximately $500 for a return trip to Iceland when you fly from Europe or North America. However, if you are flying from Europe, are flexible with visiting in off or shoulder seasons, and fly with mid-range airlines, budget less than $200 for return flights.

Accommodations

For accommodation, you should budget $150 per night for an average but cheap-ish hotel somewhere reasonably well-located. If you are willing to compromise on location, you can pick up cheaper accommodation for around $70 per night. Or, if you want luxury accommodation, be prepared to pay up to $500 per night. With all accommodation types, book early to secure the best rates.

Figuring out a transport budget is a tough one. If you get a rental car , you should budget $350 for renting the vehicle upfront for a week and approximately $100 on fuel. If you don’t rent a car, you can easily explore Reykjavik on the bus for as little as a few dollars each time. However, you will spend a lot more on transfers, and we estimate an $800 difference in your day trips and excursion costs as opposed to self-drive attractions. You should also add airport transfers at over $70 for return tickets on the shuttle bus. For a week in Iceland, budget $450 for transportation if you hire a car and $870 for transportation if you rely on shuttles.

The message is simple regarding food: find accommodation with a kitchen to take advantage of grocery store prices. Budget $500 if you want to eat out a couple of times and then cook the rest of the time. Budget $1000 if you plan on eating out every day for most if not all, meals.

Tours and activities are your main cost when visiting Iceland, especially if you don’t rent a car. Without a car, expect to pay around $1,600 over a week, while with a car, this totals up to about $900.

10 Top Money Saving Tips

Are you ready to cut some money off that average Iceland trip cost we’ve just given you? If you are up for the challenge, there are ways to save money when visiting Iceland. After all, an average price is exactly that – an average price of what most people spend when they visit. You can do better than that if you utilize our top 10 tips on reducing your Iceland trip cost and saving your valuable money.

Anything from car rentals to hostels, and even some lesser-known things like campsites and bus passes, can make a massive difference to what your holiday to Iceland costs. So, buckle up and prepare to jot these top money-saving tips down. Using these could knock hundreds, and perhaps even thousands, off your Iceland budget.

1. Visit Off-Season

It goes without saying, but visiting Iceland in the off-season is the best way to save money. Iceland gets super busy over winter when tourists flock to enjoy snow sports and try to spot the northern lights. If you want to do these things, why not visit in February or late January? Avoiding the December crush by picking these shoulder seasons is the perfect way to snag reduced tours and day trips, plus find cheaper hotel rates thanks to lower booking competition.

Of course, if you are flexible with your Iceland activities, visiting in the off-season is even better. June until October is perfect for lower car rental rates, cheaper hotels, and tour deals. Remember that this period has certain tour and attraction closures, and you likely will miss the northern lights. This season is also famous for the midnight sun, where Iceland stays light for 24 hours a day.

2. Buy From Grocery Stores

Grocery stores are so much cheaper than local restaurants. You don’t want to stick to a budget while eating out for every meal because it just won’t happen. The average cost for a two-person meal at a mid-range restaurant in Reykjavik is  nearly $120.  An average McDonald’s meal is over $16. Grocery prices are much more reasonable, like $1.60 for a liter of milk or $3.44 for apples.

Buying food from grocery stores might sound obvious, but this only works effectively if you’ve found accommodation with a kitchen, so this is a catch-22. We’d suggest finding a communal kitchen or apartment hotel to make the most of this money-saving technique. Trust us, it will be worth it.

3. Rent a Car

This might sound more expensive at first, but renting a car is one of the best ways to explore Iceland on a budget – especially if you want to sightsee a lot. This is because tours are one of the most expensive in an average Iceland trip cost. Companies charge extortionate amounts (we are talking hundreds of dollars) for simple things like transfers. If you rent a car, yes, it will be an initial upfront investment, but you’ll save hundreds if you purchase more than 2-3 day trips. Being able to drive yourself is one of the best ways to cut travel costs in Iceland. Check rates here!

4. Take Advantage of Free Attractions

If you rent a car, it also stands you in good stead for saving money – enjoying Iceland’s free attractions. Iceland has a ton of free attractions, be it waterfalls or the beautiful geothermal area at Geysir. If you are road-tripping Iceland, you can stop at these places for free and quickly build a low-cost itinerary. Everyone knows Iceland is expensive, but with some research, you can soon find budget-friendly and often entirely free things to do.

5. Try Camping

Camping is one of the best ways to save money while visiting Iceland. You can camp in one of two ways – with a campervan or by renting or bringing a tent. It goes without saying that this is a better idea in summer (read: do not attempt in cold weather). Still, if you visit Iceland at a warm time of year, it is a brilliant way to reduce accommodation prices. You’ll find campsites all over Iceland, so this is also one of the most straightforward money-saving tips to put into practice.

6. Try out a Bus Pass

We’ll preface this by saying that bus connections are limited. You will only be able to use the bus network to access specific places at specific times, so you’ll need to be happy to use a pretty rigid travel style if you are going to take advantage of this travel hack. However, if you are happy to color between the lines to save yourself some cash, bus passes are well worth looking into. You pay a single flat rate fee and get unlimited use of the bus network for a designated period. This saves you money on otherwise expensive day trips or car rentals. And if you don’t have a driving license, it is the cheapest alternative.

7. Buy Alcohol From Duty-Free Shops

Another huge tip is to buy alcohol from duty-free shops. If you can pick up alcohol from the airport when you land, it will save you a ton of money on your trip to Iceland since alcohol is heavily taxed. The duty-free shop is your best friend if you want a fancy tipple. With that said, though, a better approach would be not drinking while visiting Iceland. Iceland actually banned alcohol in 1915, and the ban was only fully lifted in 1989 – which is now hailed as beer day. The country has a longstanding political objection to the consumption of alcohol. If you want to save substantial money when visiting, you should do your best to conjure up a financial objection.

8. Find Hot Springs that Aren’t the Blue Lagoon

The Blue Lagoon is dreamy; we’ll be the first to admit it. However, to save money on visiting Iceland, you should consider alternatives. You can read all about the Blue Lagoon  here , created using a factory’s thermal byproducts. But it is also worth looking at free hot springs you can visit in Iceland. Definitely look at alternatives to mainstream tourist attractions.

9. Skip Bottled Water

Skip the bottled water; seriously, Iceland has some of the purest tap water in the world. Bottled water is a massively unnecessary expense, so bring a refillable water bottle and cut the dollars you spend on your trip to Iceland. Of course, reducing plastics also helps the environment – a huge win-win situation. If you fancy going one step further, especially if you plan on camping, it is worth investing in a filter bottle, too, because then you can fill up from natural water sources like rivers and lagoons.

10. Book in Advance

Sure, there’s a time and place for carefree, last-minute travel. But if you want your trip to Iceland to be budget-friendly, try something other than this travel style while trying to reduce your Iceland trip cost. The more you book in advance, the more options you’ll have regarding accommodation and tours. Since these things sell out fast, with the cheapest options going first, you can shoot yourself in the foot by waiting. Check out refund policies and rebooking flexibility if you are worried about committing too far in advance – just don’t wait until the last moment and bank on finding budget alternatives.

To Conclude

Your Iceland trip cost might depend on what you decide to do on your trip to Iceland. Still, this guide gives you a pretty clear idea of an average Iceland trip cost. By considering all of these factors – accommodation, food, transport, airfare, and tours – you’ll have a ready-made budget for visiting Iceland. And if you use some of our budgeting tips, you might even save some money. Who doesn’t want to knock a chunk off one of the world’s most expensive destinations?

Are you looking for more Iceland inspiration? Check out these  fun facts  ahead of your holiday to Iceland. We also have a guide dedicated to the  best things to do in Reykjavik  – Iceland’s walkable and vibrant little capital city. Don’t forget to explore Reykjavik, even if you head off on a week-long road trip around the rest of Iceland.

Plan Your Next Trip To Iceland With These Resources

• South Coast of Iceland: 31 Best Things to Do and See
• 22 Best Things to Do in Iceland
• Best of Iceland’s Ring Road – GLACIERS, VOLCANOES AND WATERFALLS
• The Blue Lagoon Iceland – Your Ultimate Guide
• 30 of the Best Places To Visit In Iceland

Travel Planning Resources

Looking to book your next trip? Why not use these resources that are tried and tested by yours truly.

Book Your Flights: Start planning your trip by finding the best flight deals on Skyscanner. We have used them for years and have found that they have the best flight deals.

Book your Hotel: Find the best prices on hotels with these two providers. If you are located in Europe use Booking.com and if you are anywhere else use TripAdvisor.

Find Apartment Rentals: You will find the cheapest prices on apartment rentals with VRBO . 

Travel Insurance: Don't leave home without it. Here is what we recommend:

• Safety Wing - Occasional Travelers.
• Medjet - Global air medical transport and travel security.

Book Your Activities: Looking for walking tours, skip-the-line tickets, private guides, and more? Then we recommend Get Your Guide.

Need more help planning your trip? Make sure to check out our Resources Page where we highlight all the great companies that we trust when we are traveling.

You May Also Like

Ultimate Iceland Ring Road Itinerary: Explore the Best of Iceland in 10 Days

20 Best Things to do in Reykjavik in 2024

South Coast of Iceland: 31 Best Things to Do and See in 2024

About The Planet D

Dave Bouskill and Debra Corbeil are the owners and founders of The Planet D. After traveling to 115 countries, on all 7 continents over the past 13 years they have become one of the foremost experts in travel. Being recognized as top travel bloggers and influencers by the likes of Forbes Magazine , the Society of American Travel Writers and USA Today has allowed them to become leaders in their field.

Join thousands of others who get our monthly updates!

Leave a comment cancel reply.

Save my name, email, and website in this browser for the next time I comment.

3 thoughts on “How Much Does An Iceland Trip Cost in 2024: Detailed Budget Breakdown”

massive post, Useful And Helpful Thankyou.

what i observed after my trip is getting around Iceland can be pricey, but it depends on your chosen mode of transportation.

• Travel Planning Guide

How much does a trip to Iceland Cost?

How much money should you budget for your trip to Iceland?

• How much does a one-week trip to Iceland cost?
• How much does a two-week trip to Iceland cost?
• How much does a one-month trip to Iceland cost?
• Hostel Prices
• Hotel Prices

The Cost of a Trip to Iceland

A trip to Iceland for one person usually costs between $90 and $482 per day and $180 to $965 for two people. This is a wide range of costs, and the daily average per person from our data is $208 (kr28,676) per person. This average includes food, accommodation, sightseeing, and local transportation expenses contributed from other travelers. Prices can vary based on travel style and activities. While the overall price for a trip to Iceland is dependent on your personal travel style and the specific places you visit, if you book standard accommodation and travel with an average level of convenience, then your budget should be somewhere within this range. Also, the prices for individual destinations such as Reykjavik, Akureyri, and Hofn may vary, but generally fall somewhat close to this range. Below you can find a breakdown of travel expenses by category, plus a comparison of guided tour costs versus traveling independently.

For budget travelers in Iceland, planning for around $90 (kr12,465) per day should cover essentials such as accommodations in hostels and budget hotels, affordable meal options, local transportation, and engaging in various activities. If you're a mid-range traveler, setting aside around $208 (kr28,676) per day would allow for more comfortable stays in typical hotels, dining at regular restaurants, and exploring a diverse range of popular attractions. Luxury travelers, on the other hand, should consider a daily budget of approximately $482 (kr66,669) to accommodate higher-end hotel stays, dining at nicer restaurants, and indulging in more exclusive private tour options. It's important to note that these price ranges are derived from our extensive travel cost data for Iceland, which is based on valuable insights from other travelers as well as hotel and tour data provided by travel companies. For a more detailed breakdown of travel costs, you can refer to our comprehensive travel cost data for Iceland .

How much does a one week trip to Iceland cost?

When planning a one-week trip to Iceland, most visitors to Iceland spend between $631 and $3,377 for their trip, with the average cost falling around $1,453. This estimate includes essential aspects such as sightseeing, local transportation, food, and accommodations. With a full week, you'll have sufficient time to explore one, two, or possibly three locations within Iceland, depending on the amount of time you want to spend in each place. The most popular places worth considering are Reykjavik , Akureyri , and Hofn . Keep in mind that these numbers are based on overall averages and may vary depending on your individual preferences.

How much does a two week trip to Iceland cost?

With two weeks, you should budget between $1,263 and $6,754 for your trip to Iceland. The average price for a two week trip is $2,905. Two weeks will allow you enough time to visit between three and five places. If you're on a budget, you might want to consider some of the more affordable places such as Akureyri.

How much does a one month trip to Iceland cost?

When embarking on a month-long trip to Iceland, expenses can range from $2,706 to $14,472, with an average cost falling around $6,225. For those fortunate enough to have a full month, considering a vacation rental with a kitchen for at least a portion of your stay can help save money with meals. Backpackers often opt for hostels due to their affordability and the added benefit of a social vibe.

Hostel Prices in Iceland

With more than 20 hostels in Iceland, the average price is $46 per night for a dorm bed. Hostels are a terrific option for younger independent travelers looking to save money while staying social during their trip. With many types of hostels, it can be overwhelming to sort out the best places, though. Our analysis of the hostels in Iceland not only found the average price, but also uncovered some surprises about the overall quality, amenities, and atmosphere of hostels in the region. You can see more details from our analysis about typical hostel prices in Iceland here .

Here are a few sample prices from popular hostels in Iceland.

• $36 for a dorm bed at KEX Hostel in Reykjavik more details
• $36 for a dorm bed at Akureyri Hostel in Akureyri more details

Hotel Prices in Iceland

You'll find a wide range of hotel options across Iceland. Below are prices for some of the destinations, and for more details see our analysis of hotel costs in Iceland .

Reykjavik Residence Apartment Hotel

Milk factory.

Should you do an organized tour or travel independently in Iceland?

When planning a trip to Iceland, there are two primary options to choose from: organized tours and independent travel. Organized tours offer a convenient and hassle-free experience, as all the details of your trip are handled by travel experts. Additionally, you'll have the benefit of an expert guide who can provide valuable insights and knowledge during your journey. This option is often favored by travelers who appreciate the convenience and ease it offers, with many tours providing transportation and expert guides to enhance the overall experience.

On the other hand, independent travel provides a different set of advantages. It offers a higher level of freedom and flexibility, allowing you to customize your itinerary and explore at your own pace. This option appeals to travelers who value the ability to make spontaneous decisions and have more control over their travel plans. The independence of traveling on your own can provide a sense of adventure and the opportunity to immerse yourself in the local culture on a deeper level.

Ultimately, the choice between organized tours and independent travel depends on your personal preferences and travel style. Consider your desired level of convenience, the amount of guidance you prefer, and the level of flexibility you seek when making your decision. Both options have their own merits, and the decision should be based on what aligns best with your travel goals and preferences.

Comparing Trip Costs in Iceland

When we compare the prices of organized tours to the average costs of independent travelers, we can see that sometimes the prices are fairly even.

Tours vs. independent Travel: Pros & Cons

Organized tours.

• An expert guide familiar with the culture
• Convenient transportation
• Fellow travelers to socialize with
• Well researched activities
• Efficient and thought out itinerary
• The security of have a trip leader if something goes wrong
• Limited options
• Usually not customizable
• The fast pace often means you can’t visit one place in depth
• Usually more expensive than independent travel
• There may be limited time to interact with the local culture and community

Independent Travel

• Completely customizable
• Opportunity to visit off-the-beaten-path destinations
• Can fully immerse yourself in the local culture
• Freedom to move at your own pace
• Flexibility to change your itinerary at any time
• More affordable
• Challenging to plan an efficient itinerary
• Transportation may be challenging or inefficient
• Booking and trip planning can be a hassle
• Popular sights may sell out well in advance
• If something goes wrong, you're on your own

Are organized tours more expensive than independent travel in Iceland?

Organized tours typically average around $528 per day and provide the convenience of an all-inclusive package with one comprehensive payment. On the other hand, independent trips usually average around $208 (kr28,676) per day and involve individual payments for accommodations, local transportation, meals, and sightseeing. Both organized tours and independent trips have their own unique challenges and benefits, so it's crucial to thoroughly understand the aspects of each to make a fair comparison. For a detailed analysis of tour prices in Iceland, check out our comprehensive guide on tour prices in Iceland here .

