How To Visit Iceland On a Budget - Tips and Hacks For a Cheap Trip

Iceland, known as the Land of Fire and Ice, is a must-visit destination with its stunning glaciers, geysers, and breathtaking landscapes that seem straight out of a fantasy novel. But is Iceland cheap? Well, not quite. Often cited as one of the most expensive travel destinations, it can make your wallet weep faster than you can say, 'Reykjavik.'

But don't let that deter you! With a sprinkle of clever planning and a dash of budget hacks, even the most frugal traveler can enjoy Iceland on a budget. Keep reading to discover how to plan a trip to Iceland on a budget without sacrificing the magic.

How to Plan a Trip to Iceland On a Budget

One of the savviest ways to experience Iceland on a budget is by traveling during the low season. Sure, the weather in Iceland might be a bit chilly, but nothing a few layers can't handle! Windswept autumn landscapes and the spring thaw offer a serene, crowd-free environment that's easy on the wallet.

Not only do you score cheaper flights and accommodation, but you also get shorter lines at attractions. As for daylight, Iceland's winter months provide a cozy twilight charm, perfect for hunting the elusive Northern Lights. Meanwhile, spring and autumn strike a delightful balance, granting ample daylight to explore without the summer hordes.

Cost Breakdown During the Low Season

We know what you're thinking, 'But how much cheaper can Iceland actually be during the low season?' Well, buckle up because we're about to give you a detailed budget breakdown:

Accommodation

When it comes to accommodations in Iceland, you can expect to find budget options ranging from $40 to $125 per night. Hostels are your wallet's best friend, offering dorm beds for about $40 per night. Guesthouses and budget hotels provide a bit more comfort, with prices between $60 and $125 per night.

Flights

Flights can be a major expense, but fret not! Depending on where you're flying from, you can snag a round-trip with Icelandair or Play airlines for between $270-$500. That's like finding a unicorn in your backyard, right? Just keep an eye out for those deals, and you're golden.

Restaurants

Craving a cheap meal that doesn't taste like cardboard? Iceland's got you covered! Grab a hot dog or a sandwich for about $5 each—they're surprisingly tasty! Casual dining restaurants will set you back around $30 per person, so costs can add up. For a must-try, visit Icelandic Fish and Chips in Reykjavik, with fresh-catch plates for just $21. A typical drink at a nice restaurant costs around $10.

Groceries

Saving money on food in Iceland is as easy as buying groceries from Icelandic supermarkets like Kronan and Bonus. For about $25, you can get essentials like bread, peanut butter, honey, fresh produce, and drinks. Think of it as your very own "culinary adventure basket" without the gourmet price tag!

Transportation

Alright, it's time to tackle the biggie of travel expenses—transportation. Brace yourself: your daily transportation budget should hover around $100. Car rental is non-negotiable if you want to bask in Iceland's glory, and it'll cost about $55 per day. 

Fuel and parking aren't cheap either: expect $2 per liter of fuel and around $15 for city parking. Public buses in Reykjavik cost $5 per ticket, and taxis are pricey at $2.50 per kilometer.

Activities and Excursions

Iceland is an adventurer's playground, with budget travelers flocking for its spectacular glaciers, thrilling whale watching, and endless outdoor activities. Expect to pay anywhere from $50-$300 for these unforgettable experiences—worth every króna for a slice of Icelandic majesty without a bank-breaking bill.

Minimum Daily Expenses When You Visit Iceland On a Budget

Now that we've dived head-first into the cost of everything from flights to food, it's time to streamline and simplify. What would be the minimum daily budget for a budget-conscious traveler in Iceland? Let's add it all up:

• Accommodation: At the very least, you'll want to bunk in a hostel dorm, costing you about $40 per night.

• Food and Drink: Grocery shopping or a hot dog or sandwich per day will keep you fueled for around $30 per day.

• Transportation: If you're really penny-pinching, you might rely more on walking and public transport. So, let's say you opt for public buses in Reykjavik, which cost around $5 per trip.

• Activities and Excursions: Choose to focus on free or low-cost attractions, or spread out your paid activities over multiple days. Let's conservatively allocate $10 per day here, for the odd group tour or entrance fee.

