Is Iceland Expensive to Travel? A Comprehensive Guide

Introduction

Iceland is a popular destination for travelers from all over the world. With its stunning landscapes, unique culture, and wide range of attractions, it’s no wonder why so many people are drawn to this Nordic country. But one of the main questions that many travelers have is: is Iceland expensive to travel? In this article, we’ll break down the costs associated with visiting Iceland and provide you with some budgeting tips to help you plan an affordable trip.

Cost Comparison: What You Can Expect to Spend on a Trip to Iceland

Before planning your trip, it’s important to understand the costs associated with visiting Iceland. Here’s a breakdown of what you can expect to spend on transportation, accommodation, food and drink, and entertainment while traveling in Iceland.

Transportation Costs

Transportation costs can vary significantly depending on your mode of transport. Domestic flights within Iceland are relatively inexpensive, ranging from around $100 to $200 USD per person. Renting a car is another popular option for getting around the island, although prices do vary depending on the size of the vehicle and the length of the rental period. Prices typically start at around $50 USD per day for a small car. Public transportation is also available, but it can be limited in some areas and is generally not the most cost-effective option.

Accommodation Costs

Accommodation costs in Iceland will depend largely on where you choose to stay. Hotels in Reykjavik, the capital, tend to be more expensive than those in other parts of the country. Prices usually range from around $100 to $200 USD per night, depending on the type of room and amenities offered. Hostels are also available and can be a great budget-friendly option, with prices starting at around $30 USD per night. Airbnb is also becoming increasingly popular in Iceland, with prices ranging from around $50 to $100 USD per night.

Food and Drink Costs

Eating out in Iceland can be quite pricey, with meals at restaurants in the capital city often costing upwards of $20 USD. However, there are some budget-friendly options available, such as hot dogs, hamburgers, and pizza. Groceries are also relatively affordable, with most items costing between $10 and $20 USD. Alcohol, however, is much more expensive, with beers and cocktails typically costing around $12 USD or more.

Entertainment Expenses

Entertainment expenses in Iceland can vary significantly depending on what type of activities you’re interested in doing. Attractions like museums, galleries, and guided tours can be quite pricey, with prices ranging anywhere from $15 to $50 USD per person. Outdoor activities like hiking and exploring nature are generally free, though you may want to consider renting equipment like bikes or kayaks if you’re looking to get off the beaten path.

Budgeting Tips for Visiting Iceland on a Limited Budget

If you’re looking to visit Iceland on a limited budget, there are a few things you can do to make sure you don’t break the bank. Here are some tips to help you save money while planning your trip.

Consider Traveling During Low Season

Traveling during the off-season (November-February) can be a great way to reduce your costs. Flights, accommodations, and attractions are generally cheaper during these months, so you can save a significant amount of money by planning your trip during the winter. Just be sure to check the weather before you go, as temperatures can get quite cold during the winter months.

Look for Package Deals or Discounts

Take advantage of package deals or discounts when booking your travel arrangements. Many airlines, hotels, and tour operators offer discounts and special offers, so be sure to do your research and shop around to find the best deals. Additionally, you can often save money by booking your flight and accommodation together.

Use Public Transportation

Public transportation is a great way to get around Iceland without breaking the bank. Bus routes cover much of the country and tickets can be purchased for just a few dollars. The bus system is reliable and efficient, making it a great option for budget travelers.

Get Creative with Meals

Eating out can quickly add up, so it’s important to be creative when it comes to meal planning. Consider cooking your own meals using ingredients from the local grocery stores, or take advantage of happy hour specials at bars and restaurants. You can also look for street food vendors or food trucks, which often offer delicious dishes at affordable prices.

Exploring Iceland on a Shoestring Budget

There are plenty of ways to explore Iceland without breaking the bank. Here are some tips for finding fun and interesting activities that won’t put a strain on your wallet.

