Iceland is renowned for its dramatic landscapes—glaciers, volcanoes, waterfalls, and geothermal wonders—which make it a dream destination for nature lovers. However, it’s also known for being notoriously expensive, especially for travelers from countries with weaker currencies. But don’t let the high costs discourage you. With careful planning and smart strategies, you can experience the best of Iceland without breaking the bank. Here’s a guide on how to travel to Iceland on a budget while still enjoying everything this stunning country has to offer.
1. Visit During the Off-Season
Iceland’s peak tourist season runs from June to August, when the days are long and the weather is milder. However, traveling during the shoulder seasons (spring and fall) or even in winter can save you significant amounts of money. Flights and accommodations are much cheaper from September to May, and while winter in Iceland is colder and darker, it has its own appeal, including the magical Northern Lights and fewer crowds at popular attractions.
2. Book Flights in Advance
Airfare can be one of the biggest expenses for a trip to Iceland, but with some foresight, you can find great deals. Keep an eye on budget airlines such as Icelandair and Play, both of which offer competitive rates, especially if you book well in advance or catch a sale. Tools like Google Flights and Skyscanner can help track fares, and being flexible with your travel dates can yield even better savings.
3. Choose Affordable Accommodation
While Iceland has a reputation for pricey hotels, there are budget-friendly options if you know where to look:
- Hostels: Iceland has a range of hostels that are well-maintained and affordable, like the Reykjavik Downtown HI Hostel. Many also offer kitchen facilities, which allow you to prepare your own meals (more on that later).
- Guesthouses and Farm Stays: In more rural areas, you’ll find guesthouses and farm stays that offer cozy, affordable lodgings. These can also be a great way to experience Iceland’s unique countryside.
- Couchsurfing: For the truly budget-conscious, Couchsurfing is an option in Iceland, where locals offer free places to stay. This not only saves money but also gives you an opportunity to connect with Icelandic culture and people.
- Camping: During the summer months, camping is a budget-friendly way to experience Iceland’s nature up close. There are many designated campsites with basic facilities scattered across the country. If you’re visiting in the off-season, just be aware that the weather may not be ideal for camping.
4. Save Money on Transportation
Renting a car in Iceland can be expensive, but there are ways to cut costs on transportation:
- Public Buses: Iceland has an extensive bus system, including routes to popular tourist spots like the Golden Circle. Using buses is a great way to save money if you don’t mind a bit more planning.
- Carpooling Apps: Consider using carpooling apps like Samferda, which connects travelers heading in the same direction. This is not only economical but also eco-friendly.
- Rent a Small Car: If you do opt to rent a car, choose a smaller, fuel-efficient vehicle unless you plan to go into the highlands (where a 4×4 is required). Booking your car rental well in advance can help you find better deals, especially during the busy season.
- Free Attractions: One of the best parts about Iceland is that many of its most incredible sights are free! Waterfalls, black sand beaches, and glacier views all cost nothing to enjoy. Focus on these natural attractions to save money while still getting the full Icelandic experience.
5. Cook Your Own Meals
Eating out in Iceland can quickly drain your budget, with even casual meals costing upwards of $15-20. To save money on food:
- Grocery Stores: Stock up at discount grocery stores like Bonus or Krónan. Iceland’s supermarkets carry a wide range of reasonably priced items, and you can make your own sandwiches, snacks, or simple meals if you have access to a kitchen.
- Hostel Kitchens: Many hostels and guesthouses offer communal kitchens where you can prepare your own meals. This is a great way to save, especially if you’re traveling with others and can split the cost of groceries.
- Pack Snacks: Bring lightweight, non-perishable snacks with you from home to avoid buying overpriced food at gas stations or tourist spots.
6. Free and Low-Cost Activities
While Iceland offers many premium tours and experiences, such as glacier hikes and whale watching, there are plenty of budget-friendly things to do:
- Hiking: Iceland is a hiker’s paradise, and many trails are free to access. You can explore everything from lava fields to mountain ridges and coastal cliffs. Popular free hikes include the Reykjadalur Hot Springs and the Skógafoss Waterfall.
- The Golden Circle: The Golden Circle route is one of Iceland’s most famous drives, and it can be done without a guide. Key stops include Þingvellir National Park, the Geysir geothermal area, and Gullfoss waterfall—all of which are free to visit.
- Hot Springs: While the Blue Lagoon is Iceland’s most famous (and most expensive) geothermal pool, there are plenty of natural hot springs and more affordable geothermal pools throughout the country. Try the Reykjadalur Hot Springs or the Secret Lagoon, which are less crowded and much cheaper.
- Northern Lights: One of the biggest draws of visiting Iceland in winter is the chance to see the Northern Lights. There are many free apps that help track the best viewing times. With some patience, you can witness this natural spectacle without needing to book a tour.
7. Consider a Self-Guided Tour
Many tour companies offer guided excursions, but these can be costly. Iceland is very safe and easy to navigate on your own, making a self-guided tour a fantastic way to save money. With a bit of research, you can rent a car or take a bus and explore the Golden Circle, South Coast, or Snæfellsnes Peninsula without the expense of hiring a guide. Downloading apps or offline maps beforehand ensures you won’t get lost.
8. Skip Alcohol and Minimize Extras
Alcohol in Iceland is notoriously expensive due to high taxes. If you’re looking to save money, it’s best to avoid drinking altogether or purchase alcohol from duty-free at the airport when you arrive. If you plan to indulge, stick to happy hours in Reykjavik’s bars, where prices are slightly more reasonable.
9. Choose Your Splurges Wisely
While it’s important to stick to a budget, Iceland has unique experiences worth splurging on. If you have some extra funds, consider picking one or two activities you’re excited about, like whale watching, horseback riding, or a glacier hike. By prioritizing these, you’ll get the most out of your trip without overspending.
Conclusion
Traveling to Iceland on a budget may require some extra planning and sacrifices, but it’s entirely possible to experience the country’s majestic landscapes without breaking the bank. By visiting during the off-season, choosing affordable accommodations, cooking your own meals, and focusing on Iceland’s free natural attractions, you can make your dream trip to the Land of Fire and Ice an affordable reality. Happy travels!
