travel to iceland expensive

The Cost of Travel in Iceland: My 2024 Expense Report

Iceland is one of the most visually spectacular countries I’ve ever been to.

From the breathtaking landscapes to the welcoming locals, the wonders of this country were obvious from my first cold steps on Icelandic terrain. 

During my time spent traveling in the Land of Fire and Ice , I gazed in awe at waterfalls streaming from towering mountains, explored a volcanic crater-turned-lake, stood mere steps away from an active geyser, skipped over black sand beaches, and crunched my way across turquoise glaciers.

But today, we’re here to talk about the prices.

Iceland has a reputation for being expensive — one of the most expensive countries in Europe, in fact — and things have only grown worse since the pandemic. Most shockingly of all, accommodation that I stayed at a year ago has now doubled in price[!]. It really is quite shocking.

But you know what? This is the case for practically every single major tourism destination right now, in Europe and further afield. Prices everywhere are skyrocketing, but there are still some ways that you can keep your costs down.

I’m going to be sharing all of those with you today.

The most expensive time of year is mid-June through to August, so you can expect prices to double again during these summer months.

Once you leave Reykjavik, however, you’ll find prices on food and accommodation dip to a more comfortable level. And with free activities scattered all over the island, there’s plenty of ways to keep your costs even lower.

So how much does it cost to travel in Island? In this article, I’m going to be sharing exactly how much you can expect to spend in 2024. Note that I’ve mentioned all prices in USD, since there are more visitors to Iceland from the United States each year than anywhere else.

The Ultimate Iceland Itinerary

Before I start diving into the nitty-gritty details of costs, I want to first go over where I visited in Iceland and how you can spend two weeks seeing the most epic parts of the country.

Iceland, fortunately, is one of the easiest countries to plan a road trip in. Why? Well, there’s essentially only one road!

That is, of course, an exaggeration, but the Ring Road of Iceland is the main road in the country and it encircles the entire island. Taking a road trip, then, is all about circling your way around the country and choosing the most epic spots. Here’s what I recommend, taking a counter-clockwise route from Reykjavik:

Day One: Reykjavik Day Two: Selfoss Day Three: Vík Day Four: Höfn Day Five: Egilsstaðir Day Six: Mývatn Day Seven: Mývatn Day Eight: Akureyri Day Nine: Sauðárkrókur Day 10: Ísafjörður Day 11: Staðarhólskirkja Day 12: Midhraun Day 13: Reykjavik Day 14: Reykjavik

How to Save Money on the Cost of Accommodation in Iceland

As always with travel, it’s possible to cut your accommodation costs down to zero if you have the time and patience to seek out an offer.

Housesitting  is a great option for  free  accommodation. This is where you’ll take care of somebody’s house while they’re away, and usually look after their pets, too. It’s best for long-term travellers or retirees as you can’t pick and choose dates and destinations, so you need to have a lot of flexibility as to where you go and at what time of year. If you  do  have that freedom, it’s a wonderful way to cut down your travel expenses, soak up some home comforts, and live like a local for a while. I have friends who have housesat in castles before! For free!  Trusted Housesitters  is the best site for getting started with housesitting, as they have the highest number of listings.

I’m suspecting, though, that for most of you, you’re not interested in the free accommodation and just want somewhere clean, safe, and affordable to rest your head each night. If that’s the case, there are several options available for you.

The first of these are  hostels . In Iceland, you’ll come across hostels dotted all over the country, although most of them are unsurprisingly in Reykjavik. They’re one of your best options for saving money as a solo traveller.

Hostels in Iceland  are on a par with the rest of Northern Europe, and you can expect to spend around  $40 a night for a dorm bed  for a well-reviewed hostel in Iceland, with the price increasing to about  $6 0 a night  for the absolute best of the best.

When it comes to private rooms in hostels, you can expect to spend around  $150 a night  for a clean, basic room in a good location, so if you’re travelling with friends or with your partner, it doesn’t always cost a lot more to grab some privacy over settling for two beds in a dorm room.  $200 a night  will get you an exceptionally well-reviewed private room in a hostel.

I use  HostelWorld  to find the cheapest hostels, as they tend to have the greatest number of listings at the lowest prices.

But what about the hotels? That’s what most of you are interested in learning about anyway!

The Cost of Accommodation in Iceland

If you’re travelling as a couple and were getting worried by the cost of private rooms in hostels that I talked about earlier, I’ve got some good news for you. There’s much more competition when it comes to hotels, so they can often be cheaper and nicer than their hostel equivalents.

In this section, I always like to share my favourite accommodation for a destination: where I chose to stay, how much I paid for it, and what I thought about the property. Here’s my choices for Iceland:

Reykjavik: Freyja Guesthouse ( $145 per night for a deluxe double room)

Not only is this guesthouse one of the highest-rated properties in Reykjavik on Booking, but it’s also one of the most affordable options, too. And I loved this place. It’s in the perfect location for exploring Reykjavik, right around the corner from the iconic Hallgrímskirkja church. The rooms are clean and cozy, and I especially liked the little kitchenette that let me save a bit of money on breakfast and drinks. It’s run by the most incredible family, and there are even free bikes for guests to use at any time. This place offers exceptional value for money in Iceland!

🇮🇸 Don’t forget to check out my post on the 19 Best Things to Do in Reykjavik !

Selfoss: Ásahraun Guesthouse ( $127 per night for a, um, barrel)

Now, I don’t know about you, but whenever I come across the opportunity to sleep in an unusual style of accommodation, I always leap at the chance. Life is too boring to spend every night in a hotel, right? … Right? So that’s what brought me to Ásahraun Guesthouse , where you can stay in a, um, barrel. Yes, you read that correctly. But in all seriousness, it’s such a cool spot and way, way nicer than you’re expecting. It receives a remarkable score of 9.5 on Booking, and that’s all due to the incredible setup. For your money you get to stay in the cosiest barrel-style room with its own fridge and kettle, have access to a hot tub (if you’re lucky you might spot the Northern Lights from it), and be fully immersed in the incredible natural surroundings. There’s a high-quality shared kitchen to prepare meals if you’d like to, and the owners are absolutely lovely and fully committed to helping you have the best stay ever. I wouldn’t be surprised if this ended up being the accommodation highlight of your time in Iceland.

Vík: Guesthouse Galleri Vík ( $287 per night for a double room)

This is such a wonderful place to stop for the night, and we were so glad we chose to do so. It’s cosy, comfortable, and clean, with a welcoming owner who makes amazing homemade waffle dough and jam: there’s a waffle iron in the room so you can put it all together for a delicious breakfast. The guesthouse itself is in a great location in Vik, right in the centre of town and within walking distance to that beautiful black-sand beach.

Höfn: Old Airline Guesthouse ( $133 per night for a double room)

Now, I’m not going to say that my favourite thing about this guesthouse is the fact that it had a washing machine and dryer, but I will tell you that it was very much appreciated after several days of road-tripping! The accommodation itself is right in the heart of Höfn, close to all of the best restaurants (I recommend Pakkhús for dinner; it’s the best restaurant in town!) as well as a supermarket and petrol station. The room was clean, spacious, and bright, and the hosts couldn’t have been nicer. All in all, this was a really good (and affordable) place to stay for a night on our road trip!

Egilsstaðir: Hotel 1001 Nott ( $284 per night for a double room)

This was one of priciest places we chose for our road trip but the beautiful location and epic views from the room made it more than worth it. You’re nestled in between the mountains and the lake here, with hot tubs to take a dip in (I recommend doing so at sunset) and even a waterfall to stroll to. A delicious breakfast is included in the price: for other meals, you can either eat onsite or drive 5km back down the road to Egilsstaðir. I’d definitely suggest having dinner at the hotel at least once, though: the food there is absolutely delicious (reindeer burgers for dinner, anyone?) This would be a particularly wonderful option if you’re in Iceland on a romantic getaway.

Mývatn: Vogafjós Farm Resort ( $251 per night for a double room)

Mývatn doesn’t have much in the way of accommodation, and most of what it does have doesn’t receive the greatest reviews. This property stands out from the crowd, then, and we loved loved staying there! You’ve got cosy wooden log cabins to sleep in, helpful staff who can help you make the most of your time in the area, and you’re just 10 minutes from the local thermal pools. Throw in an excellent restaurant in a cowshed a three-minute walk away that’s run by the same family (breakfast there is included), and you’ve got yourself an excellent stay in Mývatn.

Akureyri: Hafdals Hotel ( $233 a night for a twin room)

This hotel is just outside of Akureyri — a five-minute drive to the centre — but it’s worth staying a little way out of town because it lands you with some spectacular views instead. You’ll be looking over the city, gazing out at the fjords, and admiring the river while you stay here, in a clean and modern hotel, with a lovely owner, and a delicious breakfast. This is a great place to base yourselves while day-tripping around the north of Iceland, too.

Sauðárkrókur : Karuna Guesthouse ( $113 a night for a twin room)

We considered staying in Blönduós for this night, but the accommodation was so poorly-rated there, that we decided to opt for Sauðárkrókur instead. And what a great idea! This guesthouse felt like a steal — it was one of the cheapest places we stayed in Iceland, but it didn’t feel like it: we had the best sleep of our trip in those comfortable beds (plus blackout curtains — always appreciated!), and the owner was absolutely wonderful. The free food she left out for breakfast was so appreciated (freshly baked bread!), and the views across the fjords were magnificent. All in all, a great place to stay.

Ísafjörður : Tangs ( $260 a night for a 4-person apartment)

If you plan on venturing into the Westfjords, this is the place to stay ! It’s an apartment, rather than a hotel, and located in the centre of town within walking distance to everything. The place is clean, spacious, and stylishly-decorated, and even offers free bicycles for guests to use. And trust me — as somebody who has stayed in over 100 Airbnb apartments over my years of travel — this apartment has one of the best-equipped kitchens I’ve ever come across. Oh, and having a washing machine and dryer were a huge bonus after many days on the road!

Staðarhólskirkja: Miðjanes Reykhólahrepp ( $90 a night for a double room)

This cosy guesthouse and working farm (wait until you taste the fresh milk from the cows!) was such a lovely place, with beautiful views over the ocean — great for sitting in the living room and bird-watching. You’ve got access to a communal kitchen and living room, which resulted in so many new friendships, and the owner has tons of useful advice on where to go and what to do. It’s a little isolated, so soak up those peaceful vibes, because you’ll be heading back to Reykjavik in just a couple of days!

Midhraun: Lava Resort ( $176 per night for a double room)

This is the cutest collection of cottages ever! You’ll be staying in beautiful surrounds in an adorable cottage , with plenty of nearby trails to wander along while you’re here — I recommend the one that takes you out on to a nearby lava field. The cottages have plenty of amenities with fully-equipped kitchens, plenty of storage space, and a laundry room to get any washing done. It’s perfect location for exploring everything the peninsula has to offer!

My average cost for accommodation in Iceland was $189 a day between two people. 

The Cost of Transportation in Iceland

Let’s talk first about the costs involved in getting to Iceland. For all of my North Americans and Europeans out there, you’ll most likely be pleasantly surprised by the prices.

When you check flight prices on Skyscanner , you’ll be greeted by a wall of IcelandAir flights. And the great news about that is that IcelandAir offers free stopovers in Iceland whenever you opt to fly between Europe and North America. I utilised this when flying from Washington D.C. to London several years ago and it was epic . I was able to stop in Iceland for three days on my way over at no additional cost, so I used that time to explore the Golden Circle.

If you’re planning a trip to Iceland itself, know that you’ll be looking at around $400 for return flights from the east coast of the U.S. to Reykjavik.

If you’re in Europe, flights are inexpensive. From London, you’ll be looking at around £70 return. For other major flight hubs within the continent, such as Paris, Madrid, Milan, and Berlin, flights will usually be around €150 return — not too bad at all!

Don’t forget to have a quick check of Secret Flying before you book your flights either — there may be a bargain up for grabs that coincides with your travel dates!

But what about transportation within Iceland?

Iceland is made for road-tripping. If you’re planning on spending a week or two within the country, it’s the absolute best way to get around. Renting a car within the country is inexpensive and navigating is easy — you simply follow the iconic Ring Road around its 1,300 kilometres — or 828 miles — until you end up back in Reykjavik. The roads are well-paved and there’s hardly any traffic, which makes for an incredibly easy road trip.

I used RentalCars to find my car in Iceland; they check prices across all of the major hire companies to surface the cheapest options out there. Within Iceland, you can expect to pay between $38 and $52 a day for a rental, which really isn’t too bad at all. If you’re not having any success with RentalCars, take a look at the Iceland-based Northbound , as you can sometimes pick up a deal through there.

Self-drive tours are popular within Iceland, although I don’t personally believe they’re necessary — it’s so easy to drive around Iceland on your own!

With these self-drive tours, you essentially pay for somebody to put together an itinerary, get you a rental car, book your accommodation for you, and even provide you with breakfasts. But there’s plenty of itineraries available online for free (I shared mine in the previous section!), it’s easy to find your own rental car online, and it’s better to head out to local restaurants to try the breakfasts anyway. Icelandic Nordic Visitor has dozens of self-drive itineraries to sign up for — as an example, a 7-day self-guided tour starts from $1586 per person .

If you’re considering a self-drive tour, I’d urge you to save your money and use it on nicer accommodation.

If you can’t drive, or don’t want to, there are buses and tours that can help you see the country without needing your own set of wheels. Straeto gives some great bus routes for traveling in and around the capital city, but public transport in general is hit and miss outside Reykjavik: there isn’t a lot of it, and it doesn’t necessarily go where or when you want it to. Here are some typical prices for transport in Iceland:

• Flight from Reykjavik to Akureyri: $66
• Flight from Reykjavik to Seydisfjordur (EGS): $96
• Single bus ticket in Reykjavik: $4.50
• Bus from Reykjavik to Stykkisholmur: $38
• Strætó Bus app fare per month : $76
• 3-day bus pass in the Reykjavik area: $41
• 1-day bus pass in the Reykjavik area: $18

The Cost of Food in Iceland

We all must eat and thank goodness for that because both the traditional and contemporary cuisine in Iceland is top notch. I know, I know — Iceland doesn’t have the best reputation for cuisine, with rumours abounding of fermented shark and smoked puffin, but dig a little deeper and you’ll find plenty of treats.

First and foremost, you can’t leave the country without eating a hot dog. That’s right, a hot dog . This popular street food has made a tasty name for itself in Iceland and you’ll find them everywhere. It’s a dish that’s cheap, good, and easy to find, from basic street cart varieties to fancy or vegan versions in restaurants all over the country.

Prices vary, but expect to pay somewhere between two and four dollars . Start by heading to Bæjarins Beztu Pylsu, a hot dog stand that by now has achieved near-legendary status in Reykjavik, so that you know what a good one is meant to taste like!

Moving on from the street food options, if you plan to eat out, breakfast will be your cheapest meal. Budget around $10-25 , depending on how hungry you are. Expect to pay around the following prices:

• Coffee: $3 for filter, $4-5 for latte/cappuccino
• Croissant: $4
• Skyr (thick, tangy yoghurt) and granola: $7
• Hafragrautur (Icelandic oatmeal): $10
• Salmon/bacon, potato, and scrambled eggs: $21

Lunch tends to be a relatively light affair in Iceland; think soups, salads, and sandwiches rather than large, heavy meals. Expect to pay somewhere between $15 and $25 , based on where you are in the country and whether you’re still full from breakfast! Some typical options include:

• Soup is a common lunch meal, although the type you’ll see on menus changes with the season. Expect lamb or thick, chowder-like fish and potato during the colder months, and tomato or a lighter fish soup during summer. $17
• Open-faced sandwiches on rye bread with salmon, ham, cheese, or hummus and vegetables: $14
• Chicken or fish salad: $19

Alternatively, you’ll find a few restaurants offering a lunch buffet with a range of options for a set price: this is a good way of trying different Icelandic dishes, and is a good way of saving money, since it’s cheaper than eating out at dinner time. Having a larger meal for lunch and something small for dinner might not be traditional, but it is cheaper, especially outside weekends! You’ll pay around $25-40 per person for this.

Dinnertime will likely be your most hefty splurge, where you can expect to spend anywhere from $25 to $50 or more for a meal and a drink.

Reykjavik Fish Restaurant is a great spot to get a feel for Icelandic fare with their standard fish and chips dish costing $22 , and several other tasty seafood options on the menu.

Reykjavik’s Islenski Barinn, or the Icelandic Bar, is where you’ll want to go to if you’re craving a local vibe with traditional Icelandic eats. Yes, it’s a bar but no, you won’t find your typical boring bar food. From puffin on crumpet to lamb and salmon hotdogs to shark bits and reindeer burgers, you can expect a more upscale and unusual pub experience. Prices aren’t too bad, however, at around $15 for smaller dishes and $25-35 for larger ones.

When it’s time to treat yourself, find Von Mathús in HafnarfjordurIf. The best thing about Von Mathús is you get to soak up the classy, contemporary setup and splurge on the delectable food, without the wild prices of fine dining. The menu isn’t large, but it’s well thought out and delicious. A 3-course set menu costs $76 , or you can pick and choose from the a la carte offerings instead. When it comes to drinks, be sure to check out the happy hour offerings; they run practically all day (11:30 am to 2 pm/4 to 8 pm)! 

Speaking of happy hour, it’s kind of a thing in the capital. Loft Hostel is very popular thanks to the rooftop terrace that yanks locals and visitors in from the street, begging them to sit and sip for a while. They have beer deals from 4 to 8 pm daily. 

Veður Bar & Café is a classy establishment that loves sharing their discounted beverages. So much in fact their “happy hours” stay happier longer. Beer and wine is discounted every day from 2:00 to 7:35 pm (yes, they are precise on their cut-off time), starting at $6.50 , a bargain by Icelandic standards! There’s also a cocktail “hour” from 7 to 9 pm that pulls in the patrons, with drinks from $16 . You should also know, Thursdays are a special day at the Vedur: that’s when bubbly flows for only $7.50 .

Of course, if you opt to not drink, it will definitely lower your costs. Alcohol isn’t cheap in Iceland, especially if you are buying it a full price in a pub. Your best option for a tipple is to load up at the grocery store, where local beers cost around $4 for a 500ml can, imported beers run a dollar or two more, and the average midrange bottle of wine goes for approximately $20 . 

If you have access to a kitchenette in your hostel or hotel, then buying food at the supermarket is the cheapest overall option. Groceries are comparable to what you might spend in the U.S. — here are a few examples:

• a gallon of milk: $6.50
• a pound of chicken fillets: $10
• a dozen eggs: $6
• a load of bread: $3.50
• a pound of cheese: $9

Whenever possible, shop at Bonus: there are over 30 of them around the country, they’re easy to find (being bright yellow), and they offer the best discounts on food. 

The average price for eating out in Iceland is $79 a day

The average cost of food when cooking simply at home in Iceland is $18 a day

The average cost of food when combining both eating out and cooking is $51 a day

The Cost of Activities in Iceland

Iceland is Mother Nature’s playground. It feels like there’s almost no limit to the outdoor activities and sightseeing on offer in this geographic wonderland. That, on top of the nightlife, daytime biking adventures, and a strong gastronomic scene, make it very easy to keep busy. 

The first thing you’ll want to do when you arrive is head to the Blue Lagoon . One of the biggest tourist attractions in the country, it’s absolutely worth taking a dip in the milky-blue waters, but expect to share the experience with many others. It’s popular for a reason!

We opted for the $148 package that includes a silica mud mask, free drink (we chose champagne!), and towel. If you’re not into commercial tourist activities, fear not: solitude and free hot springs aren’t hard to find as long as you’re up for the adventure. 

Reykjadalur Hot Springs requires an hour-long hike to get to but once you arrive you have a whole river to soak in. Grotta Lighthouse Footbath is in Reykjavik and is easy to access but note the word “foot” in the name: it’s not very deep, but it is unique!

There’s a wide range of day trips available to visitors from Reykjavik through Get Your Guide for those of you who are short on time. They’re great options if you’re taking that three-day layover between the US and Europe that I mentioned earlier: some of the best day tours include:

• a south coast day trip , where you walk behind a waterfall, walk on the black sand beaches of the southern coast, visit the southernmost village in the country, and check out the Sólheimajökull glacier: $101
• going lava tunnel caving , where you take a guided tour through the Raufarhólshellir lava tubes that were formed after a volcanic eruption over 5000 years ago: $108
• a Golden Circle day trip that takes in the best waterfalls, lakes and geysers in the southwest of the island, and includes seeing where the North American and Eurasian tectonic plates meet: $74
• a small-group trip to the Snæfellsness Peninsula , visiting the Berserkjahraun lava fields, Snaefellsjokull volcano, and Kirkjufell mountain along the way, not to mention a delightful seal colony: $146
• An ice cave day trip , where you get to hike across Myrdalsjokull glacier (crampons provided!) and walk inside the incredible ice caves of Kötlujökull glacier: $204

One of the most memorable moments from our trip was hiking the Sólheimajökull Glacier, where we were able to rappel down crevasses and drink the most delicious 400-year-old water. 

Biking is also a fun way to sightsee in the capital, at least when the weather is good. If you’re feeling more adventurous, you can book a tour to navigate other parts of the country on two wheels as well. Reykjavik Bike Tours offer guided day trips to the Golden Circle, Coast of Reykjavik and Westman Isles, to name a few. Prices for bike rentals start at $29 while guided tours vary depending on location.

Driving the rural roads of Iceland is one of the best ways to see and feel the essence of the country. Beginning in Reykjavik, the Golden Circle is a 190-mile loop that offers a wealth of natural beauty. Big ol’ blocks of ice, more commonly referred to as glaciers, black sand beaches with natural ice sculptures the size of me, funky moss, and tiny elf houses line the route around the circle. There’s something remarkable to see around almost every corner. 

The great thing about the Land of Fire and Ice is the best things are often free. Exploring the more remote parts of the island and soaking up the natural beauty is the best way to experience the country on a budget, whether that’s by car, bicycle or foot. Even walking out of your hostel can be a beautiful experience with the right vantage point!

And, of course, there’s the Northern Lights. 

I can’t write an article on Iceland and not highlight the lights! We went in late September with the goal of seeing that incredible night sky. That’s quite early for the lights to appear, so it was a bit of a gamble, but a gamble we won. Soaking in our hot tub, we were able to gaze up in awe at the illuminated fluorescent swishes dancing above us. It was a moment I’ll never forget.

If you can, book your trip during the months of September to March and hunt down those lights. You won’t regret it! 

The average cost of activities in Iceland is $29 per day

The Cost of Travel Insurance in Iceland

I’m all about ensuring that every single one of my readers understands the importance of travel insurance. When you work in the travel industry, as I do, you’re inundated with news of destitute backpackers on GoFundMe who fell ill while travelling, didn’t have travel insurance, and now can’t afford the hundreds of thousands of dollars needed to be airlifted home for medical care. It happened to an old school friend of mine just last year. In short, if you can’t afford travel insurance, you can’t afford to travel.

Travel insurance  will cover you if your flight is cancelled and you need to book a new one, if your luggage gets lost and you need to replace your belongings, if you suddenly get struck down by appendicitis and have to be hospitalised, or discover a family member has died while you’re overseas and need to get home immediately. If you fall seriously ill, your insurance will cover the costs to fly you home to receive medical treatment.

I use  SafetyWing  as my travel insurance provider, and recommend them for trips to Iceland. They’re one of the few companies out there who will actually cover you if you contract COVID-19. On top of that, they provide worldwide coverage, don’t require you to have a return ticket, and even allow you to buy coverage after you’ve left home. Finally, they have a clear, easy-to-understand pricing structure, which is always appreciated. A two-week trip to Iceland costs $21 with SafetyWing.

How Much Does it Cost to Travel in Iceland?

So how much can you expect to spend on an incredible trip to Iceland? At the end of these budget breakdowns, I always like to pore over my receipts, tally up my every expense, and tell you guys exactly how much my travel adventures cost.

A two-week long road-trip in Iceland, during which I was travelling on a mid-range budget as part of a couple and moving almost every day, came to the following:

• Accommodation:   $189 per day for two people ( $94.50 each )
• Transportation:   $46 per day for two people ( $23 each)
• Food:   $51 per day
• Activities:   $29 per day

Total amount spent per day: $197.50 each

Sure, it’s not the cheapest vacation option out there, but I promise you: Iceland is so, so worth the money! It really is one of the most remarkable places I’ve ever been.

So what do you think? Is Iceland more or less expensive than you expected? Have the prices put you off or made you all the more determined to get over there? And, as always, let me know if you have any questions and I’ll reply to them all in the comments below!

Further reading.

• Best Things to Do in Reykjavik: Don’t forget to check out my in-depth guide to all the best things to do in Iceland’s capital!
• 22 Mind-Blowing Things to Do in Iceland : All of my favourite things to do in Iceland!
• How Much Does it Cost to Travel?: If you enjoyed this budget breakdown, I’ve got a whole lot more to share with you! I’ve been recording my travel expenses for 13 years and counting, and have published over 70 detailed expense reports on my site.
• How to Find Cheap Flights Around the World: My biggest and best tips and tricks for scoring a great deal on flights.

Lauren Juliff

Lauren Juliff is a published author and travel expert who founded Never Ending Footsteps in 2011. She has spent over 12 years travelling the world, sharing in-depth advice from more than 100 countries across six continents. Lauren's travel advice has been featured in publications like the BBC, Wall Street Journal, USA Today, and Cosmopolitan, and her work is read by 200,000 readers each month. Her travel memoir can be found in bookstores across the planet.

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Great photographs of Iceland! The waterfalls are amazing. $41 dollars a day is completely reasonable if not downright cheap. Thanks for laying of the expenses so clearly.

This post is so helpful! Money is always something I’m worried about when traveling.

Thanks for this post it was super useful in planning our trip to Iceland! Your pictures are so inspiring too!

Thanks for this useful guide! Planning my two week road trip to Iceland now that I’m fully vaxxed and can’t wait to see some of these beautiful landscapes with my own eyes. Your article helped so much with my trip planning.

I guess prices must have shot up since you went there. I was just pricing rental cars and for the cheapest car I could find, it was over $4500 for 12 days. The self-guided tours that included budget accommodation and a cheap car were a bit cheaper, but were $5000 for 2 people for 12 days.

What dates are you looking for, Brett? I’m happy to have a look and see what I can do. I’m seeing prices of $700 for a 12 day hire for September, for example.

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Is Iceland expensive? 2024 Travel Tips

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written by Joanne Owen

updated 22.12.2023

Thinking of taking a trip to Iceland but concerned about the cost? You're in the right place. Here we address that all-important question — is Iceland expensive? — and share cash-saving tips that'll cut costs without cutting down enjoying this extraordinary island to the max.

Is travelling to Iceland expensive?

Cost breakdown of your iceland trip.

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Travel smarter: Iceland on a budget

Tailor-made travel itineraries for iceland, created by local experts.

8 days  / from 2092 USD

Iceland: A Game of Thrones Road Trip

This themed road trip will take you around Iceland, home to many filming locations of the hit TV series, Game of Thrones. Travel around the country's coastline, past the many dramatic glaciers and cliffs, relax in geothermal spas, and spot whales in the rough seas. Warning: Spoiler alert!

8 days  / from 2052 USD

Iceland's Wild West

Welcome to the road trip of a lifetime, which will bring you to some of western Iceland’s wildest and most remote spots. On this adventure, you will pay unforgettable visits to Hraunfossar Waterfalls, as well as the Barnafoss and Deildartunguhver hot springs, and much more!

6 days  / from 1680 USD

Iceland's Highlights from East to West

Take a flight to the East where you get to enjoy the enchanting Eastfjords before you drive south. If you are looking to focus on a few regions with a mix of the most popular sights and something off the beaten path; and to avoid backtracking with a one-way domestic flight, this is the perfect trip.

In a word: yes. Travelling to Iceland can be relatively expensive, especially considering the high cost of living, and high price of imported goods. In addition, as a tourist, you'll encounter higher prices for accommodation, meals, transportation, and activities.

That said, this doesn't mean a trip to Iceland has to break the bank. With careful planning, you can still enjoy everything this beautiful country has to offer without overspending.

Not a fan of planning? Browse our customisable Iceland itineraries , or talk to a local expert .

Average daily budget in Iceland

The average daily budget for tourists in Iceland tends to be around £240 or $300 USD (41,000 ISK).

This includes all your travel basics such as accommodation, meals, transportation, and activities. However, this cost can surge if you opt for luxury accommodation, or partake in higher-priced activities, such as whale-watching and diving.

Also remember exchange rates can change daily, which will impact your actual spend in your local currency.

Wondering whether Iceland is expensive? Staying outside Reykjavik will cut costs © Shutterstock

To give you a better overview, here's a breakdown of the average travel costs in Iceland.

Airfare and getting there

Airfare is one aspect of your Iceland budget that'll see prices differ according to your location, when you book your flight, and when you fly.

In general, the average airfare hovers around $300-$565. Those who choose airlines serving a local airport hub might get better deals. 

For instance, travellers from the US have found better fares travelling to Paris or Amsterdam with a two-week stopover in Iceland than flying there directly.

Remember airfares can fluctuate wildly depending on the season, day of the week, and how early you book your flights. So, research carefully before booking your flight.

Hveravellir hot springs, Iceland © Philip Fuxa/Shutterstock

Accommodation options and costs

Where you choose to stay in Iceland significantly influences how much you'll spend. The same goes for the type of accommodation you pick, and the time of year.

For those on a budget, hostels are an affordable option, costing around $16 to $50 per night. These are often communal spaces, which can be a great way to meet fellow travellers.

Hotels, on the other hand, provide more privacy and comfort but come with a higher price tag. Average hotel costs range from $80 - $200 per night, depending on their rating and location.

Meanwhile, Airbnbs are a compromise between hostels and hotels, offering private rooms or entire homes at varying prices. Depending on the amenities and location, Airbnbs cost, on average, $50— $80 per night.

Iceland also offers lots of unique accommodation options, such as farm stays.

Remember — booking in advance can help secure the most budget-friendly options, especially in popular weekend break locations like Reykjavik .

Also bear in mind that most accommodation options charge per room rather than per person, and prices tend to rise during the summer months.

On that subject, if you're set on visiting in summer, discover the best places to visit in Iceland at this time of year.

Lastly, if you choose to stay in a more remote area, you may also have to factor in the cost of bus or taxi fares.

Thermal pool, Fludir, Iceland © Shutterstock

Food and drink expenses in Iceland

Iceland's remoteness leads to higher food prices, due to the costs of importation.

For a budget-saving approach, consider shopping to self-cater meals. Prices at supermarkets are much lower than eating out.

For example, a small jar of peanut butter from a supermarket costs about $3.49 (480 ISK), whereas a hotel breakfast could cost from €9 to €15.

If you’re planning to eat out, expect dinner to cost around $25 to $40.

Eating out in Reykjavik comes at a cost © Ververidis Vasilis/Shutterstock

Transport: rental cars, taxis and buses

Choosing the right transport in Iceland can make a big difference to your expenditure.

Rental cars offer the freedom to explore at your own pace. Costs vary depending on the car type and season, with hiring a small car costing around $50 a day . Just be aware of extras like insurance and fuel.

Taxis are available but can be quite costly in Iceland. Rates start from around 695 ISK (about $5.60) and most taxi rides within Reykjavik are likely to be between 2,000 ISK ($16) and 5,000 ISK ($40). Note there's no Uber in Iceland.

Public transport is an option within Reykjavik, but bear in mind the city is small and can be explored by foot.

To get to and from the airport, catch bus 55, which costs 2,280 ISK each way.

Our tip is to check out KLAPP tickets for public transport. These can be bought through an app.

Another tip — if you don't hire a car, it's advisable to book guided tours to reach the island's rugged, remote beauty spots.

Get the best car rental deals

To see Iceland's remote attractions, consider hiring a car. Kverkfjoll's glacier caves © Shutterstock

What's the most budget-friendly time to visit Iceland?

Avoid high season — consider visiting in shoulder season or winter.

Iceland's high season runs from June to August. This is when the bulk of tourists visit, leading to increased prices, particularly for accommodation and tours.

Rough Guides tip: make sure to read all about the best time to visit Iceland

Depending on what you want to experience, visiting Iceland during the May-September shoulder season is a cheaper, enjoyable alternative. Not only will you avoid high season crowds, but the weather will be pleasantly mild.

If you don't mind the cold, visiting Iceland in winter comes with plenty of perks, including cheaper accommodation, and awe-inspiring sights like snowy mountaintops, glittering waterfalls and — of course — the Northern Lights .

Northern Lights, Jokulsarlon, Iceland © Shutterstock

Sightseeing in Iceland: what's worth your money?

What does it cost to see the northern lights.

Witnessing the mystical beauty of the Northern Lights — or Aurora Borealis — in Iceland, can come with costs.

If you've rented a car and are comfortable getting to remote places on your own, you might be able to view the Northern Lights for free. This is, of course, dependent on weather conditions and solar activity.

For an organised Northern Lights tour, expect to pay anywhere between $50 and $100 per person. These usually include transport to and from your hotel and an experienced guide who'll teach you about the phenomenon and help you spot it. 

Meanwhile, luxury Northern Lights experiences include dinner in a remote location, overnight camping or stays in a specialised hotel where you can watch the lights from the comfort of a glass igloo. These experiences range from $150 to $500 per person.

Remember, no matter how much you pay, witnessing the Northern Lights is not guaranteed as it's a natural phenomenon.

That said, most tour companies offer the chance to rebook for another night if you don't get to see the lights, which might just add an element of thrill to your Iceland trip!

Hallgrimskirkja, Reykjavik © Ververidis Vasilis/Shutterstock

Entrance fees to unmissable attractions

Iceland is a country brimming with unforgettable sights and attractions. While some are free, others come with an admission fee. Here's what you need to know.

