How to Travel to Iceland on a Budget

If you heard Iceland is one of those expensive countries, I regret to confirm this, but you heard right. The country offers the most breathtaking scenery in the world, but it will cost you an arm AND a leg to explore (and, with all of the great hiking, you’ll need both of those!).

Don’t let the prices stop you, though! As with any country, there are ways to explore Iceland without stretching your wallet that much. Here are some tips, tricks, and experiences to seek out if you’re planning to visit Iceland on a budget.

Hike And Camp

Iceland is a land of visual wonder, with every horizon decorated by volcanic mountain tops, glacial lagoons, cascading waterfalls, and sprawling valleys carved by eons of natural forces. There’s no reason to spend a penny on an organized tour when the entire countryside is at your fingertips, itching to be explored.

Entrance to Iceland’s national parks is free, so all you’ll need is a backpack and hiking boots. If you’d like to camp, it will sometimes cost you, though never more than 10 to 20 (USD/EUR) a night. Not only is this the cheapest accommodation option, but it will allow you to wake up immersed in Iceland’s breathtaking countryside.

Transportation

Renting a car and traversing the island on four wheels is one of the best ways to explore Iceland, and some offer quite cheap varieties. Picking a car with a tent on top is a great alternative unless you have one at home and bring it with you won’t cause any distress. Worry not — Iceland is one of the safest countries to travel in. I was a bit skeptical, but nobody bothers us within our ten days trip. Whatever you decide to do, just make sure to bring a jacket and some extra layers!

Bring A Water Bottle

A single bottle of water in Iceland will cost you a fortune, and if you are visiting for a week or so, this will add up, making your trip one of the most expensive ones. You will be happy to hear that all tap water is safe to drink, so just bring your own reusable bottle and fill up at restaurants, gas stations, hotels, and camping places. You can even pull over on the side of the road to grab fresh water from the rivers and streams, since all Icelandic water comes straight from glaciers, making it pure and delicious.

Stay Sober

Look, I get it — you want to have a good time, and sometimes the best way to do that is to grab a beer … or four. But, drinking in Iceland is going to add a few more digits to the overall cost of your trip.

So, what are your options? Well, if you can hold off on the booze for just a couple weeks, you’ll be able to save a pretty penny. And that shouldn’t be too hard — the breathtaking scenery and countryside should offer enough of a natural high. If you can’t, try to stock up on supplies when you arrive at the airport, where the duty-free prices will save you from breaking the bank. Things are cheaper than in Europe, or at least The Netherlands, so getting a bottle of gin and buying tonic from the supermarkets made our journey super cheap.

Eat Hot Dogs

Iceland is not only the land of magical countryside and adventure, but it’s also the land of hot dogs. That’s right — Icelanders are oddly obsessed with hot dogs (an American influence I guess!), and almost every town and city features roadside stalls offering these lunchtime treats. Whether you like it or not, hot dogs will be one of your cheapest meal options and much more affordable than ordinary sandwiches. If fine dining isn’t a significant component of your ideal Icelandic adventure, then learn to develop a taste for hot dogs!

Do Not Forget About The Icelandic Soup

Yes, it sounds strange, but I will be honest with you – they have the best soups in the world. In most of the places you pay for a bowl of soup around 10 EUR, and you get unlimited refills; therefore, I would say it’s a good deal for me. We did that a few times, and after 2-3 soups per day, you don’t think at all about the fine dining restaurant you saw downtown.

Take A Walking Tour Of Reykjavík

Some of the most memorable travel experiences are the ones not found in guidebooks — those moments when you just shot down the laptop, take your luggage and let the city reveal its history. Reykjavík is a rustic harbor town, and there is plenty to explore without spending out the big bucks. All you need is a map (or an app) to navigate, a camera, a comfortable pair of walking shoes and of course warm clothing.

Some notable spots to add to your itinerary include the Tjörnin Pond, which is laid out in front of the architecturally brilliant city hall, and the Einar Jónsson Sculpture Garden, which features 26 of the native artist’s bronze casts. For a more architectural wonder, make sure to check out the Harpa Concert Hall and Perlan — a futuristic, glass-domed. To get a panoramic view of the city, head to the top of the ominous Hallgrímskirkja Cathedral, where admission will cost you just around 9$ or 8EUR.

Save some time to explore the Old Harbor as well. This colorful and fast-growing area offers an atmosphere of a small fishing village, which allows you to walk the misty streets and breathe in the salty sea air while enjoying the stunning view of Mount Esja across the bay.

Do you have any tips on how to stay within a budget for a trip to Iceland? Let me know in the comment section.