So, the minimum daily budget for a frugal traveler in Iceland would look something like this:

Expense	Daily Cost
Accommodation	$40
Food and Drink	$30
Transportation	$5
Activities	$10

That's a grand total of $85 per day. Of course, this budget is barebones and assumes a Spartan approach to travel—sacrificing a touch of comfort for the sake of adventure. But hey, who said frugality can't be fun?

15 Budget Hacks to Save Money in Iceland

Now that you know the average costs, it's time to boost your budget game with some extra tips and hacks for a cheap trip to Iceland:

1. Rent a Campervan

Want to experience Iceland on a budget while cruising like a Viking legend? Rent a campervan in Iceland and wave goodbye to high hotel bills! This ultimate money-saving hack rolls your accommodation and transportation into one, offering the freedom to explore at your own pace. Plus, you'll wake up to jaw-dropping views that don't cost a króna extra!

2. Shop at Budget Supermarkets

Cooking your own meals is a stellar way to save money while exploring Iceland. Hit local supermarkets like Bonus or Kronan for fresh, affordable ingredients. Whipping up simple, nutritious meals in your campervan's compact kitchen means you can skip pricey restaurants. Plus, making your own food adds a sprinkle of adventure to your journey, allowing you to dine with dazzling landscapes as your backdrop.

3. Take Advantage of Free Activities and Attractions

Exploring around Iceland doesn't have to break the bank! There are countless free attractions and activities to enjoy. Wander through Reykjavik's colorful streets, soak in the stunning vistas of the numerous waterfalls in Iceland, or hike to geothermal hot springs. The great outdoors are entirely free and are where Iceland has her heart on display.

4. Use Discount Cards and Coupons

Unlock the secrets to experiencing Iceland on a budget by taking advantage of discount cards and coupons! The Reykjavik City Card is a treasure trove, offering free entry to numerous museums, galleries, and thermal pools in Reykjavik. Plus, enjoy free bus travel within the city and discounts at various shops and restaurants.

5. Stick to a Specific Region

To keep your trip economical, concentrate on exploring just one region of Iceland. This approach reduces travel time and transportation costs while still offering a rich array of experiences. For instance, the south coast of Iceland boasts stunning waterfalls, black sand beaches, and glacier lagoons without venturing too far from Reykjavik.

6. Travel with Friends or Join a Group Tour

Traveling with friends or joining a group tour is a fantastic way to trim costs while enhancing your Icelandic adventure. Splitting expenses for accommodation, car rentals, and groceries makes your trip wallet-friendly. Plus, a shared itinerary means more diverse experiences and bonding moments. Group tours often come with discounted rates and expert guides—perfect for uncovering hidden gems you might miss solo!

7. Drink Tap Water

Stay hydrated without emptying your wallet! Iceland has some of the purest tap water of any country in the world. Skip the bottled stuff—you don't need it! Just bring a reusable water bottle and refill it at any tap. Not only will you save money, but you'll also be doing your bit for the environment by reducing plastic waste. It's a win-win situation!

8. Book Tickets and Tours in Advance

Scoring amazing deals is easy when you book tickets and tours in advance. Planning ahead allows you to save money in Iceland with early-bird prices and special offers. This strategy not only trims your budget but also guarantees your spot for popular excursions. From glacier hikes to Northern Lights tours, booking ahead ensures you'll snag the best rates and maximize your Icelandic adventure without overspending!

9. Opt for Budget Accommodations

If you're not keen on renting a campervan to explore Iceland on a budget, fret not! Opt for budget accommodations like hostels, guesthouses, and Airbnb. Each provides a cost-effective alternative without skimping on comfort. Hostels offer a sociable atmosphere, guesthouses bring a local touch, and Airbnb lets you snag unique stays without the hefty price tag—perfect for adventure seekers looking to save some cash!

10. Use Public Transportation

Travel expenses can add up quickly, but using public transportation is a budget-friendly alternative. Iceland's public transport system includes buses that reach most major attractions and cities. Just keep in mind public transport is limited in some areas, and it's always best to double-check timetables in advance.

11. Pack Snacks for Your Day Trips

If you're planning to hit the road for day trips, packing snacks is a smart move! Stock up on essentials like sandwiches, fruits, nuts, and granola bars from budget supermarkets. This hack saves you from splurging on costly convenience store items. Plus, a well-packed snack stash keeps you fueled and ready for spontaneous detours and Instagram-worthy stops along Iceland's breathtaking routes!