• Hallgrímskirkja Church : this magnificent architectural marvel towers over the city of Reykjavik. While you can explore the church for free, for a stunning panoramic view of the city, you need to pay an entrance fee of 1000 ISK (approx. 9 USD) to access the tower.
• Perlan : the extensive exhibitions, planetarium, and observation deck comes with an admission fee of about 2900 ISK (30 USD), with discounted prices for children.
• Blue Lagoon Spa : known for its unique geothermal properties, the Blue Lagoon is a must-visit. Prices start from around 6100 ISK (48 USD), excluding transportation.
• Skogar Museum : showcasing traditional Icelandic turf houses, the museum charges 2000 ISK (18 US). Kids under 12 go free.
• The Golden Circle : if you have your own wheels, you can explore this popular tourist route for free. It includes Thingvellir National Park, the Geysir geothermal area, and Gullfoss waterfall.

As a general rule, most natural attractions are free of charge, letting you explore Iceland’s mind-blowing scenery without burning a hole in your pocket.

If you want to take a tour, multiple operators offer different packages — shop around to grab the best deal according to your interests and budget.

Gullfoss waterfall, Iceland © Shutterstock

Organised tours vs independent travel

When deciding how to travel in Iceland, organised tours and independent travel come with different sets of pros and cons.

Organised tours offer the convenience of having everything pre-planned, from transport to accommodation and meals.In addition, high-demand activities like glacier hiking, ice caving, and whale watching often require a guide, making tours a go-to option. 

Tour costs range from $80 – $150 per person per day, but prices can go up depending on the complexity and exclusivity of the tour.

Independent travel allows for more flexibility and the freedom to go at your own pace. Since you don't have to stick to an itinerary set by someone else, you can linger longer at attractions you really love, and more on from those you don't. 

Of course, costs will vary according to your own choices. For example, if you decide to hire a car, stay in a hostel and cook your own food, you should end up saving money.

Ultimately, the choice between organised tours and independent travel depends on your personal preferences, how you feel about navigating unfamiliar territory, and your budget.

Isafjordur, Iceland © Robin Runck/Shutterstock

Incredible activities that cost nothing

Believe it or not, some of the most mesmerising experiences in Iceland come at no cost at all. Here are a few of them:

• Admire nature : most of Iceland's natural wonders come with no admission fee. For example, you can immerse yourself in hot pools, and places like Thingvellir National Park, the Skogafoss and Seljalandsfoss waterfalls , and the Geysir geothermal area for free.
• Community pools : lots of towns offer communal pools for a small fee, with hot tubs and sometimes slides for an entertaining, budget-friendly soak.
• Hiking : to explore the country's unparalleled natural beauty at your own pace, tackle one of Iceland's hiking trails, like the Laugavegur .
• Northern Lights : if you're in the right place at the right time, you can view this natural wonder without spending anything!

On a budget? Note many of Iceland's natural attractions are free. Cape Dyrholaey, Iceland © Filip Fuxa/Shutterstock

How to save money on flights and accommodation

Want to save money on flights and accommodations while travelling to Iceland? Here are some helpful tips:

• Book early : one of the most effective ways to save money is to book flights, accommodation and tours in advance. Many companies offer early-bird discounts.
• Travel off-peak: trips taken during the shoulder seasons (May and September) or in winter will see you secure lower rates on flights and accommodation. Keep in mind, though, that external factors like weather can limit some activities.
• Compare prices : use price comparison sites to ensure you're getting the best deal before booking your flights and accommodation.
• Use flight rewards : if you're part of a flight rewards program, try to use your points to offset costs.
• Stay in guesthouses or hostels : these are cheaper than hotels.
• Stay out of the city : accommodation further from the city is often cheaper. Just bear in mind you might have to spend more on transport.
• Read reviews : remember that cheaper prices aren't a good deal if the experience is less than desirable, so read reviews from fellow travellers.

 Landmannalaugar, Iceland © Oleg Senkov/Shutterstock

Money saving tips for dining in Iceland

Use these dining tips to enjoy a taste of Iceland without blowing your budget:

• Shop for groceries : save a big chunk of your budget by buying groceries and cooking your own meals. Icelandic supermarkets like Bónus and Krónan offer a wide range of products at reasonable prices.
• Eat local : indulge in local foods like skyr (Icelandic yogurt), pylsur (Icelandic hotdogs), and lamb soup — they're affordable and give you some local flavour.
• Take out : consider buying take-away goods from local bakeries and supermarkets to save money on dining out.
• Carry snacks : while sightseeing, bring your own snacks and refillable water bottles.
• Happy hours : many bars offer discounted deals during their "happy hour".
• Opt for set menus or lunch specials : many restaurants offer set menus or lunchtime deals at a reduced price — a great way to sample local dishes without spending a lot.

Stykkisholmur, Iceland © Shutterstock

Save on activity costs without missing out on fun

Saving money definitely doesn't mean you have to skimp on fun! Here's how you can optimise your Icelandic adventure without breaking the bank:

• Free activities : make the most of free activities around the country. As outlined above, many natural wonders — waterfalls, geysers, and hiking trails — have no admission fee.
• Get a City Card : if you're staying in Reykjavik, consider investing in a City Card, which offers free access to museums, pools, and public transport.
• Pick and choose : while guided tours can be expensive, they offer a convenience that independent travel doesn't. But ask yourself whether you need a guided tour for every activity. For example, choose guided tours for activities like caving, glacier hiking, whale watching and diving, and self-guide when it's safe and convenient.
• Pooling : expenses like car rental and fuel can be shared if you're travelling in a group.
• Book in advance : some tours and activities offer discounts if they’re booked a couple of months in advance.

Geothermal beach, Nautholsvik, Iceland © Shutterstock

Make smarter transport choices

Navigating Iceland can be quite an adventure, but with several modes of transport available, making smart, economical choices can help you save a chunk of your budget.

• Bus passports: Iceland offers numerous 'bus passports' for unlimited travel in specific zones. It's an economic way of getting around, especially if you're planning to stay a while.
• Carpooling: apps like Carpool Iceland or hitchhiking websites offer ride-sharing opportunities.
• Rental cars: If you're comfortable driving, renting a small car is an efficient way to cover a lot of ground. Gas prices may seem intimidating, so plan your route in advance to avoid unnecessary mileage.
• Walking and biking: within cities, walking or renting a bike is an affordable, eco-friendly way to explore.
• Public transport: Reykjavik has a pretty reliable public transport network.

Skaftafell, Vatnajokull National Park, Iceland © Jens Ottoson/Shutterstock

All that considered, despite Iceland's reputation for being expensive, it's perfectly possible to enjoy unforgettable experiences without breaking the bank.

In short, saving money in Iceland is as much about making informed choices as it is about planning ahead, and booking early. Following our tips will make your trip to Iceland all the more memorable without overspending.

Inspired to visit? Browse our customisable Iceland itineraries , or talk to a local expert to kickstart your dream trip.

Joanne is a Pembrokeshire-born writer with a passion for the nature, cultures and histories of the Caribbean region, especially Dominica. Also passionate about inspiring a love of adventure in young people, she’s the author of several books for children and young adults, hosts international writing workshops, and has written articles on the Caribbean and inspirational community initiatives for Rough Guides. Follow her @JoanneOwen on Twitter and @joanneowenwrites on Instagram.

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Home » Europe » Iceland » Travel Expensive

Is Iceland Expensive? How Cheap is Iceland For Travel?

In case it needs any introduction, Iceland is a nordic island in Europe just below the arctic circle. Iceland is characterized by dramatic, rugged landscapes and is essentially built on volcanoes, geysers, and hot springs, giving it the fitting nickname “The Land of Fire and Ice”!

You can probably gather from this that Iceland is an epic place to visit. However, Iceland does have a reputation for being one of the worlds pricier destinations.

So how expensive is Iceland? Well, that depends on a few factors which we’ve covered in this guide. We’ve laid out what to expect money-wise, as well as all the best ways to cut costs.

There are lots of ways to save money when you visit. As long as you travel wisely, and do a little bit of research, you can still travel to Iceland on a budget.

In this post we will give you the facts so you can decide, “Is Iceland cheap?” for yourself.

Fast Answer: Is Iceland Cheap Or Not?

Cost of flights to iceland, price of accommodation in iceland, cost of transport in iceland, cost of food in iceland, price of alcohol in iceland, cost of attractions in iceland, additional costs of travel in iceland, some final tips for saving money in iceland, so, how much does a holiday in iceland cost, affordability rating: expensive.

Make no bones about it, travel to Iceland is expensive. While air fares are relatively good value ($50 from Europe maybe $150 from East Coast US) that is where the bargains end. Accommodation is going to cost at least $30 per night for a hostel pod, and if you want a private room bank at least $100.

Food is expensive, a beer in a bar costs around $10 and if you are unlucky enough to find you need to buy a thicker coat or a woolier hat then God have mercy on you.

Finally, you will probably also need to join a tour or two in order to make the most outta Iceland and yes you guessed it, these are also expensive. Get saving for this one. On the plus side, it is a worthwhile, once in a lifetime experience which you are unlikely to regret.

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How Much Does a Trip to Iceland Cost on Average?

In this post, we’ll go over a few key things that will help you calculate your Iceland Backpacking & travel costs. These include:

• Accommodation options
• Transport in Iceland
• Fun activities to enjoy during your visit
• The best places to eat and drink on a budget

Just keep in mind that all costs in this guide are estimates and are subject to change. Also, to make things less confusing, we’ve listed all the Iceland trip costs in USD.

The local currency is the Icelandic króna (ISK) and as of January 2020, 1 USD = 122.65 ISK.

Also, to lay things out a little clearer and help you better understand Iceland prices, we’ve included ball-park estimates for the costs of traveling in the country.

2 Weeks in Iceland Travel Costs

ESTIMATED EXPENSE: $300 – $565 USD for a round trip ticket

The first thing you’ll need to spend money on for your Iceland trip is going to be your airfare. Depending on which country you’re coming from, flight prices will fluctuate.

Iceland’s major airport is Keflavik International Airport (KEF), also known as Reykjavík–Keflavík Airport. This is the country’s busiest airport and it’s the cheapest.

Flights to Iceland from the USA, the UK, Australia, and Canada are all priced differently.

The prices change based upon the time of year you plan to visit. Peak travel time to Iceland is during the country’s summer months (May-August). During these months, the temperatures are warmer and the sun stays out for most of the day in the late hours of the night.

This means that the cheapest time to go to Iceland is generally during the winter (November-March). However, that doesn’t mean you can’t score on a bargain in summer if you are lucky.

Here is a list that provides the average cost for a round trip ticket to Iceland’s main airport. Remember these are average prices, and subject to change.

• New York to Reykjavík: 325 – 415 USD
• London to Reykjavík: 40 – 115 GBP
• Sydney to Reykjavík: 1,350 – 2,135 AUD
• Vancouver to Reykjavík: 550 – 760 CAD

As you can see, your Iceland travel cost will vary depending on where you’re coming from. Flying from London to Reykjavík can be extremely cheap. Flying from Sydney to Reykjavík is obviously going to be more pricey.

But keep hope, airline prices dip low all the time, and there’s always the chance of grabbing a sweet deal with an error fare.

ESTIMATED EXPENSE: $16-$135 USD/day

Now that you have an idea of the price of airfare, let’s have a look at places to sleep. We’ll get to a few unique accommodation options in a bit, but for now, let’s look at the basic options: hostels, hotels and Airbnb.

Picking where to stay depends on personal preference and budget. If you’re low on finances you’ll want to find a comfy hostel. But if you like your privacy you may be willing to pay more for a hotel.

Let’s take a look at all three so you can make an educated choice.

Hostels in Iceland

Hostels in Iceland are the cheapest choice for accommodation. In fact, the cost of your trip will drop dramatically by staying in shared hostel dorms. These budget backpacker digs come with lots of great perks, like self-catering facilities and social hang-out areas.

Hostel dorm costs in Iceland vary between $16 and $40 (privates are more expensive). Here are three great options for cheap hostels. We’ve included a hostel in three different parts of the country;

• Bus Hostel Reykjavík – This hostel is in a prime location and equipped with self-catering facilities. It’s also one of the cheaper (if not the cheapest) hostels in Iceland. Need we say more?
• The Freezer – This hostel has an artsy design, loads of fun events scheduled weekly, and happy hour every night. This is easily one of the coolest hostels in Iceland.
• Akureyri HI Hostel – Not only is this hostel super cheap, but they also offer discounts to their guests at the nearby restaurant and bakery.

Airbnbs in Iceland

Airbnb in Iceland is another great accommodation option. Since you’ll be staying in a local’s house/apartment, you’ll get a more personal feel of the island.

If you’re traveling with a group, you could actually end up saving money staying at an Airbnb, since you’ll be splitting the price of accommodation.

A budget Airbnb will cost between about $45 – $85 per night, plus the service and cleaning fee. Here are three options that are on the cheaper side.

• Cozy Loft Room in Central Park – This is a private room in a house. It offers insanely great value for money in Reykjavík. You’ll have everything you need for a comfortable and cheap stay.
• Studio By the Sea – This lovely studio by the sea is as charming as the name suggests. Plus, there’s an outside hot tub – the perfect place to relax and enjoy the amazing Icelandic landscape.
• Great View, Eyjafjallajökull – How does a bed and breakfast surrounded by the rural, natural beauty of Iceland sound? This homey Airbnb is located next to waterfalls, volcanoes, and snow-capped mountains.

Hotels in Iceland

Hotels in Iceland are very common, but unfortunately, they’re not the best for your budget. With that being said, you can find a pretty nice selection of decent mid-range options. The average price of a budget hotel can range from $80 – $105, depending on location.

Although staying in a hotel will add more to your Iceland cost of travel, being able to relax in your own space can be very appealing.

Here are three hotel options that might be more expensive than a hostel or Airbnb, but won’t break the bank.

• 4th Floor Hotel – This hotel offers private rooms and either shared or ensuite bathrooms. You’ll have all the comforts of a hotel stay plus FREE breakfast every morning.
• Hotel Akureyri – Guests at this hotel can expect a room with all the modern comforts. The amazing Icelandic hospitality from the staff will make you feel right at home.
• Hotel Hella – If free parking, free Wi-Fi, and free breakfast sound good to you, this hotel is a winner.

Cottages/Cabins in Iceland

Now that we’ve covered the three main forms of accommodation in Iceland, we thought we’d include some fun and unique options. Let’s look at cabins and cottages.

Can you imagine a better place to spend the night in Iceland than in a cozy cottage? Not only will you be surrounded by stunning scenery, but you’ll also have your own private space to enjoy your vacation time however you’d like.

From between $60 – $135 a night, cabins and cottages do cost more than your basic accommodation types. However, we still think it’s worth it for a night (or maybe more).

• Nónsteinn – Enjoy Life in the Countryside – Enjoy the cozy comforts of a cottage in the countryside. You’ll have picturesque views of Iceland right from your bed.
• Cottage With a View – For an idyllic retreat in a quiet setting, this cottage has everything you need. You’ll be in an ideal setting for hiking and enjoying nature.
• Kría Cottages – For simple living on a budget, this is the perfect cottage in Iceland. With beautiful views and the fresh open air, you’ll realize right away that sometimes less is more.

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ESTIMATED EXPENSE: $5-$100 USD/day

Next up, let’s talk about the transport cost to visit Iceland. Whether you’re traveling inside the main cities, or from one city to the next, you’ll need to know what to budget.

Iceland is a small country, and relatively easy to travel. This is due in part to the famous Ring Road. This 827 mile, nonstop route circles the country. It passes the island’s most iconic attractions and, as you can imagine, it’s filled with scenic sites. You may therefore wish to stay in Reykjavik and tour the country from here.

Bus Travel in Iceland

Traveling in Iceland by bus is a great way to get around. The buses are clean, comfortable, and reliable. There are three main companies that operate bus tours and routes around the whole country, namely Reykjavik Excursions, Sterna, and SBA-Nordurland.

These three main companies will take you on routes around the Ring Road, west fjords and into the highlands of Iceland. A big perk of taking the bus is that you can sit back, relax and take in the gorgeous views of the country while someone else does the driving and navigating.

Tickets vary based on distance. Depending on which cities you’re traveling between, a bus ticket can cost between $5 and $150.

One popular option for bus travel is called “Iceland On Your Own” or “Bus Passports”. During the summer months, travelers can experience the most popular sites with a hop-on hop-off style bus pass. Bus tickets for this can vary between $80 and $230, depending on the route and how many stops you select.

During Iceland’s summer months – from about June to August, regularly scheduled buses run to most of the popular attractions and sites in the country. The rest of the year, bus services offered can vary. Some continue to run daily, while others shut down completely.

Getting Around the Cities in Iceland

Iceland doesn’t have many large cities. In fact, Reykjavik only has a population of 118,918 people. After that, the second largest city of Kopavogur has a population of just 31,719 people.

For intercity travel in Iceland, you’ll just have a few options:

• Buses – Many of the cities and towns in Iceland have bus routes. Although, with such small towns and the number of residents, there won’t be too many stops. Also, the stops will run less frequently. Reykjavik is the exception – being the largest city in Iceland. The bus here runs regularly and a single fare bus ticket in Reykjavik for adults is $4.
• Taxis – Most towns/cities also have taxis. But, expect to pay about $4 per mile. We think it’s safe to say that if you’re wondering how to do Iceland cheaply, you should avoid the taxis.
• Car rental – This is another easy option for getting around in the city/town you’re visiting. (see more below)

Renting a Car in Iceland

Of course, driving will give you the most freedom, but car rentals can get pricey. Having a group of travelers to split the car rental price will help save you money on your Iceland trip budget.

One thing to note when driving around Iceland is that most of the roads that stem off of the Ring Road are gravel. This means you’ll likely need a four-wheel-drive vehicle. One more very important thing to note is that rental car drivers have to be at least 20 years of age.

You’ll find most of the major international rental car companies in Iceland. These include Budget, Hertz, and Europcar. There are also local car companies, such as SADCars, Cheap Jeep, and Geysir.

You’ll have the most options for car rental companies at Keflavik International Airport or in downtown Reykjavik. Car rentals prices start at about $20 – $30 a day. However, if you want to add on an extra driver you’ll be charged an extra fee of about $2.50 per day, per driver.

Car insurance is another extra. For a two-week car rental, insurance will cost around $165. Then, you’ll also need to pay for your own petrol. The average cost for petrol as of January 2020 is $1.94 a liter ($7.33 a gallon).

Renting a car in Iceland is sure to make for a memorable road trip. However, it’s also entirely possible to see the country without one too.

ESTIMATED EXPENSE: $15-$60 USD/day

When it comes to eating out, Iceland food prices can be very high. A meal in a cheap restaurant alone can cost between $15 and $20. Even a meal at McDonald’s can cost around $12 – $16.

But don’t stress too much, there are lots of ways you can eat on the cheap. An obvious way to save money is to avoid eating out as much as possible. Eating at restaurants is going to add up fast. However, if you do want to treat yourself, here are a few meals Iceland is known for.

• Seafood – Iceland is known for its fresh seafood. Cod, haddock, salmon, and monkfish are the most popular varieties. Stop into a restaurant and try their ‘fresh catch of the day’. At a regular restaurant, you can expect to pay between $20 and $30.
• Lamb soup – Lamb is a staple meat in Iceland and lamb soup is the perfect comfort food. Vegetables and spices are added in, like potatoes, carrots, onions, and dried herbs. If you order a bowl of soup a la carte, you’ll pay between $15 and $20.
• Icelandic Hot Dog – This delicacy is served on a warm bun and topped with raw onions, crispy fried onions, ketchup, and a mayonnaise-based sauce. Not only is it delicious, but at just $3, it’s also extremely cheap.

Carrying on, here are a few easy ways that will help you save money with your Iceland budget

• Accommodation with free breakfast – Although they’re not as common, these types of accommodation do exist in Iceland. Fill up on free food in the morning and then you’ll only have to spend money on two meals.
• Self-catering accommodation – Cooking for yourself is going to be a huge money-saver. Preparing your meals from items you find in the grocery store as opposed to eating out is going to save you money every time.
• Bring food with you – When I visited, I packed loads of pasta, noodles and a few tinned goods. I cooked them in my Airbnb.
• 7/11’s – The 7/11 stores sell cheap pizza slices and hotdogs.
• Don’t buy water – It’s Iceland – their water tastes delicious. There’s no need to buy bottled water from anywhere else. You’ll find drinking fountains and free water all over the country.

Where to Eat Cheaply in Iceland

The best way to eat cheap in Iceland is to purchase your food from grocery stores and gas stations.

Eating out at a regular restaurant can cost you about $15 – $30 per meal. Whereas food from a gas station or supermarket will cost between $5 and $10 per meal. Most of these stores will also have freezer meals and premade items.

Cheap supermarket food items – For breakfast, If you like yogurt, check out the Icelandic Skyr brand, it’s just $2 per container. Baked goods will cost between  $2-4. For lunch and dinner,  precooked sandwiches, wraps, and pizza will cost around $8.

Here are the best grocery stores with budget food prices in Iceland

• Bónus: This grocery store is well stocked, and you’ll find locations all over Iceland.
• Krónan: This is another budget-friendly grocery store with locations on the south side of Iceland only.
• Nettó: This supermarket has locations all over the country and tends to stay open later than other grocery stores.

Gas stations – Believe it or not, the food in Iceland’s gas stations is surprisingly good. This is a great place to enjoy a famous $3 Icelandic hot dog too. Burger and fries will cost you around $12 – $15. You’ll also find baked goods and coffee for much cheaper than you’d find them in a cafe.

ESTIMATED EXPENSE: $9-$21 USD/day

Iceland has very high taxes on alcohol. Therefore, drinking in Iceland is not good for your budget.

If you do go out, here are some prices you can expect to pay

• Beer – $9 – $12 for a pint of domestic beer is about the standard amount.
• Wine – A regular glass of wine will cost between $10 – $14.
• Cocktail – $12 for a simple cocktail – like a gin and tonic. Fancy cocktails will cost about $19 – $21.

To save money on alcohol, here are a few options

• Stock up at the duty-free shop at Keflavik Airport.
• Buy it from a government-owned alcohol store, called Vínbúðin – these are the only stores that are allowed to sell alcohol in Iceland.
• Find a local restaurant/bar with 2-4-1 happy hour specials

At a Vínbúðin, a bottle of spirits (vodka, tequila or whiskey) will cost between $55 and $120. A bottle of budget to mid-range wine will cost $20 – $30. This isn’t necessarily cheap, but if you want to have more than a few drinks, it will save you money.

Even though alcohol prices in Iceland are high, having an occasional drink won’t do too much damage.

ESTIMATED EXPENSE: $0-$45 USD/day

They say the best things in life are free, and in Iceland, this is definitely the case. Whilst Iceland’s living costs are high , the country’s scenic splendor is its alluring factor. Waterfalls, glaciers, mountains, and volcano beds fill the island, and – luckily – most of these attractions are totally free.

That’s right, most of these picturesque areas charge no admission. Many of the larger scenic attractions also have free visitor centers tourists can go to for information and advice as well.

Some of Iceland’s top attractions, including Thingvellir National Park, Gullfoss Falls, and Jökulsárlón, are all free to enter. Keep in mind that some places might charge for parking. This isn’t usually too high though. For example, the Seljalandsfoss waterfall is free to enter, but parking is $7.

There are a few exceptions, like the Blue Lagoon which costs $57 to enter. Some of Iceland’s spa pools also charge admission. This can range from $25 to $45. Attractions in the main city, like private museums and cultural centers, usually charge a fee.

To save money while sightseeing:

• Use public transport so you don’t have to pay for parking
• Gather a list of free attractions
• Review paid-for attractions before you go, to make sure they’re worth it
• Consider joining an all-inclusive trip. From Iceland tours for women to mixed gender groups, they often provide the best value

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We’ve covered all the main costs you’ll need to take into consideration when traveling to Iceland. However, it’s always a good idea to set some extra money aside.

Whether you lose your bus ticket, see a souvenir you can’t live without, or decide to take a guided tour, it’s always a good idea to set aside extra cash.

Tipping in Iceland

Since you’re traveling Iceland on a budget, you’ll appreciate knowing that tipping is not expected. Of course, if you feel you’ve received excellent service, you can show your appreciation by tipping. But in no way is it expected.

If you’re wondering why tipping is not expected in Iceland, there are two main reasons. First, the gratuity or service charge is already included in the total. Second, most workers in Iceland get decent wages (although living costs have risen sharply in the last few years).

Get Travel Insurance for Iceland

ALWAYS sort out your backpacker insurance before your trip. There’s plenty to choose from in that department, but a good place to start is Safety Wing .

They offer month-to-month payments, no lock-in contracts, and require absolutely no itineraries: that’s the exact kind of insurance long-term travellers and digital nomads need.

SafetyWing is cheap, easy, and admin-free: just sign up lickety-split so you can get back to it!

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So, how much does a trip to Iceland cost? We have just a few more things to cover and then you’ll have a pretty clear idea.

Here are some final tips on how to travel to Iceland cheaply.

• Hitchhike – In Iceland, this is an acceptable form of travel. It’s also a great country to hitchhike in – it’s extremely safe and it will save you money on your trip. It’s not uncommon to see travelers with their thumbs sticking out on the side of the road.
• Rent a bike – Believe it or not, cycling in Iceland is a thing. The larger bus companies allow you to bring your bike onboard. If you’re a bit of a nature nut, this is a great way to see the country. If the weather gets to be too much, you can always switch between paying bus fare and biking. Reykjavík Bike Tours has touring bikes you can rent. Alternatively, you can purchase one when you arrive. As you can imagine, having a bike will allow you to travel in Iceland cheap.
• Camp out – This is a great cheap choice for accommodation. Camping is common and either free or very affordable. Plus, can you picture a better place to fall asleep under the stars than in Iceland? Note that it will be very cold.
• Have a water bottle : Don’t waste money on plastic, bottled waters; carry your own and refill it in the fountains and the tap. If you’re worried about potable water, get a filtered bottle, like the GRAYL, which filters out 99% of viruses and bacteria.
• Earn money while you travel: Teaching English while traveling is a great way to make ends meet! If you find a sweet gig, you may even end up living in Iceland.
• Become a volunteer with Worldpackers: Give back to the local community and, in exchange, you’re room and board will often be covered. It’s not always free, but it’s still a cheap way to travel in Iceland.

Our GREATEST Travel Secrets…

Pop your email here & get the original Broke Backpacker Bible for FREE.

You probably clicked on this article thinking “how much money should I take to Iceland”. Although certain things in Iceland can be pricey, hopefully, we’ve shown that it’s totally possible to visit on a budget.

So, is Iceland expensive?

The price of a trip to this tiny country depends on you. To recap, the five best ways to save money are…

• Stay in a hostel or split an Airbnb with friends.
• Travel with a bus service route instead of a bus tour.
• Shop at supermarkets as opposed to eating out.
• Skip drinking alcohol – it’s expensive.
• Pass on attractions with admission – don’t worry, most are free.

Follow these tips and Iceland can be an affordable destination. Once you’re in the country, you can spend about $800/$1000 a week if you’re frugal enough.

Of course, depending on where you’re traveling from, flights can be expensive. If you’re coming from Europe, you’ve lucked out. Whereas if you’re coming from Australia, you’ll pay more.

One last tip, it’s always a good idea to book your trip as far in advance as possible. Now that you have an idea of how cheap Iceland can be, the next step is to look for flights.

What we think an average daily budget for Iceland should be:

If you follow this advice, you can easily spend around $115 a day traveling through Iceland comfortably.

And for transparency’s sake, please know that some of the links in our content are affiliate links . That means that if you book your accommodation, buy your gear, or sort your insurance through our link, we earn a small commission (at no extra cost to you). That said, we only link to the gear we trust and never recommend services we don’t believe are up to scratch. Again, thank you!

Christina Grayt

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Is Iceland Expensive To Visit In 2024?

Wondering whether Iceland is expensive to visit?

You’ve come to the right article as I’m a full-time traveller and I spent 5 days in Iceland . Travelling full-time has allowed me to develop a good judge of whether somewhere is expensive so I’ve written a complete guide to “ Is Iceland expensive? “

Iceland is a country filled with landscapes unlike anywhere else on our planet, and this natural beauty attracts nearly 2 million tourists each year.

But beautiful things tend to cost a lot of money, right?

One of the most common questions people have before visiting Iceland is “ Is Iceland expensive? “

And being a Scandinavian country, Iceland automatically has a reputation for being expensive.

After visiting Iceland for myself and spending some time exploring the stunning sights of the country, I’ve created this ultimate guide to whether or not Iceland is expensive.

So let’s crack on.

Is Iceland Expensive?

To put it bluntly, yes, Iceland is expensive.

In fact, Iceland isn’t just expensive, it’s very expensive.

I’ve visited lots of places which are notoriously expensive such as Denmark, Norway and Sweden, and in my opinion, Iceland is the most expensive country out of the lot.

Iceland ranks as the second most expensive country to visit in the world, only behind Switzerland.

I’ve actually visited Switzerland as well, and while there are lots of reasons why Switzerland is expensive , I personally found Iceland to be more expensive.

Iceland is the most expensive country I’ve visited so far.

That being said, the prices in Iceland are really weird. They’re very inconsistent. Some things are a lot more expensive than home for me (UK), but some things were actually cheaper.

As a random example, I found a shop selling 4-finger Kit Kats (chocolate bars) for 99 ISK, which is equivalent to £0.59. In the UK, it would cost at least £1 minimum for one of these bars.

But most things are really expensive. For another food example, I paid 3,300 Icelandic krona (the currency in Iceland ) for fish and chips and the portion was pretty small. At home in the UK, I can get a much bigger portion for the equivalent of 2,000 krona.

However, there are some ways of saving money and visiting Iceland on a budget. For example, you can drink tap water in Iceland .

In fact, Iceland’s tap water is the best in the world , so you don’t need to pay for water during your trip.

All in all, though, Iceland is expensive to visit , and I’ll now go into further detail about how expensive it really is and why it’s so expensive.

How Expensive Is Iceland?

As I’ve said so far, Iceland isn’t just expensive – I would consider places like London or Amsterdam as expensive – Iceland is very expensive.

The average Iceland budget is $198 USD per day per person , not including accommodation.

Iceland is one of those countries where staying in one spot isn’t the best way to visit. You want to see a good portion of the country!

During my trip, for example, I took 5 tours: Golden Circle, Volcanic Wonders, South Coast, Blue Lagoon and a Northern Lights Tour.

In total, these 5 tours cost 60,000 ISK . This is equivalent to £357/€408/$434, so it’s pretty expensive. But I would say it’s worth it.

Once you have taken these tours, you will have seen all of the “must-sees” in Iceland. Of course, there’s much more to Iceland than the must-sees, but it’s a good starting point.

I always find it hard to determine how expensive somewhere is. It’s all relative at the end of the day- it depends on where you come from .

As two examples, if you come from Switzerland, the prices in Iceland won’t be that steep of a jump, but if you come from Poland, everything will be 3 or 4 times the price it is at home.

But as I said in the first section, there are ways to save money in Iceland. I limited my costs by staying in a budget hotel, for example. And on the day of the tours, I only really had one “proper” meal a day, the other one was just a quick bite to eat.

To give you a rough idea, for 5 days in Iceland including flights, accommodation, food, activities, etc., my price for my trip came to around £750 GBP (126,000 ISK/€858/$913).

There are just some costs that there isn’t any avoiding. For example, the cheapest way to get from Keflavík Airport to Reykjavík costs the equivalent of £13. And that was by taking the cheapest way, most people will take a coach transfer for £22 each way.

Or the one day I did decide to have lunch during a tour, I had fish and chips at the Geysir Visitor Centre. This is the portion I was talking about earlier, that cost 3,300 Icelandic krona.

Fair to say this was the last time I ate in a visitor centre in Iceland- but I will admit it was absolutely delicious!

All in all, Iceland is super expensive, but for many people, it’s a o nce-in-a-lifetime trip , so it’s worth saving up for. Iceland creates unforgettable memories, no doubt about it.

Why Is Iceland So Expensive?

There are lots of reasons why Iceland is so expensive but there are a few main reasons. In no particular order, these reasons are:

• Exclusivity
• Way of life

The exclusivity of Iceland is one reason it’s so expensive. It’s such a unique country and it’s like visiting another planet.

Iceland’s abundance of beautiful waterfalls, stunning landscapes, once-in-a-lifetime opportunities and its ability to produce lifelong memories results in high prices for tourists.

People are willing to pay good money to see the Northern Lights, so why wouldn’t the tour companies charge high? This links to popularity too. If tourists are willing to pay the high prices for tours, they’re going to charge it.

And the more and more popular Iceland becomes, the more and more expensive it’s going to become. And to give you an idea, Iceland’s tourism is growing at a rapid rate .

Another reason why Iceland is so expensive is because it’s so remote. It’s an island in the middle of the Atlantic Ocean, nowhere near anywhere else.

The remote location means Iceland has to pay large amounts for importing things , which is one of the reasons why there aren’t many fast food chains in Iceland. There’s no McDonalds!

These high import fees have to go somewhere and it works its way down until you, the person paying for things, and that’s another reason prices are high.

But the final reason Iceland is so expensive, and in my opinion, it’s the reason that Scandinavia and Switzerland are all so expensive, and it’s because the quality of life is better.

Iceland ranks as the third happiest country in the world , which perfectly reflects the way of life in Iceland.

The atmosphere in the country is really nice, it feels safe, friendly and warm. When visiting, I got a really good sense of Reykjavík and I loved it. I can see why people are so happy living in Iceland, and it is as simple as they have a better way of living.

Everyone is so relaxed and chilled , and they take life as it comes. No one complains about the weather, for example.

It’s a really clean city and country too, no one litters. And I didn’t see a homeless person throughout my whole trip.

One of the guides from the tours I took said that he’d lived on minimum wage in multiple countries. Elsewhere in Europe, he had to watch his spending, track what he was eating, how he could save money, etc. But in Iceland, he could live comfortably on minimum wage.

Through all my travels, I’ve found a really random way of judging a place, and that’s by how people cross the road. In busy cities where everyone is rushing, people walk out in front of cars, no one waits for the green man, everyone’s in a hurry.

But in Iceland, I didn’t see a single local walk before the green man. Everyone waited by the side of the road, patiently, until it turned green. Sometimes this took a few minutes, but they didn’t care. That’s why Iceland is expensive- they live better lives!

How Much Is Accommodation In Iceland?