Here are a few sample tours in Iceland:

• 7 day Self-drive tour | Geysers, Glaciers and Waterfalls ($1,051) 7 days, 27 destinations more details
• 17 Days Self-drive | Complete Iceland Tour ($5,253) 17 days, 31 destinations more details
• The Great Round Tour: Around Iceland in 13 days ($3,632) 13 days, 30 destinations more details
• 12 Days Grand Tour of Iceland ($6,185) 12 days, 38 destinations more details
• 10 Days Iceland Ring Road In-depth - Private Tour (Winter) ($10,217) 10 days, 20 destinations more details

More for Iceland

If you're planning a trip to Iceland, check out these other informative travel guides.

We've been gathering travel costs from tens of thousands of actual travelers since 2010, and we use the data to calculate average daily travel costs for destinations around the world. We also systematically analyze the prices of hotels, hostels, and tours from travel providers such as Kayak, HostelWorld, TourRadar, Viator, and others. This combination of expenses from actual travelers, combined with pricing data from major travel companies, gives us a uniqe insight into the overall cost of travel for thousands of cities in countries around the world. You can see more here: How it Works .

Subscribe to our Newsletter

Coupons and discounts! Travel tips!

1 Categories averaged on a per-item basis. 2 Categories averaged on a per-day basis. For example, the Food 2 daily average is for all meals for an entire day, while Entertainment 1 is for each individual purchase. Thus, the overall daily average cost is not a summation of the individual categories.

• You are welcome to reference or display our travel costs on your website as long as you provide a link back to this page .
• For a basic link, you can copy and paste the HTML link code, or this page's address. Address Link HTML Iceland Travel Costs " disabled />

Some of the links on this website are sponsored or affiliate links which help to financially support this site. By clicking the link and making a purchase, we may receive a small commission, but this does not affect the price of your purchase.

• Privacy / Terms of Use
• Activities, Day Trips, Things To Do, and Excursions

• General information
• Plan your Trip

Prices & Travel Costs in Iceland

Are restaurants expensive? How much does a coffee cost? How much money should you bring for a few days in Reykjavik ? Discover how much it costs to travel to Iceland and plan ahead to save money on your trip!

Prices in Iceland are high compared to other European countries , like other Nordic destinations such as Oslo or Copenhagen. We've compiled a list of the basic things visitors are likely to buy below so you can get an idea of the costs.

Tipping in Iceland  is not as widely expected as in other countries of the world as service charges are usually included in restaurant bills.

Check out the currency conversions from the Icelandic króna here .

Food and drink

• Coffee: 400 kr ( US$ 2.90)
• Bottle of water: 300 kr ( US$ 2.20)
• Large beer: 1,000 kr ( US$ 7.20)
• Soft drink: 350 kr ( US$ 2.50)
• Lunch in an Icelandic restaurant : 4,000 kr ( US$ 28.60)
• Bottle of gin in a liquor store: 6,000 kr ( US$ 43)
• Single bus ticket in Reykjavik: 470 kr ( US$ 3.40)
• Day travel pass in Reykjavik : 1,800 kr ( US$ 12.90)
• Three-day travel pass in Reykjavik: 4,200 kr ( US$ 30.10)
• Taxi to Keflavik Airport : 18,000 kr ( US$ 129)

Tourist attractions

• Hallgrímskirkja Tower: 1,000 kr ( US$ 7.20)
• Icelandic Phallological Museum : 1,700 kr ( US$ 12.20)
• The Settlement Center :   2,500 kr ( US$ 17.90)

Accommodation

• One night in a single room in a hotel in Reykjavík: 7,000 kr ( US$ 50.10)

You may also be interested in

Spring, summer, autumn or winter: learn all about the weather in Iceland so you can decide when to travel, when to see the Northern Lights and what to pack!

The official language of Iceland is Icelandic, and although much of the population speaks excellent English, we've compiled an article full of helpful advice and basic phrases you can use to make your trip easier.

Lists by Lukiih 🍀

Practical travel guides with less fluff

• 💰 My 2024 Iceland Trip Cost: A Budget Breakdown

Iceland, a country famous for its surreal and breathtaking nature, can be visited with a budget of $90 to $250 a day.

My one-week trip to Iceland cost a total of $2,690 . In this post, I share:

• 💰 Expected travel costs
• 💡 Budgeting tips
• 💵 How much cash to bring
• ✈️ My trip’s costs by category

Planning a trip? Here’s what to know about Iceland .

• Is Iceland Expensive?
• How Much Is a Trip?
• About My Trip
• Cost Breakdown
• Daily Budget: $306
• Flight: $550
• Campervan: $1,300
• Accommodation Costs
• Rental Car Costs
• Entertainment: $535
• Entrance & Parking Fees: $15
• Credit Card Types
• How Much Cash To Bring
• Tipping Etiquette

Iceland Trip Planner

Lists By Lukiih is readers-supported. When you buy with my affiliate link, I may earn a small commission. Thanks!

Is Iceland Expensive To Travel To?

Iceland ranks as one of the most expensive countries to visit in Europe. The island country relies on imported goods, has a high cost of living and tax rates, and is an extremely popular tourist destination, with tourists far outnumbering locals annually.

Along with Switzerland and Norway, Iceland is among the five priciest European countries for travelers.

However, with advanced planning and the willingness to forego certain experiences, Iceland  can be visited on a tighter budget .

💰 Trip Daily Budget for Countries in Europe

For comparison, I visited these countries in Europe within a year of visiting Iceland, and here’s how much I spent per day at each one:

See all my daily budget for each destination I’ve visited .

How Much Is a Trip to Iceland?

This section covers estimated trip costs depending on your travel style. I share my actual travel expenses further below.

🎒 Budget Traveler – Iceland Trip Cost

A budget traveler can expect to spend approximately $90 per day or $630 for one week of travel in Iceland, excluding flights.

Here’s what a budget traveler’s cost breakdown can look like:

Traveling Iceland on a Budget

To travel to Iceland on a budget, here are some things you’ll need to do:

• 🏠 Accommodation – Accommodations in Iceland are expensive, especially during the peak season. Hostels cost about $40 per night , and budget hotels cost about $60 a night in Reyjkavík.

One of the cheapest ways to see Iceland is to camp in a tent or campervan. Campsites are well-maintained and average about $15 a night .

• 🌭 Food – Food prices are also generally expensive (a sandwich or burger can cost $10 to $15), so buying groceries is a great way to save while visiting Iceland. You can save more than $100 a week on food this way.

One of the cheapest things you can eat in Iceland is a $2 hot dog at the gas station . Unlike the hot dogs in US gas stations and stadiums, the ones in Iceland are good. I ended up eating several of them throughout my trip.

• 🚙 Transportation – Instead of booking expensive tours that leave from major cities and towns, rent a car or  campervan  to take a road trip around Iceland to the different attractions.

During the summer months, you can use Iceland’s public transportation (i.e., public and private bus companies) to get around the country. However, no single bus will take you around the entire country.

• 🏔️ Entertainment – Take advantage of Iceland’s many free attractions that don’t require a guide or have parking or entrance fees.
• ☀️ Travel Season – Avoid visiting Iceland during the peak summer season from June to August. The best time to visit Iceland to save money is during the winter (you’ll also get to see the northern lights).

Iceland is very crowded during the summer, and accommodation options quickly disappear as early as two months in advance (this happened to me). If you’re considering visiting during the high season, plan at least four months ahead .

• 💧 Shopping – Don’t buy a SIM card in Iceland; you can rely on the country’s free Wi-Fi infrastructure. Also, bring a reusable water bottle instead of buying bottled water. Iceland has some of the cleanest water in the world.

💰 Mid-Range Budget Traveler – Iceland Trip Cost

A mid-range budget traveler like myself can expect to spend approximately $250 per day or $1,750 for one week of travel in Iceland, excluding flights.

I break down my Iceland trip expenses by travel category below. I consider myself a mid-range budget traveler, but you’ll see below that my daily budget in Iceland is higher because I booked my trip at the last minute during peak season.

About My Iceland Trip

To give context to the expenses below, here’s what you need to know about my trip:

• ☀️  Peak season – I traveled to Iceland in August, which is the end of the high season, so things are generally more expensive.

Learn how to prepare for Iceland during the peak season .

• 🗓  One week – I spent one week in Iceland and thoroughly explored the South Coast. I spent minimal time in the capital city of Reyjkjavík.
• ✌️ Group travel – I traveled with one other person, so we were able to split some costs, such as campervan and gas.
• 🚐  Campervan traveling – Iceland is a great place to travel by campervan, even for inexperienced campers like myself. I rented a campervan, which can be more economical than staying at hotels and Airbnb.

See tips on renting and staying in an Iceland campervan .

• 💰 Mid-range budget – I consider myself a mid-range budget traveler, and these expenses reflect that. I don’t aim to travel on a budget, but I’m thoughtful about how and where I spend.
• 🍀 Self-funded – My trips are self-funded, so I paid for everything listed below. None of my excursions or experiences are sponsored.
• 💵 US dollars – All costs listed in this post are per person and in US dollars, converted from Iceland’s local currency, the Icelandic Króna.

The exchange rate was $1 USD = 137 ISK at the time of writing.

Total Iceland Trip Cost: $2,690

My one-week trip to Iceland cost a total of $2,690 , including flights.

See the highlights of my trip in this  Iceland itinerary .

💰 Cost Breakdown for Iceland

Here’s a quick overview of my expenses by travel category:

🗓️ Daily Budget in Iceland: $306

My Iceland trip cost $306 per day , excluding my round-trip flights from and to the United States.

A mid-range budget traveler can expect to spend $250 per day in Iceland. This generally entails booking things two to three months in advance if you’re traveling in the summer, staying at mid-range hotels that cost approximately $90 per night, and paying for guided tours.

✈️ Flight Cost to Iceland: $550

My round-trip flight from the East Coast of the United States to Keflavík International Airport in Reyjkavík was $550.

I flew Play, a budget Iceland airline that flies to and from Europe and North America. I don’t usually fly budget internationally, but it was very manageable given that Iceland is only six hours away from the East Coast.

A round-trip flight between the US and Iceland that costs under $300 is considered cheap; international flights typically cost over $500.

🚐 Campervan and Campsite Costs in Iceland: $1,300

My average cost for campervan and campsites in Iceland was $185 per day. I was able to split my campervan costs with another person.

Iceland campsites have a per-person camping fee averaging $15 per night .

If you book a campervan four months in advance, you can travel around Iceland in a campervan for closer to $100 a day. I booked mine at the last minute.

Iceland is an amazing country to visit by campervan for many reasons, and it’s a great option even for first-timers.

Read tips on reducing the cost of a campervan rental .

🏠 Accommodation Costs in Iceland

If you’re not sleeping in a campervan like I did, you can expect to spend about $140 per night on a mid-range hotel in Iceland. During the high season, this increases to about $160 per night . Luxury hotels in Iceland typically range from $300 to $700 per night.

If you plan to visit Iceland between July and August, it’s important to book accommodations  at least two months ahead . Otherwise, you will have few housing options, as tourist demand is very high in the summer.

I tried to book housing about one month ahead in August and was barely able to find any budget, mid-range, or high-end accommodation. This is why I ended up renting a campervan (and loving it).

🚙 Rental Car Costs in Iceland

If you’re not traveling around Iceland by campervan like I did, you can expect to spend about $60 per day on a car rental , excluding the cost of gas.

Depending on several factors, you can spend anywhere from  $30 to $200 a day  on a rental car in Iceland. Here are some things that will impact your rental car cost in Iceland:

• Season – Renting a small, standard car can be as cheap as $30 per day during the low season.
• Vehicle size – An SUV in Iceland can increase your per-day cost to over $100 per day.
• Four-wheel drive (4WD) – Iceland has unpaved mountain roads called F-roads, and you’re required to have a 4WD to drive on them. Rental companies will not allow you to drive a standard car on F-roads, and a 4WD increases the cost of a car rental.
• Automatic vs. manual transmission  – Most vehicles in Iceland are manual. Due to the high tourist demand and low supply, automatic cars are slightly more expensive than manual ones.
• Booking timing – Booking in advance is especially important when traveling during Iceland’s peak season. In the summer, car rental costs can double if you book a month ahead compared to three months ahead.

⛽️ Gas Cost in Iceland: $90

My average cost of gas in Iceland was $13 per day . The total gas cost was $180, but I was able to split the gas with my partner, so the gas cost per person was $90.

Make sure to budget for gas when traveling in Iceland, as gas prices are among the highest in the world. If you decide to do the entire Ring Road, the main road wrapping around the island, gas can add more than $400 to your trip’s budget.

🌭 Food Cost in Iceland: $200

My average cost of food in Iceland was $29 per day . My total cost for groceries was $45 . My total cost for dining out was $155 , which averaged $19 per meal.

Iceland food is expensive. Food is where you can save money by shopping at grocery stores instead of dining out. The popular grocery stores in Iceland are Bonus (budget option), Kronan (has a wider selection), and Netto (has a smaller selection).

Cheapest Meals in Iceland

Here are the most affordable meals I ate during my trip:

Alcoholic drinks in Iceland are also expensive due to the high tax rate and import costs. Besides not drinking in Iceland, you can also save money by getting alcohol at the Duty-Free Store at the airport or by taking advantage of happy hours at local bars .

Most Expensive Meals in Iceland

Here are the most expensive meals I ate during my trip:

I ate at Íslenski barinn because the restaurant is known to serve hákarl, a fermented shark delicacy in Iceland. You can learn about Icelandic cuisine on a food tour .

🏔️ Entertainment Cost in Iceland: $535

My average cost of entertainment in Iceland was $76 per day.

Iceland has many expensive activities you can do, including $100+ tours that take you whale watching, glacier hiking, and snorkeling between tectonic plates .

Costs of Activities and Attractions in Iceland

Here are all the activities and attractions I paid for and how much each cost:

Free Things To Do in Iceland

Iceland is known for its natural beauty, so there are many free outdoor activities and attractions available.

Below are some of Iceland’s most popular free attractions . Some have bathroom and parking fees (usually less than $5), but none have an entrance fee.

• The Golden Circle – This is a 190-mile tourist route featuring three of Iceland’s top natural attractions: Gullfoss, Geysir, and Thingvellir National Park.
• Northern lights – The world-famous northern lights are a colorful display of light in the night sky that occurs in Iceland, mainly during the winter, from September to April. Seeing them is completely free unless you want to pay for professional photos .

• National parks – Two of Iceland’s three national parks are free: Thingvellir National Park and Snæfellsjökull National Park.
• Waterfalls – Gullfoss, Seljalandsfoss, and Skógafoss are some of Iceland’s most iconic waterfalls on the South Coast, and they’re all free.
• Beaches – The famous Diamond Beach and Reynisfjara Black Sand Beach do not have parking or entrance fees.

Most natural hot springs in Iceland will have an entrance fee, but there are a few that are free and are usually more challenging to get to (e.g., Seljavallalaug, Landmannalaugar).

🚙 Entrance and Parking Fees in Iceland: $15

My average cost for entrance and parking fees in Iceland was $2 per day.

Most of Iceland’s natural attractions don’t have parking or entrance fees, but they may have small bathroom fees.

Do You Need Cash in Iceland?

Iceland has an excellent credit card infrastructure , and I found that even remote campsites take credit cards. You don’t need cash in Iceland most of the time.

Below are tips on bringing and using cash and credit cards in Iceland.

💳 1. American Express is not widely accepted in Iceland.

Bring a Visa or Mastercard credit card to ensure you can use a card in Iceland.

🏧 2. Carry less than $40 worth of cash in Iceland.

Cash is rarely needed in Iceland, so you need to only carry a small amount in case a card machine is broken or for a few cash-only places.

The US dollar is not accepted , so you need to withdraw cash in the local currency, Icelandic Króna.

During my Iceland trip, the only place I visited that required cash was the Hrunalaug hot spring , but they now accept card payments.

💰 3. Tipping is not customary in Iceland.

Tipping is appreciated in Iceland, but it’s c ompletely optional . Although it’s most often expected from tourists and businesses that serve visitors, I found that tipping is not the norm.

See other essential travel tips for Iceland before visiting.

Iceland Trip Planner 2024

To make your travel preparation easier, download the trip planner below. It has destination-specific travel information, itinerary, map, and packing list.

My trip planners are built on Notion, which I use for all my travel planning. I genuinely love this tool and creating an account is free .

Thoughts? Questions? Leave a comment below .

Iceland Travel Guides

• 🇮🇸 Planning a Trip to Iceland: 11 Practical Things To Know
• 🚙 Iceland South Coast: Efficient 7-Day Road Trip Itinerary
• 🚐 My Iceland Campervan Trip: How To Plan One + Tips
• 🧊 Glacier Hike in Iceland: Firsthand Review & Tips
• ♨️ Hrunalaug Hot Spring: Firsthand Review & Tips
• ☀️ Visiting Iceland in August: Tips & What To Know

🧋 Support Lukiih

Lists by Lukiih is a humble website that I fund with my own savings. If you find my tips helpful, I appreciate you saying thanks with a bubble tea !

