How to Travel on a Budget in Iceland: Essential Tips for Affordable Adventures
Iceland, a land of surreal beauty, is often seen as a dream destination, but one with a hefty price tag. From the roar of mighty waterfalls to the tranquillity of moss-covered lava fields, it’s a country where nature reigns supreme.
While its reputation as an expensive destination is well-earned, travelling on a budget in Iceland is entirely possible with thoughtful planning and a bit of creativity.
Here are some practical tips to help you experience the best of Iceland without breaking the bank, with a few nature-focused and photography-friendly ideas woven in to enhance your journey.
Save Money on Accommodation
Finding affordable accommodation in Iceland is key to keeping your trip budget-friendly. Hostels and guesthouses scattered across the country offer great value, especially those with communal kitchens where you can prepare your own meals.
These places also provide an opportunity to meet fellow travellers and share stories of hidden gems. For the more adventurous, camping is an excellent option, particularly during the summer months when the midnight sun provides endless daylight. Iceland’s campsites are well-maintained and affordable, allowing you to immerse yourself in the surrounding landscapes while keeping costs down.
To save money, book your accommodations early, especially during peak travel seasons, to secure the best rates. If camping, consider purchasing a camping card, which provides access to multiple sites around the country and can significantly reduce your lodging expenses, although you should always check that the campsites included are the ones you plan on using.
Cook Your Own Meals and Refill Water Bottles
Dining out in Iceland can quickly drain your travel budget, but cooking your own meals offers a cost-effective and satisfying alternative.
Local supermarkets such as Bonus and Krónan are stocked with affordable essentials, and many accommodations have kitchen facilities. Stock up on fresh ingredients and pack a few reusable containers for snacks on the go. We also bulk cooked when we were in self-catering accommodation and froze the meals to defrost over time and reheat when we were somewhere with fewer facilities.
Carry a reusable water bottle to take advantage of Iceland’s pristine tap water. Filtered through lava fields, it’s not only safe to drink but also some of the purest water you’ll find anywhere. This simple habit will save you money and reduce plastic waste during your trip.
Travel Smart with Transportation
Transportation can be one of the most significant expenses in Iceland, but there are ways to keep it manageable. Public buses are a budget-friendly option for getting around Reykjavík and to some of the country’s most popular sights. Beyond the main towns, public transport is extremely limited and requires detailed planning.
If you are venturing further afield, carpooling apps like Samferða connect travellers heading in the same direction, offering a cost-effective alternative to renting a vehicle.
If you plan to explore Iceland’s vast landscapes, renting a small, fuel-efficient car can be more economical than larger models. Opt for off-season travel dates to find better deals, and consider sharing the costs with fellow travellers. To maximise your savings, plan your route carefully and avoid unnecessary detours.
Focus on Free Natural Wonders
One of the best things about Iceland is that its most breathtaking attractions are free. From the iconic Gullfoss waterfall to the dramatic black sands of Reynisfjara Beach, nature’s wonders require no entrance fee, although parking fees are becoming more common.
Spend your days hiking to secluded spots, exploring glacial valleys, and marvelling at the volcanic landscapes that make Iceland unique. For photographers, these free sites provide endless opportunities to capture the changing light and dynamic scenes.
Create a detailed itinerary before you go, mapping out the must-visit sites and planning your route to minimise travel expenses. Prioritise locations that align with your interests, whether it’s wildlife spotting or capturing the beauty of Iceland’s rugged terrain.
Skip Expensive Tours and Go Self-Guided
While guided tours can provide unique experiences, many of Iceland’s highlights can be explored independently. For instance, you can hike the paths around Landmannalaugar or visit geothermal hot springs like Reykjadalur without a guide.
With careful research and good navigation tools, you’ll have the freedom to move at your own pace and save a significant amount of money.
Download navigation apps like Maps.me or Google Maps before your trip and familiarise yourself with the routes. This preparation will help you confidently tackle self-guided adventures and discover hidden gems off the beaten path.