Accommodation in Iceland isn’t actually that out of line with the rest of Europe. It’s marginally more expensive , but nothing drastic.

An average mid-range hotel will cost around 19,000 ISK per night , or £113/€129/$137. So they are by no means the most expensive hotels you will ever see.

But going back to the reasons why Iceland is expensive, none of these really apply to mid-range hotels. They don’t have to import a new bed every day, for example.

I chose to stay in the 100 Iceland Hotel and while it wasn’t the best hotel I ever stayed in in my life, there was nothing wrong with it either.

Of course, there are lots of high-end hotels in Reykjavík too, and these are very expensive, because the “quality of life” in these hotels is higher than in most parts of Europe, so they’re more expensive.

Hostels are also pretty expensive in Iceland . The average dorm bed will cost around 6,500 ISK per night. It’s not really in line with the other prices of different types of accommodation, but it’s just one of those things no one can do anything about.

How Much Are Tourist Attractions In Iceland?

It’s actually pretty funny/weird to calculate the price of tourist attractions in Iceland. It depends on how you’re travelling the country.

What I mean is that most things in Iceland are actually completely free. All the waterfalls, national parks, lava fields; everything natural is free.

But if you take a tour, like a Golden Circle Tour, you have to pay for the tour to take you to these locations. The reason is because they’re all hours outside of Reykjavík, and you also get a guide teaching you about the sights.

On the other hand, if you rent a car and take an Icelandic road trip, you aren’t paying for a tour, and instead, you’re paying to rent the car and pay for gas (which is very expensive in Iceland!).

As I said earlier on, I took 5 tours during my time in Iceland and the total came to 60,000 ISK (£357/€408/$434).

And to reiterate what I said afterwards, it’s worth it. Sure, it costs a lot. But it’s so, so worth it. I’ll never forget my first time in Iceland (I plan to go back), it was a dream come true.

There are also some tourist attractions which you do have to pay for though. Such as the Blue Lagoon, Sky Lagoon, the museums in Reykjavík, and some more.

Again, they’re expensive…but worth it. Spending a few hours in the Blue Lagoon will probably be some of the most expensive few hours of your life, but also some of your favourite few hours of your life. It’s a case of “ you get what you pay for “, and Iceland does not disappoint.

How Expensive Is Food In Iceland?

Food, in my opinion, is the most expensive thing about Iceland.

It makes sense, giving that most things need to be imported. Again, there are few fast food chains in Iceland. I think the only worldwide brands I saw were Domino’s and a Taco Bell.

The average meal in Iceland like a burger and chips cost between 3,000 and 4,000 Icelandic krona . This is for standard meals, things like steak etc. are obviously much more expensive.

Prices are pretty consistent from restaurant to restaurant , so much so that we decided to have a meal in the Hard Rock Cafe because the prices were the same as any other restaurants.

In the picture below, the chicken and chips cost 3,290 ISK and the burger and chips cost 3,490 ISK.

If you are looking for snacks or anything in Iceland, I recommend going to a Bónus . There are some great deals to be had, such as the cheap Kit Kats I talked about earlier.

It’s also a good place to buy croissants, or other bread products to bring with you on tours to save having to buy lunch.

But yes, food is the most expensive part about Iceland in my opinion.

How Much Is Public Transport In Iceland?

Public transport in Iceland is also pretty expensive. For example, bus 55 which takes you to and from the airport costs 2280 ISK each way.

There are only buses in Iceland, no trains. But there are ferries which are considered public transport, such as the ferry to the Westman Islands, one of the best Iceland winter day trips .

For within Reykjavík, you need to use KLAPP tickets , it’s not possible to pay on the bus using cash or card. You can simply download the app and get the tickets there.

But I don’t really recommend taking the bus in Reykjavík, I don’t think there’s much point. It’s a really small city and everything is very close together, so you can walk pretty much everywhere.

For the rest of Iceland, I recommend taking guided tours.

And if you were wondering, unfortunately, there is no Uber in Iceland .

Is Iceland Expensive: FAQ

Below are some questions related to “ Is Iceland expensive? ” along with my answers to each question.

Yes, Iceland is very expensive to visit. It’s one of the most expensive countries in the world to visit, but it’s more than worth it. Iceland is such a unique country and there is nowhere else like it.

Most meals in Iceland cost between 3,000 and 4,000 Icelandic krona. This is the rough equivalent of £18/€20/$22 to £24/€27/$29. These prices are for an average meal such as fish and chips or a burger with fries.

Yes, eating and drinking is one of the most expensive things in Iceland. A bottle of water costs about 400-600 ISK and the average meal costs between 3,000 and 4,000 ISK.

Yes, Iceland is very expensive for UK tourists. The exchange rate is roughly 1000 ISK to £6 GBP. As a reference, a typical meal, burger and chips for example, costs between 3,000 and 4,000 ISK, or £18-24, so it’s pretty expensive for UK tourists.

Final Thoughts: Is Iceland Expensive?

And there you have it, a complete guide to “ Is Iceland expensive? “

Remember, my answer is yes, Iceland is very expensive.

It’s one of the most expensive countries in the world to visit, but it’s so worth it for the priceless experiences.

Enjoy your trip to Iceland, you’re guaranteed to have the trip of a lifetime! Want to know where to spend your money in the country? Maybe take some Iceland souvenirs home with you that you can’t buy anywhere else in the world!

Josh Band is the founder of A Backpacker's World. He is a full-time traveller currently on a mission to visit every country in the world. As a full-time traveller, Josh knows exactly how to make the most of any trip and shares these tips with his readers. Josh mostly travels as a backpacker on a budget, so he is also an expert when it comes to getting the most of your money while travelling.

My Actual Iceland Trip Cost: Detailed Budget Breakdown

Adventurous Kate contains affiliate links. If you make a purchase through these links, I will earn a commission at no extra cost to you. Thanks!

How much does an Iceland trip cost? A LOT OF MONEY! Ha. This is a famously expensive destination. But in all seriousness, Iceland gives you quite a bit of value for that money.

Recently my friend Amanda from A Dangerous Business and I took a 13-day road trip to Iceland in August 2022. This is one of the best trips I’ve taken in a very long time — but holy hell, was it expensive!

We were traveling at peak season, plus it was the biggest travel summer in three years, making it a popular time for travelers (and expensive time for both rental cars and gas).

I know it can be helpful to see what other people paid for trips to Iceland, so here’s a detailed Iceland trip budget. I hope this is helpful for you to plan your own Iceland trip!

Table of Contents

Is Iceland Expensive?

Yes, Iceland is very expensive. It’s one of the most expensive countries of the 80+ I’ve visited, up there with Sweden and Australia, though I think Norway and Switzerland are a TINY BIT more expensive than Iceland.

There are reasons for this. Iceland is an isolated island, and they have to import the vast majority of supplies. Most fresh produce is grown outside Iceland and shipped in.

And like all of the Nordic countries, Iceland has a high cost of living. It’s not as jarring for locals, who earn high salaries — thanks in part to more than 90% of Icelandic workers being part of a labor union — and having their taxes pay for healthcare, education, infrastructure, and an excellent quality of life.

The time of year has a huge impact on your costs, too. Summer travel — considered mid-May through August — is much more expensive, and for good reason. Summer is the best time to travel Iceland, as everything is open, weather is at its best, tons of tours are running, and the roads are in much better condition.

Winter can be much cheaper and far less crowded, but keep in mind it can be very cold, very dark, and you may have to deal with winter storms and road closures.

Your Iceland trip cost can be as low as $100-150 USD per day if you hitchhike and camp or stay in hostel dorms. More realistically, I think $250+ USD per day will land you a much nicer trip .

In August 2022 we spent around $400 USD for gas to drive the Ring Road in its entirety, plus a few detours like Snaefellsnes and Húsavík.

We found the cheapest non-terrible hotel rooms with shared bath to be around $82 per night , but in expensive areas like Lake Myvatn, that could be as high as $300+.

The cheapest item on restaurant or gas station menus is a hot dog, usually for around $6 USD . An entree in a restaurant is often $25-30. But the best way to save money is to buy groceries.

How I Budgeted My Iceland Trip

Tracking travel expenses is a relatively new thing for me. People have often asked me for budget breakdowns, but I haven’t kept close track until I started using YNAB (You Need a Budget) software in 2020.

Guys, YNAB is the best thing I have ever done for my finances. It literally changed my life. My finances are so much better than they used to be, and I have a much better system of budgeting for trips and saving up over time!

If you want to try YNAB, you can get a free monthlong trial through my link . (If you sign up, they’ll give me a free month of YNAB.)

During your free monthlong trial, join in YNAB’s live Zoom tutorial sessions — they have several each week. They’re super helpful. And join the YNAB Facebook group and/or subreddit. It takes a bit of time to wrap your head around, so make the effort. I promise you it’s so, so worth it.

Since I started YNAB, along with Profit First, I allocate 30% of my travel blogging revenue to operating expenses — 20% to admin and 10% to travel costs. (You can do the same by budgeting a set amount for travel per month or per paycheck.)

Over time I automatically transferred that money directly into my “General Travel” category, then the “Iceland Trip 8/22” category, and as I made expenses before and during the trip, automatically deducted from money set aside for that trip.

As soon as Amanda and I decided to do this trip, we booked flights, our rental car, all accommodation, and several activities. We kept track of Iceland costs on a Google Docs spreadsheet. After arriving in Iceland, we took turns paying for mutual expenses on the road, like gas, but paid other expenses separately, like food. We used credit cards for every single purchase.

After the trip, we went through our credit card bills and added our mutual expenses to the spreadsheet, saw who had paid more, and Venmo’d the difference. Easy!

We kept track of everything in USD, as it was easier for us to just go by our actual credit card statements than go through and convert lots of receipts.

Our Travel Style

In an expensive destination like Iceland, it’s smart to drop down a travel level . I usually stay in mid-range hotels with occasional high-end splurges, as does Amanda, but on this trip we stayed in the cheapest budget hotels with non-terrible ratings, often with shared bathrooms.

Food-wise, we mainly ate in restaurants and cafes. A few hotels included breakfast. We bought groceries for breakfast in Akureyri.

Additionally, many accommodation prices were actually charged in Euros, not Icelandic Kroner, and the Euro dropped significantly against the US dollar between when we initially booked (June 2022) and when we traveled (August 2022).

For example, our Akureyri Airbnb was set to charge us in two payments of 334.39 euros. They ended up charging us $359.17 for the first payment and $342.88 for the second payment thanks to the euro dropping.

Finally — if you’re traveling with a friend, I can’t overstate the importance of being on the same financial page. Have conversations early and often about how you want to spend your money, with specific numbers, before booking anything.

Luckily, Amanda and I were in agreement on our priorities. We cared about spending lots of money on activities and didn’t care as much about food or accommodation (save a few cool spots).

Amanda published a post about a 10-day Iceland itinerary that is definitely worth checking out!

Total Cost of Iceland Trip: $4303.11 each or $8606.21 for two

This is for two people sharing accommodation, car rental, and gas, and paying for their own activities and food.

I tracked every expense except Amanda’s airfare and food, but for cost-for-two purposes, let’s assume she spent the same amount as me on those two categories.

• Airfare: $548.20 for Kate (approximately $1096.40 for two)
• Car Rental and Ground Transportation: $2608.04 for two or $1304.02 each

Accommodation: $2371.80 for two or $1185.90 each

Food: $690.60 for kate (approximately $1381.20 for two), activities: $1,141.81 for two or $570.91 each, restrooms: $6.96 for two or $3.48 each, souvenirs: $0.

Airfare: $548.20 for me

• Flixbus, Prague Florenc to Vienna Airport: $50.98
• Vienna to Reykjavík on WizzAir: $260.14
• Reykjavík to Prague on Play: $237.08

Airfare can depend on a million different factors; this is simply what I spent flying from my home in Prague. Amanda flew from her home in Cleveland via a layover in Boston. These flight prices include checked luggage; I didn’t end up using checked luggage, so they could have been cheaper.

There are direct flights from Prague to Reykjavík on Play, but they get in at 12:30 AM and I didn’t want to deal with that (especially since that would be 2:30 AM to my Prague body — and then you have to rent a car, drive 45 minutes to Reykjavík, check into the hotel…)

Prague’s bus station is an 8-minute walk from my apartment, so sometimes I just book a flight from Vienna and take a 4.5-hour bus directly to the Vienna airport. Vienna’s WizzAir flight to Reykjavík gets in at a much more reasonable 6:30 PM, so that worked for me.

How to Make it Cheaper: It’s hard to siphon down airfare costs, but you can save by flying carry-on only or planning a trip during the winter. For cheap flights from North America, I recommend booking 3-6 months in advance as soon as you spot a good fare.

Car Rental and Ground Transportation: $2615.30 for two or $1307.65

• Car rental, 12 days: $1991.32
• Extra driver fee: $25.65
• Gas: $400.71
• Tunnels: $54.30
• Parking: $40.77
• Ferry: $102.55

Car Rental: This was our biggest expense of the trip, not least because there has been a car rental shortage since COVID began. This was the price for an automatic sedan (we got a Toyota Corolla) for 13 days. Our rental was at Europcar, right in the airport terminal; this was a priority for me, as I wanted to get out quickly and many rental companies are located a 15-20-minute drive from the airport.

Gas: We filled up gas most days and tried to fill up frequently, as gas stations are often far apart.

Tunnels: There is only one paid tunnel in Iceland, just east of Akureyri. Many people driving the Ring Road only pass through the tunnel once, but our schedule and itinerary had us going through it five times total for an average of $10.86 each time.

Parking: While free in most locations, we ultimately paid for parking at Fagradalsfjall Volcano ($7.33), Kirkjufellsfoss ($5.13), Hverir ($5.05), Skaftafell for Svartifoss ($7.26), Kvernufoss ($5.33) and Seljalandsfoss/Gljúfrabúi ($10.67).

Ferry: We took the Westman Islands ferry round-trip with our car for $102.55. We could have done it without the car for cheaper, but we both enormously appreciated how much easier having a car made things.

How To Make it Cheaper: Renting a manual car is cheaper than an automatic car, but you need to be willing to drive a manual car. Renting from an off-site car rental spot is a good option for saving a bit more. You can also plan an itinerary that doesn’t go through the tunnel five times!

• 201 Hotel in Kópavogur, near Reykjavík (1 night): $177.34
• Hamralid 9 Guesthouse in Grundarfjördur (2 nights): $185.94 for two nights or $92.97 per night
• Hvammur 2 Guesthouse near Blönduós (1 night): $82.05
• Airbnb rental in Akureyri (3 nights): $702.05 for three nights or $234.02 per night
• Sel Hotel in Myvatn (1 night): $347.06
• Lyngas Guesthouse in Egilsstadir (1 night): $146.79
• Hotel Smyrlabjörg near Jökulsárlón (1 night): $213.12
• Puffin Hotel in Vík (1 night): $277.21
• Glamping and Camping in the Westman Islands, plus linens (1 night): $93.40
• Asahraun Guesthouse near Selfoss (1 night): $146.84

As you can see, our search for budget stays led to an enormous range of accommodation costs — from $82.05 to $347.06 per night! Our average cost of accommodation was $182.45 per night.

All of our hotels offered private rooms; some had shared bathrooms. We shared a single room everywhere except the Airbnb apartment in Akureyri, which had two bedrooms.

In terms of value for money, I think that we enjoyed immense value at Asahraun Guesthouse near Selfoss, with our adorable little hobbit house, hot tub on site, and lots of cozy amenities. The shower was shared with two other houses but we had our own toilet and sink, which was great.

And Hvammur 2 Guesthouse near Blönduós was a cheap and cozy place that reminded me how hostels used to be: people hanging out, watching TV together or cooking in the kitchen. We never even got formally checked in; we just got an email with our room number and were told to enjoy ourselves!

The worst value? Sel Hotel in Myvatn, by far, at $347.06 per night for a basic twin hotel room with private bathroom and breakfast included. Yikes!

Lake Myvatn in general was shockingly expensive and super-crowded. I’ve heard you can save money by staying in Húsavík instead; it’s an hour’s drive away.

How to Make it Cheaper: These were the cheapest non-terrible hotels we could find during the peak summer months, two months before our trip. You can also stay in hostel dorms or camp for less.

Hiring a camper van sometimes ends up a bit cheaper than a budget hotel, but the difference isn’t usually significant. Don’t get a camper van to save money; only get a camper van if you want that style of trip.

• Groceries: $20.32
• Lunch Kate bought for 2 at Godafoss: $11.24
• Kate’s restaurant expenses: $674.82

Iceland is not a place you go to for the food. The food isn’t terrible, but it isn’t special, either, and I don’t think there’s much of a need to splurge.

We mainly ate at restaurants and cafes throughout our trip. Though we generally kept things cheap, we did have the occasional splurge (Gott in the Westman Islands was lovely, as was Naustið in Húsavík, and we enjoyed langoustine sandwiches at Z Bistro in Höfn). We only had a few alcoholic beverages throughout the trip: a fancy cocktail each at Gott, and I sampled a few local craft beers throughout the trip.

We bought groceries to cover our three breakfasts in Akureyri (yogurt, fruit, bread and butter).

How to Make it Cheaper: Self-cater all the way. Shopping at the grocery store is one of the easiest ways to save money in Iceland. If you do eat out, usually the cheapest thing on the menu is a hot dog, whether at a restaurant or gas station.

Activities are where we went nuts. Keep in mind that this trip was for work reasons, though. We had a lot we wanted to write about!

Paid Activities

• Thermal Baths: $427.04 for two or $213.52 each
• Tours and Activities: $541.20 for two or $270.60 each
• Museums: $155 for two or $77.50 each
• Outdoor Attractions: $18.57 for two or $9.29 each

Thermal baths included Krauma in Reykholt ($71.82 for two or $35.91 each), the Forest Lagoon in Akureyri ($87.17 for two or $43.59 each), GeoSea in Húsavík ($80.04 for two or $40.02 each), Myvatn Nature Baths in Myvatn ($86.62 for two or $43.31 each), Vök Baths in Egilsstadir ($87.17 for two or $43.59 each), and Vestmannaeyjar Swimming Pool in the Westman Islands ($14.22 for two or $7.11 each).

Tours and activities included whale watching in Húsavík ($157.02 for two or $78.51 each), horseback riding in Húsavík ($167.35 for two or $83.68 each), and a RIB boat trip in the Westman Islands ($216.83 for two or $108.42 each).

Museums included the Bjarnarhöfn Shark Museum in Bjarnarhöfn ($20.52 for two or $10.26 each), Herring Era Museum in Siglufjördur ($32.02 for two or $16.01 each), Whale Museum in Húsavík ($25.34 for two or $12.67 each — included a small discount from our whale watch), Jaja Ding Dong Eurovision Museum in Húsavík ($14.44 for two or $7.22 each), Petra’s Stone Collection in Stöðvarfjörður ($21.46 for two or $10.73 each), and Eldheimar in the Westman Islands ($41.22 for two or $20.61 each).

Outdoor attractions included Stokksnes , including Viking Village ($12.88 for two or $6.33 each), and Kerid Crater ($5.69 for two or $2.85 each).

Free Activities

And a nice thing about Iceland is that lots of outdoor activities are free!

• Hiking to the volcano (paid parking)
• Free waterfalls: Svodufoss, Bjarnarfoss, Glanni, Reykjafoss, Goðafoss, Dettifoss, Gufufoss, Folaldafoss, Nykurhylsfoss (Sveinsstekksfoss), Skógafoss, Hestavadsfoss, Gluggafoss
• Free waterfalls that charged for parking: Kirkjufellsfoss, Hundafoss/Svartifoss, Kvernufoss, Seljalandsfoss/Gljúfrabúi
• Free canyons: Rauðfeldsgjá Gorge, Kolugljúfur Canyon, Stuðlagil Canyon, Múlagljúfur Canyon, Fjaðrárgljúfur Canyon
• Free lagoons and beaches: Skarðsvík, Djúpalónssandur, Jökulsárlon, Fjallsárlón, Diamond Beach, Reynisfjara Beach
• Free outdoor sites: Saxhóll Crater, Hvitserkur, Hofsós basalt columns, Skútustaðagígar, Dimmuborgir Lava Field, Grjótagjá Cave, Hverir, Seydisfjördur Rainbow Street, Eggin í Gleðivík
• Free churches: Ingjaldshólskirkja, Búðakirkja, Stykkishólmskirkja Víðimýrikirkja, Grafarkirkja, Hofskirkja
• Free indoor sites: Akureyri Christmas House
• Free viewpoints: TOO MANY TO COUNT.

Comped Activities

As travel bloggers, Amanda and I wanted to pay for things on this trip ourselves and have full editorial freedom, rather than get free stuff and feel indebted to companies.

Still, thanks to our connections, we were kindly offered comped entry for two hot springs that we planned to cover anyway (and one I had previously covered two months earlier): the Sky Lagoon and Hvammsvik.

• Sky Lagoon : $143.82 for two or $71.91 each (Pure Package, which I think is the package most worth it)
• Hvammsvik : $100.24 for two or $50.12 each

Best Activities Overall

Almost everything we did was excellent and I would happily do again. At the same time, I understand that most travelers are going for fun, not work, and need to pick and choose their spending more carefully than we did.

For thermal baths, I absolutely adored the modern, funky Vök Baths in Egilsstadir, with the gorgeous natural facilities of Hvammsvik second. GeoSea is a great place with spectacular views on a nice day, and if you’re basing in Reykjavík, the Sky Lagoon is worth it if you include the Seven-Step Ritual.

For paid activities, one of the best things we did was our RIB boat trip in the Westman Islands . It was so fun, we immediately regretted doing the one-hour trip instead of the two-hour trip!

Also, if you want to go whale watching in Iceland, do it in Húsavík if you can, not Reykjavík. The whale watching is significantly better there, and I know too many people who saw nothing on their Reykjavík whale watches.

And for museums, I LOVED THEM ALL. But I was deeply moved by Eldheimar , which tells the story of the 1973 volcanic eruption in the Westman Islands, and the Herring Era Museum in Siglufjördur is outstanding, especially its final building. Petra’s Stone Collection was an unexpected delight.

What to skip? The only thing I would skip would be the Myvatn Nature Baths ; it felt a bit ramshackle in comparison to the other baths.

How to Make it Cheaper: Go to local swimming pools instead of fancy baths; every town has them and they’re a great option for a cultural experience (especially with kids). Go all in on free outdoor activities; you’ll always have plenty to do.

• Restroom near Hvitserkur: $3.66 (we held the door so we only had to pay once)
• Restroom at Studlagil Canyon: $1.15 each or $3.30 for two

I was going to call this category “miscellaneous,” but literally the only thing left was restrooms.

(Let me add that it’s helpful to have Apple Pay if you have an iPhone — that way you can just scan it and run in if you sprinted to the bathroom from your car and left your wallet behind. Hehehe.)

How to Make it Cheaper: Lose your shame and just pee out in the open, man.

Yes, zero! I had actually been in Iceland in May and bought a small lava sculpture for my living room (around $35) and a gift for my fiancé Charlie (around $15), but I didn’t feel the need to buy anything on this trip.

Spending is purely discretionary, but I know a lot of people who like to buy Icelandic sweaters (they’re called lopapeysa ), yarn, and jewelry.

For me, my photos are my souvenirs. These are what I truly treasure.

Travel Insurance: Already Paid For

I am not buying travel insurance anyore because I get it for free. My bank account in the Czech Republic comes with free travel insurance as long as I deposit a significant amount of cash per month. A great benefit.

If you don’t already have travel insurance — and trust me, you need it — I recommend World Nomads for most travelers , which I used for years before moving to the EU.

How to Save Money in Iceland

In such an expensive country, you want to cut costs wherever you can. Here are my top tips for saving money:

Travel in the winter (October to April). It’s a completely different experience from summer travel, which is high season, but airfare, accommodation, and car rental — three of your biggest expenses — tend to be much lower. Plus, you can see the Northern Lights.

Travel with a friend. As much as I love traveling solo in Iceland, I saved SO much money by splitting accommodation, gas, and car rental with Amanda!

Book your trip super-early. The good accommodation — especially the good CHEAP accommodation — tends to sell out first.

Spend limited or no time in the most expensive destinations. I found the most expensive destinations to be the capital city of Reykjavík, Lake Myvatn, the Golden Circle, and the South Coast. Places like Snaefellsnes and the rural north were much cheaper by comparison.

Book guesthouses with shared bathrooms. These are common in Iceland. Shared bathrooms usually lower the price of an equivalent room with ensuite bathrooms, and most of the time it’s not a nuisance whatsoever.

Consider non-hotels: hostels or Airbnb rentals. Hostels with shared dorms will always save you money; Airbnbs can go either way.

Consider camping. It’s a different kind of trip, but it’s much cheaper than staying in the cheapest hostels or guesthouses! But if you don’t already have equipment, you’ll need to pay to rent it.

Use a credit card that covers car insurance. I haven’t paid for supplemental car rental insurance ANYWHERE since I got my Chase Sapphire Preferred card. This and several other credit cards provide a car insurance benefit.

Rent a car with a manual transmission. ONLY if you can drive one and are willing to drive one in Iceland.

Consider taking the bus. You can take buses along the Ring Road, though keep in mind stops are limited and this won’t get you to most places without supplemental hitchhiking. Many public transportation routes shut down in the winter.

Consider hitchhiking. Iceland is one of VERY few countries where I would ever consider hitchhiking, as it’s extremely safe. Please do your research beforehand.

Don’t take Icelandic króna out at the ATM. In our 13-day trip, we didn’t use cash ONCE. So we always got a good rate with our credit cards, and there was no extra cash at the end of our trip! (You may want to take out a small amount — think under $50 — in case you come across any donation-only attractions.)

Pack carry-on only. It will save you luggage fees. You can book accommodation with on-site laundry halfway through your trip (which we did in Akureyri), or pack fabrics like merino wool that you can wear several times without smelling.

Self-cater your meals. Shopping at grocery stores will save you so much money over going to restaurants. Look for Bónus, the cheap grocery store chain in Iceland.

Eat at gas stations. It’s not THAT gross, I swear. Many gas stations serve decent cheap meals. This is the closest thing you have to McDonald’s in Iceland.

Get into hot dogs. Wherever you go, hot dogs are usually the cheapest thing on the menu. Often even cheaper than a little bowl of soup!

Bring a water bottle and refill it everywhere. Iceland has excellent tap water. There is zero reason to buy bottled water.

Skip the alcohol. Alcoholic drinks tend to be very expensive in Iceland. If you want something nicer to drink than water, I suggest Collab — an Icelandic soda with collagen and caffeine. It comes in several fun fruity flavors and I tried to try them all!

Spend your time visiting free natural attractions. You saw how many waterfalls and canyons and cool outdoor sites we saw, all for free!

Hike, hike, hike. You might occasionally need to pay for parking, but for the most part, you can hike for hours for free.

Go to swimming pools instead of fancy hot springs. They’re a cultural experience and super fun. And if you have kids, THIS is where you should go instead of the fancy spots.

More on Iceland:

• 35 Awesome Things to do in Reykjavík, Iceland
• Things to Know Before You Visit the Blue Lagoon, Iceland
• Why Iceland is Great for First-Time Solo Female Travelers

My Favorite Places in Iceland:

• How to Visit Kvernufoss, My Favorite Iceland Waterfall
• A Look Inside the Sky Lagoon, Iceland
• Sail Through the Sky with FlyOver Iceland
• Snorkeling Silfra: The Cold Neon Waters of Iceland
• How to Visit Studlagil Canyon, Iceland
• Visiting Stokksnes and Vestrahorn Mountain, Iceland
• Guide to the Gorgeous Tröllaskagi Peninsula, North Iceland
• Are the Vök Baths Iceland’s Best Geothermal Spa?

How much did your Iceland trip cost? Share away!

Is Iceland Expensive? The Ultimate 2024 Breakdown

Is Iceland expensive? How much money should I budget to travel Iceland? What is the average cost of a one-week trip to Iceland for two?

Having traveled extensively across southeastern, southern, and southwestern Iceland with my husband (830 miles of driving to be exact), I’m going to provide you with exactly what it costs to visit Iceland and how you can travel here on a budget!

Because, yes, the country is undoubtedly quite expensive, but there are plenty of ways you can save money on your trip. Because, in the end, it really doesn’t matter how much you spend on your trip. Instead, what matters are your experiences and what you make of them.

Iceland can offer visitors everything from spectacular northern lights shows and authentic displays of molten lava, to active volcanoes, natural hot springs, fast-moving glaciers, and hundred-foot waterfalls.

Sure, a trip to Iceland might not be the most budget-friendly destination. But, let me show you how it can still be an affordable one! We’ll start with the cost of food (one of the biggest challenges you’ll face budget-wise), then accommodations, transportation, and popular attractions.

I’ve also included a list of my personal travel tips for saving money while in Iceland as well as answers to a bunch of helpful questions you may be wondering before planning an Icelandic itinerary!

Is Iceland Expensive to Visit?

Iceland is expensive to visit , sorry to burst your bubble. In fact, it consistently ranks in the top 5 most expensive countries in the world on practically every list you can find on the internet.

But, by following our travel tips and getting an idea of how much everything costs ahead of time, it can still be visited on somewhat of a budget!

Average Food Costs

Budget options:.

Sean and I spent $246.18 ( yes, I saved all of our receipts and added up the total cost of food in Iceland as well as at the Keflavik Airport) over the course of 5 days.

But, I’m going to be blatantly honest with you: we only ate at a fancy hotel bar once, and the rest of the time we were eating pre-made food from gas stations and supermarkets.

If you don’t mind keeping yourself alive with protein bars, cup o’ noodles, peanut butter and jelly sandwiches, and the occasional gas station smoothie, then you can do this too.

Here’s the breakdown for budget food items in Iceland.

Cup o’ Noodles : $0.94-$2.40 USD (130-330 ISK)

Small Jar of Peanut Butter : $3.49 (480 ISK)

Starbucks Double Shot Espresso (canned from gas station): $3.19 (439 ISK)

Green Smoothie (bottled from gas station): $3.84 (529 ISK)

Milka Chocolate Bar : $3.23 (445 ISK)

4oz Packaged Salami or Pepperoni : $5.07 (698 ISK)

3oz Brie or Camembert Cheese Round : $5.28 (727 ISK)

Loaf of Basic Bread : $3.29 (453 ISK)

Large Bag of Doritos : $3.96 (545 ISK)

(1) Pilsner Bottled Beer : $2.68 (369 ISK)

More Expensive Options:

If you have a little more room in your budget to splurge on some traditional Icelandic food, then these are some of the top items to try!

Fish & Chips (a classic): $20 (2750 ISK)

Acai Skyr Cup (my favorite!): $8.65 (1190 ISK)

Fancy Lamb Dinner : $40+ (5500+ ISK)

Arctic Char Dinner : $25 (3450 ISK)

Pro Tip : I love considering myself an adventurous eater, but I try to be closely aware of sampling anything that could possibly affect dwindling populations. Iceland, for example, continues to threaten the population of Greenland sharks, so if you see this on the menu, please think twice before ordering.

Average Accommodation Costs

Accommodations in Iceland can be shockingly expensive, particularly in the summer months, but we managed to find some fantastic budget-friendly options! If you’re traveling with two people, it’s also important to note that a majority of accommodations charge per room rather than per person.

Airbnb is definitely the way to go if you want budget-friendly accommodations in Iceland. We found two cozy apartment rentals in Grundarfjörður (home of the iconic Kirkjufell Mountain) and Selfoss for $185 and $129 , respectively.

Now, I know this is still expensive, but these rentals came equipped with large, comfortable beds, well-stocked kitchens that allowed us to cook food for ourselves, heat, and some gorgeous views.

Hostels are typically only found in Reykjavik and a couple of other cities. But, if you don’t mind staying in a shared room with other travelers, this is definitely the most budget-friendly option! You can find hostel dorm beds for as low as $46 per person, or private rooms starting at $80.

Mid-Range Hotel

Mid-range, 2-3 star hotels, can be found for around $120-$200 per night, so if you’re traveling with more than one person, this can actually end up being a budget-friendly option.

Luxury Hotel

If luxury is what you’re after, then expect to pay anywhere from $250-$600+ per night at the top hotels in Iceland. However, keep an eye out for deals or off-season rates, as you may be able to snag a luxury stay at a lower cost.

We ended up scoring a 4-star hotel for $319 for the night, but we paid for it entirely with points! If you aren’t using travel credit cards to support your travels yet, well… you’re missing out on some serious cash.

Average Transportation Costs

Transportation costs can vary greatly depending on your preferred mode of travel. We chose to rent a car for our visit, but many people choose to stay at one hotel in Reykjavik or Vik and just do day trips from there.

There’s also the option of taking an all-inclusive tour which includes accommodations, transportation, and even food on some occasions, but this is by far the most expensive option.

Here are some rough estimates for the most popular transportation options in Iceland.

Renting a car is definitely the most convenient way to explore Iceland, but it can also be very expensive if you aren’t careful. We rented an economy 4×4 Mitsubishi through Europcar (which was perfect for driving on parts of the Ring Road and the Golden Circle) and paid $319.12 for 4 days.

We booked this deal several months in advance of our travel dates which is why the rate was relatively low. When I looked at current rates about one week before our trip, rates were as high as $200 per day!

We loved the freedom of having our own car, but this would not have been an affordable option had we waited until the last minute to book.

Public Transportation

Buses and other modes of public transport are budget-friendly options for those not interested in driving themselves around an unfamiliar country.

There are several bus companies that offer tours and transportation to popular attractions and cities in Iceland, but these will surely be more expensive than the average bus with prices ranging from $60-$200+ per person per day.

Gas prices in Iceland are fairly high, so this should definitely be factored into your transportation costs. We spent about $200 in gas on a 5-day trip which included driving over 830 miles across the country.

Pro Tip : If you do choose to rent a car, make sure to fill up at one of the larger gas stations like N1 or Olís. Gas prices at smaller gas stations can be significantly higher, and most of the time smaller gas stations require the use of a pin number which isn’t always an option on travel credit cards.

