Iceland – a destination famous for showstopping volcanoes, ethereal waterfalls, and for being astronomically expensive!
And while it’s no secret to most that a trip to the land of fire and ice can be quite the heavy lift for your wallet, as someone who’s spent the better part of the past 3 years here, I’m happy to report that there are still some relevant tricks and hacks on how to travel Iceland cheaper in 2024.
Spoiler alert: Iceland will probably never be a budget destination. But you can certainly trim down your costs considerably if you plan ahead, are mindful of your options, and are in the know for best budgeting practices here. Here are my best local secrets on how to travel Iceland for cheaper!
How to Travel Iceland Cheaper
While traveling Iceland, your three major expenses will be your accommodation, food, and transportation, so this is where you’ll need to mind your budget the most.
Luckily, most landmarks, sites and attractions are still free to visit in 2024 apart from a select few. Here’s what you can do to cut costs for everything else.
1. Shop at Bonus Supermarket
Food in Iceland is notoriously pricy. A simple sandwich at the gas station will easily set you back about 1400 – 2000 ISK ($10 – $14 USD) and they aren’t even good. Avoid falling into this trap and opt to buy your food at the supermarket.
The cheapest supermarkets are Bonus and Netto, with Bonus coming out slightly cheaper overall.
If you stock up on bread, a mix of canned goods and fresh foods, plus a few road snacks, you could definitely keep your daily food expenses around $10 – $15.
Keep in mind that supermarkets are generally not open 24 hours a day, with many closing up earlier than you may expect. Plan ahead, do your shopping in the mornings, or better yet, do a bulk shopping trip right after you arrive if you’ll have your own car to store it in.
Some cheap foods you must try while in Iceland are:
Skyr – Icelandic yogurt
Icelandic pylsur – Icelandic hotdog found in various stalls in the cities for cheeap
Icelandic smoked salmon – slap a few slices on some supermarket bread and you have the most epic roadtrip lunch
2. BYOB
Another option which requires more planning is to bring your own food and drinks into the country. I know of a handful of tourists who did this, so it’s definitely doable.
Sure, you probably can’t bring an entire rotisserie chicken onto the plane, but you can bring your own snacks, dried foods, and more importantly, your own beer.
Alcohol is another huge expense in Iceland, and while I encourage most tourists to try the local beer at least once, bringing your own booze will save you potentially hundred of dollars. Yes, HUNDREDS!
3. Rent a Campervan
Transportation and accommodation are usually the biggest expenses in Iceland, but you can slash these figures almost in half by renting a campervan and going on an epic roadtrip.
Campervan rentals can also be very expensive in Iceland, but this trick works if you are coming in the off-season since this is when you can score a major deal.
My buddies rented one for 4 days for just under 180 euros in winter. Split between the two of them meant they each paid less than 23 euros (about $25 USD) total for their accommodation and transportation each day in Iceland. It does not get any cheaper than that!
Keep in mind free-camping in Iceland is illegal, so you will have to pay to park in a campsite. But as long as you are traveling as a group, this will still be way cheaper than staying in a hotel or even a hostel.
4. Find Cheap Alternatives to Expensive Activities
Certain activities in Iceland can be very expensive. Just a geothermal spa visit here and there after those long days of hiking can totally break the bank.
Luckily, you’ve got options. For example: instead of the Blue Lagoon or Sky Lagoon, opt to visit Reykjadalur instead. It’s a thermal river just outside of Reykjavik with arguably much better views than the Blue Lagoon. And the best part? It costs nothing to visit.
Instead of paying for a northern lights tour, use the Vedur Weather website to predict the aurora forecast for yourself and self-drive to wherever the lights are visible.
With just a bit of research, you can almost always find a cheaper alternative to some high-ticket tours and activities in Iceland.
5. Get Thrifty
Many travelers visiting Iceland are hoping to take home a traditional lopapesya, the beloved Icelandic sweater made of local sheep wool.
These sweaters are handmade, and each one requires a lot of love, time, and dedication to make. As a result, they usually cost anywhere from $200 – $400 USD.
Luckily, these sweaters maintain their quality quite well, so opt to shop for one second hand if possible. This is a more sustainable alternative and you’ll still get a perfectly good sweater that’s built to last.
There are a handful of secondhand shops in Reykjavik, but the store with the most consistent stock of Lopapeysa is probably the Red Cross.
6. Book Accommodation Ahead
If you do plan to stay in hotels or hostels, you’ll want to book much further in advance than you may think, especially if you’re coming during high season.
At the time of writing, it’s only February, and the local hotels around the Golden Circle are already almost fully booked for summer. If you wait too long, you’ll have less options and have to go for something potentially way outside of your budget.
On top of that, the prices do tend to creep upwards as summer approaches. So, if you want to visit Iceland in summer, I strongly recommend booking as early as possible, even the year prior.
I always recommend using booking.com for booking accommodation in Iceland. Almost all the hotels in Iceland have the best deals on that platform.
7. Get Travel Insurance
Lastly, I’d strongly recommend getting travel insurance before traveling to Iceland.
You need to remember that most of Iceland is still a very wild, unpredictable natural landscape. Sadly, accidents involving tourists do happen here and they are unfortunately becoming quite common.
Trust me when I say, you do not want to get caught up in a medical emergency in a country as expensive as Iceland without travel insurance.
The best insurance to get before heading to Iceland is Safety Wing.
They have the best policies to cover the types of incidents you are more likely to face in Iceland. Plus, their service is also amongst the best in the market. And with policies starting from just $45 for a full month of travel, this is a very affordable option to help keep your Iceland trip cheaper!
8. Book the Right Airline
If you are coming from Europe, you can book a flight to Reykjavik for as little as $40 one way on Wizz Air. Vienna is the most central hub for Western Europe with the most direct connections to Reykjavik on Wizz Air, while Budapest and Warsaw are great for people in Central Europe.
If you are on the East Coast of the US or Canada, the best flight deals are with Play Airlines. A one way flight to Iceland can be as little as $140 one way, or $240 roundtrip.
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