Time Your Visit for Off-Season Savings
The timing of your trip can greatly impact your budget. Travelling during Iceland’s shoulder seasons, spring (April to May) and fall (September to October), offers lower prices for accommodations, car rentals, and flights.
These periods also bring fewer crowds, allowing you to experience the landscapes in peaceful solitude. For photographers, the soft light and vibrant autumn colours or the awakening spring blooms provide ideal conditions for capturing Iceland’s beauty.
Set flight alerts on tools like Skyscanner or Google Flights to monitor prices and secure the best deals. Booking your trip outside the peak summer months can make a significant difference to your overall expenses.
Embrace Budget-Friendly Wildlife and Photography Opportunities
Wildlife watching in Iceland is an affordable way to connect with nature and enhance your travel experience.
From puffins nesting along cliffs to seals lounging on icy shores, Iceland’s diverse wildlife offers countless chances for observation and photography. While whale-watching tours can be pricey, coastal areas like Húsavík and Snæfellsnes often provide free sightings of these majestic creatures if you keep your eyes open as you explore.
Pack a pair of binoculars and a good zoom lens for your camera to make the most of wildlife encounters. With patience and a bit of luck, you can capture stunning shots without spending a fortune.
Pack Smart to Avoid Unexpected Expenses
Packing wisely can save you both money and stress during your trip. Iceland’s unpredictable weather calls for layers, waterproof clothing, and sturdy hiking boots to keep you comfortable in any conditions.
A well-prepared backpack should also include a portable charger, sunscreen, and a reusable water bottle. These small investments will prevent you from needing to buy expensive items while on the road.
Create a packing list in advance and double-check it before you leave. This simple step will ensure you’re ready for every adventure Iceland has to offer without unnecessary costs.
Budgeting Essentials for Your Iceland Adventure
Planning a trip to Iceland on a budget requires careful consideration of all potential expenses. To make the most of your adventure without financial surprises, it’s essential to include the following items in your budget:
- Flights: Monitor prices and book during sales or off-season for the best deals.
- Accommodation: Factor in costs for hostels, guesthouses, or campsites. Booking in advance can save money.
- Transportation: Include car rentals, fuel, public transport, or carpooling apps.
- Food and Drink: Allocate for groceries, occasional dining out, and snacks.
- Activities: Consider free attractions but budget for any paid tours or entrance fees.
- Travel Insurance: Essential for peace of mind and covering unexpected costs.
- Gear: Account for clothing, hiking gear, and photography equipment if needed.
- Miscellaneous: Include money for souvenirs, emergency expenses, and small fees like parking or tolls.
Creating a realistic budget with all these elements will help you enjoy Iceland’s incredible landscapes and experiences while staying financially comfortable. Track your expenses throughout the trip to ensure you remain on track.
Is Iceland Really as Expensive as People Say?
Iceland has a reputation for being one of the most expensive travel destinations, but it may surprise you that supermarket food prices are often comparable to those in the UK.
Stores like Bonus and Krónan offer a range of affordable groceries, making it easier to prepare your meals and stick to your budget.
Essentials such as bread, pasta, and fresh produce are reasonably priced, and even local treats like skyr are accessible.
By opting to cook your meals rather than dining out, you’ll significantly cut down on costs while enjoying the adventure of trying Icelandic staples.
Fuel in Iceland is also comparable with prices in the UK and given the distances, fuel will not be a huge expense if you plan your route in advance and drive within the speed limit and to the road conditions.
Saving money in Iceland
Travelling on a budget in Iceland is a rewarding challenge that allows you to immerse yourself in the country’s awe-inspiring landscapes and vibrant culture. With these practical tips and action points, you can make the most of your journey without compromising on experiences. From exploring free natural wonders to embracing wildlife and photography opportunities, Iceland offers unforgettable adventures for every traveller.
Complete Guide to
ICELAND
Read all about Iceland, places to visit and the unique wildlife you may encounter