Roundtrip airfare to Iceland from the United States can range from $200-$1000+ depending on the season and airline. We paid $560 each for round-trip flights with Iceland Air in November from Boston, which is considered off-season in Iceland.

The summer months have been known to see airfare prices jump to $800+, and personally I’ve seen flights on Delta reach $1200 in the month of July from different countries around the world.

If you’re hoping to stay on a budget for your trip to Iceland seen , then visiting in the off-season can save you a ton of money!

Average Attraction Costs

Attractions can really rack up in Iceland rather quickly, so my advice is to do your research ahead of time and choose which attractions mean the most to you.

I’m going to give you my personal opinion on all of the things to do below, but I’m also going to try to stay as unbiased as possible and simply give you all of the information to help guide your decisions.

Blue Lagoon

The Blue Lagoon has three different packages to choose from: the Comfort for $64 , the Premium for $82 , and the Luxury for $564 ( I know, that’s quite the jump ). These rates are per person.

In my opinion, the Comfort package is plenty. Most tourists are seeking that iconic photo of them relaxing in mirky, glacier blue water with a mud mask on their face – and you can do that with this package!

It comes with a complimentary drink and the silica mud mask treatment, plus the use of a towel. What else do you need really?

If you want more information on what the other packages offer, check out the Blue Lagoon package breakdown . They touch more on additional complimentary treatments, bathrobes, additional beverages, private changing suites, etc.

Sean and I went to the Sky Lagoon instead of the Blue Lagoon primarily because the Blue Lagoon was temporarily closed due to volcanic activity in Grindavik, but on a future visit we plan to get to the Blue Lagoon, as well.

We spent 2 hours soaking in the Sky Lagoon and enjoyed the Seven-Step Ritual during our visit. We chose the Pure Package which was $79 , but you can also choose from two other packages including the Sky Package for $93 which includes private changing facilities and a free drink, or the Pure Lite Package for $49 .

These prices do change, however, so keep an eye on how prices change depending on the season. In our opinion, the Seven-Step Ritual was nice, but it wasn’t worth all of the extra money we spent. If we did it over again, we would just pay for the Pure Lite Package and enjoy the lagoon on its own.

Ice Cave Tour

Ice cave tours are exceedingly popular in Iceland, with costs ranging from $170-$900 per person.

While these tours can be expensive, we aren’t lying when we say they offer a once-in-a-lifetime experience. Just make sure to book with a reputable company with good reviews, and be sure to pay attention during the safety briefing before entering the caves.

We went with Katlatrack out of Vik which is one of the only ice caves in Iceland that can be entered year-round, so this is a fantastic option when visiting in the summer months. It was also quite affordable in comparison to other operators that we found, with the cost for the two of us being $402.71.

The company also provided all of the necessary transportation and gear including headlamps, crampons, and helmets, so this was well worth it in our opinion.

Northern Lights Tour

Now, here’s where I have mixed feelings when it comes to whether or not to hire a tour operator. If you’ll be visiting Iceland in the winter and are very comfortable driving yourself in a foreign country on icy, snow-covered roads , then you don’t need to pay for a tour.

BUT, if you don’t have experience driving in dangerous winter conditions like we do from our time living in Alaska during the winter, then you should absolutely be hiring a tour company to drive you around.

The northern lights can only be viewed in near complete darkness , so not only will you be traversing icy roads with which you are unfamiliar, but you’ll also be doing it in the dark. Unfortunately, northern lights tours are expensive no matter what northern country you do them in and that’s why I have mixed feelings on this matter.

Tour companies don’t typically provide refunds if you don’t see the auroras because they have to be paid for their time and gas, despite whether or not Lady A ( what Sean and I refer to the northern lights as ) decides to show herself. They have no control over this phenomenon, so this is fair in our opinion.

It just stinks if you pay for an expensive tour and don’t see anything. If you do decide to go on a tour, you’ll need to book it well in advance since they book up fast, but many of them provide free cancelation up until 24 hours before which is really great if the weather is looking cloudy ( a big no-no for aurora viewing ).

Here is our top choice for a northern lights tour in Iceland if you decide to do one!

Thingvellir National Park Visit

If you have your own car, then Thingvellir National Park is worth squeezing into your Iceland itinerary if it’s along the way. We found the park to be underwhelming with a complete lack of wildlife and the views to be less than spectacular, so if we returned we would skip it.

Some other tourists we met really enjoyed their visit, however, so you may find it more special than we did! If you visit on your own, then you’ll just need to pay for parking which is 750 ISK (about $5 USD).

Or, if you choose to go on a guided tour, then you can expect to pay around $80-$150 per person.

One of the most unique experiences you can have in Iceland is going to a Lava Show . This show is mesmerizing and a bit terrifying as you watch molten lava being poured out in front of you, with the handlers showcasing dazzling tricks with the scorching, viscous liquid.

The best part is these tours aren’t very expensive (depending on the tour you choose, of course), with some of them ( like this one !) costing as low as $42 USD per person.

Even if you’re trying to save money on your trip to Iceland, these tours are worth budgeting for!

Jökulsárlón Glacier Lagoon Tour

Now, this tour is only necessary for you to pay for if you won’t be renting a car! If you will have your own vehicle for your trip, then there’s no need to hire a tour company since entrance to the glacier lagoon as well as the iconic Diamond Beach across the road is free.

However, if you’ll be basing your day trips out of Reykjavik, then this tour is well worth doing . Honestly, the glacier lagoon was probably one of our favorite parts of the trip and it definitely should not be skipped.

They are on the more expensive side, so you’ll want to keep this in mind if you’ve already gotten your hopes for other tour options on this list, with average prices ranging between $120-$180 USD per person.

Average Iceland Trip Cost for 2

If you are planning a trip to Iceland for two adults, it’s crucial to consider the various costs involved. Generally speaking, a week-long trip to Iceland can be quite expensive, with an average budget ranging anywhere from $1,500 to $3,000 per person , inclusive of airfare, accommodations, food, and tours.

This figure can fluctuate based on the time of year, with peak tourist season (summer) being more expensive than the off-season (winter). Remember that this is only an average, and how much you end up spending can significantly decrease or increase based on your travel style, the activities you choose to do, and your choice of accommodation and dining.

Sean and I ended up spending about $2,300 total for a 5-day trip, which is $1,150 per person including airfare. We challenged ourselves to stay on a tight budget, and this was truly the best we could do with only eating out once and the total for that meal coming to $63 USD since we ate bar food.

If you aren’t planning to be this vigilant of your spending, then you can expect to pay in the $1,500-$3,000 range per person for a one-week Iceland trip.

Tips for Visiting Iceland on a Budget

Iceland is expensive, there’s no denying that. But, we discovered some great ways to save money on our trip and have shared them with you below! They may seem obvious, but it’s easy to forget or not take into consideration when planning your trip.

Buy Food at the Local Supermarkets (our favorites were Krónan and Bónus)

When it comes to budgeting for a trip to Iceland, one of the most significant expenses you’ll likely face is food. Eating out at restaurants in Iceland can be almost nausea-inducingly expensive, with a basic meal of soup or a sandwich costing between 20-30 USD per person on the high end.

However, there are ways to save money on food by purchasing groceries and cooking your meals instead. So, when Sean and I arrive in Iceland, our first stop is the local market. We pick up a loaf of bread, peanut butter and jelly (if you have a peanut allergy, consider bringing your own sunflower butter since this can be hard to find in Iceland), cup of noodles, and some meat and cheese for the day.

I know, I know – we’re not exactly on a health-kick when we travel. BUT, I will often pick up green smoothies at the market so I can at least include some nutrients in my day’s caloric intake.

By doing this, Sean and I only spent $246.18 on food in a 5-day period for two people, which is much more reasonable than the typical average of between $100-$150 USD per day per person that most people spend when they eat out!

Book your Rental Car Far in Advance

As soon as you know your trip dates, start researching and booking your rental car. The prices of rental cars in Iceland can vary greatly depending on the season and availability, and typically skyrocket as travel dates get closer.

Be Flexible with Your Travel Dates

If you have some flexibility with your travel dates, try to avoid traveling during peak season (June-August) when prices for flights, accommodations, and activities are at their highest.

Consider visiting during shoulder season like we did (we really enjoyed Iceland in November) when we were able to enjoy discounted accommodation rates and see the northern lights!

Take Advantage of Free Activities

While there are many amazing paid attractions in Iceland, there are also plenty of free activities and sights to see!

Some of our favorites were visiting the black sand beaches in Vík, hiking up the hill behind the Vík i Myrdal Church for amazing views, exploring waterfalls along Route 1 in South Iceland, and simply taking in the beautiful landscapes while driving. These activities cost us nothing but provided some of our most memorable experiences.

Pack Smart to Save on Essentials

It might sound basic, but packing the right gear can save you a lot of money. Remember, Iceland’s weather can be unpredictable, often changing multiple times in a single day. By packing waterproof and warm clothing, you avoid purchasing expensive gear once you’re there. Especially if you’ll be visiting in the shoulder season to save some money!

We brought along with us specific essentials like travel snacks, a refillable water bottle (Iceland’s tap water is some of the purest in the world), and travel-sized toiletries.

Every penny we saved on these essentials counted towards experiencing more of what Iceland has to offer like our ice cave tour, fun souvenirs to bring home , a bigger rental car, etc.

FAQ: Is Iceland Expensive?

It’s no secret that Iceland is one of the most expensive travel destinations in the world. However, with proper planning and budgeting, it is possible to have an affordable trip to this beautiful country! So, let’s jump into answering some relevant questions for your trip.

Is Iceland Expensive for Americans?

Due to the currency conversion, Iceland is expensive for Americans using the U.S. Dollar. This is especially true for activities, accommodations, and food. However, the exchange rate can fluctuate, so it’s worth keeping an eye on before your trip.

Is Iceland Expensive to Live?

Yes, Iceland is indeed expensive to live in. The high cost of living in Iceland is primarily attributed to the island nation’s remoteness, which necessitates the import of a broad range of goods.

Furthermore, the cost of housing in Iceland, especially in the capital city, Reykjavik, is considerably high. While wages and salaries in Iceland are relatively high by international standards, they don’t necessarily offset the elevated costs of goods and services.

That being said, Iceland offers a high quality of life, an excellent education system, and a robust healthcare system, which may make the higher living costs worthwhile for some.

Is Iceland Expensive to Eat Out?

Eating out in Iceland is a pricey affair. As we mentioned earlier, even a simple meal can set you back quite a bit. Let’s say you want to try some of Iceland’s famous seafood in a restaurant, you could find yourself paying upwards of $40-$50 USD per meal.

But, if you’re a foodie who loves to experience local cuisine, it might just be worth that occasional splurge. On the flipside, you can make your travel budget stretch further by cooking your own meals and discovering the delicious and diverse offerings at local supermarkets, as we did.

So while it may be expensive, it is definitely manageable if you plan ahead and make thoughtful choices!

How Much is a Coke in Iceland?

The price of a Coke in Iceland can fluctuate, but on average, expect to pay around 300-400 ISK (about $2.19-$2.92 USD) for a small bottle in a supermarket.

In restaurants, it can be even more expensive, often upwards of 500 ISK (close to $4 USD). Remember, these are just averages and prices can vary depending on the location and the store or restaurant.

How Much Does a Meal Cost in Iceland?

The cost of a meal in Iceland varies widely depending on whether you are cooking at home, grabbing fast food, or dining in a restaurant.

If you’re cooking at home, you can expect to spend about 1000 ISK (around $7 USD) per meal. Fast food, such as a burger and fries, could cost anywhere from 1800 to 2000 ISK (about $11-$14 USD).

Dining out at a mid-range restaurant, however, could set you back anywhere from 2500 to 5000 ISK (approximately $18-$36 USD) per meal. High-end restaurants will cost significantly more. Remember, these are approximations and actual costs will vary based on your specific choices and the current exchange rate.

Is Iceland Expensive for Tourists?

Yes, Iceland can be expensive for tourists. Given the high cost of importing goods and services and the cost of living, it’s no surprise that accommodations, dining, and activities can be quite pricey for visitors.

The average daily cost for tourists is estimated to be around 41,000 ISK (approximately $300 USD), which includes accommodation, meals, transportation, and activities. This can increase significantly if you opt for luxury accommodations or participate in high-cost activities such as guided tours or excursions.

However, with careful planning and budgeting, as well as taking advantage of free activities and smart packing strategies as we’ve outlined above, you can certainly make your trip more affordable.

Is Iceland Cheaper than the US?

Overall, Iceland is generally more expensive than the U.S. This is due to various factors such as high import duties, the cost of services, and the relatively higher standard of living.

While some goods may be priced similarly or even lower in Iceland compared to the US, many daily necessities, dining, accommodations, and especially activities often come at a higher cost.

However, the difference in cost depends greatly on the specific comparison, the current exchange rate, and the location in the U.S. you’re comparing it to.

How Much is a Trip to Iceland for a Week?

Typically, for a budget traveler cooking their own meals, staying in low-cost accommodations or camping, and limiting paid activities, you could expect to spend around 80,000 to 100,000 ISK (approximately $600-$730 USD) for a week , excluding flights.

Mid-range travelers, staying in hotels, eating out occasionally, and participating in a few paid activities, could expect to spend about 200,000 to 300,000 ISK (approximately $1500-$2200 USD) .

For a luxury trip, with high-end accommodations, dining, and activities, you could be looking at 500,000 ISK (around $3650 USD) or more for a week.

Other Helpful Iceland Resources

Do They Speak English in Iceland? 12 Icelandic Phrases Is Iceland Safe? Global Peace Index & 10+ Safety Tips

While Iceland may be expensive, it is still possible to plan and budget a trip to this stunning country that won’t break the bank. By keeping an eye out for deals, planning ahead, and making savvy choices, you can have an unforgettable experience in Iceland without blowing your entire travel budget.

Hey there! I'm Emily Concannon, a seasoned globetrotter who has backpacked her way across over a dozen European countries, immersing myself in the diverse cultures, languages, and cuisines of the region.

My passion for travel transcends personal experiences; I've spent years learning how to transform my globetrotting knowledge into personalized itineraries for fellow travelers worldwide.

With a tally of 26 countries (and counting!) under my belt, my day job involves extensive research on different countries which often leads me to booking a new adventure every chance I get!

How Much Does An Iceland Trip Cost in 2024: Detailed Budget Breakdown

Written By: ThePlanetD Team

Iceland , Travel Planning

Updated On: February 19, 2024

An Iceland vacation is never ‘cheap,’ even if you plan it on a strict budget. The country is known as an expensive destination. You’ll need to get savvy to save money on your trip to Iceland . The average Iceland trip cost is $200-300 per day – without factoring in the most extortionate (yet fantastic)  things to do in Iceland.  

Certain activities, like  snorkeling between the tectonic plates , can cost that just for one trip. And you’ll need to factor in rental car costs if you plan to venture anywhere outside of Reykjavik, the capital city, that day trips don’t cater to. All things considered, you can quickly see how things add up. Maximizing your budget as much as possible is essential so you don’t miss out on memorable activities and experiences. So, let’s figure out an Iceland budget together.

Table of Contents

How Much a Trip to Iceland Costs

When you visit Iceland, all your decisions impact your final Iceland trip budget – be it rental cars or private rooms. In this guide, we’ll provide you with all the average trip cost factors so you can build an idea of what budget you’ll need as an individual visiting Iceland. We’ll cover everything, from accommodation prices to food costs and the costs of some of the most sought-after tours.

Airfare Cost

Airfare won’t be a massive part of your Iceland travel budget. Depending on where you travel, the average price of flights is only a few hundred dollars. The average flight from the east coast of the US to Iceland is just $450 return, which gets even cheaper when you are flying to and from Europe. Compared to flying to other destinations, especially Australasia, Iceland is not expensive to reach airfare-wise.

Even then, you can save money when visiting Iceland by taking advantage of off-season flights and using air miles. Look into airline reward programs like British Airways, Qantas, and Delta SkyMiles. Airline loyalty programs get a bad rep for not actually being worthwhile. Still, choosing wisely and actively saving points can be a great tool to get cheap flights. Always compare flight prices by using websites and tools like Skyscanner – always using a private browser, of course, since those pesky cookies hike up prices on flights you view.

How flexible are you with your Iceland vacation as well? It is worth noting that if you fly from Europe to North America with Icelandair, they offer a complimentary layover in Reykjavik , which you can extend to anywhere between 1 to 7 days if you’d like a mini trip to Iceland. This is a brilliant way of squeezing in an Iceland vacation at a cheaper price than direct flights usually cost. If you are already making this journey, knowing about this little tip is handy. Why not take advantage of a stopover you’ll already be making and take advantage of Icelandair’s typically cheaper flights? Just picture it; you could combine London, New York, and Iceland in one trip.

As you can see, your Iceland vacation cost will not be massively impacted by flight prices. However, if you want to take extra steps to reduce the cost of your trip to Iceland, there are a few tricks you can have up your sleeve. You should budget $500 maximum for return flights to Iceland from North America or Europe with a mid-range airline.

But if you fly off-season and from specific destinations like London, you can snag flights for as little as $100 return. The more flexible you are, the lower your airfare budget needs to be. And, of course, the more ready you are to fly outside of peak season, the better deals you’ll find. Our advice is to get hunting on Skyscanner or a flight comparison tool equivalent.

• Budget: $500 for return flights or under $200 if you are flexible and departing from Europe.

Accommodation Prices

Accommodation prices in Iceland are steep. It’s surprisingly steep, actually. Accommodation costs are one of the largest chunks of the average trip budget when visiting Iceland. Even the most basic of hotel rooms are extremely expensive, even more so when looking at mid-range hotels and – God forbid – luxury hotels. It is also worth noting that the cheapest hostels and best value-for-money properties get snapped up quickly. In remote areas of Iceland, you quickly become short on options. Compare prices when booking accommodation in Iceland, but also make sure you don’t stall too much and book far enough in advance to avoid missing out on the best prices.

If you act quickly and book in advance, the  average price  for a budget hotel is $150 per night. For a three-day trip, you can expect to pay around $499; for a week, you are looking at $1,047. If you don’t book in advance, these prices rise as you are left to front bills to stay in more luxurious hotels and vacation rentals than you usually would choose. It also pays to consider location, as certain areas will have more expensive hotel rooms, like on the Ring Road and Golden Circle.

Typical prices average $150 per night, but remember that this is across all over Iceland as a general average. Be prepared to spend more in certain areas. When planning a trip to Iceland, cost is a huge factor when choosing accommodation, and you need to be fast-thinking to get the best deals.

These are a few examples of average accommodation costs in different Iceland hotels:

Hofn Cottages

Hofn Cottages  are as budget-friendly as accommodation gets in Iceland. These basic cabins cost just $70 per night; you get your own patio and cooking facilities. These sell out quickly. But their remote location means slightly cheaper prices.

Reykjavik Konsulate Hotel

This  mid-range hotel  in Reykjavik costs approximately $250 per night, but you can see why. It has a trendy design and an onsite wellness center and gym. It is a glossy version of a mid-range stay in the capital, and it has a great location to enjoy central Reykjavik.

Hotel Ranga

This  luxury hotel  costs upwards of $500 for an average room. It is a brilliant example of top-tier luxury in Iceland. If you sleep through the magical phenomenon, you get a star gazing observatory onsite and even northern light wake-up calls. Oh, and you get volcano views out of your window.

• Budget: $150 per night for the average rate for a cheap hotel.

Transportation

Regarding transport in Iceland, you need to realize one major thing – transport barely exists outside the realm of rental cars. Tourists fly into Iceland’s Keflavik International Airport, located just outside of Reykjavik’s capital; from there, you can organize a shuttle service into the city center. Reykjavik itself is really walkable and a tiny city, much more like a town than an actual city, let alone a ‘typical’ capital city.

Iceland has a minimal bus service. It isn’t safe to rely on public transport in very remote areas. We wouldn’t recommend it if you are venturing out of Reykjavik or the main settlement areas.

If you stay in Reykjavik and don’t rent a car, you can organize tour experiences to take you to the main tourist attractions. For instance, you can get tours to the Blue Lagoon , Golden Circle , and Ring Road on the  South Coast.  

You can also get tours to experiences like horseback riding on black sand beaches , hiking on glaciers , seeing exploding volcanoes, and snorkeling between the tectonic plates at Silfra . The caveat is that you will pay hundreds of dollars for each of these experiences, almost like paying for mini holidays on your actual holiday. If you don’t want to rent a car, you can still enjoy Iceland, but be prepared to splurge a little on booking private tour day trips. It will rocket the total cost of the average Iceland budget.

The best way to get out of Reykjavik and  see  Iceland is to book a rental car . If you are wondering ‘how much does it cost to rent a car,’ it depends on which car rental companies you look at, what season you visit, and whether you want a camper van or not. The cheapest option is a car, for which you can buy a tent and camp or book cheap hotels.

Or you can spend more upfront on a camper van and have the whole road trip experience, saving money on accommodation. With rental options, you could embark on the classic week road trip along the South Coast and complete the classic  Ring Road road trip.  It is the most liberating form of transportation around Iceland. And you’ll save loads of money by avoiding the aforementioned expensive organized day trips while opening up to more free attractions and off-the-beaten-track experiences.

•  Budget: $350 plus $100 petrol for a week of hiring a rental car, or approximately $870 on transfers for day trips and airport journeys.

Food is another significant expense when it comes to visiting Iceland. When calculating a trip to Iceland cost, you must set aside at least $500 per week as a food budget. For $500, you can afford a few meals at local restaurants, a food shop at one of the cheaper grocery stores, and a few drinks on a night out. Food prices are high in Iceland, especially for imported and taxed goods. However, you can soon chip the price tags down if you are flexible with trying local brands.

Need an idea of what food prices are in Icelandic grocery stores? They aren’t extortionate, but you can see that some products have much higher prices than others. You should also have an ISK to USD calculator ready, as the conversion is a little whacky. Average food prices include:

• $1.60 for milk
• $3.20 for white rice
• $3.50 for a loaf of bread
• $2.20 for a bottle of water
• $14.90 for a block of cheese
• $19.60 for 1kg of chicken fillets

It is also worth mentioning that Iceland is famous for its hot dogs. A standard tip for saving money is to snack on a hot dog for lunch instead of sitting in at local restaurants. The sausages are served on little takeaway carts and are one of the most traditional, budget-friendly  Icelandic dishes .

They date back to the Viking era and are called ‘bjuga’ sausages. Bought at little street stands, these hot dogs cost as little as $2.50 – a real bargain. This fun little tip might be more aimed at novelty than genuine money saving, but the spirit and overall meaning are spot on. Avoid sitting down regularly to eat to save money, and remember that local specialties are your best friend.

Remember that if you want to enjoy grocery store food in Iceland, you must have cooking facilities. And this is where the accommodation crossover comes in. You should book accommodation with private kitchen facilities in an apartment or a shared kitchen in a hostel or homestay environment.

By choosing this accommodation setup, you can easily still have a food budget of $500. If you stay in a hotel and don’t have access to a kitchen, expect prices of around double the same period. The average meal price is nearly $120 for two people at a mid-range restaurant, which quickly adds up.

Food is $500 per week if you eat out a couple of times and have a kitchen in your accommodation. Alternatively, your food budget will be closer to $ 1,000 per week if you expect to eat out daily.

• Budget: $500 per week for eating out a couple of times and then cooking in with grocery-bought food, or $1000 for eating out all week.

Tours and Activities

Entertainment prices are where the majority of your budget will come in – especially if you don’t hire a car and instead rely on guided day trips. These guided excursions can reach prices of over $300, and if you plan on doing 4-5 activities, you can see how this starts to add up. You can take guided trips to the Golden Circle, whichever volcano is exploding and attracting enamored tourists, and do things like snorkel between the tectonic plates or spot the northern lights. All these things come at a cost, but at the same time, you don’t want to miss out on any dream excursions. This little conundrum is what makes visiting Iceland so expensive. And also, so impressive – you wouldn’t want to stay somewhere with nothing to see, would you?

Recommended Tours in Iceland

Below are some of the top tours in Iceland. Don’t forget to plan ahead when  visiting Iceland!

• Reykjavik: Golden Circle Full-Day Tour with Kerid Crater ( Most Popular In Iceland )
• Silfra: Fissure Snorkeling Tour with Underwater Photos (Our Favourite)
• Húsavík: Big Whales and Puffin Island Speedboat Tour (Likely to Sell Out)
• From Reykjavik: Golden Circle, Kerid, & Secret Lagoon Tour (Best Deal)

One way to make this cheaper is to rent a car. Specific day trips, especially ones to see natural beauty spots or spot the northern lights, are easily replicated for free apart from petrol costs if you rent a car. By paying a single upfront fee for a car rental, you can pick fascinating tours and complete them independently – like the Golden Circle, Ring Road, and things like the best Icelandic waterfalls.

Sure, things like a boat tour to see whales or glacier hiking experiences require a guide. Still, lots of Iceland can be visited independently with a rental car. Even northern lights hunting can be done by yourself and without a guide. To be honest, most Northern Lights tours are just guessing and driving to remote spots anyway. Download one of the many maps and get up-to-date information on predictions so that you can go out it alone, much cheaper.

Alcohol prices can get really expensive in Iceland, so we suggest stopping by a duty-free shop or cutting alcohol to cut costs. Nightlife can get understandably expensive in Iceland, so while partying can be fun and a short night out can be budget-friendly in Reykjavik (when in Rome, right?), stick to just the odd night out if possible.

It is worth adding that clothing is an additional cost when enjoying day trips and activities in Iceland. You will likely need to invest in a winter wardrobe with some merino additions; thermal clothes are necessary during most months in Iceland. You can’t compromise on this, and we’d recommend making the most of clothing sales in the run-up to your trip to Iceland. With proper clothing, you will be warm. And if you aren’t warm, how will you enjoy your experience? Make the most of your money by investing smartly in suitable clothing for your activities beforehand.

So, how much should you budget for tours and activities in Iceland? And what should you budget for the additional cost of purchasing suitable clothing for each tour beforehand? These are our budgeting stats for a week in Iceland without a car rental:

• $1,200 for four-day trips with an organized tour operator, including transportation.
• $200 for suitable clothing, including two Merino top and bottom base layers and shoes.
• $200 for a couple of nights out in Reykjavik.

Total: $1,600

As you can see, having a car rental makes a considerable difference when budgeting for tours and activities in Iceland. These are our stats for a week in Iceland with a car rental:

• $400 for four-day trips, including two organized tours without transportation and two free experiences.

Total: $900

• Budget: Without a car, expect to pay around $1,600 over a week-long period, while with a car, this totals up to about $900.

Overall Trip Cost

So, if you’ve been frantically trying to add things up, don’t worry; we’ve got you. This is how much traveling to Iceland costs, not including your travel insurance. We’ll acknowledge the main influencing factors in each budgeting area – whether you rent a car, visit in off or shoulder seasons, and book accommodation with cooking facilities. This is precisely how much you should budget to visit this beautiful country.

Airfare costs approximately $500 for a return trip to Iceland when you fly from Europe or North America. However, if you are flying from Europe, are flexible with visiting in off or shoulder seasons, and fly with mid-range airlines, budget less than $200 for return flights.

Accommodations

For accommodation, you should budget $150 per night for an average but cheap-ish hotel somewhere reasonably well-located. If you are willing to compromise on location, you can pick up cheaper accommodation for around $70 per night. Or, if you want luxury accommodation, be prepared to pay up to $500 per night. With all accommodation types, book early to secure the best rates.

Figuring out a transport budget is a tough one. If you get a rental car , you should budget $350 for renting the vehicle upfront for a week and approximately $100 on fuel. If you don’t rent a car, you can easily explore Reykjavik on the bus for as little as a few dollars each time. However, you will spend a lot more on transfers, and we estimate an $800 difference in your day trips and excursion costs as opposed to self-drive attractions. You should also add airport transfers at over $70 for return tickets on the shuttle bus. For a week in Iceland, budget $450 for transportation if you hire a car and $870 for transportation if you rely on shuttles.

The message is simple regarding food: find accommodation with a kitchen to take advantage of grocery store prices. Budget $500 if you want to eat out a couple of times and then cook the rest of the time. Budget $1000 if you plan on eating out every day for most if not all, meals.

Tours and activities are your main cost when visiting Iceland, especially if you don’t rent a car. Without a car, expect to pay around $1,600 over a week, while with a car, this totals up to about $900.

10 Top Money Saving Tips

Are you ready to cut some money off that average Iceland trip cost we’ve just given you? If you are up for the challenge, there are ways to save money when visiting Iceland. After all, an average price is exactly that – an average price of what most people spend when they visit. You can do better than that if you utilize our top 10 tips on reducing your Iceland trip cost and saving your valuable money.

Anything from car rentals to hostels, and even some lesser-known things like campsites and bus passes, can make a massive difference to what your holiday to Iceland costs. So, buckle up and prepare to jot these top money-saving tips down. Using these could knock hundreds, and perhaps even thousands, off your Iceland budget.

1. Visit Off-Season

It goes without saying, but visiting Iceland in the off-season is the best way to save money. Iceland gets super busy over winter when tourists flock to enjoy snow sports and try to spot the northern lights. If you want to do these things, why not visit in February or late January? Avoiding the December crush by picking these shoulder seasons is the perfect way to snag reduced tours and day trips, plus find cheaper hotel rates thanks to lower booking competition.

Of course, if you are flexible with your Iceland activities, visiting in the off-season is even better. June until October is perfect for lower car rental rates, cheaper hotels, and tour deals. Remember that this period has certain tour and attraction closures, and you likely will miss the northern lights. This season is also famous for the midnight sun, where Iceland stays light for 24 hours a day.

2. Buy From Grocery Stores

Grocery stores are so much cheaper than local restaurants. You don’t want to stick to a budget while eating out for every meal because it just won’t happen. The average cost for a two-person meal at a mid-range restaurant in Reykjavik is  nearly $120.  An average McDonald’s meal is over $16. Grocery prices are much more reasonable, like $1.60 for a liter of milk or $3.44 for apples.

Buying food from grocery stores might sound obvious, but this only works effectively if you’ve found accommodation with a kitchen, so this is a catch-22. We’d suggest finding a communal kitchen or apartment hotel to make the most of this money-saving technique. Trust us, it will be worth it.

3. Rent a Car

This might sound more expensive at first, but renting a car is one of the best ways to explore Iceland on a budget – especially if you want to sightsee a lot. This is because tours are one of the most expensive in an average Iceland trip cost. Companies charge extortionate amounts (we are talking hundreds of dollars) for simple things like transfers. If you rent a car, yes, it will be an initial upfront investment, but you’ll save hundreds if you purchase more than 2-3 day trips. Being able to drive yourself is one of the best ways to cut travel costs in Iceland. Check rates here!

4. Take Advantage of Free Attractions

If you rent a car, it also stands you in good stead for saving money – enjoying Iceland’s free attractions. Iceland has a ton of free attractions, be it waterfalls or the beautiful geothermal area at Geysir. If you are road-tripping Iceland, you can stop at these places for free and quickly build a low-cost itinerary. Everyone knows Iceland is expensive, but with some research, you can soon find budget-friendly and often entirely free things to do.

5. Try Camping

Camping is one of the best ways to save money while visiting Iceland. You can camp in one of two ways – with a campervan or by renting or bringing a tent. It goes without saying that this is a better idea in summer (read: do not attempt in cold weather). Still, if you visit Iceland at a warm time of year, it is a brilliant way to reduce accommodation prices. You’ll find campsites all over Iceland, so this is also one of the most straightforward money-saving tips to put into practice.

6. Try out a Bus Pass

We’ll preface this by saying that bus connections are limited. You will only be able to use the bus network to access specific places at specific times, so you’ll need to be happy to use a pretty rigid travel style if you are going to take advantage of this travel hack. However, if you are happy to color between the lines to save yourself some cash, bus passes are well worth looking into. You pay a single flat rate fee and get unlimited use of the bus network for a designated period. This saves you money on otherwise expensive day trips or car rentals. And if you don’t have a driving license, it is the cheapest alternative.

7. Buy Alcohol From Duty-Free Shops

Another huge tip is to buy alcohol from duty-free shops. If you can pick up alcohol from the airport when you land, it will save you a ton of money on your trip to Iceland since alcohol is heavily taxed. The duty-free shop is your best friend if you want a fancy tipple. With that said, though, a better approach would be not drinking while visiting Iceland. Iceland actually banned alcohol in 1915, and the ban was only fully lifted in 1989 – which is now hailed as beer day. The country has a longstanding political objection to the consumption of alcohol. If you want to save substantial money when visiting, you should do your best to conjure up a financial objection.

8. Find Hot Springs that Aren’t the Blue Lagoon

The Blue Lagoon is dreamy; we’ll be the first to admit it. However, to save money on visiting Iceland, you should consider alternatives. You can read all about the Blue Lagoon  here , created using a factory’s thermal byproducts. But it is also worth looking at free hot springs you can visit in Iceland. Definitely look at alternatives to mainstream tourist attractions.

9. Skip Bottled Water

Skip the bottled water; seriously, Iceland has some of the purest tap water in the world. Bottled water is a massively unnecessary expense, so bring a refillable water bottle and cut the dollars you spend on your trip to Iceland. Of course, reducing plastics also helps the environment – a huge win-win situation. If you fancy going one step further, especially if you plan on camping, it is worth investing in a filter bottle, too, because then you can fill up from natural water sources like rivers and lagoons.

10. Book in Advance

Sure, there’s a time and place for carefree, last-minute travel. But if you want your trip to Iceland to be budget-friendly, try something other than this travel style while trying to reduce your Iceland trip cost. The more you book in advance, the more options you’ll have regarding accommodation and tours. Since these things sell out fast, with the cheapest options going first, you can shoot yourself in the foot by waiting. Check out refund policies and rebooking flexibility if you are worried about committing too far in advance – just don’t wait until the last moment and bank on finding budget alternatives.

To Conclude

Your Iceland trip cost might depend on what you decide to do on your trip to Iceland. Still, this guide gives you a pretty clear idea of an average Iceland trip cost. By considering all of these factors – accommodation, food, transport, airfare, and tours – you’ll have a ready-made budget for visiting Iceland. And if you use some of our budgeting tips, you might even save some money. Who doesn’t want to knock a chunk off one of the world’s most expensive destinations?

