Every time the subject of Iceland comes up, questions about money are inevitable. I constantly hear “Iceland is so expensive” or “make sure you’re prepared to spend a lot of money in Iceland.” I understand the “expensive” side of Iceland, but think about it. Iceland’s draw is natural landscape: volcanoes, glaciers, lava fields, mountains, fields of flowers, black sand beaches, cliffs, midnight suns or midday moons, waterfalls, glacial lagoons, reindeer, and puffins. How are those things expensive? You just have to know how to do it right. It is possible to do Iceland on a budget, and here are my tips on how to visit Iceland for under $600 (including flights!)
Flights
With Iceland’s low cost airline Wow Air, flights are now cheaper than ever from almost 40 destinations. Wow is constantly running specials for $149 each way from West Coast U.S. and Europe, and $99 from East Coast U.S. I know first hand; my second trip to Iceland was my first solo trip and my flight was $230 round trip. Wow Air might not be the most comfortable airline in the world, but it gets you there and back just fine.
Hotels
Iceland hotels can get pricey, but remember: you’re not there to sit in a hotel room. You’re there to spend every waking hour devouring Iceland’s gorgeous foreign landscape that you can’t find anywhere else. Why go to the Arctic Circle to sit in a hotel room watching tv or eating? All you need is a place to lay your head at night. That could even be a car you’re using to travel Iceland’s ring road!
I’ve stayed in hotels, hostels, and Airbnbs in Iceland. The only thing left I have to try are the camper vans that leave nomads free to wander the country at their will without having to return back to Reykjavik every night. However, if you do like the idea of a home base, research your hotel options. Sometimes Airbnb is your best bet and you get that local experience! Hostels let you meet new people easily if you are traveling alone. And don’t be afraid of shared bathrooms in hotels; if you end up in the Blue Lagoon, Secret Lagoon, or Laugarvatn Fontana geothermal baths, you will end up showering in those places anyway. If you’re flexible and not too uptight about lodging, you can definitely get a good deal for $50 a night or less.
Food and Drink
Icelandic meals run anywhere from $25-$50 per meal. Beers are $10-$20 per bottle. A shot of whiskey can run you up to $80 per ounce. Yes, these are high prices. But again, are you planning to spend your time wandering down the streets of Reykjavik eating fancy meals and drinking expensive whiskeys, or are you trying to get out into the country and see things like look like Mars?
Rather than waste time in the cities, stop by the Bonus grocery stores. They have pre-made sandwiches for about $3 each and large bags of chips for $2. If you’re out in the country not near a city, there’s bound to be a gas station somewhere with sandwiches or even hot food for less than $10. Don’t even bother buying bottled water – all of the bottled water in Iceland comes right from the fresh glacial water around the country! You can fill your own water bottle up in the streams for free and the water is fresher than anything you can buy. You can even drink up as you snorkel between the European and North American plates of Silfra, if that’s on your list!
Renting a Car vs. Tour Buses
You have the option to rent a car in Iceland, or take tour buses wherever you want to go. If you’re staying in Reykjavik, tour buses will pick you up at your hotel and drop you back off at the end of the day. This is a great option for solo travelers because you’ll never be alone, you won’t break down or get stuck in the snow, and you’ll always have someone to take that perfect Instagram photo. I recommend Grayline Iceland for great prices, fun tour guides, and any tour package you could want.
However, if you like the freedom of exploring on your own without time restraints or lots of people getting in your way for that perfect Instagram photo, renting a car might be the way to go. I wrote up a pro/con list of both options here.
Renting a car can get expensive, especially if you’re traveling in winter and need an AWD jeep. Gas is sold by the liter and is a little pricey, but if you can get a diesel car, the gas lasts forever. And at the end of the day, renting a car and paying for gas is still cheaper than taking tour buses each day, which run anywhere from $70-$200 per tour.
Traveling Solo vs. With Friends
Of course, traveling solo is usually more expensive because you don’t have anyone to split costs with. Traveling solo means you can do what you want, when you want, where you want. Iceland is also a great place to travel solo because it’s one of the safest countries in the world. However, if you’re looking to travel Iceland on a budget, try going with at least one other person to split costs. It makes hotels and cars much cheaper!
Have you been to Iceland? Did you travel solo or with a group? Did you spend a fortune or travel Iceland on a budget? If I left anything out, please let me know in the comments below!
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P.S. You might also enjoy 9 Best Apps for Iceland Travel or When is the Best Time to Visit Iceland?
Great tips. Yes, Iceland is expensive. You can also fill your water bottles from any tap – the water is fine. To save on food costs, I brought with me several freeze dried dinners that hit the spot every night, especially after being out in the cold all day long.
Freeze dried dinners is a great idea!