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

• IS Íslenska

How Much Does it Cost to Go to Iceland? A Travel Budget 2024

In this travel budget estimate for Iceland in 2024, we will cover the cost of going to Iceland, why the prices in Iceland are so high, how much it costs to rent a car, and a full breakdown of all costs associated with a trip to Iceland, along with some money-saving tips that you can implement on your travels. 

Famous for its breathtaking natural beauty and unique cultural heritage, Iceland is a truly unique travel destination for any world adventurer. Like with every trip, budgeting remains a top consideration when planning a trip to Iceland. And although Iceland is known as one of the most expensive destinations to visit, understanding the various costs associated with a trip to Iceland, along with some insider tips and tricks, will allow you to enjoy the country regardless of your budget. 

The first question people ask before booking a trip is, “How much does it cost to go to Iceland?” Getting around Iceland is one of the main considerations when it comes to budgeting, as the country has limited transportation options and no metro or trains. That means you have to rely on either public tours or book a rental car to travel with full freedom. 

Table of content

• Travelling time

Traveling method/Travel style

Stay duration 

Group size 

Type of experience 

How Much Does a Flight Ticket Cost?

How much does it cost to stay in iceland estimated price per night, how much does it cost to eat in iceland estimated price per person, how much does it cost to travel around iceland , how much does it cost to rent a car in iceland , how much does gas cost , how much to budget for other expenses are attractions in iceland free, why is iceland an expensive country, budget saving tips.

Calculating the Cost of Traveling in Iceland: What Affects the Cost?

Several factors can influence how much you will spend on your trip to Iceland, including what time of the year you visit, how long you plan on staying, what you plan on doing in Iceland, and what you do during your trip. Any of these factors can increase or decrease your expenses, and they are worth understanding. 

Seasonality and its Impact on Costs

Traveling time

The most significant factor impacting the costs of a trip to Iceland is the time of year you choose to travel, as different seasons will have different cost implications. Since the summer period is high in traffic from tourists, prices of most goods and services tend to increase due to supply and demand. In the Iceland winter months and during off-season, prices are generally cheaper due to reduced crowds.

That said, you will need a more sturdy and well-equipped 4X4 vehicle to handle the winter road conditions, which could come with an increased price. It’s also important to note that you may want to book a longer stay during the winter as you will need to account for delays due to bad weather and build some extra buffer time into your itinerary. Additionally, the week of Christmas and New Year’s will typically be more expensive than the rest of the winter months. 

How you travel will also impact how much you spend while in Iceland. Renting a car is the cheaper and preferred option since it costs way less than going on multiple tours. Plus, it allows you to plan your itinerary and change your mind without incurring further expenses than originally planned.

Many of the top attractions in Iceland are free to visit, but you’ll need a car to get there. Tours will always cost you money and will also limit the places that you can actually visit. 

How long you choose to stay in Iceland is another important factor in determining how much your trip to Iceland will cost. Regardless of season or vehicle choice, longer stays mean more money spent on expenses like food, lodging, rental cars, and gas. 

A great way to save money when traveling to Iceland is by traveling in a group, which allows you to compile resources for shareable expenses like accommodation, food, transportation, and even some experiences and attractions. In addition to creating lasting memories with loved ones, sharing the costs is one of the best ways to make your trip more budget-friendly. 

Ultimately, deciding how much you will spend on a trip to Iceland depends on how much you have available in your budget. Solo travel on a shoestring budget at the right time of the year would cost about ISK 12675 ($90) per day, while an all-expense luxurious trip would set you back up to ISK 40,843 ($290) per day. On average, however, people spend around ISK 27,531 ($195) daily on trips to Iceland, excluding airfare.

Breakdown of Costs for a Trip to Iceland

Now, let’s break down the costs of each aspect of a trip to Iceland so you can effectively budget how much you will need to spend. 

In the summer, when crowds are always at their highest, flight tickets from North America to Iceland typically cost between ISK 84,504 ($600) and ISK 211,260 ($1,500), while flights from Europe would cost between ISK 60,203 (€400) and ISK 135,457 (€900). 

During the offseason in winter, flight tickets from North America to Iceland typically cost between ISK 70,420 ($500) and ISK 169,008 ($1,200), while flights from Europe would cost between ISK 30,101 (€200) and ISK 90,304 (€900). 

• Read more about: Iceland flights: airlines, airports, and destinations guide

Different types of accommodation are available to tourists in Iceland, serving a wide range of price needs. From hostels and guesthouses, which are pretty affordable, to luxurious five-star hotels, which come at a much higher price point, you will always find an option for your budget. 

Hotels 

Hotels are the peak of luxury accommodation in Iceland. During summer, you might find reasonable spots that cost of hotel with private rooms and bathroom between ISK 24,928 ($177) per night and as much as ISK 225,762 ($1,500) for the highest-end places. During winter, hotel prices vary between ISK 14,084 ($100) and ISK 75,349 ($535) per night.

Hostels in Iceland are considering as more expensive then the hostels in other countries, but still hostels are the cheaper accommodation options for tourists travelling Iceland. During peak summer, hostels and guesthouses could cost between ISK 5,633 ($40) and ISK 20,562 ($146) per night. They could cost as little as ISK 3,521 ($25) to ISK 7,042 ($50) per night in winter.

AirBnb 

In the summer, you can get an AirBnB for as low as ISK 8,450 ($60) for shared spaces and as high as ISK 47,322 ($400) for a single unit, but it could easily stretch much higher depending on what type of Airbnb you book. During winter, you can get them as low as ISK 5,633 ($40) for shared spaces and as high as ISK 49,294 ($350) for a single unit. 

Camping 

Camping in Iceland is a great way to experience the country. For campervans or tenting, the cost for a campsite is between ISK 1,408 ($10) and ISK 13,098 ($93) per night. Camping during the winter months in Iceland is highly discouraged, and we do not recommend this due to severe weather conditions like extreme cold and snow storms that could hamper safety.

Additionally, most of the campsites will be closed in the winter months anyway. But during the summer in Iceland , it’s one of the most inexpensive accommodation options. 

Food in Iceland can be expensive when compared to other European countries, but that does not mean there aren’t ways around the high cost. For example, you could spend as little as ISK 2112 ($15) daily if you make your meals from store-bought groceries. 

Expectedly, the best in fine dining and high-end restaurants located in the capital city of Iceland have steep prices. As a result, one meal can cost up to ISK 11267 ($80) at a nice restaurant in the city, and even more depending on what you have to drink. 

On the other hand, some restaurants could cost between ISK 3,943 ($28) to ISK 7,887 ($56) per meal, while fast food is the least expensive food, and you can get Iceland’s famous hotdogs for around ISK 845 ($6) hotdogs or combo meals for ISK 3,943 ($28). 

The price of transportation around Iceland depends mainly on what you intend to see and where you wish to go. Several bus tours operate year-round, and others only operate in the summer. However, the most popular one among visitors to Iceland is the Golden Circle tour, which touches most of Iceland’s iconic attractions. 

A full-day tour of the Golden Circle will usually cost between ISK 16,900 ($120) and ISK 28,168 ($200).

Rather than take tours, we recommend renting a car to visit Iceland attractions yourself since many of them are free to enter. You can find more information on the cost of rental cars below. 

The cost of renting a car in Iceland varies depending on what type of car you require and the time of year when you rent it. 

Small cars like the Volkswagen Golf cost ISK 39,435 ($280) per day when you rent them during the summer, but that price goes down to ISK 18,309 ($130) during the winter. 

Mid-sized cars like the Toyota Corolla, which can seat up to five people, will cost around ISK 46,477 ($330) per day in the summer and ISK 22,534 ($160) during the winter. 

Full-sized cars with lots of space, such as the Toyota Land Cruiser, are priced at ISK 73,236 ($520) per day during the summer and ISK 32,393 ($230) in winter. 

As of the time of writing this, gas in Iceland costs ISK 1,205 ($8.7) per gallon, but the price has fluctuated between ISK 1,162 ($8.25) and ISK 1,234 ($8.76) in the last year.

Most attractions in Iceland are free when travelling around the island via Route 1 Ring Road, only a few classic attractions, for example the black sand beach, Seljalandsfoss waterfall, thingvellir National park, they do charge a small parking fee. But if you want to visit some museums during your time spend in Reykjavik, that will cost.

Approximate cost of Souvenirs and Shopping in Iceland: from 10,000 ISK

When visiting Iceland, shopping for souvenirs is a delightful way to preserve memories of your trip. The prices for common souvenirs vary, with typical items like Icelandic wool sweaters, locally made crafts, and Viking-themed memorabilia.

For instance, a classic Icelandic wool sweater can cost anywhere from ISK 10,000 to ISK 25,000, depending on the quality and design. For more budget-friendly options, tourists can look for smaller items like keychains, postcards, or volcanic rock jewelry, typically ranging from ISK 500 to ISK 4,000.

To find value-for-money purchases, it is advisable to shop at local markets or stores away from main tourist areas, where prices are often inflated. Places like Kolaportið, Reykjavik’s flea market, offer a wide range of items at more reasonable prices compared to souvenir shops at popular tourist destinations.

Entrance Fees for Popular Tourist Spots in Reykjavik: from 6,990 ISK

Iceland is home to numerous attractions, and while many natural wonders like the famous black sand beach at Reynisfjara are free to visit, some popular spots do have entrance fees.

For example, a visit to the Blue Lagoon, one of Iceland’s most iconic geothermal spas, can cost between ISK 6,990 to ISK 9,990 for a standard package, including a silica mud mask and use of a towel. Other notable attractions include the Perlan Museum in Reykjavik, where entrance fees are around ISK 2,900 per adult, and the Whale Museum in Husavik, which charges about ISK 2,200 per adult.

Additionally, some of the national parks and protected areas might have parking fees or charges for guided tours, although access to the park itself is typically free. It’s always a good idea to check for updated prices and book tickets in advance for popular activities in Iceland, especially during the high tourist season, to avoid last-minute price surges and ensure availability.

Being in the far reaches of the North Atlantic Ocean certainly has its perks. The incredible views and the serenity of being distant from more central European countries make Iceland a dream destination. However, the downside to its unique location is how it impacts costs. 

Iceland is at least five-and-a-half hours away from the United States by flight, and its distance from major cities worldwide means that imports are complicated and often expensive. This would be fine if Iceland did not have to depend on importation for most of its day-to-day needs, but unfortunately, the country relies heavily on imports due to a short supply of natural resources. 

In addition, Iceland’s quality and standard of living are high, given that the country’s working population, which is 90% employed, is paid premium wages and, in turn, pays high taxes. The flow of wealth in Iceland’s communities has given rise to a high cost of living in the country and makes it difficult to find cheap alternatives to necessities for tourists because they do not exist for the locals either. 

An upsurge in tourism and exploration of Iceland’s many famous attractions has increased the demand for items and services like accommodation, tours, rental cars, tickets, and activities that make up a large part of any holiday planning. Recent inflation also plays a role in Iceland’s high cost of commodities and services. At the same time, the fluctuating Icelandic currency also requires you to pay attention to global and local foreign exchange trends while in Iceland. 

In-Depth Exploration of Iceland’s Cost Factors

Local Economic Factors Affecting Prices

Iceland’s geographical isolation significantly impacts the cost of goods in the country. Located in the North Atlantic, far from mainland Europe and North America, Iceland relies heavily on imports for many of its essential and non-essential goods. This reliance on importation naturally leads to higher costs. Everything from food items to consumer goods must be transported over long distances, often incurring substantial shipping fees, which are then passed on to the consumer in the form of higher retail prices.

Additionally, the limited local production capacity in various sectors means that the country cannot offset these costs by producing more goods domestically. This situation results in a higher cost of living compared to many other countries, affecting both residents and tourists alike.

Contrary to what one might expect, Iceland’s energy costs, predominantly sourced from renewable resources like geothermal and hydroelectric power, play a unique role in its economy. While these renewable sources provide relatively cheap and abundant energy, the initial infrastructure setup for harnessing these natural resources involves high costs.

These expenses, in turn, can contribute to the overall cost of services and goods in Iceland. However, it’s also noteworthy that the abundance of renewable energy has attracted energy-intensive industries to the country, which positively impacts the economy but can also lead to increased competition for resources.

Impact of Tourism on Iceland’s Economy

Tourism has become a cornerstone of the Icelandic economy. The breathtaking landscapes, unique geological features, and the allure of the Northern Lights have turned Iceland into a popular tourist destination. This influx of tourists has led to increased demand for accommodation, food services, and travel-related services, driving up prices due to the high demand, especially during peak travel seasons. The revenue generated from tourism significantly contributes to the national economy but also results in a cost structure that caters to tourists, often at premium prices.

Sustainable Tourism and Its Costs : Iceland has been a proponent of sustainable tourism, aiming to preserve its pristine natural environments while catering to tourists. Sustainable tourism initiatives often involve investing in environmentally friendly infrastructure, promoting responsible travel practices, and ensuring that tourism does not adversely affect local communities and ecosystems.

These initiatives, while crucial for long-term preservation, often come with higher operational costs. These costs, necessary for maintaining the balance between welcoming tourists and preserving natural beauty, are reflected in the pricing of tours, accommodations, and other tourist-related services in Iceland.

Despite having a reputation for being an expensive destination, there are several ways that you can save money on your trip to Iceland. 

• Consider visiting during the off-season and shoulder seasons , when the crowds will be significantly less than during the summer. This will save costs on flight tickets, accommodation, car rentals, and even food and activities. 
• Always book in advance. Get your essentials, like Iceland flight tickets and rental cars, ahead of schedule as much as possible. This way, you can avoid any last-minute price hikes and also ensure that you don’t miss out on availability and end up unable to book your preferred options.
• With the price of restaurant meals in Iceland, the most budget-friendly way to dine is to cook your own food. Many hostels, Airbnbs, campgrounds, and campervans have provisions for cooking, and grocery stores are never far away. So, with a little effort, you can spare yourself the cost of an expensive restaurant meal and make food to your taste.
• If your accommodation or itinerary does not allow you time or space to cook meals, then this could be the time to embrace the fast food options in Iceland; after all, it is a vacation. But if you have it in the budget, we do recommend trying out some local Icelandic cuisine . 
• Enjoy free activities and attractions as opposed to tours and paid entertainment. For example, instead of going to a paid Iceland hot springs or geothermal bath, you can opt for more remote, free hot springs enjoyed by locals while also getting a more authentic experience.
• There are also several accessible black sand beaches , glacier lagoons , Iceland waterfalls , and hiking trails that satisfy your thirst for adventure in Iceland without costing more than gas money or transportation to reach these areas since they are free to access. 
• Bring your own water bottle. A simple water bottle will save you money that you would have otherwise spent on bottled water, as you can safely drink tap water in Iceland and fill your water bottle at rest stops instead of buying water at different venues and public attractions. 
• Consider traveling with a friend or family member to split the costs. Many essentials like gas, food, rental cars, and accommodation can be divided between two or a larger party to break heavy expenses into lighter loads for each individual. 
• Eat in local markets and food halls in Iceland is not just a culinary adventure; it’s a smart way to keep your dining budget in check. These places offer a diverse array of Icelandic specialties at prices that are much more wallet-friendly than what you might find in upscale restaurants. For instance, at Reykjavik’s Grandi Food Hall or Hlemmur Food Hall, you can savor everything from traditional Icelandic snacks to international dishes, all without breaking the bank.
• Making the Most of Tax-Free Shopping. This is particularly beneficial for tourists planning to make substantial purchases. Look for stores displaying the “Tax-Free Shopping” signage, and remember, your total purchase needs to be at least ISK 6,000 to qualify. Keep your receipts and fill out the tax-free form provided by the store. When you’re heading home, show these forms along with your items at the airport or port customs for validation, and you can claim your refund right there in the departure area. This process effectively reduces the cost of your shopping, giving you more value for every dollar spent.

Cost Guide to Iceland

This cost guide to Iceland has provided detailed information on how much it costs to go to Iceland, along with key details on the average cost of trip essentials and factors that could cause those prices to change throughout the seasons. By following our tips on the best ways to save money while on vacation in Iceland, you can keep your trip within your budget, regardless of what that is. 