Are you looking for more Iceland inspiration? Check out these  fun facts  ahead of your holiday to Iceland. We also have a guide dedicated to the  best things to do in Reykjavik  – Iceland’s walkable and vibrant little capital city. Don’t forget to explore Reykjavik, even if you head off on a week-long road trip around the rest of Iceland.

Plan Your Next Trip To Iceland With These Resources

• South Coast of Iceland: 31 Best Things to Do and See
• 22 Best Things to Do in Iceland
• Best of Iceland’s Ring Road – GLACIERS, VOLCANOES AND WATERFALLS
• The Blue Lagoon Iceland – Your Ultimate Guide
• 30 of the Best Places To Visit In Iceland

Travel Planning Resources

Looking to book your next trip? Why not use these resources that are tried and tested by yours truly.

Flights: Start planning your trip by finding the best flight deals on Skyscanner

Book your Hotel: Find the best prices on hotels with these two providers. If you are located in Europe use Booking.com and if you are anywhere else use TripAdvisor

Find Apartment Rentals: You will find the cheapest prices on apartment rentals with VRBO . 

Travel Insurance: Don't leave home without it. Here is what we recommend:

• Allianz - Occasional Travelers.
• Medjet - Global air medical transport and travel security.

Need more help planning your trip? Make sure to check out our Resources Page where we highlight all the great companies that we trust when we are traveling.

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3 thoughts on “How Much Does An Iceland Trip Cost in 2024: Detailed Budget Breakdown”

massive post, Useful And Helpful Thankyou.

what i observed after my trip is getting around Iceland can be pricey, but it depends on your chosen mode of transportation.

Is Iceland expensive? Essential Insights for Travelers

Iceland often raises questions about the cost of visiting. With its own currency, the Krona (ISK) , and a relatively small population, Iceland’s economy is distinct, influencing the cost of travel-related expenses.

Is traveling to Iceland really that expensive?

Accommodation, transportation, and dining out are among the primary expenses travelers face, with prices comparable to major cities in the US and Europe . However, the value of experiencing Iceland’s natural beauty and cultural offerings can outweigh the financial costs for many travelers.

A Quick Overview: The Financial Aspect of Iceland

Embarking on a journey to Iceland can be an adventure of a lifetime, and it doesn’t necessarily mean emptying your wallet. By carefully planning your trip, you can immerse yourself in the breathtaking landscapes and vibrant culture of Iceland without overspending. Affordable flights are readily available thanks to budget airlines, and accommodation choices range widely to suit every budget level.

Although some travel expenses in Iceland, like eating at restaurants and participating in guided tours, tend to be on the higher side, there are ample opportunities to cut costs without sacrificing the richness of your travel experience.

To give you a clearer idea of what to expect budget-wise, we’ve compiled a list of common travel expenses in Iceland. This will help you plan your finances better and ensure a memorable trip without financial strain.

Seems Costly – But how expensive is Iceland to travel?

The cost of exploring Iceland can vary significantly based on individual preferences and travel styles. Accommodation ranges from budget-friendly hostels to luxurious hotels, with prices reflecting the level of comfort and amenities offered.

Transportation costs can be mitigated by opting for car rentals over expensive tours, allowing for more flexibility and potentially lower overall expenses. Dining out in Iceland can be costly, but travelers can save by cooking their own meals or choosing budget-friendly dining options.

In Iceland, the allure of its stunning landscapes and unique experiences attracts travelers from around the globe, particularly during the high season. As demand for accommodations, tours, and activities surges, so do the prices. During this peak period, typically from June to August, everything from hotel rates to rental car fees tends to increase significantly.

Navigating Iceland’s High Costs: Strategies for Budget-Savvy Travelers

Explore iceland’s no-cost attractions.

Iceland is a treasure trove of natural wonders, many of which are accessible without any charge, offering an affordable way to immerse yourself in the country’s breathtaking landscapes.

The allure of Iceland’s no-cost attractions lies in their sheer variety and accessibility. From the thunderous roar of Gullfoss Waterfall and the spouting majesty of the Geysir geothermal area to the serene beauty of Thingvellir National Park, these sites provide a gateway to experiencing Iceland’s raw, untouched beauty firsthand. Venturing into the land of fire and ice, visitors can discover black sand beaches, rugged lava fields, and mesmerizing glacier lagoons.

These attractions not only offer a glimpse into the natural forces that have shaped the island but also allow for an array of activities such as hiking, bird watching, and simply soaking in the panoramic views—all without the burden of admission fees.

Embracing these free experiences enables travelers to connect with Iceland’s environment in a profound way, ensuring that the memories made are as lasting as the landscapes themselves.

Opt for Car Rental Over Pricey Tours

Choosing to rent a car in Iceland opens up a realm of possibilities for adventure and exploration that tours simply can’t match, both in terms of flexibility and cost-effectiveness. This approach to travel empowers visitors to curate their own Icelandic journey, free from the constraints of scheduled tours and the preferences of a group.

For those considering this option, exploring the best car rentals in Iceland can provide valuable insights into finding a vehicle that suits your travel needs and budget. With the right car rental, you have the liberty to design an itinerary that includes everything from the most famous waterfalls and geysers to the most secluded natural wonders, ensuring your trip is as unique as Iceland itself.

With a personal vehicle, you have the liberty to linger at sites that captivate your interest, seek out hidden gems beyond the well-trodden tourist paths, and adapt your itinerary on the fly to accommodate weather conditions or local recommendations.

This do-it-yourself ethos doesn’t just translate to a more personalized and intimate experience of Iceland; it also significantly reduces the financial outlay associated with guided excursions. By directing the budget saved from forgoing expensive tours towards car rental and fuel, travelers can access a wider range of Iceland’s wonders at their own pace.

Moreover, the act of navigating Iceland’s scenic routes offers its own rewards, from the freedom to stop at impromptu lookout points to the thrill of discovering your own route through the island’s dramatic landscapes.

Strategies to Reduce Your Stay Expenses

Reducing accommodation costs in Iceland doesn’t mean you have to compromise on the quality of your stay. One effective strategy is to select accommodations equipped with kitchen facilities. This option is not only budget-friendly but also offers a taste of home, allowing travelers to prepare their meals and save significantly on food expenses, which can be quite high in Iceland.

Cooking your meals, especially with locally sourced ingredients from Icelandic supermarkets, adds an authentic touch to your travel experience, enabling you to explore the country’s culinary culture firsthand.

Camping is another popular strategy for cutting down lodging expenses, especially during Iceland’s warmer months. Iceland’s camping culture is robust, with numerous well-maintained campsites located in some of the country’s most stunning natural settings.

This option not only is wallet-friendly but also places you closer to nature, offering unique experiences like waking up to breathtaking landscapes right at your doorstep. With the right equipment, camping in Iceland can be a memorable part of your adventure, blending affordability with the allure of the great outdoors.

Prioritize Value Over Mere Cheapness

When it comes to choosing accommodations and activities in Iceland, aiming for the best value rather than the lowest price can significantly enhance your travel experience. It’s important to assess what each option offers in terms of location, amenities, and unique experiences.

For instance, spending a bit more on a hotel or guesthouse that includes breakfast and is located in a prime area close to major attractions can be more cost-effective than a cheaper, out-of-the-way option that incurs additional transport costs.

Similarly, when booking activities, consider those that offer the most enriching experiences, even if they come with a higher price tag. An expert-guided tour of a glacier or a small-group excursion to remote parts of the island may offer more in-depth insights and personalized attention than cheaper, mass-market options.

These experiences not only provide better value but also create lasting memories that are worth the extra investment. In Iceland, where the natural landscape and cultural heritage are so integral to the travel experience, prioritizing value over mere cheapness can lead to a more fulfilling and immersive journey.

Consider the Adventure of Camping

Camping is not only an affordable accommodation option but also an adventure that brings travelers closer to Iceland’s natural wonders.

Economize by Shopping at Local Supermarkets

Buying groceries and preparing your own meals can significantly reduce food expenses. Local supermarkets offer a range of products at lower prices than dining out.

Leverage Public Transportation for Savings

In Reykjavik, public transportation is a cost-effective way to get around. For those exploring beyond the capital, renting a car may be more economical than relying on taxis or tours.

Minimize Alcohol Expenses

Alcohol is expensive in Iceland due to high taxes. Travelers can save by purchasing alcohol at duty-free stores upon arrival or enjoying local happy hours.

Avoid Extravagant Shopping

While Iceland offers unique shopping experiences, prices for clothing and souvenirs can be high. Travelers should budget accordingly and prioritize experiences over material goods.

Yet, Remember to Reclaim VAT on Significant Buys

For larger purchases, travelers can reclaim the Value Added Tax (VAT) at the airport, potentially saving a significant amount on expensive items.

Chase the Northern Lights with the Aurora Forecast App

The Northern Lights are a must-see in Iceland. Using the Aurora Forecast app can help travelers plan their viewing without the need for expensive tours.

Save in Reykjavik with the City Card

The Reykjavik City Card offers free or discounted access to many of the city’s attractions, as well as public transportation, making it a great way to save on urban exploration.

Experience the Local Swimming Pools

Iceland’s geothermal pools are a key part of its culture. Many towns have affordable public pools that offer a relaxing and authentic Icelandic experience.

Plan Your Visit During Off-Peak Seasons

Traveling during the shoulder seasons (spring and fall) can result in lower prices for flights, accommodations, and some activities.

Invest in a Bus Passport for Travel

For those not renting a car, a bus passport can offer unlimited travel on certain routes, making it an economical way to explore the country.

Budgeting for Iceland: Daily Expense Guides for Different Travel Styles

Travelers to Iceland can expect daily expenses to vary widely based on their travel style. From budget-conscious backpackers to luxury seekers, Iceland offers options to suit every preference. By carefully planning and utilizing cost-saving strategies, visitors can enjoy Iceland’s unique attractions and experiences without overspending. Affordable flights are readily available thanks to budget airlines, (from both Europe and North America)  and accommodation choices range widely to suit every budget level. (camping, hostel, farmstay, guesthouses, hotels 2 to 5 *)

Understanding Iceland’s Expense: Key Points for Prospective Visitors

Iceland’s reputation as an expensive destination is not unfounded, but it shouldn’t deter prospective visitors. With careful planning and a willingness to explore budget-friendly options, travelers can experience the best of Iceland without excessive spending. The key is to prioritize experiences, make smart choices, and embrace the adventure that Iceland offers.

After all, how costly is a trip to Iceland?

The cost of a trip to Iceland can widely fluctuate, largely influenced by individual choices in lodging, food, transport, and activities.

Despite Iceland’s reputation for its steep cost of living, strategic planning can enable travelers to navigate expenses effectively. For instance, choosing accommodations with kitchen facilities or opting for camping can substantially reduce lodging expenses.

Preparing meals instead of dining out, selecting car rental for greater flexibility and cost-efficiency, and carefully choosing activities for the best value can keep the budget in check.

By prioritizing experiences and informed decision-making, it’s feasible to explore Iceland’s stunning landscapes and rich culture on a budget of around $100 to $150 per day for a mid-range traveler. This approach ensures a balance between cost and experience, allowing visitors to immerse in Iceland’s beauty without overspending.

Frequently asked questions: Is Iceland expensive?

How much does a meal cost in iceland.

A meal in Iceland can range from $15 to $30 USD for an average plate at a restaurant. Prices can be higher in tourist areas and for fine dining experiences.

Is Iceland expensive for Americans?

For Americans, Iceland can seem expensive due to higher prices for food, accommodation, and activities compared to the US. However, with budgeting and planning, the costs can be managed.

Is Iceland cheaper than the US?

Overall, Iceland is more expensive than the US, particularly in terms of dining out, groceries, and alcohol. Accommodation and transportation costs can also be higher.

What is expensive about Iceland?

The high cost of living in Iceland affects prices for tourists, making accommodation, dining, and activities more expensive compared to many other destinations.

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Travel to Iceland

Tours & Vacation

• Dec 29, 2022
• 10 min read

Is Iceland expensive? Cost of a trip to Iceland

Updated: Feb 8, 2023

It is a well-known fact that Iceland will probably be one of the most expensive trips you’ve ever taken. But there’s a lot more to the question “is Iceland expensive?” than travelers think and there are a lot of misconceptions that visitors to the island are plagued with.

In this article, we want to set the record straight so that you properly understand how relative the concept of “expensive” is here, what you can expect, and how to budget accordingly for the trip of a lifetime.

How Expensive is Iceland?

As we touched on earlier, the term “expensive” in Iceland is relative. Iceland officially ranks as the 9th most expensive country in the world.

But if you ask a local whether they think Iceland prices are extravagant, they will admit that it’s definitely pricier compared to the rest of the world.

This is because Icelanders place a high value on each other and their quality of life. You’ll need to search pretty far and wide to find someone to accuse of exploiting or lowballing an employee with their salary. It also helps a lot that residents can enjoy high quality education almost completely free of charge and very affordable healthcare.

But when we switch the question to “is Iceland expensive to visit?” the answer changes completely. And exactly how expensive you experience the island, is impacted by a few factors:

Peak tourist season in Iceland is during the summer months (late June to late September). During these months, the average cost of a trip to Iceland accompanied by any/all attractions and activities on your itinerary will be much higher than the rest of the year.

Which Country You’re From

The punch your pocket takes differs from country to country due to exchange rates. Someone coming from Austria with Euros will definitely feel the punch way less than someone coming from Brazil with Reals.

The Size of Your Group

A solo trip to Iceland will definitely cost you more than if you’re two sharing the costs or when you’re part of a group booking and certain discounts may apply.

The Length of Your Trip

Going to Iceland for a 1-week trip will obviously cost less than a 2-week trip to Iceland will cost (unless you’re the absolute king or queen of frugal living).

Your Expectations

If you’ve just come from Thailand where a t-shirt costs just $5, you might find that your expectations are a bit unrealistic about how much a trip to Iceland costs.

What Makes Iceland Generally More Expensive?

It’s not that the island suddenly woke up one morning and decided to overcharge everyone because they just wanted to make more money. There are very legit reasons why prices in Iceland can be pretty steep:

Iceland is a Small, Sub-arctic Island

One cannot possibly expect a small, remote, sub-arctic island to be an agricultural giant. And even though Iceland has managed to produce roughly 65% of its own food and drinks each year, they still heavily rely on importation from countries such as the UK, Germany, the US, and Norway.

As you can expect, importation cost is nothing to scoff at leading to inflated prices to cover the expense.

Iceland Doesn’t Do Exploitation

This may seem harsh, but the proof is in the pudding. Just because exploitation is not so apparent in other countries, doesn’t mean it’s prevalent. This becomes clear when looking at Iceland and its labor practices.

The island is almost completely unionized (92% of the working force, to be exact). This means that even traditionally low-wage jobs earn a higher basic wage. You will struggle to find a job paying less than $15 an hour. And, obviously, these higher salaries need to be incorporated as business expenses in the prices of products or services.

VAT in Iceland ranges between 11-24% depending on the product. To put this into perspective; Germany charges between 7-19%. But there is some good news for visitors to the island. If you come from abroad, you might be eligible for some VAT refunds.

Iceland Relies on a Smaller Consumer Pool

The island has a population of just under 400 000. In comparison to even just one US state of under 600 000, you can see that it could become a struggle to survive. With less demand comes inevitably increased prices in an effort for businesses to stay afloat.

A Sudden Population Surge

Even though Iceland most certainly takes advantage of summer peak tourist seasons, most of the increased prices over summer months are not because of opportunistic business practices.

As a small island with limited resources, the sudden (and incredibly drastic) increase in the populace makes the demand too big for the supply. To give you an idea; the population on the island can increase by 40% during these peak season times! So, once again, the rule of supply and demand applies.

What You Can Expect From Iceland Prices

For you to manage your expectations and plan your trip’s budget, we’ll go through some of the ball-park figures you can expect for some basics as well as popular attractions and activities on the island:

Flights prices to Iceland

As with most flights around the world, prices also fluctuate based on seasons and peak tourist times. But the following should give you a rough idea of Iceland round-trip costs:

India to Iceland trip cost = $1200 per person

Cost of a trip to Iceland from the US = $800 per person

Iceland trip cost from Canada = $1000 per person

Accommodation prices in Iceland

If you’re wondering “is Iceland expensive to visit?” you should probably not start your research off with accommodation as it just might put you off the trip completely. Accommodation will definitely be the most expensive part of your holiday. But how expensive will depend on the type of accommodation you opt for:

A hostel/backpackers = $35-$50 per person per night

A hotel = $100 - $300 per room per night

Airbnb = $200 - $300 per unit per night

Campsites = $10 - $20 per person per night

For obvious reasons, it will benefit you if you’re two sharing a hotel room or Airbnb.

Transport prices in Iceland

Of course, the transport budget will look different to those staying in and around the capital city vs. those who go on self-exploration excursions across the island. But these figures should give you a good idea of what to expect:

Car rental = $40-$50 per day + $90-$100 per full tank of gas

Public bus = $3.50

Public ferry = $13.50

Airport shuttle = $35

Food cost in Iceland

Feeling peckish? The following should offer you enough variety as well as cost options:

The self-catering/grocery route = $15 per person per day

Restaurants = $25-$30 per meal

Once again, being 2+ individuals that can share bigger self-made portions of food will be a definite budget benefit.

Activities & Attractions cost in Iceland

Many activities and attractions in Iceland such as the 10 000 Iceland waterfalls and the myriad of hiking trails are completely free of charge. But there are certain activities and attractions that will need you to open your wallet.

And, unfortunately, with some of the most notorious tourist attractions, maybe remortgage the house (just kidding, but almost). Here’s what you can expect price-wise when you’re out and about on the island:

Cost of a Road Trip in Iceland

We strongly believe that the best way to discover Iceland is by making a road trip out of it. There are many popular road trip routes on the island to choose from including the Ring Road, the Golden Circle, the Westfjords Way, the South Coast Way, and the Arctic Way.

Each will cost you different amounts depending on which you choose and the vehicle you’re doing it with.

But, for example, an Iceland Ring Road trip will cost you roughly $195 in gas. If you add on some of the most popular activities and attractions along the route, you’re looking at $720-$900 per person sharing (if you’re two) or $1070 - $1300 if you’re road-tripping solo.

Cost of The Blue Lagoon

Due to the volcanic activity on the island, Iceland boasts hundreds of natural hot springs that can either be used free of charge still in their natural form or as one of the geothermal public pools.

Probably the most infamous of these hot springs/pools is the Blue Lagoon . In fact, it’s so famous for its unique aesthetic that it’s been used in many movies such as Hostel and Star Trek. As an added benefit, those visiting the lagoon can choose between just taking a soak in its healing waters with a free silica-rich mud mask or opting for the real spa deal.

Of course, the various options at the Blue Lagoon come with various price tags and will impact the overall Blue Lagoon trip cost:

Blue Lagoon Comfort Package (entry, mud mask, use of towel, drink) = $59

Blue Lagoon Premium Package (entrance, mud mask + 2 additional, use of towel, drink, use of bathrobe, glass of sparkling wine) = $76

Retreat Spa Luxury Package (5 hrs access to the spa, private changing room, unlimited access to the exclusive Retreat Lagoon as well as the Blue Lagoon) = $408

Airport Shuttle direct to Blue Lagoon = $23

Cost of Tours in Iceland

An island that has such majestic and unique landscapes and so many natural wonders, it’s no surprise that you can’t turn a corner without bumping into another tour operator offering specialized and guided tours.

There are many things that you really don’t want to miss out on because of budget constraints due to bad planning. So here are a few of the must-do items you should have on your itinerary and what they cost:

Northern Lights

The Northern Lights is a beautiful neon light display that can be seen in the northern and southern hemispheres. Iceland is definitely a favorite viewing destination when it comes to this light spectacular.

Many opt to DIY their Northern Lights hunt, but since the phenomenon requires very specific conditions to come out and play. We suggest that you book a spot on a tour that’s led by experienced guides who are local and know exactly where and when to catch this amazing sight.

Iceland Northern Lights Trip Cost: $50-$100 per person per tour

Puffin Watching tours prices in Iceland

The Iceland Puffins are definitely not to be missed when they are on the island. These funny little penguin-like birds with their colorful beaks make the island their home every breeding season. In fact, Iceland boasts 60% of the global population of Puffins! Tours can be done via land and sea depending on the region you’re in.

Puffin tour cost: $45 - $100 per person per tour

Whale Watching tours prices in Iceland

Whales can be seen all year round, especially in Husavik (known as the whale capital of Iceland). But just like with the Puffins, many migratory whales also call the island home from April to September. Whether you opt to go whale watching in or out of season, there are plenty of tours available to go whale spotting.

Whale watching tour cost: $90 - $150 per person per tour

Ice Caves tours prices in Iceland

The ice caves are a seasonal attraction. Due to safety concerns (ice melts, remember?) the caves are only open during the cold winter months.

Ice cave tour costs: $150 - $300 per person per tour

Volcanoes tours prices in Iceland

You need to at least say that you saw both sides of the Land of Fire and Ice. Whether you decide to visit an old crater, a sleeping giant, or an active volcano with warm lava running across the earth – you will find the tour for you.

Volcano tour costs: $70 - $400

Tips on Keeping Costs Down

The following are some helpful tips on how to keep costs down during your trip to Iceland:

Always way up your options according to prices. What’s going to be more budget-friendly without cramping your specific style? Staying at a hotel, hostel, or campervan? And where should you eat? A restaurant, food truck or just grab some ingredients at the supermarket?

If you are planning on going camping (especially if you’re a family) the Camping Card is going to be a complete budget-saver for you. A Camping Card costs just €159 and will give a family of 2 adults and up to 4 children access to various camping sites all over the island for 28 nights!

Take a glance back at our accommodation section and do the maths. How much are you going to save?

Why not opt for a campervan? This is a very affordable and clever way of ticking off both the accommodation and transport boxes. And if you buy a Camping Card to park at various camping sites it’ll not only be one of the most adventurous road trips of your life, but also the most affordable!

Ask your car rental agency if they have any special offers, discounts, or vouchers they can share with you. Most rental agencies on the island have close connections and partnerships with other businesses in Iceland. Due to this business relationship, they often give rental agency clients a few extra perks that other travelers can’t get.

Do not buy any bottled water. Not only will you be wasting your money, but you’ll probably get a few giggles from locals. Iceland has some of the purest water on the planet because of its natural spring and glacier water and this water accounts for 95% of the tap water.

Because of the high quality of the island’s H2O, the water doesn’t need to be treated and contains no purification chemicals such as chlorine or nitrate.

This is probably the only place on earth where we will encourage you to pick up hitchhikers and have them pay their way. As the official safest country in the world (again), you can leave those horror movie thoughts behind when you someone’s looking for a ride. It’s a great way to save on some gas money.

Don’t grab a taxi. Taxis get really expensive, really fast. Make use of public transport or rent a vehicle.

Are you just itching for a good night out? Then why not go back to a student mindset and be on the lookout for places offering Happy Hour?

If you want to save money on food and are opting to make most meals yourself, then avoid shopping at 10-11 for your groceries. It is known as the most expensive grocery store on the island.

Whilst many have hot springs like the Blue Lagoon and the Myvatn Nature Baths on their Iceland bucket list, there are many cheaper options (even free!) alternatives that are just as special and unique (if not more so). Rather visit the cute Kvika Footbath or the Reykjadalur Hot Spring Thermal River.

Now That You’ve Got a General Idea about how expensive is Iceland

By now we should’ve answered your question “is Iceland cheap?” or “is Iceland expensive?” With the help of this article, you’ll now be able to properly plan and determine your travel budget to Iceland. Generally speaking, a trip to Iceland solo costs at least $250 per day.

A trip to Iceland for 2 will always be a more cost-effective solution as you will end up sharing most expenses. If you’re a family coming to vacation on the island, you’ll be spending roughly $1000 per day. But follow our helpful tips on keeping your budget low and you’ll get much more bang for your back when you travel to Iceland . See you on the island soon!

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How Much Money Do You Need to Visit Iceland (+ Tips How To Travel Cheaper)

By Author Jurga

Posted on Last updated: March 14, 2024

Whether you are traveling to Iceland soon or just starting to plan a trip, you have probably already heard it hundreds of times – Iceland is very expensive. But how expensive is Iceland actually? And how much money do you need for a trip to Iceland?

I often say that the definition of what’s expensive is different for everyone. It depends on where you come from and what you are comparing with. However, when it comes to budgeting for Iceland, no matter where you come from, or what you compare it to, traveling in Iceland is expensive .

Still, to help you budget your trip and get a better idea of how much money a trip to Iceland costs, I want to show you some real-life examples of how much everything costs in Iceland . This article contains lots of real-life examples of prices in Iceland. This way you can better estimate how much money you need to visit Iceland.

READ ALSO: Best Things to Do in Iceland

Disclaimer. Note that the prices indicated here are correct at the time of the last update. The exchange rate is used just for your information, but the currency rate fluctuates quite a lot. You can check current exchange rates on Google .

Iceland money FAQ

Before we continue with some real-life examples of how much everything costs in Iceland, here are some practical tips and answers to the most frequently asked questions in regards to money and budgeting for a trip to Iceland.

Icelandic currency is the Icelandic króna (ISK). Depending on the current exchange rate, 1000 ISK is about 7-9 USD.

No, you cannot pay in US dollars or in Euro in Iceland. Icelandic króna (ISK) is the only currency officially accepted in the country. You could, for example, use these currencies to tip the tour guides. We advise using your credit card for all payments in Iceland.

No, you don’t need any cash in Iceland. And yes, you can pay everywhere by debit or credit card. Note that some places (such as unmanned petrol stations) only accept credit cards with a 4-digit pin.

No, tipping isn’t common in Iceland. However, it is appreciated. If the service is extremely good, you may tip 10% at upscale restaurants, but it’s really not customary. Tour guides generally expect a small tip.

While some places will accept these cards, they are not as widely used in Iceland as Visa or MasterCard. So to be sure that you can use it everywhere, better take Visa or MasterCard with you.

Iceland has a reputation of being a very expensive country. However, in recent years, the Icelandic currency has weakened a lot and the prices now are very comparable to those in Western Europe. You can find more information and price examples below.

While credit cards with a pin are widely used in Iceland, you will be able to use your ‘regular’ American credit card at most places as well. If, however, you need to get gas at an unmanned petrol station, you will need a card with a pin. You can avoid this by purchasing a prepaid fuel card from one of the bigger petrol stations upon arrival in Iceland and using it at all the gas stations from the same group throughout the country.

TIP:  If you don’t have a good credit card for travel, check out this selection of  the best American credit cards for travel . I recommend choosing  a card with no foreign transaction fees .

FREE things to do in Iceland

Before we continue with the price examples of what food and other things cost in Iceland, you should know that some things are actually free of charge. The best things in Iceland are free of charge!

• For example, visiting natural landmarks is FREE in Iceland, – there are no National Park fees or similar.
• There are quite some natural hot tubs in Iceland that are free to use for everyone. Note that most of them require some hiking.
• Another thing that is free of charge in Iceland is drinking water . Tap water is really tasty, so don’t forget to pack your reusable water bottle to Iceland. You can also ask for tap water at the restaurants and normally they don’t charge for it.
• There are no toll roads in Iceland, so all the roads are free of charge. The only place where you need to pay (at the time of writing) is Vaðlageiðargöng Tunnel, near Akureyri. However, you can also choose to drive through the mountains (in summer, just 10-15 minutes extra) and skip the tunnel altogether.
• Bathroom facilities at most petrol stations and at most landmarks are free of charge. Some places ask for a fee and it’s becoming more and more common in the busiest tourist areas.
• There are also some free attractions . Here you can read more about  free things to do in Reykjavik .

LEARN MORE: Top Places to Visit in Iceland

How expensive is it to rent a car in Iceland

Renting a car in Iceland can be quite affordable or it can cost you a fortune. A lot depends on the type of car that you rent, the season when you travel, but also on how long in advance you book it.

I just checked a couple of different dates to use as an example. These are base rates, if booked months in advance, not taking into account any additional insurance.

• The cheapest tiny rental car in the low season will cost from about 300-400 USD/week. Renting the same car in high season will cost from 800 USD/week.
• A small 4WD (Dacia Duster or similar) will cost from about 350 USD/week in the low season, and about 1,000 USD/week in high season.
• Estate cars (large cars, ideal for 4-5 people and luggage) cost about 400 USD/ week in the low season, and over 1,000 USD/ week in the summer.

TIP: Make sure to read the small letters and compare different providers. Additional insurance costs and all kinds of extras might mean that the cheap car rental turns out to be more expensive than you first thought.

How to save money when renting a car in Iceland:

• Book well in advance . In general, the earlier you book, the cheaper your rental car will be. On top of that, when booking online in advance, you can compare the prices, what’s included, and find the best car rental deal for your trip to Iceland. We always use this website for all car rentals anywhere in the world, also in Iceland AND we always take full insurance offered by them (this is much cheaper than paying it at the counter in Iceland).
• Pick up your car at Reykjavik airport . This will save you some expensive airport transfers to town. Reykjavik is not the place where you need to stay longer than half a day or a day, so if you are already renting a car, rent it for the whole duration of your trip.
• You don’t really need a 4WD if you are only driving the Ring Road in Iceland in the warm months. It’s nice to have a car that is higher, so an SUV might be advisable, but in general, you can visit the main landmarks of Iceland in summer by regular car.

Good to know: If you are planning on visiting Icelandic highlands and driving on the F roads, or if you are driving in Iceland in winter , then you should definitely hire a 4WD or a 4×4.

Just remember, no matter which car you have, driving in Iceland in winter is dangerous and requires caution and skill. The weather changes quickly and so do driving conditions. 4wd might be very useful in case of snowstorms, but it doesn’t automatically mean you will be safe. Don’t let money be the main deciding factor in which car you rent for your trip and DRIVE SAFELY.

How expensive is petrol in Iceland

At the moment of the last update,  petrol prices in Iceland are around 320 ISK per liter (+-2.3 USD/liter or 8.75 USD/ gallon).

With the Icelandic krona being weaker, the exchange rate is quite good, and the fuel price is quite comparable to what it costs in Western Europe.

How expensive is car parking in Iceland

Car parking used to be free pretty much everywhere in Iceland, but this has changed.

Most natural landmarks still have free parking, some others charge a small fee. For example, car parking at Seljalandsfoss waterfall costs 900 ISK (6.5 USD) for a regular car.

Parking costs in Reykjavik city depend on where exactly you want to park your car. Parking inside the most expensive zone in the city center will cost you about 3 USD per hour, a bit further – about half the price, but outside of the city center, you can still park your car for free.

TIP: Download the Parka app – it makes paying for parking in Iceland simpler.

How expensive is public transport in Iceland

Public transport is, in general, not the best option to get around Iceland. There is a good bus network in Reykjavik town, and a regular fare inside the city costs about 630 ISK (4.5 USD). A one-way ticket on bus 55 that connects Keflavik airport to Reykjavik town costs 2280 ISK (17 USD). It’s much easier and faster to book this shuttle bus .

There are public transport connections between major towns in Iceland, but, once again, it’s not the best way to see the country since the most beautiful places and natural landmarks cannot be reached by public transport.

You can find all the practical information about public transportation on the website of Straeto , the Icelandic public transport company.

How expensive is a taxi or airport transfer in Iceland

A local once told me that taking a taxi isn’t all that expensive in Reykjavik. But the few times we took we found that it was expensive – like 20 USD for a 5-minute ride. I also heard people complain that they were charged about 200-250 USD for a taxi ride from Keflavik airport to Reykjavik (about 45 minutes)… So we never tried it for bigger distances…

I guess it all depends on what you compare it with and also with how many people you share the cost.

TIP: It’s cheaper to book a taxi ride or a private transfer online in advance than just hop in a taxi, especially if you are traveling long distances. Most companies display the rates for airport transfers or other popular destinations around Reykjavik on their websites, so you know in advance how much it will cost.

If you are looking for cheap airport transfers , you should know that most shuttle bus transfers cost around 25-30 USD – see here . Private transfers around 150-200 USD (up to 4 people), but you have to book in advance !

READ ALSO: Reykjavik Airport Transfers

How expensive are hotels in Iceland

The price of accommodation in Iceland highly depends on the place and on the period when you are visiting. Here are just a few examples:

• A night in a double room at a really nice Fosshotel near Jokulsarlon glacier lagoon costs about 200-250 USD in November and about 500-600 USD in July. Breakfast not included (+-32 USD/ person if paid at the hotel, less if booked in advance).
• A night in a double room at Fosshotel Reykjavik costs 200-300 USD in November and 350 USD in July (+ breakfast).

In general, in the low season, you should count at least 200 USD per night for a 2-person room in a mid-range hotel in rural Iceland, and 250-300 USD in the more popular places and in Reykjavik. In the high season, expect to pay much more.

Of course, there are many more expensive options and also some budget accommodations.

You can find more suggestions and prices for your trip in our Iceland accommodation guide and also in our guide to Reykjavik hotels . Check it out!

How to save money on accommodation in Iceland:

• Book in advance! I cannot stress this strongly enough. The earlier you book, the more choice you have, and the better deals. The moment you know your travel dates, book your hotels.
• Check for the best available deals. We book 99% of all our accommodations on Booking.com . It’s so easy to find the best available deals for the location you’re looking to stay at. They have hotels, B&Bs, and self-catering accommodations all in one place.
• Travel in the low season . As you could see from the examples above, hotels in Iceland can be twice as expensive in summer.
• If you stay in hotels, book a room with breakfast included in the rate. It’s much cheaper than having to pay for breakfast afterwards.
• Book self-catering accommodation and save not just on accommodation, but also on food. Cooking, instead of dining out, will save you a lot of money in Iceland (you can find what food costs further down in this post). You can book an Airbnb, but in rural Iceland, you can find more self-catering accommodation options on Booking.com. Instead of hotels, try guesthouses , apartments , or cottages and cabins . Another option is just to go on the Booking.com  website, bring in your travel dates and Iceland as location, then in the ‘filter by’ section under ‘room facilities’ choose ‘kitchen/kitchenette’. Then click on the map and you’ll see all the available self-catering accommodation options.
• If renting apartments or houses from private owners, check for any hidden fees . Often, you have to pay a cleaning fee, bed linen fee, sometimes even wi-fi, etc. So unless you’re staying in such a place for a longer period of time, it might not be much cheaper than staying in hotels.