12. Stick to a Daily Spending Limit

Setting a daily spending limit is critical for keeping your travel budget on track, especially when things can get expensive in Iceland. Allocate specific amounts for food, transportation, activities, and souvenirs. This proactive approach helps you prioritize must-see attractions and avoid unnecessary splurges.

13. Avoid Unnecessary Souvenirs

While exploring Iceland, it's easy to get tempted by unique souvenirs, but avoiding unnecessary purchases is a smart way to stay cheap in Iceland. Focus on capturing memories through photos rather than spending money on trinkets. You can find cheap souvenirs at flea markets, local craft fairs, and farmer's markets—perfect for authentic keepsakes that won't empty your pockets.

14. Limit Alcohol Consumption

Iceland has a reputation for having pricey alcohol, so limiting your consumption is a smart move for budget travelers. Enjoy local brews at happy hours, where you can snag discounted drinks. Alternatively, purchase your favorite beverages at duty-free shops upon arrival.

15. Avoid Tourist Traps

Steer clear of tourist traps to explore Iceland without breaking the bank. Avoid overpriced attractions like the Blue Lagoon—opt for less crowded, more affordable hot springs such as the Secret Lagoon instead. Skip the expensive dining district in Reykjavik and opt for local eateries or food trucks offering traditional dishes at a fraction of the cost.

Must-See Free Attractions

If you're exploring Iceland on a budget, there are countless free attractions you won't want to miss. Here are some top picks to maximize your experience without spending a fortune:

• Golden Circle: Embark on an unforgettable journey through Iceland's iconic Golden Circle. Visit Þingvellir National Park, a UNESCO World Heritage Site, explore the explosive geysers at Geysir Geothermal Area, and marvel at the majestic Gullfoss waterfall.

• Northern Lights: Witnessing the Northern Lights is a once-in-a-lifetime experience. Best seen during the winter months, this natural wonder paints the sky with brilliant shades of green and purple. Head out to dark, rural areas and keep your fingers crossed for a spectacular light show.

• Reykjavik: The capital city is brimming with free activities. Wander through its many parks, uncover the vibrant street art, and explore the Hallgrímskirkja Church for breathtaking views of the city.

Affordable Paid Experiences

Even while sticking to a budget, you can still indulge in some incredible paid experiences to enrich your Icelandic adventure. Here are a few worth considering:

• Whale Watching: Embark on an unforgettable whale-watching tour and get up close with some of the ocean's most majestic creatures. When you book a tour in advance, you can often secure discounts and guarantee a spot on these popular excursions.

• Skaftaffel Glacier Hiking: Get ready for an epic glacier adventure with a guided hike through the breathtaking Skaftafell National Park. Take in spectacular views of Iceland's rugged landscapes while learning about the country's fascinating geological history.

• Horseback Riding: Experience Iceland's rugged beauty from a unique perspective by taking a horseback riding tour. Icelandic horses are renowned for their gentle nature and sure-footedness, making this a perfect option for both beginners and experienced riders.

Packing Essentials for Budget Travelers

When you plan your trip to Iceland, packing smart is essential for sticking to your budget. Here's how to pack efficiently and avoid extra baggage fees:

• Weather-Appropriate Clothing: Iceland's weather is unpredictable, so bring layers, waterproof jackets, and sturdy hiking boots.

• Compact Gear: Pack lightweight camping gear if you plan to camp, including a compact sleeping bag and portable stove.

• Reusable Water Bottle: Stay hydrated easily and avoid buying plastic bottles.

• Power Bank and Chargers: Ensure your devices are always ready to capture beautiful moments.

Making the Most of Iceland On a Budget

Iceland on a budget is entirely possible with the right planning and mindset. By focusing on cost-effective strategies such as avoiding unnecessary souvenirs, limiting alcohol consumption, steering clear of tourist traps, and sticking to a specific region, you can save money while still experiencing the best of Iceland.

Additionally, taking advantage of must-see free attractions and choosing affordable paid experiences ensures a rich and memorable adventure. Don't hesitate to embark on your journey and explore the stunning landscapes and unique culture of Iceland on a budget. With careful preparation, your dream trip to Iceland can be both affordable and unforgettable.