In the past few years, Iceland has quickly become a firm favourite in the travel world. Consistently ranked in the top destinations lists, it’s beautiful landscapes, break-taking waterfalls and scenic hiking trails lure travellers from across the world. The country’s infamously high prices however have long been a sticking point for many globe trotters, who wonder if it’s even possible to visit Iceland on a budget.
Like other nordic countries, Iceland is constantly ranked as one of the most expensive destinations in the world. Its high taxes on alcohol and pricey hotels often put travellers off visiting. I’m here to tell you that Iceland doesn’t have to be costly though. In fact, it can be relatively affordable if you’re willing to make a few tweaks. I estimated that for a week in Iceland, these tips could save you upward of $750, proving it’s possible to visit Iceland on a budget!
If you’re planning a trip to Iceland on a budget, don’t forget to check out my Iceland Bucket List, with all the things you can’t miss on your trip!
1. Skip the Blue Lagoon
Tickets for the Blue Lagoon cost upwards of $58 (with the priciest packages coming in at $616). Whilst it’s a great experience, it’s also one of the priciest things you’ll do on your trip. The best thing about Iceland is its abundance of natural beauty. In fact, this is the one thing I rave about when reminiscing on my trip there. So don’t feel too bad about skipping this man-made thermal spot. You’ll be taking in too many unique landscapes and epic waterfalls to care!
If you’re really keen to visit a thermal pool, a great alternative is Myvatn in the north of Iceland. It promises the same milky blue waters as the Blue Lagoon at a fraction of the price. An adult ticket costs $44 and they also have student concessions at $28.
2. Don’t Tip
Unlike the US, tipping isn’t expected in Iceland. Whilst it won’t be frowned upon, it’s also not necessary. So save your precious krona for other expenses and enjoy your meal guilt free!
3. Drink from the Tap
Unlike some other European countries, the tap water in Iceland is perfectly safe to drink. In fact, not only is it safe, it’s also delicious! Iceland has some of the best water in the world. So even if you’re fussy when it comes to flavour, you’ll still enjoy it. Save money and the environment by bringing a reusable water bottle with you. Single use plastic bottles cost around $3, which will quickly add up within a few days.
4. Don’t Pay for Parking
Parking in Iceland can be expensive, especially if you’re visiting multiple locations a day. Many of the car parks at natural attractions cost around $6 to use, regardless of how long you stay. You’ll often find smaller parking spaces on the side of the road however, just a few minutes walk away from the main parking lot. These tend to be absolutely free and are a great way of saving a few dollars.
5. Take Advantage of Free Attractions
One of the best things about Iceland is just how many free attractions are on offer. This means that beyond hotels and transportation, you can spend next to nothing. The majority of the natural attractions are completely free to visit (as long as you follow the parking tip above!) and a number of Reykjavik’s most popular sites don’t cost a penny! This is one of the main reasons it’s possible to visit Iceland on a budget.
Some free things to do in Iceland:
- Visit Hallgrimskirkja – my favourite church in the world, entrance is free but climbing the tower costs $8.70
- See the iconic Sun Voyager Statue
- Visit the Grotta Lighthouse
- Take a walk on Reynisfjara Black Sand Beach
6. Make the Most of Happy Hour
Drinking in Iceland is incredibly expensive due to high taxes. A glass of wine costs around $14, whilst a beer could be more than $10. If you want to visit Iceland on a budget, consider going sober for your stay. Failing that, stick to happy hours. These are easy to find around Reykjavik and will at least cut your costs somewhat, even if not completely.
7. Skip the Northern Lights Tour
One of the most popular activities in Iceland is a Northern Lights Tour. I would highly recommend that you skip this altogether. Being a natural phenomenon, the Northern Lights are free for all to observe. You don’t need to pay $80 for a tour. Instead, go a little way out of the city to avoid the light pollution. Check forecasts online before driving to a location yourself to watch them (I’d highly recommend Thingvellir National Park). Not only will you save a big chunk of money, you’ll also have more control over how long you stay out in the freezing cold!
8. Rent a Car
Though it might seem like a big cost, having a car in Iceland is a must. It’s not a densely populated country, meaning main attractions are often miles apart from one another. The only alternative to renting a car is signing up for a group tour to take you from place to place. I wouldn’t recommend doing this as a) it often works out as more expensive than hiring a car, and b) you won’t have as much freedom on your trip.
9. Hitchhike
Iceland is generally considered to be one of the safest countries in the world, so, if you’re comfortable, give hitchhiking a go! This is especially easy to do in the southern part of the country, closer to Reykjavik. As many of Icelands main attractions are far apart, a lot of your fellow travellers will choose to hire a car. They’ll likely be glad of a little gas money (and company) so it’s definitely worth asking around for a lift if you’re staying in a hostel.
10. Don’t Go It Alone
Iceland is one of the countries I’d be less inclined to visit solo. Whilst it’s probably the country I’ve felt safest in, the cost of solo travel here can be astronomical. Travelling with someone else will likely half the majority of your costs – from car rental to hotel rooms. If you want to make big savings and visit Iceland on a budget, don’t go it alone.
11. Visit in the Low Season
Just like travelling alone, travelling in the high season is a sure-fire way to spend a fortune in Iceland. Hotels, airlines and tour companies all hike up their prices this time of year to make the most out of the heavy influx of tourists. You can save as much as $400 on car hire alone by visiting in low season, with 4WD prices doubling in the summer time. Hotel prices increase at a similar rate, so traveling during the winter months could significantly reduce costs!
12. Make Your Own Breakfast
Rather than paying for a hotel breakfast or indulging in the (admittedly delicious) French toast at Sandholt Bakery, buy your breakfast at the supermarket. Skyr yoghurts are an Icelandic staple and perfect for saving the pennies.
Ohhh this was so helpful x
Lisa | lisaautumn.com