Iceland on a Budget: Money Saving Tips

Is Iceland Really That Expensive

Iceland has a reputation as one of the most expensive destinations in the world. While costs are higher than many countries, smart planning can make it affordable.

The key is knowing where to save and where to spend for the best value.

Accommodation Tips

Camping

Camping is the cheapest option at around 2000 ISK per night. The camping card gives access to 40 plus sites for a flat fee.

Hostels

HI Iceland hostels offer dorms and private rooms. Bring sleeping bag for discounts at some locations.

Guesthouses

Often cheaper than hotels with shared bathrooms. Many include breakfast.

Airbnb

Good for groups who can split costs. Kitchens allow self catering.

Food and Dining

Grocery stores are your best friend. Bonus has the lowest prices. Kronan and Netto are also affordable.

Hot dogs from stands like Baejarins Beztu are filling and cheap at around 500 ISK.

Bakeries offer affordable sandwiches and pastries for lunch.

Skip restaurants for breakfast. Buy bread, cheese, and fruit at supermarkets.

Transportation

Rent the smallest car that meets your needs. Fuel economy matters when gas costs over 300 ISK per liter.

Car pooling with other travelers splits rental and fuel costs.

Public buses exist between major towns but are slow and infrequent.

Free Activities

Most natural attractions have no entrance fee. Waterfalls, beaches, and viewpoints are free.

Hiking trails are free throughout the country.

Church architecture and public art in Reykjavik cost nothing to enjoy.

Natural hot springs in the countryside are free, though you need to find them.

Where to Splurge

Some experiences are worth the cost. Glacier hiking requires guides for safety.

Whale watching tours offer something you cannot do independently.

One nice meal out gives a taste of Icelandic cuisine culture.

Sample Budget

A realistic daily budget for a budget traveler is 15000 to 25000 ISK including accommodation, food, fuel, and occasional activities.

This assumes camping or hostels, self catering most meals, and selective paid activities.