One of the best ways to save money on your trip to Iceland is to book a rental car online and in advance with Hertz Iceland to lock in the rental rate before it fluctuates. By securing your rental car prior to your trip, you can ensure you get the best deal and the perfect vehicle to explore the wondrous landscapes of Iceland. 

Best rental cars in Iceland for all seasons

Hyundai Tucson Plug-in Hybrid or similar | Automatic | 4×4

Ifai | group: n3 (ifai).

• Airconditioning
• 3 Large Luggage

This vehicle is NOT allowed in the highlands F-roads. NOTE: Allowed on roads no.35 and 550. You must be 23 years of age to drive this vehicle.

Additional Features

• 4 Wheel Drive
• 46 C0 2  g/km
• Adjustable Steering
• Cruise Control
• Electronic Stability Control
• Power Steering
• Power Windows
• Remote Locking

Kia Sorento Plug-in Hybrid or similar | Automatic | 4×4

Sfdi | group: o6 (sfdi).

• 4 Large Luggage

This vehicle is NOT allowed in the highlands F-roads. NOTE: Allowed on-road no.35 and 550. You must be 23 years of age to drive this vehicle.

• 38 C0 2  g/km

Land Rover Defender or similar | Automatic | 4×4

Pfan | group: g6 (pfan).

• Petrol or Diesel

Suitable for highlands, Please read the Terms & Conditions. You must be 25 years of age to drive this vehicle.

• 234 C0 2  g/km

Tesla Model Y or similar | Automatic | 4×4

Ugdc | group: v1 (ugdc).

This vehicle is NOT allowed in the highlands F-roads. You must be 23 years of age to drive this vehicle.

• Traction Control

5 seats Toyota Land Cruiser or similar| Automatic | 4×4

Ffar | group: i (ffar).

• 5 Large Luggage

Suitable for the highlands. Please read Terms & Conditions. You must be 23 years of age to drive this vehicle.

• 251 C0 2  g/km

Toyota Land Cruiser 7 seater or similar | Automatic | 4×4

Fvan | group: h (fvan).

• 2 Large Luggage
• 252 C0 2  g/km

Sign up for big savings!

Thank you for subscribing!

Manage Booking

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.

Iceland Vacation Cost: How Much Does a 4-Day Trip to Iceland Cost?

How much does a trip to Iceland cost? Figuring out your Iceland travel budget can be grueling, so I want to make this process as painless as possible by providing budget hacks and helping you set realistic spending expectations for your upcoming trip to Iceland. F or this Iceland travel cost breakdown, I’ve hoarded all of my receipts from my 4-day trip, and here’s how much it cost me. Since I’ve visited three times, I also included other fun facts here.

Depending on your needs and interests, your Iceland budget breakdown may look different from mine. Nevertheless, this is a great resource for figuring out how much money you’ll need. Although Iceland has a reputation for being an expensive country, I’m confident that if you plan and budget accordingly, you’ll have a blast visiting one of my favorite places in the world.

How expensive is Iceland relative to other countries? According to Numbeo’s Cost of Living Index by Country , Iceland is the sixth most expensive country, followed by the Bahamas, the U.S. Virgin Islands, the Cayman Islands, Switzerland, and Bermuda .

• How Much Should You Expect To Spend in Iceland?

Table of Contents

Round-Trip Flights from NYC + Hostel: $562 USD

Shuttle bus to/from keflavík international airport: $32 usd, average daily food cost: $60-$105 usd, average activity cost: $120 usd, citywalk reykjavik, day trips from reykjavík, average daily alcohol cost: $18 usd, total cost of trip to iceland, how to save money in iceland.

Is Iceland expensive?

Based on my three trips to Iceland, the average trip costs between $300 and $400 per person per day , including flights, budget lodging like hostels and Airbnbs, and activities, mostly guided group tours around the country.

This does not include car rentals or gas.

For a detailed breakdown of the cost of a trip to Iceland, keep reading to get a better understanding of the expenses you’ll incur.

Cost of Visiting Iceland: 4-Day Iceland Vacation Cost Breakdown

I purchased my flight and accommodation package six months ahead of time on Expedia and redeemed a $25 Expedia+ coupon with all my accumulated points.

I flew with Delta Air Lines and stayed at Loft Hostel . Although hostels in Iceland aren’t as cheap as in other parts of Europe, they’re still a cost-effective option. If hostels aren’t your thing, search for hotels and guest houses in Reykjavík here .

I booked my flight and lodging separately for my second trip to Iceland. I flew with Icelandair and booked my flights three months before departure. My round-trip ticket to Reykjavík from New York City cost $273.45 USD. At the time, this was the cheapest flight I’ve ever seen to Reykjavík on a non-budget airline. Also, flying with Icelandair meant that the first checked bag was free! The average flight to Reykjavík from New York City costs over $400 USD.

During this trip, I stayed at Kex Hostel Reykjavík in a six-bed female dorm for 6,800 ISK or $63.11 USD per night. I saved $36.10 USD this time by finding an amazing flight deal and booking the essentials separately. I recommend signing up for Thrifty Traveler Premium to find incredible flight deals worldwide.

For my third trip to Iceland, I booked flights with WOW Air for $176.76 USD and stayed at Captain Reykjavik Ránargata. Unfortunately, WOW Air went out of business in 2019.

Gray Line Iceland Airport Express is one of the most convenient ways to get to Reykjavík from Keflavík International Airport. The bus ride takes 45 minutes, and there’s  free Wi-Fi onboard. Order your tickets at the counter or confirm your booking online.

Children between the ages of 12-17 pay half price, and children under 11 travel free. Departures are scheduled 25-45 minutes after arriving flights, so even if you arrive late at night or early morning, there’s always a bus available. Flybus is another shuttle bus alternative. It is slightly more expensive.

With Gray Line Iceland Airport Express, you have two options. The “Terminal to Terminal” service takes you to the Gray Line Bus Terminal at Holtagarðar 10. The “Door to Door” service drops you off at your hotel or near your guesthouse.

Airport Express Terminal-to-Terminal Costs

2,400 ISK one-way or $19 USD

3,900 ISK round-trip or $31 USD

Airport Express Door-to-Door Costs

2,900 ISK one-way or $22.86 USD

4,900 ISK round-trip or $45.72 USD

Iceland Transportation Money Saving Tip

I saved 5% on my bus tickets with the promo code “SIGHT5”.

Before booking, Google “Gray Line promo codes” to find other coupon codes and more savings.  

Gray Line Iceland also offers promo codes right on their website. During my second trip to Iceland, I booked a Snaefellsnes Peninsula and Cave Exploration tour and saved 10% with the promo code “LABOR10”.

What’s the cost of food in Iceland?

Food in Iceland is extremely expensive.

Even though I saved money on breakfast (included in my hostel stay), I suggest budgeting $20-$35 USD per meal. On the other hand, my roommates bought a lamb stew for $80 USD. I know, crazy, right?

The cheapest lunch I had cost $15 USD. The most expensive dinner was $34 USD.

Check out my Iceland food prices guide for how much things cost at supermarkets, restaurants, and bars.

Iceland Food Costs: How Much Does Food Cost In Iceland?

How much to tip in Iceland?

Tipping isn’t mandatory in Iceland. Icelanders don’t tip because it’s included in the price and taxes. Feel free to tip your server or bartender if you feel they went above and beyond , but there’s no obligation or expectation. You may see tip jars in coffee shops, but you don’t have to tip them unless you want to.

More Money-Saving Tips in Iceland

Remember that you don’t need to buy bottles of water in Iceland. The water is pure, and you can get it free anywhere. My tour guide encouraged me to drink water from a glacier lagoon—and that’s normal.

Press play to listen to this podcast episode, where I share even more tips for saving money in Iceland . These tips are based on my book Iceland: Nature, Nurture & Adventure .

Listen to this episode on Apple Podcasts and Spotify .

Considering shopping in Iceland? Here’s how you can get up to 14% off items by claiming a tax-free refund .

How To Claim Your Tax-Free Refund Shopping in Iceland

Iceland has much to offer, especially if you’re looking for adventure. There are waterfalls to walk behind, glaciers to climb, and you can even go inside a volcano or snorkel between continental plates. If you’re feeling really adventurous, try extreme motorsports like formula off-roading. 

Things To Do in Reykjavík

• Hallgrimskirkja Church : $8 USD
• Admission to Vesturbaejarlaug swimming pool: $8 USD
• Tip for CityWalk Reykjavik walking tour: $12 USD (set your own price)

CityWalk Reykjavik offers free walking tours in Reykjavík. They also lead pub crawls, running tours, and private tours. The free “History and Culture Walk” is a great introduction to the city, Icelandic culture, and history. Best of all, the tour guides are witty Icelandic historians. During the walking tour, you’ll walk through the most historic parts of town , including the oldest neighborhood and the oldest cemetery. I would have missed so many hidden gems if I skipped this tour. At the end of the tour, set your own price and tip in any currency.

Day trips in Iceland are pricey, but the good news is that I also found plenty of cheap things to do in Reykjavík if you’re on a budget.

• Horseback riding: $106 USD 
• Iceland’s South Coast   bus tour: $138 USD 
• Snorkeling at Silfra (including photos): $205 USD

I booked a snorkeling Silfra tour ahead of time with DIV.IS.  If you have a  GoPro camera , bring it with you. You can save money by not paying extra for photos and videos.

If you want to see Iceland’s landscape, it’s worth visiting the countryside. Lots of people recommend renting a car in Iceland, but taking a guided tour was informative and convenient. I would have missed so much if I were on my own!

I also booked a last-minute South Coast sightseeing tour with Sterna Travel.  Sterna Travel offered the cheapest South Coast bus tour,  and the value was incredible! I saw many waterfalls and a glacier tongue, and I even learned about the effects of volcanic eruptions and global warming on the island.

Getting a drink or two in Iceland adds up quickly. A beer costs roughly $11 USD.

Loft Hostel has one of my favorite bars  in Reykjavík. They offer a variety of Scandinavian beers, and you can jam out to live music on Fridays. Their rooftop patio is also a great place to scope out the city skyline.

A friend introduced me to Ölsmiðjan Bar, a dive bar where beer costs only $5.48 USD or 590 ISK!

Lastly, use the Appy Hour app to find cheap drinks in town. Appy Hour conveniently lists every happy hour in Reykjavík in real time.

How much does it cost to go to Iceland? W hen I totaled all of my expenses, I spent $1,240 USD for my 4-day trip. I am both shocked and relieved I decided to spend only four days in Iceland. The more time you spend in Iceland, the more you’ll spend. An average trip to Iceland costs approximately $300 per day, including flights and lodging.

Food, alcohol, and activities were the most expensive budget categories, but  I’m amazed Natasha over at The World Pursuit spent a  week in Iceland and only spent $100 USD ! Nevertheless, I have no financial regrets whatsoever about my trip. I’m happy I got to visit one of the top destinations on my travel wish list.

Would I go back? Ugh….duh!  I’m already planning my fourth trip.

Although visiting Iceland isn’t the cheapest, it’s still worth it. With that in mind, here are some quick pointers to help you and your wallet make the most of your Iceland vacation.

• Shop Duty-Free. While you can buy alcohol at a local bar or restaurant, alcohol is pricey in Iceland because of taxes. To make matters even worse, alcohol taxes are levied based on the volume of alcohol in a drink. The first piece of advice is: buy your drinks at the airport. If you’re flying into Keflavik International Airport, Iceland’s main airport, stop by Duty-Free Iceland . It has a wide selection of alcoholic and non-alcoholic beverages from Argentina to New Zealand and almost anywhere else in between. Keep in mind that each traveler is only permitted six units of alcohol. If it sounds confusing, use this alcohol allowance calculator to see how much beer, wine, and liquor you can purchase at the airport.
• The second piece of advice is to make the most of local happy hours . To know which bars have discounted happy hours, download the app Appy Hour. This app sorts out bars and happy hour deals based on proximity and price.
• Bring a refillable water bottle . While you can buy bottled water in Iceland, Iceland’s tap water is unbelievably pristine, safe, and never chemically purified. Iceland’s tap water is reported to originate from springs and mountains that are naturally purified through molten rocks, which not only cleanse the water of any bacteria or chemicals but also add minerals and nutrients. So why spend your coin on some of the world’s best water when you can get it from the tap for free?
• Ditch cash. Like most countries, Iceland prioritizes plastic, with no need for ATM visits and fees.
• Claim your tax refunds through tax-free shopping. Tax-free shopping is a way to save money when traveling to expensive countries such as Iceland. For more on how to claim your tax refund, check out my article, “ Tax-Free Shopping in Iceland ,” on how to save money and receive a tax refund.
• Unlike the U.S., where tipping can go a long way, tipping is not necessary in Iceland . Gratuity is already included in the bill, so while tipping isn’t necessary, it is always appreciated.
• Regarding finding reasonably priced items to stock your temporary fridge , Iceland has several options for affordable grocery stores. Of these grocery stores, I suggest Bónus and Krónan for household items, food, drinks, and anything else you may need to comfortably enjoy your time in Iceland.
• Prioritize local swimming pools over fancy hot springs. Here, you’ll meet locals and partake in their traditions and customs while also saving money!

For even more helpful tips not covered on the blog, grab a copy of my Iceland travel guide !

In this book, we cover:

• What to expect
• Things to do in Iceland
• Things to pack
• How to save money in Iceland
• How to save money duty-free shopping in Iceland
• The best times to visit Iceland and more!

Continue planning your Iceland vacation. Read these Iceland articles next:

Caving Adventure in Vatnshellir Cave

Top Blue Lagoon Alternatives

Best of Iceland South Coast Tour

Grab copies of my books on Amazon.

Danielle Desir Corbett paid off $63,000 of student loan debt in 4 years, bought a house at 27, and has traveled to 27 countries, including her favorites, Iceland, China, and Bermuda. Go here to learn Danielle’s incredible story, from struggling financially and in debt to finding creative ways to earn more and live on her terms. Listen to The Thought Card Podcast , where Danielle shares how you can creatively travel more and build wealth regardless of your current financial situation. Reach out to Danielle by contacting: thethoughtcard (at) gmail (dot) com.

You might also like

Haha, Iceland is awesome right?! I can’t remember our costs but dang it’s expensive there and the FOOD. Like, not even for anything special…

We got so lucky and were able to couchsurf for free (what’s more our hosts’s kid gave up his room for us so we got a comfy bed) and their place had a heated bathroom floor (which is common there…). And our host’s partner gave me this lovely necklace…

Wow! this post sounds amazing.. Iceland looks awesome to explore, there are so many things to do, I love your post and I will be definitely adding to my bucket list..keep sharing!

Thanks Monica, keep an eye out for my Iceland Travel Guide that comes out in July!

Amazing tips and amazing photos too, you guys had a great time and Now Iceland is in my bucket list, thanks for sharing such a beautiful post

Thank you so much Kanika! In July 2019, I’m releasing my Iceland travel guide book with even more info for planning your trip!

Hi, great article. How did you manage jet lag on such a short trip?

Hydrate and try to sleep on the airplane so when you land, you can hit the ground running!

This is so helpful! Heading to Iceland in October, so definitely bookmarking this. Thank you for sharing

Thank you for your post! This helps me figure out what my expenses will be like when I go for the first time. :)

Thank you Christian, I just got back from my third trip to Icealnd and plan to update with more money details soon! When are you heading to Iceland?

Leave a Reply

Leave a reply cancel reply.

Your email address will not be published. Required fields are marked *

How Much Does it Cost to Go to Iceland? 2024 est.

It’s no secret that a trip to Iceland can be expensive. But did you know that the cost of your trip largely depends on variables like what season you plan to travel in? The ever-fluctuating prices of accommodation, activities, and even daily meals can play a big role in the final tally of your expenses.

Budgeting for your trip, whether you plan to splash out or you’re looking to travel on an extreme budget, can take some sleuthing. Moreover, currency conversion and unfamiliar pricing can sometimes be a challenge for travelers.

To make it easier for our readers, all the prices we discuss in this guide will be in USD . This way, you can get a clearer picture without getting bogged down with currency conversion rates. Read on to see how much it costs to travel in Iceland and how to properly budget for your trip to the Land of Fire and Ice.

How to Calculate The Cost of Traveling in Iceland: Things That Can Affect Cost

When you travel.

What season you travel to Iceland can drastically affect the cost of your trip. Summer, from June to August, is the high season in Iceland. With the midnight sun gracing the horizon and landscapes in their full glory, visitors can expect virtually everything to cost double or even triple what it might cost in the winter months.

