Visiting Iceland is a dream for many travellers who drawn to its ethereal landscapes and vibrant culture. However, Iceland has a reputation for being expensive. Whilst it’s far from the cheapest country in the world, it is possible to do Iceland on a budget.
Before you book
✈️ Fly with a budget airline: Iceland boasts connectivity with Europe through budget-friendly carriers like EasyJet, Wizz, and Play, which also links the country with the USA. Opting for these airlines can significantly cut down on your travel expenses.
🛩️ Use Skyscanner or Kiwi.com to ensure you’re flying when flights are cheapest: Utilising flight comparison tools like Skyscanner enables you to track and book flights at the most economical prices, ensuring you get the best deals possible for your journey to Iceland. Flexibility with your travel dates can also help secure cheaper fares.
❄️ Accommodation is cheaper in the winter: Planning your trip during the winter months can lead to significant savings on accommodation costs, as many hotels and guesthouses offer reduced rates during the off-peak season. Embrace Iceland’s winter wonderland and enjoy cosy stays at more budget-friendly prices. I’ve visited Iceland in every season, and Winter was my favourite time!
Plan ahead
🍽️ If you go self-catering, make a meal plan in advance: Opting for self-catering accommodation provides the flexibility to prepare your meals, which can lead to substantial savings compared to dining out for every meal. Plan your meals ahead of time and shop strategically to make the most of your budget.
🧂 Use mini travel pots to bring small amounts of oil, salt, sugar, etc., from home if you go self-catering: Packing small travel containers with essential cooking ingredients from home can help you save money on purchasing full-sized items in Iceland. This practical approach ensures you have what you need for meal preparation while minimising unnecessary expenses.
🍷 Buy alcohol from Duty-Free at the airport: Save a considerable amount on alcoholic beverages by purchasing them from Duty-Free shops at the airport before you enter Iceland.
🏨 Lots of guesthouses have kitchens, so you’ll be able to save money on eating out: Opting for guesthouses with kitchen facilities offers the convenience of preparing your meals, helping you save money on dining expenses while enjoying your Icelandic getaway. Take advantage of these amenities to cook your favourite dishes and save some money!
🏠 Airbnb also lists a lot of guesthouses: Consider browsing Airbnb listings for a wide selection of guesthouses offering various amenities and accommodation options in Iceland. Always double check to see if you can get a better price booking direct rather than through a third party platform.
When you arrive
🚌 The cheapest way to get from Keflavik Airport to the city of Reykjavik is by the Flybus coach: Opt for the economical Flybus coach service for hassle-free transportation from Keflavik Airport to Reykjavik city center. This cost-effective option provides reliable transfers at a fraction of the price of taxis, allowing you to save a small fortune!
🚙 Make sure to check with local companies in Iceland if you decide to hire a car: Exploring Iceland by car offers flexibility and convenience, and finding budget-friendly rental options ensures you make the most of your Icelandic road trip without overspending. You can often find a better price with local companies rather than larger multi-nationals.
🚖 If you’re staying in a city like Reykjavik, don’t use taxis: Opt for affordable and efficient public transport. By utilising buses, you can save money on transportation expenses while navigating Icelandic urban areas comfortably.
💳 Use a card that doesn’t charge you for spending abroad: Consider using payment cards such as Monzo, Starling, or Halifax Clarity that waive foreign transaction fees. By avoiding additional charges for international transactions, you can stretch your budget further.
🍲 If you’re going food shopping, head to Bonus – the cheapest supermarket in Iceland!
🌭 You’ll find hotdog stands dotted around Icelandic towns; they make for a cheap snack. Icelander’s love a hotdog – they’re both tasty and affordable!
⛽️ Check with the car hire company to see if there’s loyalty schemes you can enlist in at petrol stations: Inquire with your car rental company about potential loyalty programs or partnerships with petrol stations, as participating in such schemes can lead to discounts or rewards that help offset fuel costs during your Icelandic road trip.
🚘 Other visitors who are leaving might share their parking ticket with you if it’s still valid when you’re parking at tourist attractions: Keep an eye out for departing visitors who may offer to share their valid parking tickets with you, allowing you to save on parking fees at popular tourist attractions in Iceland. This simple yet effective tip can help you stretch your budget further while exploring the country’s stunning landscapes.
🌋 Remember that lots of Iceland’s attractions, including Skógafoss, Kirkjufell, Reynisfjara black sand beach, Sólheimasandur plane wreck, and more, are completely free: Exploring these breathtaking sites allows you to experience Iceland’s beauty without any admission costs.
💧 Fill your water bottle up with tap water: Enjoy the quality of Icelandic tap water, which ranks among the cleanest in the world, by refilling your water bottle from taps throughout your travels. By avoiding the purchase of bottled water, you not only save money but also contribute to environmental sustainability by reducing plastic waste.
🍺 Make the most of happy hours for affordable prices on drinks: Take advantage of happy hour specials at bars and restaurants across Iceland to enjoy discounted prices on beverages. Downloading apps like ‘Appy Hour’ can help you discover the best deals whilst enjoying Reykjavik’s nightlife.
☕️ Lots of museums in Reykjavik offer free coffee: Explore Reykjavik’s vibrant cultural scene while enjoying complimentary coffee at many museums across the city. Take breaks from sightseeing to relax and recharge with a free cup of coffee!
🫖 Take a thermos flask with you if it’s cold out: Beat the chill and save money on hot beverages by bringing a thermos flask with you during your Icelandic trip. Fill it with tea or coffee to stay warm and hydrated while exploring Iceland’s breathtaking landscapes, avoiding the need to purchase expensive drinks on the go.
💦 Skip the Blue Lagoon – go to one of the many geothermal pools in Iceland that are cheaper or free: Instead of splurging on the iconic Blue Lagoon, opt for a more budget-friendly experience at one of Iceland’s numerous geothermal pools, many of which are either cheaper or free to access.