TIP: Using the map below, you can quickly get a good idea of how much your accommodation in Iceland would cost and compare all the best options . Simply insert your travel dates, location, and travel dates, and you’ll get an overview of what’s available. Check it out!

How expensive is camping in Iceland

The costs of camping in Iceland depend a lot on when you travel and how you decide to camp – using a tent, a small campervan, or a big motorhome.

Prices for a campervan vary a lot depending on the season, soaring from June through August. You can expect to rent a very small campervan from about 70-100 EUR per day; you’ll pay twice or even three times that price for a big motorhome or a 4×4 mountain camper.

Campsites in Iceland cost around 15-20 EUR per person per day, but you can also get a 28-day card for 2 adults and 4 kids for 179 EUR…

LEARN MORE: Camping in Iceland

How expensive are tickets for museums, pools, and other attractions in Iceland

As already mentioned, the most beautiful natural landmarks of Iceland are completely FREE to visit for all (please also see the section about free things in Iceland above). Also, children under 7 are often free of charge, older kids usually pay a seriously discounted rate, and some places also offer family tickets.

Here are some examples of entrance ticket prices of some popular attractions in Iceland:

• Hallgrímskirkja church tower (great views over Reykjavik): about 10 USD for adults and 2 USD for kids.
• Perlan in Reykjavik : around 40 USD for adults, kids between 6 and 15 – half price, free under 6.
• Skogar Museum (turf houses along Iceland’s South Coast ): about 20 USD for adults, kids under 12 free of charge, older kids half the price.
• Husavik Whale Museum: around 20 USD for adults, kids free of charge.
• The Herring Era Museum in  Siglufjörður : 16 USD.
• Blue Lagoon. There are different packages. A standard ticket with round-trip transfers from Reykjavik is about 150 USD (and you absolutely have to book in advance !).
• Sky Lagoon in Reykjavik – about 130 USD (also here, book well in advance !).
• Myvatn Nature Baths. Again, lots of different prices, starting from around 45-50 USD in the low season. Discounts for kids and seniors. You can check prices and book here .
• Local community pools usually cost around 5-10 USD, often very cheap or even completely free of charge for the children.

How to save money on activities in Iceland:

• Visit free attractions .
• Spend more time in nature . Seeing the most beautiful places in Iceland doesn’t cost anything.
• Visit community pools and skip expensive touristy baths. Not only are they cheaper and less busy, but they also have hot tubs, special kids pools and often even slides for the children.

How expensive are organized tours in Iceland

It’s difficult to put a price on tours in Iceland, there are so many different choices. In general, organized   day tours cost around 100 – 200 USD per person, depending on the tour and activities.

Some things you can do on your own or with a tour – seeing the Nothern Lights in Iceland is a good example of that. However, some other tours require a guide and cannot be done on your own. Some examples are glacier hiking, ice caving, whale watching, lava caves, etc.

Here you can find some of my hand-picked Iceland tours for all seasons and the best winter tours in Iceland . Here you can also find some really nice ideas for half-day tours from Reykjavik .

TIP: Also tours are best booked in advance. That way you can save money by comparing the best deals (and read customer reviews!) rather than blindly booking a tour suggested by your hotel.

For our own trips, we book pretty much all our day tours and organized activities via  GetYourGuide . It’s our favorite one-stop-shop for all organized tours because they have the best customer service and cancelation policy we have ever seen.

Booking directly with a local company usually means that you can’t cancel for free, let alone get a refund in case something goes wrong (as recent events and a few user-unfriendly local Icelandic companies have shown time and again…). For that, it’s always helpful to have a strong intermediary and GetYourGuide is the best one we know and personally use for all our trips.

READ ALSO: Iceland Itinerary for a Self-Drive Trip

How expensive is dining out in Iceland: food, drinks, alcohol

The sky is really the limit when it comes to restaurant prices in Iceland. Let’s just say that you can praise yourself lucky if you manage to find a hamburger or a pizza under 25 USD.

Most meals at dinner will be at least 40-50 USD. It’s not uncommon to find a 3-course menu that costs 150-200 USD in a restaurant in Reykjavik.

Hotels often have a set menu price, which will often start from 5000 ISK (45 USD).

That being said, we noticed that there is a very big difference in prices at the restaurants in Reykjavik, around the Golden Circle, and along the South Coast and those in the less popular areas like northern Iceland. While we could have a decent dinner for less than 100 USD for our family of 5 in the north of Iceland, it would often cost at least 50% more in the south…

Here are some food prices you can expect in Iceland’s restaurants. Remember, that restaurant prices can vary a lot, depending on the place. The prices indicated below come from non-fancy restaurants in Iceland.

• Hamburger: 2500-3500 ISK (20-25 USD).
• Small courses and appetizers: 1500 – 3000 ISK (13-26 USD).
• Pasta or pizza: 2300-4000 ISK (20-35 USD).
• Fish or meat dish: 4000-7000 ISK (35-60 USD).
• Dessert: 1200-2300 ISK (10-20 USD).
• Children’s meal (if you can find it): 1600-2500 ISK (14-22 USD).

Here are some average prices you can expect to pay for the drinks and alcoholic beverages at the restaurants in Iceland:

• Tap water is delicious and is FREE.
• Tea or coffee: 400-600 ISK (4-5 USD).
• Cappuccino, latte, and similar: 500-800 ISK (5-7 USD).
• Soft drinks and juice: 400-600 ISK (3.5-5 USD).
• Beer: 1050 – 1700 ISK (9-15 USD).
• Glass of wine: 1500-1700 ISK (13-15 USD).
• Bottle of wine: from around 5000 ISK (40 USD).

How expensive is food in the supermarkets and petrol stations in Iceland

Buying  food in supermarkets in Iceland can save you a lot of money. Here are just some examples of what food costs in the shops and petrol stations. It’s mostly fruit and snacks, but it gives you an idea of what to expect.

Food prices in Iceland:

• A hot dog costs 300-600 ISK (3-5 USD).
• Sandwiches cost about 990 ISK (8.5 USD).
• Bananas (1kg/ 2,2 lbs) cost 220 ISK (2 USD).
• Apples: 500 ISK (4.5 USD) for 6 apples.
• Small Skyr (Icelandic yogurt): 180-220 ISK (1.5-2 USD).
• Small pack of cheese: 700-800 ISK (6-7 USD).
• Small bag of cinnamon cookies: 480 ISK (4 USD).
• Sliced dark bread: 700 ISK (6 USD).
• Small pack of sliced meat: 400-700 ISK (3-6 USD).
• Orange juice: 360 ISK (3 USD)/ litre.
• Small bottle of water or soda: 260-300 ISK (2.5 USD).
• Small ready-to-eat snacks and salads: 1000 – 2000 ISK (8-17 USD).

How to save money on food in Iceland:

• Book accommodations with breakfast included .
• Buy food at the supermarkets and have picnics during the day. Not only does it save money, but also lots of time.
• You can find some small meals at the petrol stations along the Ring Road – usually much cheaper than in the restaurants.
• Pack a thermos and fill it with coffee or tea at your accommodation in the morning.
• Pack a reusable water bottle and refill it with tap water whenever you get the chance.
• Cook at your accommodation, order takeaway meals (in big towns only), or look for cheaper restaurants.
• Don’t drink alcohol . It will save you a fortune. Come on, you can do a week without it! You’ll be too tired after the whole day exploring outdoors anyway.

How much money would a trip to Iceland cost

How much would a trip to Iceland cost? As you can see from the examples above, this is a really tough question to answer. So much depends on when you travel, what kind of car you rent, which accommodations you choose, and how often will you be dining in restaurants. Also, traveling with 4 people will cost much less per person compared to traveling alone.

Nowadays, I would count at least 2000 USD per week per person in Iceland, not including the flights (and with at least 2 people sharing the room/car). A few years ago, my 1-week winter trip to Iceland cost about 1500 USD, staying in mid-range accommodations, dining out every evening, and doing just two paid excursions:  Iceland glacier hiking  and Blue Lagoon . These days, this budget is too low, unless you don’t do any paid activities and don’t go to restaurants every day.

If you travel in summer, stay in somewhat cheaper hotels, and dine out less, you’ll probably need at least $2500 per person for a week. In winter, you might be able to do it for a bit less. But if you want to stay at nicer hotels, visit several hot springs, and dine out every evening, it will probably be more like $3000-3500.

The best way to budget for your trip is by checking the cost of accommodations, rental cars, and guided excursions. Then add +-500 USD per week for food and other expenses. It won’t be exact, but it will give you a pretty good estimate of how much your trip to Iceland will cost.

TIP: One of the easiest ways to take a trip to Iceland without worrying about going over the budget, is to join an organized multi-day tour. That way you know exactly what the trip will cost; you just need to budget for the food. I wouldn’t necessarily do this in summer, as driving is easy and a self-drive trip is advisable. But if you are traveling to Iceland in winter , you can save yourself so many headaches by going on a multi-day tour .

Make sure to read what’s included before comparing tours, as some included excursions like glacier hiking, ice caving, or similar can make a big difference in price.

Shopping in Iceland

And finally, one last note and an often asked question by people planning an Icelandic trip – shopping in Iceland . Iceland is expensive and is really not the most suitable place to do shopping, especially if you are traveling on a budget.

Many tourists consider buying traditional wool Icelandic sweaters . Quality Icelandic sweaters can easily cost 200-250 USD and more in Iceland.

Note that souvenir shops are full of sweaters that are made in China and the quality doesn’t resemble much. If you want to get an authentic Icelandic sweater, check the store of Handknitting Association of Iceland in Reykjavik downtown. Another option is to look for sweaters from Farmers Market (it’s an Icelandic brand that has two stores in Reykjavik).

Amazon also sells some really nice Icelandic sweaters from the Icewear brand . Often, they are cheaper than in Iceland, and sometimes, you can also find hand-knitted sweaters online.

If you decide to buy an Icelandic sweater, do it at the beginning of the trip (or before even going there) – you’ll definitely need it in Iceland. For more suggestions on what to wear in Iceland, please check our Iceland packing tips for summer (June-September) and our Iceland winter packing list (end of September-May) .

TIP: If you buy any souvenirs or clothing in Iceland, don’t forget to ask for a Tax-Free receipt . You can claim the VAT back when leaving the country at the airport. Just keep in mind that it can take several months to get that money back. My latest tax-free claim took almost 5 months; I had long given up on it…

So, here you go. I hope that seeing these examples of prices in Iceland helps you budget for your trip to Iceland and know what to expect. Do you have any questions? Check our Iceland travel guide for more information! If you still don’t find an answer to your question, feel free to leave a reply below.

READ ALSO: Top Travel Tips for Iceland

Planning a trip to Iceland, but are not sure where to start? Check out these itineraries:

• 4 days in Iceland
• 7 days in Iceland
• Iceland’s Ring Road in 10 days
• 10 days in Iceland (off the beaten path)
• Iceland itinerary suggestions for any trip
• 1 day in Reykjavik

Some of our favorite lesser-known places in Iceland:

• Haifoss Waterfall  – amazing waterfall near the Golden Circle
• Siglufjordur  – probably the most beautiful town in Iceland
• Hvitserkur  – worth a detour when driving in northern Iceland
• Heimaey Island  – an amazing day trip in the south
• Grafarkirkja, Road 76, and Hofsos Pool  – hidden gems in the North
• Raudasandur Beach – red sand beach, unique in Iceland

Also the popular areas are full of hidden gems that most people never see. Here are some of our favorites with the detailed guides on what to see:

• Things to Do in Reykjavik
• Things to Do in Myvatn
• Things to Do in Snaefellsnes Peninsula
• Things to Do in Reykjanes Peninsula
• Things to Do in South Iceland

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Wednesday 28th of February 2024

I live in Iceland and my family is coming to visit from UK. This is the best and most update article I could find. All the prices and details are rwally helpfull. Thank you

Thank you for your feedback and glad to help!

Sunday 25th of June 2023

Can you take a large suitcase for in the planes hold hall as it's me and my grandaughters so was thinking of putting most of our stuff together and just taking back pack for under seats plz

@Jurga, Thank you I'm not flying till Oct but wud I be best contacting the airline now to arrange one large suitcase or arrange it thru the tour operator that I booked with Thank you

Hi Angela, yes, you can always check-in large suitcases and just take hand-luggage with you on the plane. However, how many bags you can take, size, weight, etc. depends on the airline you're flying with and the ticket conditions that you chose. So you have to check your ticket conditions and the website of the airline for more information on what you can take with you. Also, most airlines allow you to buy additional hold luggage online before your trip, so if it's not included in your ticket, you can always do that. Best to arrange this online in advance since it costs much more if you have to do it at the airport. Hope this helps.

Thursday 7th of April 2022

I may have missed this information in one of your responses. Can you let me know which supermarkets you recommend? I know there is one that's open 24 hours a day that is very expensive.

Thursday 14th of April 2022

Perfect. Thank you so much for your reply. I don't have a tight budget but I don't want to overspend on groceries if there are better options.

We personally just go to the supermarket that is closest to our accommodation when we need to get something. If you are on a really tight budget, you may want to check BONUS supermarkets, but in general, the choice of a supermarket shouldn't have such a huge influence on your overall travel budget.

Tuesday 4th of January 2022

how much currency would you recommend an individual should bring with them for a 7 day trip. Breakfast and dinners are provided, accommodation and transportation is already paid for. So I would only need cash for lunch and some small souvenirs.

@Jurga, I'm in Canada, would a Canadian credit card work or would I need to get a US Credit Card?

Hi Angela, as already mentioned in the article, unless you absolutely want to feel Icelandic money in your hands, you really don't need cash in Iceland. Everything can be paid by card. It's so much easier and you don't have to worry about how much cash to take from an ATM or how to spend it all at the end of your trip. Some people like to take some cash for tips for tour guides, but tipping isn't that customary in Iceland, and if you tip in USD or Euro, the guides will probably be just as happy as with local currency.

Thursday 20th of May 2021

Great info and details. Thank you!

Saturday 22nd of May 2021

Glad you found this useful, Malik. Have a great time in Iceland!

14 ways to experience Iceland on a budget

Apr 4, 2024 • 7 min read

Make your krónur go further in Iceland with these budget tips © Sam Spicer / Getty Images

Iceland is famous for its spectacular nature, but also for being spectacularly expensive.

However, you can save a buck while ticking things off your bucket list. DIY nature exploration costs more calories than money, pools are cheaper than lagoons, and some accommodation is comfortable for your wallet without being short on comfort.

Here are our tips on how to make your krónur go further in Iceland , along with a guide to daily costs.

Daily costs (during peak season)

Dorm bed in a hostel: 8000–10,000kr Basic room for two: 27,000–31,000kr Self-catering apartment (including Airbnb): 20,000–43,000kr Public transport ticket: 630kr in Reykjavík Coffee: 650–800kr Sandwich: 650–1800kr Dinner for two: 7000–24,000kr Beer/pint at the bar: 1500kr Swimming pools: 1200–1400kr

Average daily cost (three meals, accommodation and activities): 25,000–45,000kr

1. Pick the right kind of flight

Iceland is a convenient transfer hub, so there are many airlines and some good deals to be found. Search engines, like  Dohop or  Skyscanner , can help you find a fair-priced ticket to Iceland. Peak season months include June, July and August, so fares tend to be lower during other months – but there will also be fewer flights. Travelers from London Gatwick who want to explore the wonders of the North should consider flying direct to Akureyri  with EasyJet  instead of going via Reykjavík .

Ready to plan your trip further? Here's our guide to the best time to go to Iceland

2. Choose one region and explore it well

Driving the Ring Road is not a must. Save money on transportation by making one region your base camp and exploring it in detail, finding more peace and quiet and possibly discovering something unexpected. One region that works well for this is  Hvalfjörður about an hour’s drive from Reykjavík, close to Þingvellir National Park and many hiking routes , such as Síldarmannagötur over to Skorradalur valley and to Glymur waterfall (open in summer, only). In the North,  Eyjafjarðarsveit off Akureyri has farm-fresh food, horseback riding, quirky museums and hiking opportunities, including of Kerling mountain . If you’re not set on a specific destination, you could start by finding the most economical accommodation and make it your base camp in Iceland.

3. Embrace the elements in Iceland's national parks

Bring a tent and sleep at one of Iceland’s many  campsites . Some of them are located in nature reserves or national parks, such as Skaftafell and Ásbyrgi in  Vatnajökull National Park , and  Þórsmörk , a forested oasis in the southern highlands. National parks have free entrance and some of the most beautiful campsites, with costs around 2000kr per adult per night. You can also  rent a tent for as little as 1050kr per night. Mind that nights are chilly, even at the height of summer, so bring warm clothing and blankets. In other seasons, camping is for hardened adventurers only.

4. Road trippers should consider hiring an RV

If you’re planning a road trip, why not bring your bed? Hiring a camper/RV gives you increased flexibility. A two-person campervan costs around 17,000kr per day during peak season but prices sometimes drop to as little as 7500kr per night at other seasons. Two of the most popular companies are  CampEasy and  Indie Campers . However, you are required to stay at campsites overnight and pay the same rate as other campers. Note also that not all campsites are open year-round.

5. Consider budget hostels or farm stays

There are  18 HI (Hostelling International) hostels around Iceland, from hip urban settings to the middle of nowhere. The rooms are typically double or twin with shared bathrooms and kitchen facilities. The rate varies but is often around 20,000kr per night for a double room in the shoulder season and 30,000kr in the summer. You can find lower rates in the off-season but some hostels close. Also  check out KEX Hostel in Reykjavík,  Backpackers in Akureyri and  Tehúsið in Egilsstaðir, as well as farm stays , where you can learn about Icelandic rural realities while enjoying nature.

6. Summer travelers can stay at a boarding school turned hotel

Open in summer only, the Edda hotels (now part of the Iceland Hotel Collection by Berjaya) accommodates students the rest of the year. There are two: one in Akureyri in the North and one near Egilsstaðir in the East. You can get a double room with shared bathroom facilities for under 20,000kr in Akureyri. Both hotels are centrally located in each respective region and make for a good base for exploring nearby attractions.

7. Summer houses are good value for group travelers

Icelanders love countryside breaks in cottages, or summer houses, as they’re known, in every season. Many families have their own or rent one from their labor union, but it’s also possible to  rent a cottage  as a visitor – there are over 500 – a good option for larger families or groups. For a mini cottage experience, try  camping pods .

8. Look out for last-minute deals or home swaps

If you’re okay with being spontaneous, it could pay off to browse booking pages like  hotels.com or  booking.com . Sometimes a good deal pops up last-minute due to cancellations, which you can jump at if it fits your schedule.  Airbnb is an option, too, with a range of rooms to villas at a great price range. Icelanders Icelanders are avid travelers themselves, so if you're up for trading homes and even vehicles, try sites like Homelink and  Intervac .

9. Soak up Icelandic bathing culture as Icelanders do

Bathing doesn’t have to leave your finances feeling blue. Taking a dip in a chic spa bath costs around 7000kr, but in a public pool roughly 1000kr and children often swim for free. There are typically slides and always a hot tub. This is where the locals go, so it’s more of a proper Icelandic experience. Beachside hot tubs, popular among sea swimmers, are also an economical choice. These include  Nauthólsvík in Reykjavík,  Guðlaug in Akranes,  Drangsnes in the Westfjords , and Hauganes in the North.

10. Buy a Reykjavík City Card

The capital has a lot to offer and you can experience it all with  the Reykjavík City Card . The 24-, 48- or 72-hour-card gives you access to a large selection of museums and galleries, every swimming pool in Reykjavík, the Family Park and Zoo. It also functions as a bus ticket and includes various discounts. A 24-hour card costs 5040kr, which quickly pays off when you're sightseeing in the capital. You can even use it for the ferry to Viðey island and the bus to Mt Esja, popular for hiking.

11. Reserve eating out for special occasions

To save money, avoid cafes and restaurants and buy food at supermarkets ( Bónus ,  Krónan and  Nettó are the least expensive). Make lunch packs, have picnics and, if you have access to a kitchen, cook your own dinner. For alcohol, go to the state-run  wine store , or plan ahead and save money at  duty free . If you do want to eat out, you can sometimes find good deals, especially for lunch. For example, you can get the fish of the day and a soft drink at  Slippbarinn , Reykjavík Marina, for 2500kr. Also, most bars have happy hour.

12. Weigh up the cost of bus fares vs car hire and rideshares

Check bus routes for the Reykjavík area on  Straeto  and available payment methods on  Klappid . You can, for example, buy a 24-hour pass you can use 10 times, which costs 2500kr, while a single ticket costs 630kr. Children 11 years and younger ride the bus for free. If you’re traveling in a group, bus fares quickly add up so it could be cheaper to share a taxi, including from Keflavík Airport.  Hreyfill is one of the larger taxi providers. Also compare prices from car rentals, which are usually lower during offseason, and  car sharing . You can also  rent a bike or a scooter . In Akureyri, public buses are free and most other places are small enough to explore on foot.

13. A flight from Reykjavík to Akureyri can be cheaper than the bus

The bus from Reykjavík to Akureyri costs 12,540kr one way. If you’re lucky you can get a plane ticket for less (see  Icelandair ) and the flight takes 40 minutes vs a bus ride of 6.5 hours. However, you get the added bonus of a road trip experience and sightseeing out the window. If you’re planning a lot of excursions, it might make sense to rent a car or even join a tour. A lot of people take advantage of  car pooling .

14. Nature is right there, free to enjoy

Wherever you’re based, pay attention to the surrounding nature. Stroll the nearest beach, hike the nearest mountain, find the nearest forest (see Wapp for trails). When in doubt, ask the locals. In the capital area, Úlfarsfell, Heiðmörk or Grótta are many people’s favorite spots. In Akureyri, they might mention Kjarnaskógur or Krossanesborgir. In Egilsstaðir, Selskógur would likely come up. Iceland may be pricey, but the fresh air, birdsong, rustling of leaves, crashing of waves, mountain views and the connection with nature is priceless.

This article was first published May 2015 and updated April 2024

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Budget Breakdown: Real Cost of a Trip to Iceland

This post may contain affiliate links, meaning if you buy or book through one of these links, I may earn a small commission .

Curious about the real cost of a trip to Iceland? Perhaps you’ve heard about how expensive this Nordic island can be.  I had some initial sticker shock myself when booking our first trip to Iceland. 

After an initial high upon finding really good flights to Reykjavik, my husband, Aaron, and I were quickly brought back to earth when friends and family started warning us about how expensive of a place Iceland is. Talk about a buzz kill…

However, when I started planning my trip and actually got into the details, I realized there were definitely ways to manage our Iceland trip cost.  We just needed to plan out what we were willing to spend ahead of time, and then stick to it. 

Thanks to really good planning, Iceland was completely worth the visit and money well spent on mind-blowing and unforgettable experiences. In fact, Aaron and I just made a return trip in January 2022, if that tells you anything. Below, I am going into exactly what we spent, in order to help you understand what to expect when booking your own trip.

Here is our actual Iceland Trip Cost (in USD):

The above shows what my husband and I actually spent on a recent 4-day trip to Iceland .  Our budget was definitely not on a shoe-string, but also wasn’t luxurious. We prefer to select a few areas to splurge, while saving in other areas.

There are many factors that will make our actual expenses higher or lower than yours will be, which I am discussing below. For each category, I will suggest ways to reduce costs, as well as tell you what splurges are worth it. After all, doing some of Iceland’s bucket list-worthy experiences are worth the investment!

Travel Savvy Tip

Don’t look at this budget as a lump sum! That’s the quickest way to get intimidated and assume Iceland is unattainable. The truth is, you won’t pay the full amount at once. You’ll buy your flight, lodging, and rental car right away, and then likely pay nothing for a few months.

Once it gets closer to your trip, you’ll start looking at tours you may want to do, as well as make restaurant reservations. When you get back home from your trip, you’ll pay off any remaining vacay expenses you’ve incurred.

Breaking it into chunks like this is a much more approachable way to afford the cost of a trip to Iceland!

Iceland Trip Cost Breakdown:

Since Iceland is an island in the North Atlantic, you will need to arrive via plane into Keflavik Airport (KEF). Some major cities, like Boston and Chicago, offer direct flights to KEF, which is forty minutes outside Reykjavik, Iceland’s capital. 

Direct flights are best to take whenever possible, as they are normally the most cost effective. Once upon a time, Icelandair had a direct flight out of Cleveland, but that ended after a short six month stint. Unfortunately, Cleveland, like most other US cities, now requires a connection to fly to Iceland.

Here is what the $1,002.07 that my husband and I spent includes:

• $568.47 for both of our round trip flights from Cleveland to Boston.
• $433.60 for only my round trip flight from Boston to Reykjavik; credit card points covered Aaron’s entire flight.

To find the best fares, vigilantly monitor flights prices on Google Flights or Skyscanner around the season you are planning to travel.

Solo travelers should budget around $500-$700 total for airfare; everyone should read the below tips to avoid overpaying for flights :

• Be flexible with your travel days, as weekend flights can be crazy expensive. Play around with searching different departure and arrival days, and you’ll be amazed what a difference that can make.
• Travel during the low season (November through April), when there is an overall drop in prices.
• Last but not least, the tip that has helped me the most:  Sign up for a credit card with travel rewards points. We’ve gotten countless free flights thanks to our cards, simply due to points earned on every day purchases. We’ve had great experiences using both the  Capital One Venture  and the  Chase Sapphire Reserve .

Transportation

While it might not be necessary to rent a car while in Iceland, it is what I recommend doing.  Assuming you want to explore sights along the Golden Circle and South Coast, the alternative is paying for multiple bus tours. If you are traveling alone, the cost difference might not be huge, but it increases quickly when traveling in a group of two or more. 

The $590.56 Aaron and I paid above includes the following:

• $321.62 to rent an automatic, 4-wheel drive vehicle with snow tires. Consider using SADcars for inexpensive rental options.
• $16.97 for parking in Reykjavik. Even street parking in Reykjavik usually requires paying at a machine. Sometimes, certain sights do as well, although it isn’t common.
• $173.83 for gas. This is mostly due to my husband and I driving 10 hours roundtrip to the Jökulsárlón glacier lagoon.
• $78.14 taking Lyft to and from the Cleveland and Boston airports.

Try not to be too nervous about the unpredictability of Iceland’s weather. Checking road conditions here before going out is a huge help, as the site’s map shows you which roads are clear, slippery, and impassable. In bad conditions, you could still try to join a last-minute tour instead.

Also, joining a tour could ultimately be the overall best option for you, if you don’t mind exploring with a bunch of other people! There are plenty to choose from in Iceland, from a simple bus transfer to Reykjavik to touring the Golden Circle .

Solo travelers renting a vehicle will spend roughly the same as the above total.

A couple years ago, I would’ve said to hands-down book an Airbnb to save money. However, Airbnb isn’t quite the budget lodging option it once was, with fees constantly increasing.

The way things stand now, I would definitely consider both hotels and Airbnb’s, since prices can often be quite similar. For both options, generally the more outside of main tourist areas you stay, the lower room rates will be. Pricing is also cheaper during the low season, from November to April.

The price I have above of $1,519.50 includes the following:

• $1,302.20 for four nights at the Canopy by Hilton Reykjavik City Centre . The hotel was a little bit of a splurge, being chic and well-located in a part of town I really like. Hey, it was a birthday trip! Plus, we paid extra to include breakfast in our stay.
• $217.30 for one night at Fosshotel Glacier Lagoon . My husband and I were doing an early ice cave tour the next morning, so it made the most sense to spend the night on the South Coast.

Solo travelers would possibly pay the same as above for a similar room, or maybe even less for a smaller room. If you prefer hostels, there are several options in Reykjavik to choose from.

Choosing to prepare food rather than dine out during your Iceland stay could help save you money. However, beware that even groceries in Iceland are quite expensive, and will add up.

Bear in mind that this option works best if you are staying in an Airbnb with a kitchen. Of course, the mere fact of having a kitchen on our October 2018 Iceland visit didn’t motivate us to prepare food. We did eat breakfast in, but that’s only because we brought granola bars from home.

On our January 2022 trip, we stayed in a hotel and did not have our own kitchen for preparing food. Therefore, we didn’t bother with buying groceries during our stay. The $3.04 shown above was for water bottles purchased at a gas station while we were on the road.

Food & Drink

Food and drink is the category where if you’re not careful, your budget may start to unravel.  Food and drink can indeed be quite pricey in Iceland.  Think double of what you would typically spend for the same thing at home. 

There are several ways to spend less in this area, which I’ve listed below. While we put many of these into practice during our October 2018 trip, I will admit on our January trip to Iceland we threw it all out the window (it was my birthday!):

• Opt not to drink while in Iceland , although you may want to try at least a couple of their breweries.  Aaron and I are really into craft beer, so we knew this was an area we were would splurge in.
• Bring food with you from home .  We like to bring Cliff bars with us to eat as breakfast or snacks.
• Go to the grocery store and prepare lower cost meals at your Airbnb.  This is easier said than done, since it takes extra time and effort. On our 2018 visit, Aaron and I intended to do this, but we never made the effort to grocery shop.
• Feeling extreme? Do what a friend of ours did and just eat ramen for four days.  Not really our style, since food is a big part of travel for us, but to each their own.

I recommend budgeting about $100 a day on food for couples, and about $50 a day for solo travelers. This should comfortably allow you to eat out twice a day at moderately priced restaurants and cafes.

If you are going to splurge on any part of your trip, experiences is the area to do it.  The $760.05 above includes the following activities:

Seeing the northern lights was a top priority for me, so we went all in and splurged on the Super Jeep tour.  It was worth it!

Additionally, as we were visiting during ice cave season, the ice cave tour was a last minute addition on a whim. Again, worth it. A bright blue ice cave is definitely not something you can see every day!

Here are some tips for experiencing Iceland while keeping the cost of your trip as low as possible:

• The Blue Lagoon is the most famous hot spring in Iceland, but certainly not the only one worth visiting. It’s also quite pricey at around $91 per person; the newer Sky Lagoon is just as magical and significantly cheaper.  If you are on a tight budget, it’s wisest to see what the other hot springs have to offer.
• Rent a car to self-drive the famous Golden Circle and South Coast routes.  Tours can run $100-$150/person for a minibus, but less for a huge bus.  A rental car allows you to see more sights at your own pace and lets your money go a bit further.
• Look for bigger northern lights bus tours, which are much less expensive than Super Jeep tours.

Don’t forget to take advantage of free things to do in Iceland!

• Simply look for the northern lights on your own
• Explore Reykjavik and see the Harpa concert hall, Sun Voyager sculpture, Hallgrímskirkja Church
•  Natural sights along the Golden Circle and South Coast are largely free, except the rare small parking fee

Iceland Trip Cost: Miscellaneous Expenses

• Shopping: $44.60 Chances are you’ll want to leave Iceland with a memento from your trip. Just be careful that you don’t blow your budget! The $44.60 we spent was on some locally made yarn.
• Cell Phone: $40 You may need an international plan to make sure your phone works during your trip. Under Verizon, I pay $10 for every day I use cellular data abroad. It’s a bit pricey, but worth it for how often I rely on my phone for Google Maps and last minute restaurant searches. Aaron keeps his phone on airplane mode so that we only pay for my phone.
• Pet Boarding: $284.01 While it’s ideal to have a friend or family member watch your pet for free, that isn’t always possible. When Aaron and I travel together, we always pay to board our dog in a cozy little “suite” at his vet office.

As you can see, Iceland can be expensive to visit, but there are ways to manage it.  Hopefully this will help you plan the cost of your trip to Iceland so you have an incredible experience in the “Land of Fire and Ice”! 

Are you planning a trip to Iceland soon?

Related Posts

Are these Euros or Dollar? If it’s Euros it’s still extreeeeemely expensive. So sad, I would like to see Iceland. Greetings from Vienna Dorie from http://www.thedorie.com

Hi Dorie, this is in dollars. You can definitely make this less expensive. For example, this budget would be for two people in the same household. If it’s for one person, or multiple people splitting expenses it would cost way less money. I also gave some other examples of ways to make it cheaper in the article. It’s definitely possible to see Iceland for cheaper than this, so don’t give up if it’s your dream! 🙂

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• Travel Planning Guide

Iceland Travel Budget - Visit Iceland on a Budget or Travel in Style

• Iceland Costs

• Is Iceland Expensive?
• How much does a trip to Iceland cost?
• Iceland Hotel Prices
• Iceland Cities: Hotel Prices by City
• Best Hotels for First Time Visitors in Iceland
• Best Cheap Hotels in Iceland
• Best Romantic Hotels for Couples in Iceland
• Best Luxury Hotels in Iceland
• Best Hotels for a Weekend Getaway in Iceland
• Best Hotels for One Week in Iceland
• Best Hotels for Skiing in Iceland
• Best Hotels for One Night in Iceland
• Best Pet-Friendly Hotels in Iceland
• Best Hotels for Scuba Diving in Iceland
• Best Family-Friendly Hotels in Iceland
• Best Business Hotels in Iceland
• Hostel Prices & Reviews
• Iceland Activities
• Iceland Tour Prices
• The Best Family-Friendly Tours to Iceland
• The Best Wildlife Tours to Iceland
• The Best Hiking & Trekking Tours in Iceland
• The Best Historical Tours in Iceland
• The Best 10-Day Tours in Iceland
• The Best One Week (7-Day) Tours in Iceland
• The Best 3-Day Tours in Iceland
• Tours for Outdoor and Nature Lovers in Iceland
• The Best Christmas & New Years Tours in Iceland
• The Best Coach Bus Tours in Iceland
• The Best Adventure Tours to Iceland
• The Best Eco Tours in Iceland
• The Best Sightseeing Tours in Iceland
• The Best Cultural Tours in Iceland
• The Best Romantic Tours for Couples in Iceland
• The Best Self Drive Tours in Iceland
• The Best Polar Tours & Cruises in Iceland
• The Best Northern Lights Tours in Iceland
• The Best Tours Under $1000 in Iceland
• The Best Luxury Tours to Iceland
• The Best Budget Tours to Iceland
• The Best Tours for Seniors to Iceland
• The Best G Adventures Tours to Iceland
• How much does it cost to travel to Iceland? (Average Daily Cost)
• Iceland trip costs: one week, two weeks, one month

How much do package tours cost in Iceland?