Winter, on the other hand, offers its own charm with the Northern Lights and snowy sceneries. If you’re looking for a less expensive trip, plan for winter or shoulder month’s like May and September. If good weather is more important than cost, summer is perfect. But remember, each season has its unique offerings, from winter’s Northern Lights to summer’s endless days.

• Related readings: Best places to go in Iceland

How You Travel

Your mode of transportation and approach to exploring Iceland plays a pivotal role in your expenses. For instance, joining a tour will almost always be much more expensive than a DIY road trip along the Ring Road.

Moreover, organized tours provide the convenience of planned itineraries and knowledgeable guides. Doing it yourself, however, is almost always cheaper – and usually more fun! It offers the flexibility to discover hidden gems and explore at your own pace.

• Related readings: Cheap car rental tips in Iceland

Stay Duration

Naturally, the duration of your stay will have a significant impact on the overall cost. While the daily costs might seem high, longer stays can sometimes yield deals or weekly discounts on accommodations.

Visitors who plan to stay longer may experience less expensive accommodation costs. However, other costs, like food and car rental, will be higher. So, it’s always good to plan ahead and perhaps prioritize where to splurge and where to save.

• Related readings: Things to do in Iceland

Traveling with Friends or Solo trip

Solo travel has its own perks, but traveling with friends or family can be economically advantageous. A great way to reduce cost – and have an incredible time – is bringing your friends along! Splitting the most expensive costs of your trip, like accommodation and car rental, can cut your trip cost quite literally in half.

Plus, it’s not just about the savings. You’ll have the added benefit of making unforgettable memories with your besties, laughing at shared jokes, and experiencing the magic of Iceland together.

How Much Do Flights to Iceland Cost?

The gateway to any overseas adventure begins with booking a flight. As with most things in Iceland, flight costs will vary vastly depending on when you plan to travel.

Summer is always an expensive time to visit the Land of Fire and Ice, and airfare skyrockets during this time due to variables like fair weather and seeing the puffins. These unique birds, with their colorful beaks and playful nature, are a top attraction. Holidays, like Christmas and New Year’s Eve, can also drastically increase the price, as with any destination.

For this purpose, let’s delve a bit deeper. When comparing flights from major cities such as New York City and London to Iceland’s bustling capital, Reykjavik, there are notable differences. NYC, being further away, might generally have higher airfares.

Meanwhile, flights from London, thanks to its proximity and numerous daily connections, could offer more competitive rates. Yet, always remember, other destinations could be much more or less expensive depending on proximity to Iceland and the time of year. So, keep an eye out for deals, and consider signing up for fare alerts to get the best bang for your buck!

●     NYC to Reykjavik in June: $500 – $1,000

●     NYC to Reykjavik in July: $650 – $1,275

●     NYC to Reykjavik in August: $700 – $1,700

●     London to Reykjavik in June: $155 – $300

●     London to Reykjavik in July: $120 – $350

●     London to Reykjavik in August: $175 – $400

●     NYC to Reykjavik in November: $400 – $1,000

●     NYC to Reykjavik in December: $400 – $1,100

●     NYC to Reykjavik in January: $500 – $1,000

●     London to Reykjavik in November: $60 – $500

●     London to Reykjavik in December: $60 – $350

●     London to Reykjavik in January: $90 – $300

How Much Does It Cost to Stay in Iceland?

Iceland, with its unparalleled landscapes and mystical aura, offers a diverse range of accommodation options. However, as with many things in this enchanting Nordic island, the prices can be quite steep. The spectrum of accommodation in Iceland reflects its natural and cultural diversity. Whether you’re after the elegance and sophistication of a high-end hotel, the community vibe of a bustling hostel, or the raw and authentic experience of a camping ground, Iceland caters to all desires.

In Reykjavik, the capital city known for its modernist architecture, pulsating nightlife, and rich history, the costs and experiences of accommodation can be particularly varied.

Staying in a plush hotel might mean being treated to views of the Harpa Concert Hall shimmering in the midnight sun, while a hostel could place you in the heart of the city, steps away from the iconic Hallgrímskirkja church.

Camping, on the other hand, though less common within city limits, can be an option for those looking to be closer to the surrounding nature, such as the serene beaches of Nauthólsvík.

While we will delve into specific price ranges shortly, it’s essential to understand that these costs are influenced by various factors. Seasons, proximity to popular attractions, ongoing festivals or events, and even the type of travel group (be it solo, a couple, or with friends) can all play a role in the final accommodation cost. As with any travel destination, it pays—quite literally—to research and book ahead, especially if you’re traveling during Iceland’s peak tourist seasons.

Hotels in Iceland

●     Summer: $150 – $450 (per night)

●     Winter: $130 – $280 (per night)

Hostels in Iceland

●     Summer: $45 – $90 (per night)

●     Winter: $30 – $70 (per night)

●     Summer: $150 – $300 (per night)

●     Winter: $130 – $190 (per night)

●     Summer: $5 – $40 (per night)

●     Winter: Unfortunately, Iceland’s extreme winter weather makes camping prohibitive. Most campsites are closed and visitors may be putting their lives at risk camping during the winter months.

How Much Does It Cost to Eat in Iceland?

When planning your trip to Iceland, it’s essential to factor in one often underestimated expense: food. One of the largest costs when traveling Iceland is sneaky. It’s food!

After all, Iceland is an island, and while it boasts of fresh seafood and local delicacies, a great proportion of specialty foods are imported. This import-heavy approach drives up the prices, making them naturally higher than one might expect.

However, Iceland offers a culinary experience that ranges across a spectrum of costs. But – if you know where to look it is possible to find inexpensive options. Street food and local stalls offer an authentic taste without burning a hole in your pocket.

Prices range from around $6 for a delicious Icelandic hot dog to well over $100 a plate in Reykjavik’s high-end restaurants. For those keen on exploring local flavors without the lavish price tags, it’s advisable to venture into smaller towns and villages where eateries offer traditional meals at more pocket-friendly rates.

Here’s an estimate of how much it will cost to eat in Iceland per person.

High-End Restaurants : $100+ (per meal)

The sky is truly the limit when it comes to the price of high-end meals in Iceland. Most of the country’s fancy restaurants are located in the capital and can be an excellent splurge if you’re a foodie!

Regular Restaurants : $30 – $55 (per meal)

Eating at regular restaurants in Iceland is comparable to eating out in a major city in Western Europe or the United States. These prices can be even higher depending on where you’re dining and what you order.

Fast Food ：$6 – $15 (per meal)

Fast food in Iceland is common in the capital of Reykjavik and it’s easy to find cheap eats in the plentiful gas stations on road trips too. Icelandic hot dogs are always a good go-to fast food to grab.

Groceries : $10-$15 (per day)

Buying groceries is a great way to save money on your trip to Iceland – and it’s a great way to dive deeper into their food scene. There’s nothing better than exploring a grocery store in another country and uncovering delicious goodies like Icelandic skyr.

• Related reading: 6 Best Cheap Eats in Iceland

How Much Do Tours and activity in Iceland cost?

The allure of Iceland isn’t just its captivating landscapes; it’s the immersive experiences that the country offers through various tours and activities. Tours in Iceland do have price variations, especially depending on the season. However, the fluctuations might not be as pronounced as some travelers anticipate. Instead, the most significant distinctions in cost often hinge on the duration and nature of the tours.

Golden Circle Tour

○     All Seasons: $70, per person from Reykjavik

For those looking to venture into the heart of the nation’s natural wonders, the Golden Circle Tour, which includes visits to several national parks and iconic geothermal spots, stands out

Blue Lagoon w/ Entrance

○     All Seasons: $150 per person from Reykjavik

The ethereal charm of the Blue Lagoon, with its therapeutic waters, remains an unmissable experience for many, as does the mesmerizing Glacier Lagoon, although pricing for the latter can vary based on specific tour packages.

Southern Coast

○     All Seasons: $100, per person from Reykjavik

The Southern Coast, with its array of waterfalls, black sand beaches, and scenic views, is another coveted destination.

Northern Lights Tour

○    Winter: $100, per person from Reykjavik

Chase the Aurora Borealis in winter. No two light shows are the same, making every tour unique.

Snæfellsnes Peninsula Day Tour

○ All Seasons: $140, per person from Reykjavik

Known as “Iceland in Miniature”, this tour provides a sampling of all the kinds of landscapes you can find in Iceland, from the Snæfellsjökull glacier to beautiful beaches and rugged cliffs.

How Much Does It Cost To Rent a Car in Iceland?

Exploring Iceland’s rugged terrains, winding roads, and panoramic vistas often demands a mode of transportation that offers both freedom and flexibility. For many, this means renting a car. The undeniable allure of setting your own pace, making spontaneous stops to capture the ethereal beauty of the landscape, and veering off the beaten path makes renting a car a top choice for many travelers.

However, as is often the case in Iceland, the privilege of experiencing the country’s untouched beauty comes at a price. Renting a car here, especially during the peak tourist seasons, can be a significant investment. Still, when weighed against the price tags of guided tours and the potential limitations of public transportation, many find that the autonomy of a personal vehicle provides value that transcends its cost.

It’s crucial to recognize that the costs associated with renting a car in Iceland aren’t static. Seasonal shifts, particularly the contrast between the snowy challenges of winter and the more navigable roads of summer, play a pivotal role in determining rental rates. While winter may offer more affordable rates, travelers should also be prepared for Iceland’s unpredictable winter driving conditions, which can sometimes require vehicles equipped with four-wheel drive or winter tires.

The type of vehicle, from compact city cars to robust 4x4s designed for highland adventures, further complicates the price equation. As we delve into the specifics, we’ve sourced our average costs from one of the country’s more budget-friendly options, Firefly Iceland Car Rentals. This provides a snapshot, but always remember to factor in additional costs such as insurance, fuel, and any additional equipment like GPS or child seats when budgeting for your Icelandic road trip.

Small Cars (e.g. VW Polo)

●     Summer: $106 – $148, per day.

●     Winter: $46 – $65, per day.

Mid-Sized Cars (e.g. Dacia Duster)

●     Summer: $155 – $268, per day.

●     Winter: $70 – $120, per day.

Full-Sized Cars (e.g. Mitsubishi Pajero)

●     Summer: $365+, per day.

●     Winter: $165+, per day.

How Expensive Is Gas in Iceland?

Like in any country, the cost of gas in Iceland is variable and highly dependent on the overall cost of oil and getting it to the island. Iceland is actually one of the most expensive countries in the world to get gas. Luckily, driving distances are relatively short compared to other countries!

At the time of this writing, average petrol prices in Iceland hovered around $8.80 (ISK 1,182) a gallon or $2.30 (ISK 312) a liter.

A Few Budget Saving Tips & Tricks

Iceland, while mesmerizingly beautiful, is known for its hefty price tag on most travel-related expenses. However, with some planning and smart choices, you can enjoy this Nordic wonder without burning a hole in your pocket. Here are a few comprehensive strategies to make the most of your Icelandic adventure on a budget:

1. Visit during the off season.

Iceland’s peak tourist seasons, mainly summer, see a surge in prices across the board. On the flip side, traveling during the off-season, particularly during the shoulder months like late September or early May, can offer more affordable rates on accommodation, car rentals, and even some tourist activities. Plus, you might enjoy attractions without the usual crowds, granting a more intimate experience.

2. Book your trip well in advance.

Last-minute bookings, especially for popular destinations like Iceland, can be pricey. By planning your trip several months ahead, you can snag early-bird discounts and promotions. This not only pertains to flights and accommodation but also to excursions and adventure activities that Iceland is renowned for, like glacier hiking or lava tube caving.

3. Rent a car and DIY your trip.

While organized tours offer convenience, they can also come with a premium price tag. Renting a car and charting your own course can be a cost-effective alternative. This allows you to tailor your itinerary, spend as much time as you wish at specific locations, and even discover lesser-known spots that tour buses might not frequent.

Firfly offers Older model cars rental in Iceland , which means they are even cheaper! If you want to save big on rental cars in Iceland, go for the older model cars is the perfect option!

4. Stick to free attractions – especially if you rent a car. Most of Iceland’s natural attractions are free to visit!

One of the charms of Iceland is its abundant natural wonders, many of which don’t require an entry fee. From the mighty waterfalls of Skógafoss and Seljalandsfoss to the geothermal activity at Geysir, the enchanting Northern Lights, or simply pulling over to pet a herd of friendly Icelandic horses, there’s plenty to see and experience without spending a dime. If you have a rented car, this freedom increases tenfold.

5. Go grocery shopping.

Dining out in Iceland can be a gourmet experience, but it can also be quite pricey. To offset some of these costs, consider visiting local cheap grocery stores like Bónus or Krónan. Stock up on essentials, and maybe even try some local delicacies. Preparing your own meals, even if it’s just a few times during your trip, can lead to substantial savings.

Plus, with the country’s strict food quality standards, you’re in for some fresh and delicious self-catered meals

6. Opt for Local Sim Cards or Portable Wi-Fi.

Rather than incurring hefty international roaming charges, consider getting a local SIM card or renting a portable Wi-Fi device. This way, you can have access to maps, information, and essential apps without breaking the bank.

7. Stay in Guesthouses or Hostels.

Instead of hotels, look for guesthouses, hostels, or even farm accommodations. These often provide a more local experience and are lighter on the wallet. Some even offer communal kitchens, saving further on food costs.

8. Fill Up Your Bottle with Tap Water.

Iceland boasts some of the cleanest and freshest tap water in the world. Rather than spending on bottled water, bring a reusable water bottle and fill up directly from the tap or natural springs.

9. Enjoy the Nightlife During ‘Happy Hours’.

Alcohol can be particularly pricey in Iceland. However, many bars and pubs in Reykjavik offer ‘happy hour’ deals, cutting down costs significantly. Check local listings or use apps like “Appy Hour” to find the best deals.

Maximizing Your Money with Cashless Transactions

After considering all these budget-saving strategies, there’s another financial aspect of traveling in Iceland that’s worth noting for convenience and potential savings. In Iceland, the preference for cashless transactions is pronounced.

Whether you’re sipping on a coffee in Reykjavik or checking into a cozy guesthouse in the countryside, credit and debit cards are the standard mode of payment. This not only provides a hassle-free experience, eliminating the need for constant currency exchanges, but can also be a hidden avenue for savings.

Before embarking on your Icelandic adventure, dive into the terms of your credit card. Many offer rewards or cashback for international purchases. By strategically using such a card for your expenses, you might just earn benefits that pave the way for your next travel escapade.

How much you need to visit Iceland?

Budgeting is one of the most crucial steps in planning a trip to Iceland – especially if you’re looking to do it on a budget. From buying groceries to renting a car to see the country, there are countless ways to save a buck or two on your next trip to the Land of Fire and Ice.

Book your rental car with Firefly Iceland Car Rental for an inexpensive way to see this beautiful country!

Best cheap rental car in Iceland

Dacia Duster or similar | Manual | 4×4 | 2020-2021 (CFMX)

Group e2 reservations are made by car category only. we cannot guarantee a specific car model. or similar.

• 5 Passengers
• Airconditioning

Suitable for the highland F-roads. Please read Terms & Conditions. You must be 23 years of age to drive this vehicle.

Additional Features

• 4 Wheel Drive
• 116 C0 2  g/km
• Adjustable Steering
• Electronic Stability Control
• Power Steering
• Power Windows
• Remote Locking

VW Golf or similar | Automatic | 2020-2021 Model (CDAX)

Group: b2 reservations are made by car category only. we cannot guarantee a specific car model. or similar.

• 2 Large Bags

This vehicle is NOT allowed in the highland F-roads. You must be 20 years of age to drive this vehicle.

• 1 Small Bag
• 2 Large, 1 Small
• 138 cc
• Cruise Control

VW Golf or similar | Manual | 2020-2021 Model (CDMX)

Group: b reservations are made by car category only. we cannot guarantee a specific car model. or similar.

• Front Wheel Drive
• 125 C0 2  g/km

VW Polo or similar| Manual | 2020-2021 Model (EDMX)

Group a reservations are made by car category only. we cannot guarantee a specific car model. or similar.

• 99 C0 2  g/km
• Satelite Navigation

VW Tiguan or similar | Automatic | 4×4 | 2020-2021 Model (IFAX)

Group: o reservations are made by car category only. we cannot guarantee a specific car model. or similar.

VW Up or similar | Manual | 2020-2021 Model (MBMX)

Group: z reservations are made by car category only. ,we cannot guarantee a specific car model. or similar.

• 4 Passengers
• Petrol or Diesel
• 95 C0 2  g/km

Manage Booking

PRICES IN ICELAND: HOW MUCH THINGS COST & 1 DAY BUDGET

This year, Iceland again leads the list of the most expensive countries in the world and takes the second place after Switzerland. When I went there, I certainly knew about it, but still, I was in a slight shock from the price tags.