Take Advantage of Free Attractions

Iceland has plenty of free attractions, including natural wonders like waterfalls, geysers, and hot springs. There are also several museums and galleries located throughout the country, many of which offer free admission. Taking a stroll through a local park or exploring a nearby hiking trail are also great ways to experience Iceland without spending any money.

Utilize Camping and Hostel Options

Camping and hostels are great budget-friendly options for accommodation in Iceland. Campsites are available throughout the country and range in price from around $8-$20 USD per night. Hostels are a popular choice for travelers, with prices starting at around $25 USD per night. Both options are a great way to save money while still having a comfortable place to stay.

Take Advantage of Happy Hour Specials

Happy hour specials are a great way to enjoy a night out without breaking the bank. Many bars and restaurants in Iceland offer discounted drinks and snacks during certain hours, so be sure to take advantage of these deals if you’re looking to save some money.

Research Local Events and Festivals

Local events and festivals are a great way to experience Icelandic culture without spending a lot of money. Many of these events are free or low-cost, so be sure to research what’s happening in the area before you go. There are also plenty of music festivals and art shows throughout the summer months, so keep an eye out for these if you’re looking for an affordable way to have some fun.

A Guide to Finding Affordable Accommodation in Iceland

Accommodation costs can quickly add up while traveling in Iceland, so it’s important to be strategic when it comes to finding a place to stay. Here are some tips for finding affordable accommodation in Iceland.

Consider Staying Outside the City Center

Staying outside the city center is a great way to save money on accommodation. Hotels and Airbnb properties located in the suburbs or rural areas are often more affordable than those located in the city, so be sure to do your research and compare prices before booking. Additionally, you can often find great deals on last-minute bookings.

Look for Budget-Friendly Hotels

Hotels are a great option for travelers who are looking for a comfortable place to stay. Look for budget-friendly hotels that offer amenities like free breakfast, Wi-Fi, or parking. Additionally, many hotels offer discounts for early bookings, so be sure to take advantage of these if you’re planning ahead.

Research Airbnb Options

Airbnb is becoming increasingly popular in Iceland, and there are plenty of affordable options available. Look for listings that offer private rooms or entire apartments. Additionally, you can often find great deals on last-minute bookings, so it’s worth checking out the site if you’re looking for a bargain.

Consider Couchsurfing

Couchsurfing is a great way to experience Icelandic culture while also saving money. It’s important to remember that couchsurfing is not a hotel, so you should always use common sense and caution when participating in this activity. Be sure to read reviews and thoroughly research potential hosts before committing to a stay.

How to Find Cheap Flights to Iceland

Finding cheap flights to Iceland can be a challenge, but there are a few things you can do to help lower your costs. Here are some tips to help you find the best deals on airfare.

Research Different Airlines and Fares

Do your research and compare fares between different airlines. There are several budget airlines that offer flights to Iceland, so be sure to check their websites for any special offers or discounts. Additionally, it’s worth looking into connecting flights, as they can sometimes be cheaper than direct flights.

Book Flights as Far in Advance as Possible

Booking your flights as far in advance as possible can often result in significant savings. Keep an eye out for promotional fares or flash sales and book your tickets as soon as you spot a good deal. This can help you save a lot of money on airfare.

Compare Prices Between Airports

Iceland has two international airports: Keflavik International Airport and Akureyri Airport. If you’re looking to save money on airfare, it’s worth comparing prices between the two airports to see which one offers the best deal. It’s also important to factor in the cost of transportation to and from the airport.

Look for “Hidden City” Flights

“Hidden city” flights are flights that have a layover in a destination that’s cheaper than your final destination. For example, you could book a flight from New York to Reykjavik with a layover in London. This can often result in significant savings, so it’s worth considering if you’re looking for a budget-friendly option.

Conclusion

Iceland is a beautiful and unique destination that’s worth exploring. With careful planning and budgeting, it’s possible to visit Iceland without breaking the bank. Consider traveling during the off-season, look for package deals or discounts, utilize public transportation, and get creative with your meals. Additionally, there are plenty of free attractions and activities in Iceland, so be sure to research these before you go.