Iceland has a reputation for being expensive, and not without reason. But with a few simple choices you can bring the cost down sharply and still enjoy everything the country offers at its best. Here are realistic tips for travelling on a budget without sacrificing the experience.
Accommodation – cheaper options
- Campsites and campervans are by far the cheapest way and give great freedom in summer.
- Guesthouses and hostels with a shared kitchen are much cheaper than hotels.
- Book early in peak season; prices rise and availability shrinks fast.
- Consider staying outside central Reykjavik – prices are often lower in the suburbs and neighbouring towns.
Food – cook for yourself
Restaurants are pricey, so your biggest savings come from cooking your own meals and planning ahead.
- Shop at the budget supermarkets Bónus and Krónan rather than at petrol stations or in the city centre.
- Pack a picnic for the day instead of buying at tourist spots where prices are high.
- Drink the tap water – it is among the purest in the world. Never buy bottled water; just carry a reusable bottle and refill it.
- Buy alcohol at the airport duty-free if you want it – it is much cheaper than at the state liquor store.
Nature is free
The best experiences in Iceland cost nothing. Waterfalls, black beaches, fjords and mountains are mostly open and free of charge. At most you pay for parking at popular sites, which is little compared to everything you see.
Bathe on a budget
Instead of the pricey Blue Lagoon, visit the municipal swimming pools – they are cheap, geothermally heated and part of Icelandic culture. There are also natural hot springs across the country, often free, where you can relax under the open sky.
Reykjavik and activities
- The Reykjavik City Card can pay off if you plan to visit museums and pools and use the bus.
- Take advantage of happy hours at bars – the Appy Hour app shows where the deals are at any moment.
- Much of the city is free: the Sun Voyager sculpture, the view from around Hallgrímskirkja, and walks through the old town.
The journey itself
- Share a rental car and fuel costs with a group – it cuts the price per person substantially.
- Use fuel-price apps and discount cards to find the cheapest petrol stations.
- Travel outside peak season, for example in May or September – prices are lower, there are fewer tourists and the scenery is just as beautiful.
- Consider guided group tours rather than a rental car if you travel solo – sometimes it works out cheaper.
Clothing and preparation
Pack the right clothes in layers so you do not have to buy expensive outdoor gear on the spot. Bring a good backpack, a reusable bottle and snacks. Good preparation is also a saving: you avoid needless costs when the weather turns or you need something at the last minute.
With these tips you do not need to spend a fortune to experience Iceland at its very best – the nature, the pools and the wide open spaces are waiting for you, whatever your budget.
More ways to save
A few small things add up to a lot over the whole trip. Get an eSIM or a local SIM card with data instead of paying costly roaming from home. If your hotel includes breakfast, eat well before the day starts and you may save on lunch. Avoid shopping at the airport and at petrol stations, where prices are highest – plan your groceries in Bónus or Krónan as you drive through larger towns. Many swimming pools offer multi-visit cards that pay off if you go often. Look out for free events, concerts and exhibitions in Reykjavik, especially in summer. Pack a light picnic for long drives so you do not have to stop at expensive restaurants on the way, and share meals and shopping if you travel in a group. By combining these small habits you can keep costs down without giving up anything that really matters.
Remember too that the biggest expenses in Iceland are usually accommodation and car rental, so booking early and comparing prices matters most of all. A little planning goes a long way, and Iceland becomes affordable whatever your wallet says.