Are you going to Iceland? Get ready to fork out. According to Iceland Magazine, "Iceland's consumer prices are on average 66 percent higher than in Europe."

Find out in this blog post how much the trip to Iceland will cost and how to visit Iceland on a budget. 

But first things first.

To begin with, let's see why Iceland is an expensive country to visit. 

WHY IS ICELAND SO EXPENSIVE?

The answer is a whole bunch of economic, political, and geographical reasons.

💎 Iceland is located near the Arctic Circle and is one of the coldest countries in Europe.

Therefore, the climate is not suitable for farming.

And although Iceland learned to grow bananas in its geothermal greenhouses, almost all the fruits and vegetables in the stores are imported.

Iceland produces only 65% of the food and drinks consumed in the country.

💎 Another reason for the high price of goods is taxation.

VAT for goods is 24%; for food, it's 11%.

💎 Salaries and standard of living.

In Iceland, people generally earn very well.

Iceland's average pretax income is $ 60,000. The minimum wage is about $ 2,500. This is equivalent to 15 dollars per hour.

Workers are expensive for the employer. Hence the high prices of the goods they produce.

💎 Tourism and over-tourism

Well, another reason for the high prices in Iceland are you and me, the tourists.  

Tourism in Iceland has grown five times since 2010.

In 2019, 2 million tourists visited Iceland. The figure is huge, especially when compared with the number of residents, which are only 360 thousand.

High demand for a limited supply of hotels and other tourist services logically leads to high prices.

SO, HOW MUCH DOES THE TRIP TO ICELAND COST?

Iceland travel costs: average budget for a vacation to iceland, prices of hostels in iceland.

▲ A night at the most basic hostel costs from $ 45.

Prices of hotels in Iceland

▲ For a hotel in Iceland you will pay $ 70 and more per night. 

Here are the hottest hostel and hotel deals in Iceland: 

Prices in the restaurants in Iceland

▲ Food in a simple restaurant: $ 13-20 

▲ Lunch for two in a decent restaurant: from $ 60

▲ Hot dog: $ 9

▲ Soup with bread: $12-15 

▲ Lunch at Mac Donalds: about $ 13

▲ Coffee: $ 3-5 

▲ Beer: $ 8-10 

Food prices in Icelands in shops and supermarkets

▲ A loaf of bread: $ 3

▲ Liter of milk: $ dollar

▲ Rice packaging: $ 2.7

▲ A kilogram of apples: $ 2 

▲ An egg pack: $ 4

▲ A kilogram of tomatoes: $ 2

▲ Chicken fillet: $ 22  per kilogram

▲ Chicken meat: about $ 19 per kilogram

▲ Pork: about $ 15 per kilogram

▲ A liter of juice: $ 2

▲ 0.5-liter beer bottle: $ 3

How much does a car rental cost in Iceland?

▲ Car rental: $ 100 for 24 hours

Price of the ticket to the Blue Lagoon

▲ Visit to the Blue Lagoon: $ 84.

Ticket to the Blue Lagoon + round-trip transfer from Reykjavik or airport $ 127.

How much does an excursion in Iceland cost?

In Reykjavik, you can go on a theoretically free excursion tour: a Free Walking Tour.

Formally, the guide gives the tour for free, but it is understood that the participants will leave a donation.

Often the guide even announces the "recommended donation amount." 

Here are a few companies that organize free tours of Reykjavik:

▲ The rest of the excursions cost about $ 40 for a tour of Reykjavik, and outbound tours will cost $ 100 or more.  

TOTAL: THE AVERAGE DAILY BUDGET IN ICELAND

The average daily budget in Reykjavik, as well as throughout Iceland is around $ 140.

The minimum daily budget is $ 68. 

I spent a lot more in Iceland than I planned. Therefore, if you want your money not to flow like water - and this is exactly what happens to tourists in Iceland - then I recommend using travel expense control applications such as Money Flow, Money OK, Wallet, or Money Lover. 

Enjoyed this article? Follow me on   Facebook   and   Instagram   or sign up for my newsletter to get notified about new posts: 

Get more.  Do more. 

You have successfully joined our subscriber list.

TO SHARE THIS ARTICLE, CLICK HERE: 

PIN IT ON PINTEREST: 

Write a comment

• Scroll to top

How Much Will an Iceland Trip Cost in 2024?

Last Updated on December 11, 2023

by Maggie Turansky

Disclaimer: This article contains affiliate links. That means if you click a link and make a purchase, we may make a small commission. As an Amazon Associate we earn from qualifying purchases. For more information, see our privacy policy.

Is Iceland expensive to visit? How much will an Iceland trip cost if you stick to a budget? A destination that is on many a traveller’s wish list, many wonder if it is even possible to plan a trip to due to a perceived notion that it is an incredibly costly country to travel to.

If you are interested in visiting this gorgeous nation, then it is essential that you’re aware of the average prices in Iceland and budget accordingly. But, in all honesty, the cost of a trip to Iceland does not have to be astronomically high.

An average trip to Iceland cost for travellers who want to vacation in Iceland is approximately $110-400 USD per person per day . This means that the cost of 7 days in Iceland is around $770 to $2,800 USD excluding airfare. You can expect prices at the lower end if travelling on a budget during shoulder seasons and at the higher end as a mid-range traveller in peak season.

Depending on your travel style and tendencies, it is possible to reduce your Iceland vacation cost a lot in some facets in order to spend more in others. If you’re looking to visit this beautiful Nordic nation on a budget and you’re wondering how much your trip will generally cost, read on to find out our best money-saving advice.

Table of Contents

Iceland Trip Cost Guide

This guide will break out the average costs of your vacation to Iceland across accommodation, transport, food, activities and entertainment, helping you understand how much is a trip to Iceland.

Accommodation Prices

An average cost for accommodation in Iceland will be approximately $40-125 per person per day in shoulder seasons or $60-200 per person per day in high season. This assumes you’re either staying in a hostel dorm bed or, otherwise, splitting the cost of hotel rooms with another person.

Hostels in Iceland will set travellers back on average $40-60 per night, will prices tending to be more expensive in the capital city of Reykjavik and during the peak tourist seasons of July and August.

You can sometimes get cheaper prices if you book in advance and it’s worth doing this if you want to stay in hostels as options are limited once you get out of Reykjavik. You can browse the best hostels in Iceland here.

If you’re travelling as a couple or with a friend, then you can get similar costs by choosing to stay in a private room in an Airbnb. Another benefit of staying in an Airbnb or hostel is they often offer self-catering facilities so you can cook your own meals and save money even further.

However, in popular places such as places like Vik and Jokulsarlon options are limited. If you’re looking for a budget hotel like Hotel Kanslarinn in Hella expect prices to begin at around $150 per night and increase to about $250 in the high season months.

If you want to go down this path, it’s worth booking as early in advance as possible as good quality places book out quickly, particularly in high season.

For those looking for a more traditional hotel route rather than wanting to stay in more budget-friendly accommodation, you’re going to have to pay a bit of a premium.

A decent, 3-star hotel in Iceland will start at around $250 per night and increase to roughly $400 per night in the high season. Expect nicer hotels to increase in price from there. Prices don’t vary too much in or out of Reykjavik.

Another popular option among budget travellers in Iceland is to hire a camper van, which kills two birds with one stone as you will also have your transport taken care of.

There are numerous camper rental companies throughout Iceland and the cheapest option for a basic manual-transmission van that sleeps two starts at around $120/day.

An auto-transmission will cost more but you can expect significant discounts to these prices if you choose to visit outside of peak seasons. Many campervans also offer heaters and camp stoves/cooking supplies which allow you to cook your own food easily.

Keep in mind, however, that it’s not possible to sleep anywhere you want in a campervan in Iceland so you will need to also factor the cost of campsites/overnight parking, particularly along the more popular South Coast .

Transport Prices

Contrary to the majority of European countries, public transportation in Iceland is lacking so the most effective and efficient way to get around this island nation is by car.

The cost of a hiring car with basic insurance included will be approximately $30-40 per person per day if splitting costs between two people. However, you can get significantly reduced pricing for basic cars if travelling in shoulder seasons.

In addition, to the cost of hiring a car, you’ll need to factor in the cost of fuel, which will increase your daily costs, as well. The average petrol price in Iceland as of December 2023 is $2.25/litre (or about $9/gallon).

If you plan to hire your own car and drive the Ring Road, there are a number of rental companies to choose from. While you may be inclined to hire a car through an internationally recognised company such as Hertz or Enterprise, often these companies charge a lot more than a local car hire company.

We, for instance, found a great deal from Reykjavik Cars which was by far the least expensive option we were able to find.

If you want to compare prices across companies we recommend browsing options here so you can see aggregate results from a number of the major car hire companies.

Another factor for your Iceland budget to keep in mind is that cars with an automatic transmission often cost considerably more than a manual. So if you can drive a manual and want to save some money, by all means, make sure you’re hiring a manual transmission.

Finally, if you do rent a car in Iceland, a great way to save money on insurance is by going through a third party such as iCarHireInsurance. They offer excess insurance (which means you won’t have to pay anything if you get in an accident) for a fraction of the cost of most car rental companies. 

If you don’t rent a car in Iceland then you’ll need to factor in additional costs such as airport transfers from Keflavik Airport . By booking in advance, you avoid having to wait in line when you arrive and can simply hop on the bus when you land. Click here to book your airport transfer to Reykjavik!

Food Prices

Another expense you will need to consider for your Iceland travel budget is the price of food. It will come as no surprise that food in Iceland is expensive, especially if you eat in a restaurant. If you choose to cook all your own meals then you can expect to spend approximately $10-15 per person per day.

The average cost of a meal at even the most budget-friendly of restaurants will probably set you back about $20-30 per person. This is why the absolute biggest Iceland food budget tip I can give would be to cook your own meals.

That isn’t to say there aren’t cheap eats in Iceland, particularly in Reykjavik, where in the capital a hot dog at the famed Bæjarins Beztu Pylsur is just a bit over $4.

Groceries are significantly cheaper than anything you could get at a restaurant so I would suggest stocking up on as many non-perishable items as you would need for the entirety of your trip while in Reykjavik.

This was something of a shock to us, but grocery prices in the capital city were about 10-15% less than those at supermarkets in the smaller towns along the Ring Road.

But if you want to shave a considerable amount off of your total trip cost I would wholeheartedly recommend cooking for yourself. If you want to incorporate one meal per day at a restaurant then you should expect that to set you back around $30 per person, meaning your average food budget in Iceland will increase to around $40 per person per day.

Activity Prices

Luckily for the budget traveller, it is very possible to visit Iceland and not spend a dime on any activities! However, if you want to splurge on at least one or two of the major activities in Iceland (such as a basic Blue Lagoon visit or an hour of horseback riding) then you should expect to spend an average of $20-25 per person per day over a one-week trip.

Most of the main natural sites in Iceland don’t charge any entry fees and even if they do, they most certainly will not break the bank. For example, I think the only attraction we had to pay to visit was the Kerið Crater Lake on the Golden Circle route and that only set us back $3 per person.

There are also plenty of hot springs that you can visit that aren’t the Blue Lagoon that may require a bit of a hike, but are free to enter.

If you’re planning on spending a bit of time in the capital city, there are a number of things you do in Reykjavik on a budget and one of the best ways to see the main sites of this charming little city is by going on a free walking tour. While these tours advertise as being free, you should always tip the guide if you have enjoyed the tour.

It is certainly possible to splash out on experiences — such as glacier climbing, whale watching, horseback riding , or SCUBA diving along the fault line — these things are not necessary in order to get the most out of your Iceland trip.

If you don’t rent a car and are unwilling to hitchhike then your only option to see the Golden Circle and other stunning natural attractions is to book a guided from Reykjavik. Some of the best options include this full-day Golden Circle tour and this full-day South Iceland tour.

These amounts aren’t included in an average Iceland vacation cost as the majority of people visiting Iceland choose to rent their own transport.

Entertainment Prices

Sometimes there is nothing better after a long day spent outside enjoying stunning natural scenery than a nice, cold beer. However, in Iceland, this is going to cost you.

Iceland has some of the most expensive liquor prices in the world and a pint of local beer at a bar can easily set you back $10-15.

The easiest remedy to this is if you intend to visit Iceland on a budget, simply abstain from drinking. However, if you do enjoy the occasional alcoholic beverages, there are ways to drink in Iceland on a budget.

One great tip is to follow the lead of the locals and stock up on your booze at the duty-free shop in the airport. These are, by far, the cheapest liquor prices you’ll find in the country as the local tax is removed. Another option is to purchase liquor at the duty-free shop at the airport you are departing from.

Reykjavik is famous for its nightlife, but keep in mind that it can be very expensive to go out. While booze prices are slightly less expensive in Reykjavik than in the rest of the country, it’s still going to be considerably more than what most people are used to paying, given that you live outside of the other Nordic countries.

All in all, alcohol prices in Iceland are incredibly expensive and if you really want to cut down on your Iceland travel cost then it’s best not to drink at all. If you want to incorporate a couple of visits to a bar during your Iceland trip, then expect to plan for around $20-30 in your Iceland budget for every night out.

Average Iceland Trip Cost

So how expensive is Iceland? Well, it isn’t a cheap destination to visit, however, it is possible to travel on an incredibly tight budget while in Iceland. For the purposes of this section, I’ve averaged all of the costs so you can have an idea of how much you might spend per day while travelling in Iceland, assuming you are splitting the costs between two.

Accommodation:  $40 – 200 / night

Transport:  $30 – 70 / day

Food:  $15 – 50 / day

Activities:  $25 – 50 / day

Entertainment:  $0 – 30 / day

Depending on your travel style, it is possible to travel to Iceland on a minimal budget. Assuming that you’re not intending to camp and hitchhike your entire trip it’s safe to assume that your Iceland trip budget will be about $110 per person per day if travelling on a budget during shoulder season and up to $400 per person per day if you’re a mid-range traveller visiting in peak season.

This does not include any pre-trip expenses such as airfare or ensuring you have the right gear for your Iceland trip.

Finally, also make sure that you factor in the cost of a travel insurance policy. World Nomads   offers flexible and simple travel insurance policies with coverage for more than 150 activities that you can buy or extend while on the road.

Another affordable option is SafetyWing which offers travel medical insurance policies. Click here to get a quote from SafetyWing.

Travelling in Iceland doesn’t have to be as expensive as you might think. If you do the proper planning and budgeting, you might find that your trip to Iceland cost can be fairly affordable even in one of the most expensive countries in the world.

Are planning a trip to Iceland? Have any questions about prices? Let us know in the comments!

Related Posts:

The Ultimate 6-Day South Iceland Itinerary

11 Essential Iceland Car Rental Tips

The Best Hotels Near Keflavik Airport and Blue Lagoon, Iceland

About Maggie Turansky

Maggie is a co-founder and writer for The World Was Here First. Originally from the US, she has lived in five different countries and has travelled to dozens more, both solo and with her partner, Michael. She particularly loves exploring Spain and spending time in the Caucasus and the Baltics. Read more about Maggie

I’m glad that one commenter mentioned the exchange rate. Looking at the most recent exchange rate, is one of the reasons I’m thinking about going this year. I would have thought that would play a significant factor in lowering the cost. How can someone from the U.S. maximize this advantage. Maybe you could explain for a newbie.

We just returned from Iceland two days ago and got the bargain of a lifetime. Since we traveled there for the first time 3-1/2 years ago Icelandair offered us a fantastic deal which we could not pass up. For $595 per person the trip included round trip airfare, three nights in a hotel (which included breakfast), a Hop On Hop Off city bus tour, a boat tour to see the Northern Lights and an afternoon at the Sky Lagoon Geothermal Lagoon. We upgraded the hotel and stayed for 6 nights and paid $953.50 per person. Granted this was 3 nights in January and 3 nights in February 2022 but was well worth the bargain!

Thanks for sharing your experience, Ginny! Seems like you had a great trip 🙂

Was there 10 days in July 2019. You can certainly get your fill of volcanic rock, a beautiful vacation though. rental of minivan, flight cost of 1400$, cost from home to Edmonton airport and back, grocery store pickups, trip to Drangey Island, full ring road with various hiking trips to the coast, 3 hot pools including Blue Lagoon, one restaurant out, and can’t remember what else. 4500$ cdn-was worth every penny!

Sounds like you had an amazing trip, Daryl!