Is iceland expensive to visit.

• How much do I need for a trip to Iceland?
• Accommodation, Food, Entertainment, and Transportation Costs
• Travel Guide

How much does it cost to travel to Iceland?

You should plan to spend around $203 (kr28,676) per day on your vacation in Iceland. This is the average daily price based on the expenses of other visitors.

Past travelers have spent, on average for one day:

• $34 (kr4,870) on meals
• $30 (kr4,249) on local transportation
• $186 (kr26,381) on hotels

A one week trip to Iceland for two people costs, on average, $2,836 (kr401,468) . This includes accommodation, food, local transportation, and sightseeing.

All of these average travel prices have been collected from other travelers to help you plan your own travel budget.

• Travel Style: All Budget (Cheap) Mid-Range Luxury (High-End)
• Average Daily Cost Per person, per day $ 203 kr 28,676
• One Week Per person $ 1,418 kr 200,734
• 2 Weeks Per person $ 2,836 kr 401,468
• One Month Per person $ 6,076 kr 860,288
• One Week For a couple $ 2,836 kr 401,468
• 2 Weeks For a couple $ 5,671 kr 802,936
• One Month For a couple $ 12,152 kr 1,720,577

Help other travelers! Answer some quick questions about your past travels. Click here: let's do it!

How much does a one week, two week, or one month trip to Iceland cost?

A one week trip to Iceland usually costs around $1,418 (kr200,734) for one person and $2,836 (kr401,468) for two people. This includes accommodation, food, local transportation, and sightseeing.

A two week trip to Iceland on average costs around $2,836 (kr401,468) for one person and $5,671 (kr802,936) for two people. This cost includes accommodation, food, local transportation, and sightseeing.

Please note, prices can vary based on your travel style, speed, and other variables. If you're traveling as a family of three or four people, the price per person often goes down because kid's tickets are cheaper and hotel rooms can be shared. If you travel slower over a longer period of time then your daily budget will also go down. Two people traveling together for one month in Iceland will often have a lower daily budget per person than one person traveling alone for one week.

A one month trip to Iceland on average costs around $6,076 (kr860,288) for one person and $12,152 (kr1,720,577) for two people. The more places you visit, the higher the daily price will become due to increased transportation costs.

Organized tours are usually more expensive than independent travel, but offer convenience and peace of mind that your trip has been planned by a travel expert.

The average price for an organized tour package in Iceland is $507 per day. While every tour varies by total price, length, number of destinations, and quality, this is the daily average price based on our analysis of available guided tours.

• 7 day Self-drive tour | Geysers, Glaciers and Waterfalls 7 Days - 27 Destinations $ 1,101
• 7 Day - Iceland Ring Road & Snæfellsnes Peninsula Small-Group Tour 7 Days - 34 Destinations $ 1,804

Independent Travel

Traveling Independently has many benefits including affordabilty, freedom, flexibility, and the opportunity to control your own experiences.

All of the travel costs below are based on the experiences of other independent travelers.

Iceland is a moderately priced destination to visit. It's about average with most other countries for travel costs. The prices for food, accommodation, and transportation are all fairly reasonable.

Within Europe, which is known to be an expensive region, Iceland is moderately priced compared to the other countries. The overall cost of travel here is comparable to Luxembourg or Monaco.

For more details, see Is Iceland Expensive?

How much money do I need for a trip to Iceland?

The average Iceland trip cost is broken down by category here for independent travelers. All of these Iceland travel prices are calculated from the budgets of real travelers.

Accommodation Budget in Iceland

Average daily costs.

Calculated from travelers like you

The average price paid for one person for accommodation in Iceland is $93 (kr13,191). For two people sharing a typical double-occupancy hotel room, the average price paid for a hotel room in Iceland is $186 (kr26,381). This cost is from the reported spending of actual travelers.

• Accommodation 1 Hotel or hostel for one person $ 93 kr 13,191
• Accommodation 1 Typical double-occupancy room $ 186 kr 26,381

Hotel Prices in Iceland

Looking for a hotel in Iceland? Prices vary by location, date, season, and the level of luxury. See below for options.

Find the best hotel for your travel style.

Actual Hotel Prices The average hotel room price in Iceland based on data provided by Kayak for actual hotel rooms is $150. (Prices in U.S. Dollars, before taxes & fees.)

Kayak helps you find the best prices for hotels, flights, and rental cars for destinations around the world.

Recommended Properties

• Hotel Phoenix Reykjavik Budget Hotel - Kayak $ 133
• Skalakot Manor Hotel Luxury Hotel - Kayak $ 399

Local Transportation Budget in Iceland

The cost of a taxi ride in Iceland is significantly more than public transportation. On average, past travelers have spent $30 (kr4,249) per person, per day, on local transportation in Iceland.

• Local Transportation 1 Taxis, local buses, subway, etc. $ 30 kr 4,249

Recommended Services

• Private Airport Transfer Viator $ 270
• From KEF Airport: Private Transfer to Reykjavik in Iceland Viator $ 145

Food Budget in Iceland

While meal prices in Iceland can vary, the average cost of food in Iceland is $34 (kr4,870) per day. Based on the spending habits of previous travelers, when dining out an average meal in Iceland should cost around $14 (kr1,948) per person. Breakfast prices are usually a little cheaper than lunch or dinner. The price of food in sit-down restaurants in Iceland is often higher than fast food prices or street food prices.

• Food 2 Meals for one day $ 34 kr 4,870

Recommended

• Reykjavik Old Harbor Food Tour Viator $ 145
• 3 Hour Shared Christmas Food Tour with Guide in Reykjavik Viator $ 129

What did other people spend on Food?

Typical prices for Food in Iceland are listed below. These actual costs are from real travelers and can give you an idea of the Food prices in Iceland, but your costs will vary based on your travel style and the place where the purchase was made.

• Dinner (Fish Market) kr 24,852

Entertainment Budget in Iceland

Entertainment and activities in Iceland typically cost an average of $41 (kr5,832) per person, per day based on the spending of previous travelers. This includes fees paid for admission tickets to museums and attractions, day tours, and other sightseeing expenses.

• Entertainment 1 Entrance tickets, shows, etc. $ 41 kr 5,832

Recommended Activities

• 3hr Volcanic Springs ATV Adventure from Reykjavik Viator $ 299
• Reykjavík E-Scooter Adventure Small Group City Tour Viator $ 86

What did other people spend on Entertainment?

Typical prices for Entertainment in Iceland are listed below. These actual costs are from real travelers and can give you an idea of the Entertainment prices in Iceland, but your costs will vary based on your travel style and the place where the purchase was made.

• Art Museum kr 1,500
• Wine and Spa kr 4,079

Tips and Handouts Budget in Iceland

The average cost for Tips and Handouts in Iceland is $104 (kr14,693) per day. The usual amount for a tip in Iceland is 5% - 15% .

• Tips and Handouts 1 For guides or service providers $ 104 kr 14,693

Alcohol Budget in Iceland

The average person spends about $15 (kr2,121) on alcoholic beverages in Iceland per day. The more you spend on alcohol, the more fun you might be having despite your higher budget.

• Alcohol 2 Drinks for one day $ 15 kr 2,121
• Gin Distillery tour and tasting Viator $ 25
• Distillery Tour Get Your Guide $ 42

What did other people spend on Alcohol?

Typical prices for Alcohol in Iceland are listed below. These actual costs are from real travelers and can give you an idea of the Alcohol prices in Iceland, but your costs will vary based on your travel style and the place where the purchase was made.

• Beer kr 1,227

Water Budget in Iceland

On average, people spend $7.09 (kr1,004) on bottled water in Iceland per day. The public water in Iceland is considered safe to drink.

• Water 2 Bottled water for one day $ 7.09 kr 1,004

Related Articles

Iceland on a budget.

At A Glance

• The official language of Iceland is Icelandic. It is not uncommon for Icelanders to also speak English and Danish, both of which are taught from an early age in schools. It is still respectful to attempt to speak some Icelandic before referring to English. These efforts will be much appreciated. If you learn a few phrases ahead of time, you'll be well respected for your efforts.
• Krona is the local currency in Iceland. It is recommended that you buy and sell krona in Iceland, where you will get the best exchange rate. Most business accept credit cards. Credit cards are also accepted by taxis and souvenir stands, so you really don't need to carry a lot of cash with you. Keep in mind that this country can get expensive, so here are some tips for budgeting in Iceland .
• If you're looking to buy some interesting, local products, consider purchasing items made from Icelandic wool. The Icelandic sheep is unique and makes a soft but durable wool that is woven into hats, gloves and more. Other interesting local items include arts and crafts such as musical baskets and porcelain sculptures that can be found at the local craft shops.
• Winters are surprisingly mild in Iceland. There is a maritime temperate climate and the winters are somewhat comparable to those in New England. Do be aware that the weather conditions can change rapidly. Although winters can be warmer than you might expect, summers are also quite cool, so come prepared for temperatures around 20 degrees Celsius during these months.
• A favorite activity in Iceland is to go hiking . Some of the hiking is quite intense so come prepared with good walking boots and some food. Also, be prepared for the changing weather conditions as a beautiful day may suddenly be interrupted by a strong storm, particularly during the winter months.

Top Tourist Attractions

Popular foods.

We've been gathering travel costs from tens of thousands of actual travelers since 2010, and we use the data to calculate average daily travel costs for destinations around the world. We also systematically analyze the prices of hotels, hostels, and tours from travel providers such as Kayak, HostelWorld, TourRadar, Viator, and others. This combination of expenses from actual travelers, combined with pricing data from major travel companies, gives us a uniqe insight into the overall cost of travel for thousands of cities in countries around the world. You can see more here: How it Works .

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• Activities, Day Trips, Things To Do, and Excursions

How Much Will an Iceland Trip Cost in 2024?

Last Updated on December 11, 2023

by Maggie Turansky

Disclaimer: This article contains affiliate links. That means if you click a link and make a purchase, we may make a small commission. As an Amazon Associate we earn from qualifying purchases. For more information, see our privacy policy.

Is Iceland expensive to visit? How much will an Iceland trip cost if you stick to a budget? A destination that is on many a traveller’s wish list, many wonder if it is even possible to plan a trip to due to a perceived notion that it is an incredibly costly country to travel to.

If you are interested in visiting this gorgeous nation, then it is essential that you’re aware of the average prices in Iceland and budget accordingly. But, in all honesty, the cost of a trip to Iceland does not have to be astronomically high.

An average trip to Iceland cost for travellers who want to vacation in Iceland is approximately $110-400 USD per person per day . This means that the cost of 7 days in Iceland is around $770 to $2,800 USD excluding airfare. You can expect prices at the lower end if travelling on a budget during shoulder seasons and at the higher end as a mid-range traveller in peak season.

Depending on your travel style and tendencies, it is possible to reduce your Iceland vacation cost a lot in some facets in order to spend more in others. If you’re looking to visit this beautiful Nordic nation on a budget and you’re wondering how much your trip will generally cost, read on to find out our best money-saving advice.

Table of Contents

Iceland Trip Cost Guide

This guide will break out the average costs of your vacation to Iceland across accommodation, transport, food, activities and entertainment, helping you understand how much is a trip to Iceland.

Accommodation Prices

An average cost for accommodation in Iceland will be approximately $40-125 per person per day in shoulder seasons or $60-200 per person per day in high season. This assumes you’re either staying in a hostel dorm bed or, otherwise, splitting the cost of hotel rooms with another person.

Hostels in Iceland will set travellers back on average $40-60 per night, will prices tending to be more expensive in the capital city of Reykjavik and during the peak tourist seasons of July and August.

You can sometimes get cheaper prices if you book in advance and it’s worth doing this if you want to stay in hostels as options are limited once you get out of Reykjavik. You can browse the best hostels in Iceland here.

If you’re travelling as a couple or with a friend, then you can get similar costs by choosing to stay in a private room in an Airbnb. Another benefit of staying in an Airbnb or hostel is they often offer self-catering facilities so you can cook your own meals and save money even further.

However, in popular places such as places like Vik and Jokulsarlon options are limited. If you’re looking for a budget hotel like Hotel Kanslarinn in Hella expect prices to begin at around $150 per night and increase to about $250 in the high season months.

If you want to go down this path, it’s worth booking as early in advance as possible as good quality places book out quickly, particularly in high season.

For those looking for a more traditional hotel route rather than wanting to stay in more budget-friendly accommodation, you’re going to have to pay a bit of a premium.

A decent, 3-star hotel in Iceland will start at around $250 per night and increase to roughly $400 per night in the high season. Expect nicer hotels to increase in price from there. Prices don’t vary too much in or out of Reykjavik.

Another popular option among budget travellers in Iceland is to hire a camper van, which kills two birds with one stone as you will also have your transport taken care of.

There are numerous camper rental companies throughout Iceland and the cheapest option for a basic manual-transmission van that sleeps two starts at around $120/day.

An auto-transmission will cost more but you can expect significant discounts to these prices if you choose to visit outside of peak seasons. Many campervans also offer heaters and camp stoves/cooking supplies which allow you to cook your own food easily.

Keep in mind, however, that it’s not possible to sleep anywhere you want in a campervan in Iceland so you will need to also factor the cost of campsites/overnight parking, particularly along the more popular South Coast .

Transport Prices

Contrary to the majority of European countries, public transportation in Iceland is lacking so the most effective and efficient way to get around this island nation is by car.

The cost of a hiring car with basic insurance included will be approximately $30-40 per person per day if splitting costs between two people. However, you can get significantly reduced pricing for basic cars if travelling in shoulder seasons.

In addition, to the cost of hiring a car, you’ll need to factor in the cost of fuel, which will increase your daily costs, as well. The average petrol price in Iceland as of December 2023 is $2.25/litre (or about $9/gallon).

If you plan to hire your own car and drive the Ring Road, there are a number of rental companies to choose from. While you may be inclined to hire a car through an internationally recognised company such as Hertz or Enterprise, often these companies charge a lot more than a local car hire company.

We, for instance, found a great deal from Reykjavik Cars which was by far the least expensive option we were able to find.

If you want to compare prices across companies we recommend browsing options here so you can see aggregate results from a number of the major car hire companies.

Another factor for your Iceland budget to keep in mind is that cars with an automatic transmission often cost considerably more than a manual. So if you can drive a manual and want to save some money, by all means, make sure you’re hiring a manual transmission.

Finally, if you do rent a car in Iceland, a great way to save money on insurance is by going through a third party such as iCarHireInsurance. They offer excess insurance (which means you won’t have to pay anything if you get in an accident) for a fraction of the cost of most car rental companies. 

If you don’t rent a car in Iceland then you’ll need to factor in additional costs such as airport transfers from Keflavik Airport . By booking in advance, you avoid having to wait in line when you arrive and can simply hop on the bus when you land. Click here to book your airport transfer to Reykjavik!

Food Prices

Another expense you will need to consider for your Iceland travel budget is the price of food. It will come as no surprise that food in Iceland is expensive, especially if you eat in a restaurant. If you choose to cook all your own meals then you can expect to spend approximately $10-15 per person per day.

The average cost of a meal at even the most budget-friendly of restaurants will probably set you back about $20-30 per person. This is why the absolute biggest Iceland food budget tip I can give would be to cook your own meals.

That isn’t to say there aren’t cheap eats in Iceland, particularly in Reykjavik, where in the capital a hot dog at the famed Bæjarins Beztu Pylsur is just a bit over $4.

Groceries are significantly cheaper than anything you could get at a restaurant so I would suggest stocking up on as many non-perishable items as you would need for the entirety of your trip while in Reykjavik.

This was something of a shock to us, but grocery prices in the capital city were about 10-15% less than those at supermarkets in the smaller towns along the Ring Road.

But if you want to shave a considerable amount off of your total trip cost I would wholeheartedly recommend cooking for yourself. If you want to incorporate one meal per day at a restaurant then you should expect that to set you back around $30 per person, meaning your average food budget in Iceland will increase to around $40 per person per day.

Activity Prices

Luckily for the budget traveller, it is very possible to visit Iceland and not spend a dime on any activities! However, if you want to splurge on at least one or two of the major activities in Iceland (such as a basic Blue Lagoon visit or an hour of horseback riding) then you should expect to spend an average of $20-25 per person per day over a one-week trip.

Most of the main natural sites in Iceland don’t charge any entry fees and even if they do, they most certainly will not break the bank. For example, I think the only attraction we had to pay to visit was the Kerið Crater Lake on the Golden Circle route and that only set us back $3 per person.

There are also plenty of hot springs that you can visit that aren’t the Blue Lagoon that may require a bit of a hike, but are free to enter.

If you’re planning on spending a bit of time in the capital city, there are a number of things you do in Reykjavik on a budget and one of the best ways to see the main sites of this charming little city is by going on a free walking tour. While these tours advertise as being free, you should always tip the guide if you have enjoyed the tour.

It is certainly possible to splash out on experiences — such as glacier climbing, whale watching, horseback riding , or SCUBA diving along the fault line — these things are not necessary in order to get the most out of your Iceland trip.

If you don’t rent a car and are unwilling to hitchhike then your only option to see the Golden Circle and other stunning natural attractions is to book a guided from Reykjavik. Some of the best options include this full-day Golden Circle tour and this full-day South Iceland tour.

These amounts aren’t included in an average Iceland vacation cost as the majority of people visiting Iceland choose to rent their own transport.

Entertainment Prices

Sometimes there is nothing better after a long day spent outside enjoying stunning natural scenery than a nice, cold beer. However, in Iceland, this is going to cost you.

Iceland has some of the most expensive liquor prices in the world and a pint of local beer at a bar can easily set you back $10-15.

The easiest remedy to this is if you intend to visit Iceland on a budget, simply abstain from drinking. However, if you do enjoy the occasional alcoholic beverages, there are ways to drink in Iceland on a budget.

One great tip is to follow the lead of the locals and stock up on your booze at the duty-free shop in the airport. These are, by far, the cheapest liquor prices you’ll find in the country as the local tax is removed. Another option is to purchase liquor at the duty-free shop at the airport you are departing from.

Reykjavik is famous for its nightlife, but keep in mind that it can be very expensive to go out. While booze prices are slightly less expensive in Reykjavik than in the rest of the country, it’s still going to be considerably more than what most people are used to paying, given that you live outside of the other Nordic countries.

All in all, alcohol prices in Iceland are incredibly expensive and if you really want to cut down on your Iceland travel cost then it’s best not to drink at all. If you want to incorporate a couple of visits to a bar during your Iceland trip, then expect to plan for around $20-30 in your Iceland budget for every night out.

Average Iceland Trip Cost

So how expensive is Iceland? Well, it isn’t a cheap destination to visit, however, it is possible to travel on an incredibly tight budget while in Iceland. For the purposes of this section, I’ve averaged all of the costs so you can have an idea of how much you might spend per day while travelling in Iceland, assuming you are splitting the costs between two.

Accommodation:  $40 – 200 / night

Transport:  $30 – 70 / day

Food:  $15 – 50 / day

Activities:  $25 – 50 / day

Entertainment:  $0 – 30 / day

Depending on your travel style, it is possible to travel to Iceland on a minimal budget. Assuming that you’re not intending to camp and hitchhike your entire trip it’s safe to assume that your Iceland trip budget will be about $110 per person per day if travelling on a budget during shoulder season and up to $400 per person per day if you’re a mid-range traveller visiting in peak season.

This does not include any pre-trip expenses such as airfare or ensuring you have the right gear for your Iceland trip.

Finally, also make sure that you factor in the cost of a travel insurance policy. World Nomads   offers flexible and simple travel insurance policies with coverage for more than 150 activities that you can buy or extend while on the road.

Another affordable option is SafetyWing which offers travel medical insurance policies. Click here to get a quote from SafetyWing.

Travelling in Iceland doesn’t have to be as expensive as you might think. If you do the proper planning and budgeting, you might find that your trip to Iceland cost can be fairly affordable even in one of the most expensive countries in the world.

Are planning a trip to Iceland? Have any questions about prices? Let us know in the comments!

Related Posts:

The Ultimate 6-Day South Iceland Itinerary

The Best Hotels Near Keflavik Airport and Blue Lagoon, Iceland

Complete Guide to Iceland’s Golden Circle Stops (with Map!)

About Maggie Turansky

Maggie is a co-founder and writer for The World Was Here First. Originally from the US, she has lived in five different countries and has travelled to dozens more, both solo and with her partner, Michael. She particularly loves exploring Spain and spending time in the Caucasus and the Baltics. Read more about Maggie

I’m glad that one commenter mentioned the exchange rate. Looking at the most recent exchange rate, is one of the reasons I’m thinking about going this year. I would have thought that would play a significant factor in lowering the cost. How can someone from the U.S. maximize this advantage. Maybe you could explain for a newbie.

We just returned from Iceland two days ago and got the bargain of a lifetime. Since we traveled there for the first time 3-1/2 years ago Icelandair offered us a fantastic deal which we could not pass up. For $595 per person the trip included round trip airfare, three nights in a hotel (which included breakfast), a Hop On Hop Off city bus tour, a boat tour to see the Northern Lights and an afternoon at the Sky Lagoon Geothermal Lagoon. We upgraded the hotel and stayed for 6 nights and paid $953.50 per person. Granted this was 3 nights in January and 3 nights in February 2022 but was well worth the bargain!

Thanks for sharing your experience, Ginny! Seems like you had a great trip 🙂

Was there 10 days in July 2019. You can certainly get your fill of volcanic rock, a beautiful vacation though. rental of minivan, flight cost of 1400$, cost from home to Edmonton airport and back, grocery store pickups, trip to Drangey Island, full ring road with various hiking trips to the coast, 3 hot pools including Blue Lagoon, one restaurant out, and can’t remember what else. 4500$ cdn-was worth every penny!

Sounds like you had an amazing trip, Daryl!

We did Iceland for 15 days this winter 2020 , the best decision ever! Safe traveling , the island for our selves , no camping costs because they where closed .

We did this for 3600€ for the both of us and since we were influencing we worked together with a campervan company that cuts down our van cost with 1600€

That comes down to 2000€ for 15 days . All in, including flights

Thanks for sharing!!

Hi, I am planning to visit Iceland in April 2022 together with my Husband for maybe one week. Which are the places that we definitely should visit? And where should we start?

Do you have good Tips for as?

Thank you 🙂

Hi Lisku, you can find all of our information about Iceland here: https://www.theworldwasherefirst.com/iceland-travel-guide/ Hope you have a great trip!

Hi! 3 years ago I visited Iceland together with my girlfriend: The south-east coast, the ring road, glaciers, geysers, fjords and a lot of waterfalls. By that time prices were quite higher than now because of the change from USD to ISK. I would say we spent around 1000 USD each one for a one week road trip.

The trip went awesome until the moment we were travelling back to home. We boarded the plane and just some minutes before departing the captain said there was a technical issue with the plane, It was one of the the last flights of the day.

At the end the flight got delayed 7 hours and we missed our next flight at JFK (New York). The interesting fact is that because of that delay, one month later the airline gave us a compensation of $720 to each one! Doing the math we got back around 75% of what we spent in Iceland.

I definilety will go back and visit Iceland again!

Thanks for sharing, Gabriel!

Are the costs quote in USD or CAD? Thank you.

Prices are quoted in USD.

Hey! My partner and I are planning to visit Iceland for our honeymoon,from India, for a 7 days trip,can you suggest the best places to visit ,the accomodation ,and an approximate cost of the whole.

Hi Rashi, hope you’re able to have a wonderful honeymoon! You can find more of our Iceland tips and articles here: https://www.theworldwasherefirst.com/iceland-travel-guide/

I hope you went and enjoyed the trip. Could you help me with the details of the costs? Thanks

When I was in the Army my unit went to Iceland two times and I was not chosen to go, but this time I really want to make an effort to during the summer months. I would like to go through a travel agent and be in a group tour. I am a senior citizen and would like to do this trip since I never had the chance to go. Any suggestions from anyone? Thank you and God bless.

Hi Susan, thanks for your comment! As we write mostly for independent travellers, we don’t know of any multi-day tour companies in Iceland that we can recommend. However, if you base yourself in Reykjavik, you should be able to easily see what the country has to offer with a series of organised day tours. I hope you’re able to plan a great trip!

I just got back from an 8 day stay in Iceland, in March 2019. We arrived in Reykjavik. My mom and aunt wanted to do the ring road (which is risky in winter), and requires at least 7 days to enjoy the sights and not rush. we went. Then finished the trip back in Reykjavik.

We split the cost of the rental car, gas, and guesthouses, which are cheaper than hotels (three twin beds in a small room) equally.

Hostels in Reykjavik were about $40 a night and awesome at KEX hostel (old biscuit factory turned hostel with a bar / food). Met a bunch of people from all over the world!

We individually paid for food, attractions and souvenirs. I went Glacier hiking / ice cave tour which was about $170, bought some little things for co workers about $50 and food was roughly $20 a meal for one person (on the low side). My pockets weren’t tight when it came to trying real Iceland cuisine.

I caught a break on round trip airfare for about $530 from Richmond, VA to Reykjavik, Iceland with eleven hour layovers in Boston, Massachusetts each way.

After it was all said and done, my total out of pocket expense was about $2200 USD for 8 days.

I hope this gives you a better idea of how much you may spend on your trip to Iceland. Was it worth it? Absolutely, but I always love to travel. So save up, plan accordingly and have fun in Iceland!

Thanks for that insight, Jeremy!

Do they get to see the northern lights much? And wouldn’t winter be a little cheaper?

You can definitely see the Northern Lights in the winter months! And generally, pricing in the winter isn’t much different from pricing in the summer, as Iceland is generally a popular destination to visit year-round. Hope you’re able to visit soon!

Sounds great. Can I ask did you get to see the northern lights during that time period? Thanks in advance

I went there with my family last month. It is not too much expensive. We really enjoyed it. And It was an amazing experience to go there. Really worth it.

I’m glad you enjoyed your time in Iceland! It really is an amazing country. It’s definitely possible to cut costs and still completely enjoy your experience.

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Lists by Lukiih 🍀

Practical travel guides with less fluff

• 💰 My 2024 Iceland Trip Cost: A Budget Breakdown

Iceland, a country famous for its surreal and breathtaking nature, can be visited with a budget of $90 to $250 a day.

My one-week trip to Iceland cost a total of $2,690 . In this post, I share:

• 💰 Expected travel costs
• 💡 Budgeting tips
• 💵 How much cash to bring
• ✈️ My trip’s costs by category

Planning a trip? Here’s what to know about Iceland .

• Is Iceland Expensive?
• How Much Is a Trip?
• About My Trip
• Cost Breakdown
• Daily Budget: $306
• Flight: $550
• Campervan: $1,300
• Accommodation Costs
• Rental Car Costs
• Entertainment: $535
• Entrance & Parking Fees: $15
• Credit Card Types
• How Much Cash To Bring
• Tipping Etiquette

Iceland Trip Planner

Lists By Lukiih is readers-supported. When you buy with my affiliate link, I may earn a small commission. Thanks!

Is Iceland Expensive To Travel To?

Iceland ranks as one of the most expensive countries to visit in Europe. The island country relies on imported goods, has a high cost of living and tax rates, and is an extremely popular tourist destination, with tourists far outnumbering locals annually.

Along with Switzerland and Norway, Iceland is among the five priciest European countries for travelers.

However, with advanced planning and the willingness to forego certain experiences, Iceland  can be visited on a tighter budget .

💰 Trip Daily Budget for Countries in Europe

For comparison, I visited these countries in Europe within a year of visiting Iceland, and here’s how much I spent per day at each one:

See all my daily budget for each destination I’ve visited .

How Much Is a Trip to Iceland?

This section covers estimated trip costs depending on your travel style. I share my actual travel expenses further below.

🎒 Budget Traveler – Iceland Trip Cost

A budget traveler can expect to spend approximately $90 per day or $630 for one week of travel in Iceland, excluding flights.

Here’s what a budget traveler’s cost breakdown can look like:

Traveling Iceland on a Budget

To travel to Iceland on a budget, here are some things you’ll need to do:

• 🏠 Accommodation – Accommodations in Iceland are expensive, especially during the peak season. Hostels cost about $40 per night , and budget hotels cost about $60 a night in Reyjkavík.

One of the cheapest ways to see Iceland is to camp in a tent or campervan. Campsites are well-maintained and average about $15 a night .

• 🌭 Food – Food prices are also generally expensive (a sandwich or burger can cost $10 to $15), so buying groceries is a great way to save while visiting Iceland. You can save more than $100 a week on food this way.

One of the cheapest things you can eat in Iceland is a $2 hot dog at the gas station . Unlike the hot dogs in US gas stations and stadiums, the ones in Iceland are good. I ended up eating several of them throughout my trip.

• 🚙 Transportation – Instead of booking expensive tours that leave from major cities and towns, rent a car or  campervan  to take a road trip around Iceland to the different attractions.

During the summer months, you can use Iceland’s public transportation (i.e., public and private bus companies) to get around the country. However, no single bus will take you around the entire country.

• 🏔️ Entertainment – Take advantage of Iceland’s many free attractions that don’t require a guide or have parking or entrance fees.
• ☀️ Travel Season – Avoid visiting Iceland during the peak summer season from June to August. The best time to visit Iceland to save money is during the winter (you’ll also get to see the northern lights).

Iceland is very crowded during the summer, and accommodation options quickly disappear as early as two months in advance (this happened to me). If you’re considering visiting during the high season, plan at least four months ahead .

• 💧 Shopping – Don’t buy a SIM card in Iceland; you can rely on the country’s free Wi-Fi infrastructure. Also, bring a reusable water bottle instead of buying bottled water. Iceland has some of the cleanest water in the world.

💰 Mid-Range Budget Traveler – Iceland Trip Cost

A mid-range budget traveler like myself can expect to spend approximately $250 per day or $1,750 for one week of travel in Iceland, excluding flights.

I break down my Iceland trip expenses by travel category below. I consider myself a mid-range budget traveler, but you’ll see below that my daily budget in Iceland is higher because I booked my trip at the last minute during peak season.

About My Iceland Trip

To give context to the expenses below, here’s what you need to know about my trip:

• ☀️  Peak season – I traveled to Iceland in August, which is the end of the high season, so things are generally more expensive.

Learn how to prepare for Iceland during the peak season .

• 🗓  One week – I spent one week in Iceland and thoroughly explored the South Coast. I spent minimal time in the capital city of Reyjkjavík.
• ✌️ Group travel – I traveled with one other person, so we were able to split some costs, such as campervan and gas.
• 🚐  Campervan traveling – Iceland is a great place to travel by campervan, even for inexperienced campers like myself. I rented a campervan, which can be more economical than staying at hotels and Airbnb.

See tips on renting and staying in an Iceland campervan .

• 💰 Mid-range budget – I consider myself a mid-range budget traveler, and these expenses reflect that. I don’t aim to travel on a budget, but I’m thoughtful about how and where I spend.
• 🍀 Self-funded – My trips are self-funded, so I paid for everything listed below. None of my excursions or experiences are sponsored.
• 💵 US dollars – All costs listed in this post are per person and in US dollars, converted from Iceland’s local currency, the Icelandic Króna.

The exchange rate was $1 USD = 137 ISK at the time of writing.

Total Iceland Trip Cost: $2,690

My one-week trip to Iceland cost a total of $2,690 , including flights.

See the highlights of my trip in this  Iceland itinerary .

💰 Cost Breakdown for Iceland

Here’s a quick overview of my expenses by travel category:

🗓️ Daily Budget in Iceland: $306

My Iceland trip cost $306 per day , excluding my round-trip flights from and to the United States.

A mid-range budget traveler can expect to spend $250 per day in Iceland. This generally entails booking things two to three months in advance if you’re traveling in the summer, staying at mid-range hotels that cost approximately $90 per night, and paying for guided tours.

✈️ Flight Cost to Iceland: $550

My round-trip flight from the East Coast of the United States to Keflavík International Airport in Reyjkavík was $550.

I flew Play, a budget Iceland airline that flies to and from Europe and North America. I don’t usually fly budget internationally, but it was very manageable given that Iceland is only six hours away from the East Coast.

A round-trip flight between the US and Iceland that costs under $300 is considered cheap; international flights typically cost over $500.

🚐 Campervan and Campsite Costs in Iceland: $1,300

My average cost for campervan and campsites in Iceland was $185 per day. I was able to split my campervan costs with another person.

Iceland campsites have a per-person camping fee averaging $15 per night .

If you book a campervan four months in advance, you can travel around Iceland in a campervan for closer to $100 a day. I booked mine at the last minute.

Iceland is an amazing country to visit by campervan for many reasons, and it’s a great option even for first-timers.

Read tips on reducing the cost of a campervan rental .

🏠 Accommodation Costs in Iceland

If you’re not sleeping in a campervan like I did, you can expect to spend about $140 per night on a mid-range hotel in Iceland. During the high season, this increases to about $160 per night . Luxury hotels in Iceland typically range from $300 to $700 per night.

If you plan to visit Iceland between July and August, it’s important to book accommodations  at least two months ahead . Otherwise, you will have few housing options, as tourist demand is very high in the summer.

I tried to book housing about one month ahead in August and was barely able to find any budget, mid-range, or high-end accommodation. This is why I ended up renting a campervan (and loving it).

🚙 Rental Car Costs in Iceland

If you’re not traveling around Iceland by campervan like I did, you can expect to spend about $60 per day on a car rental , excluding the cost of gas.