We did Iceland for 15 days this winter 2020 , the best decision ever! Safe traveling , the island for our selves , no camping costs because they where closed .

We did this for 3600€ for the both of us and since we were influencing we worked together with a campervan company that cuts down our van cost with 1600€

That comes down to 2000€ for 15 days . All in, including flights

Thanks for sharing!!

Hi, I am planning to visit Iceland in April 2022 together with my Husband for maybe one week. Which are the places that we definitely should visit? And where should we start?

Do you have good Tips for as?

Thank you 🙂

Hi Lisku, you can find all of our information about Iceland here: https://www.theworldwasherefirst.com/iceland-travel-guide/ Hope you have a great trip!

Hi! 3 years ago I visited Iceland together with my girlfriend: The south-east coast, the ring road, glaciers, geysers, fjords and a lot of waterfalls. By that time prices were quite higher than now because of the change from USD to ISK. I would say we spent around 1000 USD each one for a one week road trip.

The trip went awesome until the moment we were travelling back to home. We boarded the plane and just some minutes before departing the captain said there was a technical issue with the plane, It was one of the the last flights of the day.

At the end the flight got delayed 7 hours and we missed our next flight at JFK (New York). The interesting fact is that because of that delay, one month later the airline gave us a compensation of $720 to each one! Doing the math we got back around 75% of what we spent in Iceland.

I definilety will go back and visit Iceland again!

Thanks for sharing, Gabriel!

Are the costs quote in USD or CAD? Thank you.

Prices are quoted in USD.

Hey! My partner and I are planning to visit Iceland for our honeymoon,from India, for a 7 days trip,can you suggest the best places to visit ,the accomodation ,and an approximate cost of the whole.

Hi Rashi, hope you’re able to have a wonderful honeymoon! You can find more of our Iceland tips and articles here: https://www.theworldwasherefirst.com/iceland-travel-guide/

I hope you went and enjoyed the trip. Could you help me with the details of the costs? Thanks

When I was in the Army my unit went to Iceland two times and I was not chosen to go, but this time I really want to make an effort to during the summer months. I would like to go through a travel agent and be in a group tour. I am a senior citizen and would like to do this trip since I never had the chance to go. Any suggestions from anyone? Thank you and God bless.

Hi Susan, thanks for your comment! As we write mostly for independent travellers, we don’t know of any multi-day tour companies in Iceland that we can recommend. However, if you base yourself in Reykjavik, you should be able to easily see what the country has to offer with a series of organised day tours. I hope you’re able to plan a great trip!

I just got back from an 8 day stay in Iceland, in March 2019. We arrived in Reykjavik. My mom and aunt wanted to do the ring road (which is risky in winter), and requires at least 7 days to enjoy the sights and not rush. we went. Then finished the trip back in Reykjavik.

We split the cost of the rental car, gas, and guesthouses, which are cheaper than hotels (three twin beds in a small room) equally.

Hostels in Reykjavik were about $40 a night and awesome at KEX hostel (old biscuit factory turned hostel with a bar / food). Met a bunch of people from all over the world!

We individually paid for food, attractions and souvenirs. I went Glacier hiking / ice cave tour which was about $170, bought some little things for co workers about $50 and food was roughly $20 a meal for one person (on the low side). My pockets weren’t tight when it came to trying real Iceland cuisine.

I caught a break on round trip airfare for about $530 from Richmond, VA to Reykjavik, Iceland with eleven hour layovers in Boston, Massachusetts each way.

After it was all said and done, my total out of pocket expense was about $2200 USD for 8 days.

I hope this gives you a better idea of how much you may spend on your trip to Iceland. Was it worth it? Absolutely, but I always love to travel. So save up, plan accordingly and have fun in Iceland!

Thanks for that insight, Jeremy!

Do they get to see the northern lights much? And wouldn’t winter be a little cheaper?

You can definitely see the Northern Lights in the winter months! And generally, pricing in the winter isn’t much different from pricing in the summer, as Iceland is generally a popular destination to visit year-round. Hope you’re able to visit soon!

Sounds great. Can I ask did you get to see the northern lights during that time period? Thanks in advance

I went there with my family last month. It is not too much expensive. We really enjoyed it. And It was an amazing experience to go there. Really worth it.

I’m glad you enjoyed your time in Iceland! It really is an amazing country. It’s definitely possible to cut costs and still completely enjoy your experience.

Leave a Comment Cancel reply

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.

Explore related stories

Budget Travel

Jun 8, 2022 • 5 min read

From transportation to food to a pass that unlocks discounts on must-sees, here’s how to save cash in Iceland's capital city.

Feb 23, 2022 • 9 min read

Sep 3, 2020 • 2 min read

Oct 28, 2019 • 19 min read

Aug 17, 2019 • 6 min read

Jul 1, 2019 • 8 min read

Aug 9, 2017 • 2 min read

May 24, 2013 • 5 min read

Mar 5, 2024 • 6 min read

Jan 29, 2023 • 7 min read

Vacations in Iceland

Search hundreds of travel sites at once for vacation package deals in iceland.

Let KAYAK do the searching

Save on your next vacation

Search and compare hundred of travel sites at once for vacation packages in Iceland

We’re completely free to use - No hidden charges or fees

Filter by free cancellation, free breakfast and more

Cheap Iceland package deals

Most popular iceland flight and hotel deals, last minute vacation packages to iceland, search by stars, search by review score, search by board, search by price, search by freebies, when to book a vacation in iceland, tips for finding iceland package deals.

• There are loads of types of vacations in Iceland and the cost will depend on what type of trip you’re taking and for how long you’d like to stay. Here are the latest prices for a 3 night trip for 2 travelers: Top vacation $468; Family vacation $459; Romantic vacation $522; Luxury vacation $485; Budget vacation $397.

Why should you book a vacation package to Iceland?

Many of Iceland's hotels are located in the capital city of Reykjavík while the rest of the country is an open expanse of volcanic peaks, glaciers, and impressive waterfalls. Renting a car is the best way to move around the island and take advantage of all Iceland's stunning vistas.

When should you book a vacation package to Iceland?

Consider booking your vacation package to Iceland when the famous Northern Lights cast dreamy colors in the sky between September and October. The shoulder season is also a popular time for indulging in some of the world's most rugged hikes.

Where should you stay in Iceland during your vacation?

For any vacation type in iceland:.

Hotel Holt puts its emphasis on their guests experience with professional and friendly multilingual staff, an art gallery in the lobby, and a world-class restaurant on-site. Hotel Holt's airport shuttles can be prearranged according to your travel needs.

Grand Hotel Reykjavik earns its name with sweeping rooftop views of the capital city down below. The friendly staff are happy to assist you with booking your taxi to and from Reykjavik International Airport.

For family vacations in Iceland:

Hotel Odinsve is a boutique hotel in Reykjavik city center that also offers spacious 3-bedroom country homes an hour outside of the city in Grimsnes. Flybus is the easiest way to reach the downtown Reykjavik location, but a rental car is needed for other Odinsve properties.

The Reykjavik Icelandair Hotel Natura offers an indoor geothermal pool and sauna for a truly unforgettable family vacation. Book your rental car before you fly for the added flexibility of travelling with young children on your next Icelandic getaway.

For romantic vacations in Iceland:

Centerhotel Thinghold in Reykjavik is located in a small side street in one of the capital city's most popular shopping streets. It boasts a spa, gym, and business meeting rooms. Located right in the heart of downtown, Centerhotel is easily accessible via Flybus from Reykjavik International Airport.

Apotek Hotels by Keahotels maintains a classic architectural design with over 100 years of history in Reykjavik's central shopping district. There are several options that will transport you from Reykjavik International Airport to the Apotek Hotel including hotel shuttle bus, Flybus, and taxi.

For luxury vacations in Iceland:

Hotel Borg by Keahotels is consistently rated the most luxurious hotel in Iceland with art deco themed rooms overlooking the beautiful square of Austurvöllur. This top-of-the-line hotel also offers shuttle transfers to Reykjavik International Airport to start off your vacation stress-free once you land.

Kvosin Downtown Hotel is located in the historic Kirkjuvoll building and features kitchenettes, tasteful décor, and 24-hour staff services. Start your Icelandic adventure off in luxury with a taxi ride from Reykjavik International Airport.

For budget vacations in Iceland:

Hotel Leifur Eiriksson just ouside of the center of Reykjavik is an affordable way to get a sense for how the locals live in Iceland. Due to it's location, it's recommended that you book a rental car to allow you the freedom to travel freely around Reykjavik's sprawling attractions.

Hotel Keflavik gets you off the well-beaten tourist trail to the eastern town of Keflavik where Iceland's natural beauty can be truly admired. A rental car from Reykjavik International Airport is the best way to make the most of your savings while staying at the affordable Hotel Keflavik.

Where to stay in Iceland

Iceland vacation information, popular package vacation destinations in iceland.

• 1800-123-5555
• Travel Agent? Join Us

Get Travel Triangle in your pocket.

Get your app via sms

• Honeymoon Packages
• Family Packages
• Holiday Packages
• Holiday Deals
• Luxury Holidays
• Destination Guides
• Holiday Themes
• Plan My Holiday

Indian Destinations

• Uttarakhand

International Destinations

• Switzerland

• Sikkim - Gangtok - Darjeeling
• South Africa

Seasonal Packages

Water Activities

Iceland Tour Packages

• Tour Packages
• International

Iceland Holiday Packages : rated 4.5 /5 (based on 17 reviews) | Packages starting from ₹89,249/-

Iceland Holiday Packages

If the very thought of having ultimate adventures excites your soul, do check out all the trips to Iceland and get the best deals on Iceland travel packages for a hassle-free experience. During the day, you can explore the various places that have something special about them and at night you can chill at the restaurants, cafes, and clubs. There are a plethora of options.

10 Best Tourist Places To Visit In Iceland Tour Package

1. reykjavik.

What’s Special: Geothermal Spa, Northern Lights, Waterfalls, Rift Valleys

Nearby Attractions: Hallgrimskirkja Church, Downtown Reykjavik, Harpa, Thermal Pools, The Settlement Exhibition, Mount Esja, Perlan Museum of Icelandic Natural Wonders, Old Harbour Area, Arbaer Open Air Museum

Transportation Options: Rental, taxi, bus, walk, or bike

Reykjavik is the capital city of Iceland and offers amazing places that will give you a heartwarming experience. If you want to learn the history of the country and its settlement, then a visit to Reykjavik is a must. From Lake Tjomin which offers scenic views to the Hallgrimskirkja church which offers a glimpse into its culture, the city has a lot in store. From the church, you can also absorb breathtaking views of the city. So while booking your Iceland holiday packages, don’t forget to add this place to your itinerary.

2. Blue Lagoon

What’s Special: Geothermal Spa

Nearby Attractions: Hallgrimskirkja Church, Downtown Reykjavik, Harpa, The Settlement Exhibition, Mount Esja, Perlan Museum of Icelandic Natural Wonders, Old Harbour Area, Arbaer Open Air Museum

While on the surface, Iceland is covered with icebergs, beneath the surface there is lava flowing. And thus it causes a lot of geothermal activity which has given birth to many hot springs and lagoons that are the source of hot water. One of the best and most popular places to visit during your Iceland trip is the Blue Lagoon. Amazingly, it is the gift of nature to cold Iceland. It comprises natural hot water that will soothe your body and soul like never before. It also brings good tourism to Iceland.

3. Vatnajokull National Park

What’s Special: Glaciers, Ice caves, snow-covered mountain peaks, rivers, waterfalls, and geothermal areas

Nearby Attractions: Breiðamerkurjökull, Jökulsárlón, Svartifoss, Askja, Öræfajökull

One of the most adventurous places to visit in Iceland is Vatnajokull National Park. It is a very huge national park that takes up 14 per cent of the whole country. It comprises glaciers, icebergs, hiking trails, waterfalls and more. If you are looking for a thrill and a unique experience, then this is the place you must include while booking your Iceland packages.

4. Akureyri

What’s Special: Famous port and fishing centre

Nearby Attractions: The Aviation Museum, Akureyri Art Museum, Jólagarðurinn, Kjarnaskógur, Brynjuís, Sundlaug Akureyrar, Hlíðarfjall, Akureyri Botanic Garden, Akureyri Museum of Industry, The Old Toy Display

Akureyri is a famous port city in Iceland. The city is densely populated and is famous for trade, education, and cultural events. The place is home to many museums, art galleries, churches, and historical buildings. Visit the city and see the largest fisheries in Iceland. The natural beauty of the city attracts tourists from across the world, making it one of the ideal places to include to your itinerary while booking tour packages to Iceland. Visit the place and spend a few days in a calm and serene ambience.

What’s Special: Sports City, Trade Centre

Nearby Attractions: Selfosskirkja, Bobby Fischer Center, The Icelandic Turf House, Paradisarhellir Cave

Transportation Option: Rental, taxi, bus, walk, or bike

Selfoss is a tiny and beautiful town in Iceland. It is located around 50 kilometres away from Reykjavik, the capital city of Iceland. The town is settled on the banks of the Olfusa river. Visit the town which is also a popular sports city. Handball, football, and basketball are some of the sports played on a large scale in Selfoss. The town is also known for farming and horticulture. The town is expanding with the advent of many educational hubs and small industries.

6. Vík í Mýrdal

What’s Special: Black sand beaches

Nearby Attractions: Vík í Mýrdal Church, Dyrhólaey, Reynisfjara Black Sand Beach, Voyages Friendship Statue, Mýrdalsjökull

Vík í Mýrdal is a small town settled in the southern part of Iceland. The place is known for breathtaking landscapes and peaceful ambience. Tourists flock in to see the astounding natural beauty of the place. The black sandy beaches and gorgeous mountains attract many tourists. If you are looking to explore a place that is away from the hustle-bustle of city life, plan a visit to Vík í Mýrdal and spend some relaxing and serene moments.

7. Arnarstapi

What’s Special: Snæfellsnes peninsula

Nearby Attractions: Hallgrimskirkja Church, Downtown Reykjavik, Harpa, Thermal Pools, The Settlement Exhibition, Mount Esja

A quaint village in the southern side of the Snæfellsnes peninsula, Arnarstapi used to be a fishing village that is now a popular stop for travellers to explore the basalt and cliff formations dotting this region.

8. Vestmannaeyjar

What’s Special: Helgafell and Eldfell

Nearby Attractions: Hallgrimskirkja Church, Downtown Reykjavik, Harpa, The Settlement Exhibition, Mount Esja

Vestmannaeyjar is a municipality that is part of the Westman Islands boasting beautiful views of the rugged terrain that crowns Iceland. Home to around 4,300 people, if you are looking to explore the countryside landscape of this country, this is where you should be.

9. Skaftafell

What’s Special: National park

Not just a majestic nature reserve, but an oasis of the many gems that this landscape has to offer, Skaftafell is one of the most popular tourist attractions in Iceland. Rejoice in the glory of enchanting waterfalls or hike the highlands to explore the flora and fauna, this is where you will be able to explore the wild side of this country.

10. Jökulsárlón

What’s Special: Glacial lake

Nestled in the southern part of Vatnajokull National Park, this place is popular for an awe-inspiring glacier lagoon. Drive off Route 1 between Skaftafell Nature Reserve and Hofn, this is a must-visit destination anytime you are near the South Coast.

Best Time to Visit

Though the country can be visited at any time of the year, the best time to visit Iceland is during July and August. These are the warmest months and the weather is just perfect to witness all the famous places and indulge in various activities. The temperature during these months remains from 8-degree Celsius to 14-degree Celsius.

Like we said, summer is the best time to visit Iceland. While June is the warmest month in Iceland, it is a good time for the hikers. The roads are open. You can visit the national parks and watch them blooming with flowers and greenery. All the tourist attractions are open to the public during this time. However, you can expect bad weather during this time also, so be prepared. During summers, you can also witness whales and go for whale watching tours.

Winters are good for all those who are looking for a cozy vacation in the country. The hot springs and lagoons work best during this time. Winter strikes Iceland from the month of September and goes on till March. The minimum temperature goes down up to minus 3-degree Celsius. It is quite chilly during winters in the country so make sure you wear proper clothes.

So, plan your Iceland vacation with these things kept in mind.

How to Reach?

The nearest airport to Iceland is Keflavik international airport. You will be flying to this airport while coming from other places. It is the largest airport in Iceland. Do look for deals and offers on the flights while traveling to Iceland.

Apart from air, another option to travel to Iceland is by water. There are ferries going from Denmark to Iceland. Smyril line is a ferry that starts from Hirtshals in Denmark and goes up till Seyoisfjorour. The ferry sails to these places every week.

Make sure you have noted this down before searching for Iceland tours.

Bestselling Iceland Tour Packages

Shortlisted Packages

• No packages to compare. Please add using ‘Add to compare’ button.
• Select at least two packages

Iceland Packages By Cities

Duration ( in Days )

Budget Per Person ( in Rs. )

Hotel Star Rating

Showing 15 Iceland Tour Packages

Golden Circle Iceland Tour Package

₹ 152,250/- ₹ 165,489/-.

Per Person on twin sharing

Sightseeing

Hotel included in package:

• Reykjavik (5D)

Renowned as “The Land of Fire and Ice”, Iceland is a nation that boasts ext....

Upto 3 Stars

Iceland Sightseeing Tour Package

₹ 129,150/- ₹ 140,380/-.

• Reykjavik (7D)

No other place other than Iceland can provide you with some striking views. Iceland is ....

Iceland Tour Package For 4 Nights 5 Days

₹ 152,250/- ₹ 161,968/-.

A land where magic and reality merge, Iceland is on the travel list of many. The splend....

Iceland Local Tour Package

Iceland has been hitting the headlines with over 2 million tourists in the year 2018. T....

Blue Lagoon Island Holidays Package

₹ 194,250/- ₹ 211,141/-.

• Akureyri (2D)

Blue Lagoon Iceland Holidays is one of our top-picked Iceland tour pac....

Iceland Budget Tour Package

₹ 89,249/- ₹ 97,010/-

Iceland is a nordic island nation, which is known for its lava fields, volcanoes, geyse....

Iceland Airfare Tour Package

₹ 178,499/- ₹ 194,021/-.

The Icelandic landscape is one in all kinds and comparison, imparting outstanding scene....

Iceland Northern Lights Tour Package

Iceland is a Nordic island nation filled with enchanting natural heritage such as volca....

Iceland Tour Package For 6 Nights 7 Days

₹ 199,499/- ₹ 216,847/-.

When it comes to holiday, what better place than to visit the land of fire and ice. Bre....

Iceland Tour Package From Bangalore

₹ 204,750/- ₹ 222,554/-.

Iceland is a mountainous archipelago country in the north Atlantic Ocean. The name of t....

Best-Selling 7 Days Iceland Package From Chennai

₹ 200,000/- ₹ 217,391/-.

Iceland Tour Package From Hyderabad

₹ 188,999/- ₹ 203,225/-.

The European country, Iceland is a Nordic Island nation known for the breathtaking land....

Best Selling Iceland Packages From Delhi

₹ 188,999/- ₹ 205,434/-.

• Reykjavik (4D)
• Ireland (1D)

Iceland Tour Package From Mumbai

Iceland is a Nordic island country and is known for its dramatic landscapes and volcano....

Iceland Tour Package From Kolkata

Iceland astonishes travelers with its other-worldly beauty, geothermal spas, endless av....

Iceland Tour Packages by Theme

Faqs for iceland, how much does an iceland tour cost.

The cost of your Iceland tour depends upon the duration of your trip and places covered in the itinerary. An ideal cost for 5 days and 4 nights leisure trip would range between INR 1,52,00 to INR 1,57,000 per person. The cost must include a stay at a 3-star property, along with meals, sightseeing tours, tourist attractions, etc. If you are interested in an extended holiday which gives you a chance to explore different places in Iceland then a 7 days tour would cost you between INR 1,70,000 to INR 1,80,000 per person excluding airfares.

Are 7 days in Iceland enough?

Yes, a 7 days trip is ideal for Iceland. You can plan getaways to the popular places in Iceland including Reykjavik, Jokulsarlon, Thingvellir National Park, Akureyri, Hafnarfjörður, Seyðisfjörður, Kópavogur, Egilsstadir, Ísafjörður, Hofn, and more.

What is the best time to visit Iceland?

The midnight sun and warmer ambiance make summer an ideal season to plan a visit to Iceland. If you are interested in hiking then you must plan a visit between July and August. If Northern Lights are your reason to visit Iceland then February, March, September and October would be ideal months for you.

What are the best Iceland tour packages offered by TravelTriangle?

Below listed are some of the best Iceland tour packages offered by us:

Iceland Christmas Tour Package

Is Iceland safe to visit at night?

Yes, Iceland is safe to visit during the night.

Are taxis expensive in Iceland?

Yes, taxis are quite costly in the country.

Is the visa required to visit Iceland?

For Indian citizens, a Schengen visa is required to visit Iceland.

Is food costly in Iceland?

Yes, eating outside can be costly for you in Iceland.

Are buses available in Iceland?

Reykjavik has a very good bus network.

Is it expensive to visit Iceland?

For all those who are on a budget, Iceland can be quite expensive.

Why Book With Our Agents?

Only The Best Agents

Travelers deal with only the top 10% reviewed agents who are selected after a 23 step rigorous assessment procedure by TravelTriangle.

Ensuring Quality

TravelTriangle ensures quality service via verified partners by releasing the payment only after the booking vouchers/receipts are received by the traveler.

24*7 On-trip assistance by Local Travel Agents

Read on to find out why our customers love us!

Rajgargin's 7 days trip to Thailand

Mauryasmc's 7 days trip to bali, vasant's 23 days trip to europe.

Vasant Vaka

Mohammedshakilpathan's 6 days trip to Andaman

Mohammedshakilpathan

Kiran's 7 days trip to Iceland

Kiran Kumar

Prateek's 10 days trip to Europe

Ashish's 4 days trip to singapore.

Ashish Darbhe

Moushumi's 7 days trip to Europe

MOUSHUMI CHATTERJI

Deepak's 7 days trip to North East

Deepak Malkan

C's 6 days trip to Bali

Things to do with iceland packages, 1. witness the northern lights.

One of the most attractive and famous phenomena that bring n number of tourists to Iceland every year is the Northern lights. These lights are formed due to a scientific reason and are only visible under specific circumstances. The dancing lights will leave your jaw dropped by their magic. Many tours are conducted that have the best guides to have the perfect experience of witnessing the lights. Make sure this is included while you are searching for Iceland tour packages from India.

2. Dip your feet in Blue Lagoon

During your tour to Iceland from India, one thing that you must not miss out on is dipping your feet in the famous Blue Lagoon. It is one of the best places to visit in the country. The lagoon has hot water in it that is due to some geothermal activity. The water is believed to have nutrients that will help to soothe your body and mind. Apart from that, it offers breathtaking views of the surroundings. There is a restaurant as well, where you can eat delicious food while absorbing the beautiful views of the lagoon.

3. Visit Thingvellir National Park

Studded with lakes, waterfalls, caves and more, this is one of the best places that you must visit during your vacation. The park is located near Reykjavik and provides surreal views. You will be thrilled from head to toe while visiting the national park. Visiting the park is one of the best things to do in Iceland. Make sure that it is included in your India to Iceland tour package.

Places To Stay In Iceland

1. kex hostel iceland.

Location: Skúlagata 28, 101 Reykjavík, Iceland

Price per night: 5,000 INR

Tripadvisor rating: 4/5

Ever imagine what it would be like to live inside a biscuit factory? Plan a stay at Kex Hostel in Iceland and find the answer for yourself as you nestle comfortably in downtown Reykjavik. There is a blend of vintage materials and an organic living concept to support sustainability that most eco-conscious travellers will be proud of.

2. Radisson Blu 1919 Hotel

Location: Pósthússtræti 2, 101 Reykjavík, Iceland

Price per night: 14,000 INR

Located in the heart of 101 District, close to Reykjavík Harbour, this is one of the most luxurious properties you will find to stay in as you travel around the country. It is ideally placed in the central district of the city centre from where you can walk around to the most popular bars and restaurants.

3. Hotel Búdir

Location: Búðir 356, 356 Búðir, Iceland

Price per night: INR 15,000

Tripadvisor rating: 4.5/5

Not only Hotel Budir is a fabulous option for your stay in Iceland, but the on-site restaurant has also been referred to as the "The Mecca of Icelandic cooking" which you can enjoy here as well. Come for the proximity to the Snæfellsnes National Park, and stay for the great outdoor scenes that you can enjoy straight out of your hotel room window.

4. Canopy By Hilton

Location: Smiðjustígur 4, 101 Reykjavík, Iceland

Price per night: 25,000 INR

If you are planning a trip to Iceland, Canopy by Hilton has got you covered on all fronts. From rooms bejewelled with amenities that will help you travel freely. The rooms are designed in shades of volcanic rocks and oceans that give it a unique touch, perfect for those staycation Instagram photos you have been looking for.

5. Siglo Hotel

Location: Snorragata 3, 580 Siglufjörður, Iceland

Price per night: 13,000 INR

Tripadvisor rating: 5/5

This boutique accommodation in Siglufjordur village is one of the highest recommended properties by travellers. With a shared lounge and garden in Siglufjörður, the rooms are decked with all the cosy amenities you will need to settle in along with views of Hólshyrna mountain.

• Compare the quotes provided to you for selecting the one that suits you best
• Do check all Iceland travel packages from India for the best deals and offers
• Make sure to keep all the required documents to avoid any hassle

Avail Iceland tour packages from TravelTriangle and explore one of the most beautiful countries in the world. With our tour packages discover geothermal spas, national parks, informative museums, art galleries and much more in Iceland. Book the packages in advance to avail great offers and discounts.

Packages By Theme

• Adventure Travel Packages
• Cruise Travel Packages
• Trekking Travel Packages
• Luxury Travel Packages
• Hill Station Travel Packages
• Budget Travel Packages

Packages By Duration

• 2 Days Travel Packages
• 3 Days Travel Packages
• 4 Days Travel Packages
• 5 Days Travel Packages
• 7 Days Travel Packages
• 10 Days Travel Packages

Packages From Top Cities

• Travel Packages From Delhi
• Travel Packages From Mumbai
• Travel Packages From Bangaloreq
• Travel Packages From Chennai
• Travel Packages From Kolkata
• Travel Packages From Hyderabad

Iceland Tourism Guide

• Iceland Tourism

Top Travel Blogs For Iceland

• Places To Visit In Iceland
• Things To Do In Iceland
• We are hiring!
• Testimonial
• Travelogues
• Terms and Conditions
• Privacy Policy

Corporate Office:

Holiday Triangle Travel Private Limited

Address: Plot No - 52 , 3rd Floor,

Batra House , Sector 32,

Gurugram - 122001 ,Haryana

Landline: 1800 123 5555

Connect with us on :

All rights reserved © 2024

NEWS... BUT NOT AS YOU KNOW IT

The ‘new Iceland’ is like something ‘from a story book’ — and UK flights cost less than £100

Share this with

Famous for its hot springs, the world’s first-known geyser and its proximity to the Northern Lights , Iceland is a popular travel bucket list destination.

However, it’s also renowned for its extortionate prices and relatively high tourism rates, receiving a record-breaking 2.2 million visitors in 2023 alone.

An alternative answer lies in the Faroe Islands, hailed as the ‘new Iceland’ with similarly dramatic landscapes and completely ethereal vibes.

The archipelago of 18 volcanic islands, which sit between Iceland, Norway and Scotland , offer a unique blend of Highlands majesty and Scandi charm. And getting there just got so much easier.

Between June 1 and August 31, Atlantic Airways will be operating flights from London Gatwick to Vagar Airport.

Flying on Tuesdays and Saturdays, the journey takes just two hours and 10 minutes from London, whereas previously you would have had to stop over in either Copenhagen or Edinburgh.

What to do on the Faroe Islands

A nature-lover’s dream, the Faroe Islands is home to cruises, hiking trips and fishing opportunities galore.

Some of the top-rated activities on TripAdvisor include a historic walking tour in Tinganes, exploring the Mulafossur Waterfall and Cleft of Gjogv (stunning cliffs, ideal for birdwatchers).

The impressive landscape recently made it to the big screen, with the most recent James Bond film, No Time to Die, being shot on Kalsoy Island. Fans can even book a tour to explore the filming locations.

@our_awesome_world Most beautiful places in Faroe Islands #travel #adventure #explore #nature #fyp ♬ Sail – AWOLNATION

You can also opt for boat tours to the wild Vestmanna bird cliffs of northwestern Streymoy, and if the weather permits, you can sail from Vestmanna along the west coast of Streymoy to witness mountainous cliffs and sea stacks.

There are lighthouses, castles, cathedrals and fortresses available to explore too.

Visitors have hailed it as even better than Iceland, with one Reddit user attesting to the Faroes’ other-worldly atmosphere.

‘We visited Iceland before Faroe. IMO, Faroe landscapes took my breath away…more than they did in Iceland…[they were like] something out of the wildest story book,’ @hotspicyaloo penned, labelling it ‘one of the most beautiful and peculiar countries’ they’d ever visited.

‘If you want calm and quiet then the Faroe Islands will have that in spades, even more so than Iceland,’ @NutsForDeath added.

‘Just be prepared/cautious when hiking alone though, even though it’s a small place you can end up isolated pretty damn quickly, and there’s no shelter from the elements once you’re out there.’

How to get around the Faroe Islands

The infrastructure in the Faroe Islands is excellent. There is a good network of highways, tunnels, and mountain roads.

Bus and car rental is easy and even taxi drivers are popular guides for smaller groups.

The network of ferries between the islands is excellent and different boats and vessels are ready to take smaller and larger groups on boat tours for fishing, bird watching, diving and grotto concerts.

Even helicopters can take you between the islands or high upon mountain tops.

@pshepfpv Exploring the edge of the world #fpvdrone #faroeislands #dronestagram ♬ Reflections on a Hero – Trevor Morris

How to get to the Faroe Islands

Atlantic Airways will be running their direct services from Gatwick from Tuesdays and Saturdays between June 1 and August 31.

If you fly from London Heathrow with SAS, you will change planes in Copenhagen and reach the Faroe Islands in around 6 hours.

You can also fly from London Gatwick with easyJet or from London Stansted with Ryanair in 5-6 hours. Both of these routes also involve layovers in Denmark.

You can also fly from Birmingham Airport with SAS in around 10 hours.

Flights to the Faroe Islands

Flights directly to Faroe Islands will cost from upwards of £96 with Atlantic Airways, depending on when you book.

You can get non-direct flights with SAS for £215 in June, with the journey taking five hours.

KLM and Atlantic Airways also offer a two-stop journey for £175.

British Airways offers a 6h45 journey to the Faroes, stopping at Copenhagen for two hours, for £316.

Where to stay in the Faroe Islands

Accommodation in the Faroe Islands varies, ranging from luxury 4-star hotels to comfortable and simple lodgings.

The capital, Tórshavn, has some higher end spa  hotels . Those travelling on a budget can stay in hostels, hotels and guesthouses found outside the capital on islands across the country. And if you want to sleep in nature, there are also camping options.

B&B,  Booklocal.fo , and AirBnB houses are also a popular form of accommodation and are found on most islands.

This guesthouse in Skálavík is the top rated accommodation on Booking.com. Mølin Guesthouse features a garden, terrace, a restaurant and bar in Skálavík. Guests can enjoy sea views.

The Gøtugjógv Log House is the second highest rated accommodation on the island. Situated in Gøtugjógv and only less than 1 km from Gotusandur Beach, Gøtugjógv Log House features sea views, free WiFi and free private parking. The property has mountain views, an outdoor fireplace and spa facilities.

There is also Tórshavn Apartment in the centre of the capital which offers family- friendly rooms, with views of mountains and the sea.

What the weather is like on the Faroe Islands

Despite the islands’ northern latitude location, summers are cool with an average temperature of 13°C, and winters are mild, with an average temperature of 3°C.

December, January, and February are the coldest and most windy months in the Faroe Islands. 

The average maximum temperature is usually around 5°C  throughout the winter. There will be an average of 8-10 days with frost. The mountain peaks are likely to be covered in snow.

Your Daily Horoscope

Daily horoscope today: June 28, 2024 astrological predictions for your star sign

Happy exploring!

Do you have a story to share?

Get in touch by emailing [email protected] .

MORE : ‘Hideous’ building that cost £49million named UK’s biggest eyesore for 2024

MORE : Explore Italy, Spain, Czech Republic, Morocco for less than £200 with easyJet

MORE : Check your child’s swimwear before you go on holiday this summer — it could just save their life

Get need-to-know travel news, inspiration and advice from Metro every week.

Sign up here....

Privacy Policy

To the red-haired guy with bright blue eyes on the delayed 5.27pm to…

Just wanted to tell the sexy man who walks up King’s Road, Birmingham…

Enter your birthday for your free daily horoscope sent straight to your inbox!

Get us in your feed