Depending on several factors, you can spend anywhere from  $30 to $200 a day  on a rental car in Iceland. Here are some things that will impact your rental car cost in Iceland:

• Season – Renting a small, standard car can be as cheap as $30 per day during the low season.
• Vehicle size – An SUV in Iceland can increase your per-day cost to over $100 per day.
• Four-wheel drive (4WD) – Iceland has unpaved mountain roads called F-roads, and you’re required to have a 4WD to drive on them. Rental companies will not allow you to drive a standard car on F-roads, and a 4WD increases the cost of a car rental.
• Automatic vs. manual transmission  – Most vehicles in Iceland are manual. Due to the high tourist demand and low supply, automatic cars are slightly more expensive than manual ones.
• Booking timing – Booking in advance is especially important when traveling during Iceland’s peak season. In the summer, car rental costs can double if you book a month ahead compared to three months ahead.

⛽️ Gas Cost in Iceland: $90

My average cost of gas in Iceland was $13 per day . The total gas cost was $180, but I was able to split the gas with my partner, so the gas cost per person was $90.

Make sure to budget for gas when traveling in Iceland, as gas prices are among the highest in the world. If you decide to do the entire Ring Road, the main road wrapping around the island, gas can add more than $400 to your trip’s budget.

🌭 Food Cost in Iceland: $200

My average cost of food in Iceland was $29 per day . My total cost for groceries was $45 . My total cost for dining out was $155 , which averaged $19 per meal.

Iceland food is expensive. Food is where you can save money by shopping at grocery stores instead of dining out. The popular grocery stores in Iceland are Bonus (budget option), Kronan (has a wider selection), and Netto (has a smaller selection).

Cheapest Meals in Iceland

Here are the most affordable meals I ate during my trip:

Alcoholic drinks in Iceland are also expensive due to the high tax rate and import costs. Besides not drinking in Iceland, you can also save money by getting alcohol at the Duty-Free Store at the airport or by taking advantage of happy hours at local bars .

Most Expensive Meals in Iceland

Here are the most expensive meals I ate during my trip:

I ate at Íslenski barinn because the restaurant is known to serve hákarl, a fermented shark delicacy in Iceland. You can learn about Icelandic cuisine on a food tour .

🏔️ Entertainment Cost in Iceland: $535

My average cost of entertainment in Iceland was $76 per day.

Iceland has many expensive activities you can do, including $100+ tours that take you whale watching, glacier hiking, and snorkeling between tectonic plates .

Costs of Activities and Attractions in Iceland

Here are all the activities and attractions I paid for and how much each cost:

Free Things To Do in Iceland

Iceland is known for its natural beauty, so there are many free outdoor activities and attractions available.

Below are some of Iceland’s most popular free attractions . Some have bathroom and parking fees (usually less than $5), but none have an entrance fee.

• The Golden Circle – This is a 190-mile tourist route featuring three of Iceland’s top natural attractions: Gullfoss, Geysir, and Thingvellir National Park.
• Northern lights – The world-famous northern lights are a colorful display of light in the night sky that occurs in Iceland, mainly during the winter, from September to April. Seeing them is completely free unless you want to pay for professional photos .

• National parks – Two of Iceland’s three national parks are free: Thingvellir National Park and Snæfellsjökull National Park.
• Waterfalls – Gullfoss, Seljalandsfoss, and Skógafoss are some of Iceland’s most iconic waterfalls on the South Coast, and they’re all free.
• Beaches – The famous Diamond Beach and Reynisfjara Black Sand Beach do not have parking or entrance fees.

Most natural hot springs in Iceland will have an entrance fee, but there are a few that are free and are usually more challenging to get to (e.g., Seljavallalaug, Landmannalaugar).

🚙 Entrance and Parking Fees in Iceland: $15

My average cost for entrance and parking fees in Iceland was $2 per day.

Most of Iceland’s natural attractions don’t have parking or entrance fees, but they may have small bathroom fees.

Do You Need Cash in Iceland?

Iceland has an excellent credit card infrastructure , and I found that even remote campsites take credit cards. You don’t need cash in Iceland most of the time.

Below are tips on bringing and using cash and credit cards in Iceland.

💳 1. American Express is not widely accepted in Iceland.

Bring a Visa or Mastercard credit card to ensure you can use a card in Iceland.

🏧 2. Carry less than $40 worth of cash in Iceland.

Cash is rarely needed in Iceland, so you need to only carry a small amount in case a card machine is broken or for a few cash-only places.

The US dollar is not accepted , so you need to withdraw cash in the local currency, Icelandic Króna.

During my Iceland trip, the only place I visited that required cash was the Hrunalaug hot spring , but they now accept card payments.

💰 3. Tipping is not customary in Iceland.

Tipping is appreciated in Iceland, but it’s c ompletely optional . Although it’s most often expected from tourists and businesses that serve visitors, I found that tipping is not the norm.

See other essential travel tips for Iceland before visiting.

To make your travel planning easier , download the trip planner below and use it as a starting point. The planner has country-specific travel information, an itinerary, a packing list, and a map with key places pinned.

The trip planner is built on Notion, which I use for all my travel planning (I genuinely love this tool). If you don’t have Notion, creating an account is free .

Thoughts? Questions? Leave a comment below .

Iceland Travel Guides

• 🇮🇸 Planning a Trip to Iceland: 11 Practical Things To Know
• 🚙 Iceland South Coast: Efficient 7-Day Road Trip Itinerary
• 🚐 My Iceland Campervan Trip: How To Plan One + Tips
• ♨️ Hrunalaug Hot Spring Guide: What To Know + Tips
• 🧊 Glacier Hike in Iceland: What To Wear & Firsthand Tips
• ☀️ Visiting Iceland in August: Tips & What To Know

Lists by Lukiih is Readers-Supported

If you find my travel tips helpful, say thanks with a bubble tea 🧋!

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How Much Does an Iceland Trip Cost? (2024 Iceland Budget)

Iceland is known for being an expensive destination and after visiting Iceland three times and helping over 30 people plan their Iceland trips, I’ve gotten a good sense of the average Iceland trip cost. While it is pricey, your Iceland vacation cost can still be within reach if you build your Iceland budget carefully.

To be honest, I’ve seen everything, from people who found a cheap flight, stayed in hostels, and signed up for group bus tours to keep costs down, all the way to luxury travelers who book private drivers, luxury hotels, and go all out with adventure experiences. Did someone say private helicopter rides?

So how much does a trip to Iceland really cost? It depends on what type of experience you are looking for, what kind of traveler you are, and ultimately, how much you want to spend. And while I wouldn’t recommend taking big bus tours, if that is the only way you can see Iceland, it is still worth it to visit this incredible country.

There are few places in the world that have touched my soul and captured my heart like Iceland has. For its raw beauty, fire and ice extremes, vast emptiness (outside of main tourist stops), to the endearing quirkiness of the Icelandic culture, it is a place I will return to again and again.

The good news is that Iceland has greatly expanded its hotel inventory, which helps balance supply and demand. The exchange rate from U.S. Dollars to Icelandic Króna has also been trending in the favor of American tourists recently. And, Play Airlines has brought a budget airline option back to Iceland.

Average Iceland Trip Cost

I’ll cut to the chase and give you the bottom line on how expensive a trip to Iceland can be, but be sure to read on to see the breakdown and ways that you can save money in each category. The average trip to Iceland cost adds up to about $300-350 per person, per day including airfare. (Based on current exchange rates) This assumes budget airfare, budget accommodations, limited organized activities, self-driving, and being careful in your food choices.

If you are traveling solo, your best bet will likely be staying at a hostel or renting an Airbnb. Though it definitely helps to travel with others so that you can split the costs.

Since hostels and bus tours aren’t our things, I’ve based the average cost for a trip to Iceland for a family of four staying in nice (but not extravagant) hotels or guesthouses and renting a car for a self-driving vacation. I’ve also included a few activities since I think it would be a shame to get to a bucket list destination like Iceland and not get to take part in a few adventures. But keep in mind, that there is enough natural beauty and hiking available that you can easily bypass these to conserve your budget.

The average Iceland trip cost for a family spending a week in Iceland is around $8,545 including airfare. Yup, that is about $1,220 a day for the entire family. Of course, I have worked with families of five that have spent $25,000 on a 10-day trip, and couples who have spent $5,000 on a week-long trip. I’ve even planned an Iceland vacation for a solo traveler that cost them only $2000, all costs included, for a five-day trip. Making Iceland one very versatile vacation.

Iceland Budget Tips

Note: This post contains affiliate links. If you click a link and make a purchase, I may receive a small commission. 

If you want to save some money, my partner Hidden Iceland offers my readers 10% off scheduled group tours if you use promo code WE3TRAVEL. We have traveled with Hidden Iceland and highly recommend this company for its expertise, professionalism, and friendliness. See all their available tours . You can also book private tours or get help planning your whole itinerary — just be sure to mention We3Travel when you contact them.

You can visit Iceland on any budget, at least in theory, but here are some suggestions for keeping costs down:

• Try camping instead of staying at hotels or guesthouses. You can rent a campervan that fits two people for about $130 a night, up to about $300 per night for larger campervans. You can camp for free in Iceland but if you are in a camper van, you will probably want to stay at a campground with facilities so budget another $10-50 per night for a campsite reservation.
• If you don’t want to camp, you could also stay in hostels, which will run you around $40-100 per person per night in Reykjavik.
• Airbnb or vrbo is another option for vacation rental apartments and cabins, which is a great option for families compared to renting two hotel rooms because there are only a few hotels in Reykjavik for families that offer family-size rooms with beds enough for 4-5.
• Food is one of the especially high expenses in Iceland so to save money, purchase and prepare your own food or buy snacks at the gas station convenience stores. If you want a foodie experience, you are going to pay through the nose for it so get used to sandwiches, burgers, and those famous Icelandic hot dogs.
• Avoid paid attractions like the Blue Lagoon and costly excursions like off-roading tours and focus instead on scenic drives, stops at waterfalls, and nature hikes.
• Stay in the countryside and avoid the biggest tourist spots instead of Reykjavik as things are going to be more expensive in the capital city. I was surprised by how affordable the accommodations are in the Westfjords and Snaefellsnes Peninsula .

Before you worry about having to convert and carry a ton of cash around Iceland, don’t stress. Almost everywhere takes credit cards in Iceland. Be sure to read my Iceland tips for some caveats.

How Much Does an Iceland Trip Cost?

Let’s break down the average Iceland budget. As with other posts where I’ve broken down vacation costs for Italy , London , Greece , and Paris , this post outlines pricing for two adults and two children between the ages of 6-11, traveling from a major airport hub in the United States during the summer high season, such as NYC to Reykjavik , and spending a week in Iceland.

I find that in Iceland, some hotels list their prices in Euro, and most show rates in Icelandic Krona. To make it easier, I’ve converted to U.S. dollars to create an even playing field.

I can’t even count the number of emails that I’ve gotten from people traveling to Iceland that start with “I found a great airfare to Iceland next month (or some other close time frame)…” I then go on to pop their bubble about how expensive the rest of the trip will be.

Once WOW went out of business, prices went up a bit but I still have found rates on IcelandAir or Play Airlines from Boston for about $300-500 per person, roundtrip. However, you then need to build in the cost of checked luggage (unless you are an amazing packer Iceland will typically mean a checked bag) and seat selection. This can easily add another $100-200 per person.

I highly recommend signing up for a membership to Going to get alerts on flight deals and set up preferences for your dream destinations.

If you want to find the best way to accumulate points and miles through credit card spending and sign up bonuses, I’d suggest downloading the  Travel Freely app  to track your credit cards and learn how to earn points.

Total airfare cost ($500 per person, round trip x 4 people): $2,000

Accommodations

If you are traveling solo, it is easy enough to stay in a hostel to save money on accommodation in Iceland. But most families will prefer either a hotel or Airbnb/VRBO. A rental will certainly save you money as there are only a few hotels that offer family rooms .

Most Reykjavik hotel rooms either have a double bed (two twins pushed together) or two twin beds. Occasionally you can find a triple or a family room, but a family of four often needs to reserve two rooms. A nice hotel in downtown Reykjavik with a family room will cost between $400-600 per night. You can also get two rooms at a moderate hotel for about $150-250 per night each.

Renting a vrbo apartment will save you a significant amount, as long as you are comfortable as an independent traveler. You should be able to find an apartment in the city large enough to fit everyone for about $300 per night. And if you have been saving up your hotel loyalty points, Hilton Honors and Marriott Bonvoy members are now in for a treat with multiple properties now available in or near Reykjavik.

Full-service hotels in the countryside will start at around $150 per night for a standard room and $350 per night for a family room. There are also some guesthouses that start around $150 per night per room or lower, especially in less crowded areas.

In the countryside, there is a large selection of vacation cabins available on vrbo . Expect to pay about $200+ per night for a cabin that sleeps four. Just plan in advance if you want to stay in popular locations along the south coast or by the Glacier Lagoon, as these sell out early.

If you are looking to do Iceland on a budget, renting an Airbnb or VRBO is the way to go unless you want to camp or stay in hostels, as covered above.

Total accommodation cost: assuming an average of $300 per night (if you primarily use vacation rentals) x 7 nights = $2,100

Find more places to stay in Iceland:

When visiting Iceland, if you want to get away from crowded bus tours and see the country or drive the Ring Road, you will need to rent a car. If you don’t rent a car, you will need to take a shuttle bus (about $30 per person) from Keflavik airport into downtown Reykjavik and then arrange group tours with pick up and drop off from there. Just don’t take a taxi as those can run about $150 one way between the airport and Reykjavik.

Car rentals can be pricey and you may be tempted to save money by skipping the insurance. Before you do, check with your credit card or car insurance provider because you probably still need to buy the ash and rocks coverage. Insurance can greatly increase the cost of the rental car, but you may need it.

There are plenty of budget car rentals but before you book, double-check their hours and location (how far from the airport, shuttle hours), and see the cost of add-ons so that you can compare apples to apples. (See other tips for Iceland car rentals .)

If you are visiting in the winter, you will definitely want an SUV or four-wheel drive. Otherwise, if you are sticking to the Ring Road, a four-wheel drive isn’t necessary. However, access to some hikes and activities will be on gravel roads and you will be more comfortable (and less likely to sustain damage from rocks) in a car with a higher clearance. I’ve seen a sedan get stuck on a rock in the parking lot for a hike before and people literally had to lift the car to get it off. Luckily it wasn’t totally ruined.

Also, keep in mind that to drive on the interior “F roads”, you will need a car that is allowed on those roads. Since many of those roads aren’t passable for much of the year or are extremely hard to navigate (I’ve literally seen a road sign in the middle of a field of snow), I wouldn’t bother with F roads.

The other thing to pay attention to is that you will want to make sure that your car is large enough to fit luggage for your family. Unless you are a super light packer, you will probably need checked bags for Iceland to make sure you are prepared for any weather. (See my Iceland packing list for tips!) I would recommend either a station wagon or an SUV for a family of four.

I use Auto Europe to check for the cheapest car rental rates in Iceland. Don’t forget to budget for gasoline as well (and please, if you rent a diesel car, make sure you use diesel petrol!). Currently (December 2023), gas costs about $8.82 per gallon.

If you don’t want to drive, your best bet is to stay in Reykjavik and take tours that offer pick-ups from the city as day trips. If you want to hire a private driver-guide, you should expect to pay around 120-350 per person, so at least $500-1500 for the day.

Total car rental cost: A station wagon with insurance and unlimited miles will be approximately $650-1,200 for a week. Also, add about $300 for gas if you are driving a lot.

You have probably heard that food in Iceland is expensive. If you have traveled to Scandinavian countries in the past, then you are probably used to high food prices, but for many, it can be a shock. This is especially true in the nicer restaurants in Reykjavik .

In Iceland, even a hamburger can run you $15 and most fish entrees will be closer to $30+. So dinner for a family of four can easily cost $100.

I’ve talked to many people who have felt Iceland was the most expensive place that they have traveled to when it comes to food. My advice is to splurge on one meal but keep the rest casual to keep the costs down.

You will want to try some of the specialties like Arctic char, langoustines, lamb, and if you are brave even try some reindeer or puffin. But to balance out those specialties, you can have a hearty lunch of meat soup or lobster bisque with bread. In the countryside, you can find many restaurants that offer buffets of amazing fresh, homemade food that will fill you up for hours so try to have a light breakfast, one large meal, and one lighter meal.

There is also no need to buy bottled water in Iceland as clean tap water is readily available (although it could have a bit of a sulfur smell at times), just be sure to bring along a refillable water bottle. You can also save by stopping at one of the markets, like the BONUS grocery store, and picking up supplies, especially if you are staying in a rental home or apartment.

Be sure to check out my recommendations on where to eat in Reykjavik .

Total food cost for a family of four: $200 x 7 = $1,400 (keep in mind that this can vary widely depending on if you cook and how much you splurge)

Tours and Activities

How much you spend on tours is entirely a personal preference. You can plan a private helicopter tour for over $3,000, or you can take a free hike. And just about everything in between. There are also plenty of free things to do in Reykjavik too. I would recommend trying at least a few of these unique things to do in Iceland.

Whatever you do, don’t feel like you need to take a tour for everything. You don’t. For example, you can easily do the Golden Circle and Thingvellir National Park on your own full-day road trip. But you may want to splurge on something like a glacier hike or an ATV tour that you CAN’T do on your own.

You can also forgo the touristy and expensive Blue Lagoon (if you go you need to book in advance), in favor of other hot springs around the country, like Krauma, the Sky Lagoon, the Secret Lagoon, or Fontana Spas.

There are a few things that I always recommend to clients. First, this is the land of ice and fire. Do at least one activity that takes you out onto a glacier (the ice part) such as:

• A glacier hike (minimum age 10-14 depending on provider) – see my age-based guide on things to do in Iceland with kids
• Snowmobiling on a glacier
• Ice cave trip (winter only)

Another option is to take a boat tour of the Glacier Lagoon .

For the “fire” part, I would recommend either a lava tube cave tour , a stop at the Lava Center , and/or a visit to at least one hot spring or spa.

There are so many fun things to do in Iceland. If you are adventurous, I would recommend splurging on something like a super jeep tour or ATV/buggy adventures.

I would recommend staying away from large group bus tours (e.g. Reykjavik Excursions) and instead book a small group or private tour with my partner Hidden Iceland . You can save 10% on scheduled group tours with Hidden Iceland using promo code WE3TRAVEL or for private tours, just tell them I referred you when you contact them.

If you can splurge on a few activities, here is what they would cost (based on current exchange rates):

• Secret Lagoon (2 adults, kids are free) = $47
• Into the Glacier (2 adults, 2 kids) = $727
• Lava Cave tour (2 adults, 2 kids) = $122
• Super jeep tour (2 adults, 2 kids under 11) = $1052

Total Activities Cost for 2 adults and 2 kids under 12: $1545

Total Iceland Budget: $8,545

So yes, Iceland vacation costs are high. If you look closely at the breakdowns, you can find ways to save money. You can also easily spend more. This was meant to be a guide to how much a trip to Iceland costs based on my experience helping so many families. Larger families or groups will cost more. Couples or solo travelers will be much less.

Traveling off-season will save you money (see my tips for visiting Iceland in the winter. ) You can also reduce the number of days you stay. If you stick to just one region, you can actually pack a lot into just five days, but I wouldn’t recommend staying any less.

Plan Your Iceland Trip

This article was sponsored in part by Moon Travel Guides. All opinions are my own.

Planning a trip to Iceland can make your brain hurt as you try to decipher between all of the words ending in foss (hint: that’s a waterfall), jökull (glacier), or vik (bay) and struggle with the logistics involved in mapping out an Iceland road trip. I’d recommend ordering a copy of Moon Travel Guides’ Iceland with a Road Trip on the Ring Road .

This guidebook provides options for a variety of itinerary ideas and road trips (with helpful maps!) It offers honest advice on where to eat, where to stay, and when to go, including a helpful phrasebook! Even after three visits to Iceland, I’ll be digging into this guide with up-to-date information to plan my next trip too.

Where to Go in Iceland

If you need some help deciding where to go in Iceland, be sure to check out our guides and itineraries:

• Iceland five day itinerary on the South Coast
• Four days in the Westfjords
• Day trips from Reykjavik
• Day trip to the Snaefellsnes Peninsula

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Tamara Gruber is the Founder and Publisher of We3Travel. A former marketing executive and travel advisor, Tamara is an award-winning travel writer and recognized expert in family travel. Tamara is a member of SATW and the Adventure Travel Trade Association, and serves on the Board of the Family Travel Association. She is also the publisher of YourTimetoFly.com and the co-host of the Vacation Mavens travel podcast.

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Publish Date: November 23, 2023

1 thought on “How Much Does an Iceland Trip Cost? (2024 Iceland Budget)”

We did AirBNB’s and avoided the capital. Saved us lots! Iceland was my milestone 50th country!

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How Much Does it Cost to Go to Iceland? A Travel Budget 2024

In this travel budget estimate for Iceland in 2024, we will cover the cost of going to Iceland, why the prices in Iceland are so high, how much it costs to rent a car, and a full breakdown of all costs associated with a trip to Iceland, along with some money-saving tips that you can implement on your travels. 

Famous for its breathtaking natural beauty and unique cultural heritage, Iceland is a truly unique travel destination for any world adventurer. Like with every trip, budgeting remains a top consideration when planning a trip to Iceland. And although Iceland is known as one of the most expensive destinations to visit, understanding the various costs associated with a trip to Iceland, along with some insider tips and tricks, will allow you to enjoy the country regardless of your budget. 

The first question people ask before booking a trip is, “How much does it cost to go to Iceland?” Getting around Iceland is one of the main considerations when it comes to budgeting, as the country has limited transportation options and no metro or trains. That means you have to rely on either public tours or book a rental car to travel with full freedom. 

Table of content

• Travelling time

Traveling method/Travel style

Stay duration 

Group size 

Type of experience 

How Much Does a Flight Ticket Cost?

How much does it cost to stay in iceland estimated price per night, how much does it cost to eat in iceland estimated price per person, how much does it cost to travel around iceland , how much does it cost to rent a car in iceland , how much does gas cost , how much to budget for other expenses are attractions in iceland free, why is iceland an expensive country, budget saving tips.

Calculating the Cost of Traveling in Iceland: What Affects the Cost?

Several factors can influence how much you will spend on your trip to Iceland, including what time of the year you visit, how long you plan on staying, what you plan on doing in Iceland, and what you do during your trip. Any of these factors can increase or decrease your expenses, and they are worth understanding. 

Seasonality and its Impact on Costs

Traveling time

The most significant factor impacting the costs of a trip to Iceland is the time of year you choose to travel, as different seasons will have different cost implications. Since the summer period is high in traffic from tourists, prices of most goods and services tend to increase due to supply and demand. In the Iceland winter months and during off-season, prices are generally cheaper due to reduced crowds.

That said, you will need a more sturdy and well-equipped 4X4 vehicle to handle the winter road conditions, which could come with an increased price. It’s also important to note that you may want to book a longer stay during the winter as you will need to account for delays due to bad weather and build some extra buffer time into your itinerary. Additionally, the week of Christmas and New Year’s will typically be more expensive than the rest of the winter months. 

How you travel will also impact how much you spend while in Iceland. Renting a car is the cheaper and preferred option since it costs way less than going on multiple tours. Plus, it allows you to plan your itinerary and change your mind without incurring further expenses than originally planned.

Many of the top attractions in Iceland are free to visit, but you’ll need a car to get there. Tours will always cost you money and will also limit the places that you can actually visit. 

How long you choose to stay in Iceland is another important factor in determining how much your trip to Iceland will cost. Regardless of season or vehicle choice, longer stays mean more money spent on expenses like food, lodging, rental cars, and gas. 

A great way to save money when traveling to Iceland is by traveling in a group, which allows you to compile resources for shareable expenses like accommodation, food, transportation, and even some experiences and attractions. In addition to creating lasting memories with loved ones, sharing the costs is one of the best ways to make your trip more budget-friendly. 

Ultimately, deciding how much you will spend on a trip to Iceland depends on how much you have available in your budget. Solo travel on a shoestring budget at the right time of the year would cost about ISK 12675 ($90) per day, while an all-expense luxurious trip would set you back up to ISK 40,843 ($290) per day. On average, however, people spend around ISK 27,531 ($195) daily on trips to Iceland, excluding airfare.

Breakdown of Costs for a Trip to Iceland

Now, let’s break down the costs of each aspect of a trip to Iceland so you can effectively budget how much you will need to spend. 

In the summer, when crowds are always at their highest, flight tickets from North America to Iceland typically cost between ISK 84,504 ($600) and ISK 211,260 ($1,500), while flights from Europe would cost between ISK 60,203 (€400) and ISK 135,457 (€900). 

During the offseason in winter, flight tickets from North America to Iceland typically cost between ISK 70,420 ($500) and ISK 169,008 ($1,200), while flights from Europe would cost between ISK 30,101 (€200) and ISK 90,304 (€900). 

• Read more about: Iceland flights: airlines, airports, and destinations guide

Different types of accommodation are available to tourists in Iceland, serving a wide range of price needs. From hostels and guesthouses, which are pretty affordable, to luxurious five-star hotels, which come at a much higher price point, you will always find an option for your budget. 

Hotels 

Hotels are the peak of luxury accommodation in Iceland. During summer, you might find reasonable spots that cost of hotel with private rooms and bathroom between ISK 24,928 ($177) per night and as much as ISK 225,762 ($1,500) for the highest-end places. During winter, hotel prices vary between ISK 14,084 ($100) and ISK 75,349 ($535) per night.

Hostels in Iceland are considering as more expensive then the hostels in other countries, but still hostels are the cheaper accommodation options for tourists travelling Iceland. During peak summer, hostels and guesthouses could cost between ISK 5,633 ($40) and ISK 20,562 ($146) per night. They could cost as little as ISK 3,521 ($25) to ISK 7,042 ($50) per night in winter.

AirBnb 

In the summer, you can get an AirBnB for as low as ISK 8,450 ($60) for shared spaces and as high as ISK 47,322 ($400) for a single unit, but it could easily stretch much higher depending on what type of Airbnb you book. During winter, you can get them as low as ISK 5,633 ($40) for shared spaces and as high as ISK 49,294 ($350) for a single unit. 

Camping 

Camping in Iceland is a great way to experience the country. For campervans or tenting, the cost for a campsite is between ISK 1,408 ($10) and ISK 13,098 ($93) per night. Camping during the winter months in Iceland is highly discouraged, and we do not recommend this due to severe weather conditions like extreme cold and snow storms that could hamper safety.

Additionally, most of the campsites will be closed in the winter months anyway. But during the summer in Iceland , it’s one of the most inexpensive accommodation options. 

Food in Iceland can be expensive when compared to other European countries, but that does not mean there aren’t ways around the high cost. For example, you could spend as little as ISK 2112 ($15) daily if you make your meals from store-bought groceries. 

Expectedly, the best in fine dining and high-end restaurants located in the capital city of Iceland have steep prices. As a result, one meal can cost up to ISK 11267 ($80) at a nice restaurant in the city, and even more depending on what you have to drink. 

On the other hand, some restaurants could cost between ISK 3,943 ($28) to ISK 7,887 ($56) per meal, while fast food is the least expensive food, and you can get Iceland’s famous hotdogs for around ISK 845 ($6) hotdogs or combo meals for ISK 3,943 ($28). 

The price of transportation around Iceland depends mainly on what you intend to see and where you wish to go. Several bus tours operate year-round, and others only operate in the summer. However, the most popular one among visitors to Iceland is the Golden Circle tour, which touches most of Iceland’s iconic attractions. 

A full-day tour of the Golden Circle will usually cost between ISK 16,900 ($120) and ISK 28,168 ($200).

Rather than take tours, we recommend renting a car to visit Iceland attractions yourself since many of them are free to enter. You can find more information on the cost of rental cars below. 

The cost of renting a car in Iceland varies depending on what type of car you require and the time of year when you rent it. 

Small cars like the Volkswagen Golf cost ISK 39,435 ($280) per day when you rent them during the summer, but that price goes down to ISK 18,309 ($130) during the winter. 

Mid-sized cars like the Toyota Corolla, which can seat up to five people, will cost around ISK 46,477 ($330) per day in the summer and ISK 22,534 ($160) during the winter. 

Full-sized cars with lots of space, such as the Toyota Land Cruiser, are priced at ISK 73,236 ($520) per day during the summer and ISK 32,393 ($230) in winter. 

As of the time of writing this, gas in Iceland costs ISK 1,205 ($8.7) per gallon, but the price has fluctuated between ISK 1,162 ($8.25) and ISK 1,234 ($8.76) in the last year.

Most attractions in Iceland are free when travelling around the island via Route 1 Ring Road, only a few classic attractions, for example the black sand beach, Seljalandsfoss waterfall, thingvellir National park, they do charge a small parking fee. But if you want to visit some museums during your time spend in Reykjavik, that will cost.

Approximate cost of Souvenirs and Shopping in Iceland: from 10,000 ISK

When visiting Iceland, shopping for souvenirs is a delightful way to preserve memories of your trip. The prices for common souvenirs vary, with typical items like Icelandic wool sweaters, locally made crafts, and Viking-themed memorabilia.

For instance, a classic Icelandic wool sweater can cost anywhere from ISK 10,000 to ISK 25,000, depending on the quality and design. For more budget-friendly options, tourists can look for smaller items like keychains, postcards, or volcanic rock jewelry, typically ranging from ISK 500 to ISK 4,000.

To find value-for-money purchases, it is advisable to shop at local markets or stores away from main tourist areas, where prices are often inflated. Places like Kolaportið, Reykjavik’s flea market, offer a wide range of items at more reasonable prices compared to souvenir shops at popular tourist destinations.

Entrance Fees for Popular Tourist Spots in Reykjavik: from 6,990 ISK

Iceland is home to numerous attractions, and while many natural wonders like the famous black sand beach at Reynisfjara are free to visit, some popular spots do have entrance fees.

For example, a visit to the Blue Lagoon, one of Iceland’s most iconic geothermal spas, can cost between ISK 6,990 to ISK 9,990 for a standard package, including a silica mud mask and use of a towel. Other notable attractions include the Perlan Museum in Reykjavik, where entrance fees are around ISK 2,900 per adult, and the Whale Museum in Husavik, which charges about ISK 2,200 per adult.

Additionally, some of the national parks and protected areas might have parking fees or charges for guided tours, although access to the park itself is typically free. It’s always a good idea to check for updated prices and book tickets in advance for popular activities in Iceland, especially during the high tourist season, to avoid last-minute price surges and ensure availability.

Being in the far reaches of the North Atlantic Ocean certainly has its perks. The incredible views and the serenity of being distant from more central European countries make Iceland a dream destination. However, the downside to its unique location is how it impacts costs. 

Iceland is at least five-and-a-half hours away from the United States by flight, and its distance from major cities worldwide means that imports are complicated and often expensive. This would be fine if Iceland did not have to depend on importation for most of its day-to-day needs, but unfortunately, the country relies heavily on imports due to a short supply of natural resources. 

In addition, Iceland’s quality and standard of living are high, given that the country’s working population, which is 90% employed, is paid premium wages and, in turn, pays high taxes. The flow of wealth in Iceland’s communities has given rise to a high cost of living in the country and makes it difficult to find cheap alternatives to necessities for tourists because they do not exist for the locals either. 

An upsurge in tourism and exploration of Iceland’s many famous attractions has increased the demand for items and services like accommodation, tours, rental cars, tickets, and activities that make up a large part of any holiday planning. Recent inflation also plays a role in Iceland’s high cost of commodities and services. At the same time, the fluctuating Icelandic currency also requires you to pay attention to global and local foreign exchange trends while in Iceland. 

In-Depth Exploration of Iceland’s Cost Factors

Local Economic Factors Affecting Prices

Iceland’s geographical isolation significantly impacts the cost of goods in the country. Located in the North Atlantic, far from mainland Europe and North America, Iceland relies heavily on imports for many of its essential and non-essential goods. This reliance on importation naturally leads to higher costs. Everything from food items to consumer goods must be transported over long distances, often incurring substantial shipping fees, which are then passed on to the consumer in the form of higher retail prices.

Additionally, the limited local production capacity in various sectors means that the country cannot offset these costs by producing more goods domestically. This situation results in a higher cost of living compared to many other countries, affecting both residents and tourists alike.

Contrary to what one might expect, Iceland’s energy costs, predominantly sourced from renewable resources like geothermal and hydroelectric power, play a unique role in its economy. While these renewable sources provide relatively cheap and abundant energy, the initial infrastructure setup for harnessing these natural resources involves high costs.

These expenses, in turn, can contribute to the overall cost of services and goods in Iceland. However, it’s also noteworthy that the abundance of renewable energy has attracted energy-intensive industries to the country, which positively impacts the economy but can also lead to increased competition for resources.

Impact of Tourism on Iceland’s Economy

Tourism has become a cornerstone of the Icelandic economy. The breathtaking landscapes, unique geological features, and the allure of the Northern Lights have turned Iceland into a popular tourist destination. This influx of tourists has led to increased demand for accommodation, food services, and travel-related services, driving up prices due to the high demand, especially during peak travel seasons. The revenue generated from tourism significantly contributes to the national economy but also results in a cost structure that caters to tourists, often at premium prices.

Sustainable Tourism and Its Costs : Iceland has been a proponent of sustainable tourism, aiming to preserve its pristine natural environments while catering to tourists. Sustainable tourism initiatives often involve investing in environmentally friendly infrastructure, promoting responsible travel practices, and ensuring that tourism does not adversely affect local communities and ecosystems.

These initiatives, while crucial for long-term preservation, often come with higher operational costs. These costs, necessary for maintaining the balance between welcoming tourists and preserving natural beauty, are reflected in the pricing of tours, accommodations, and other tourist-related services in Iceland.

Despite having a reputation for being an expensive destination, there are several ways that you can save money on your trip to Iceland. 

• Consider visiting during the off-season and shoulder seasons , when the crowds will be significantly less than during the summer. This will save costs on flight tickets, accommodation, car rentals, and even food and activities. 
• Always book in advance. Get your essentials, like Iceland flight tickets and rental cars, ahead of schedule as much as possible. This way, you can avoid any last-minute price hikes and also ensure that you don’t miss out on availability and end up unable to book your preferred options.
• With the price of restaurant meals in Iceland, the most budget-friendly way to dine is to cook your own food. Many hostels, Airbnbs, campgrounds, and campervans have provisions for cooking, and grocery stores are never far away. So, with a little effort, you can spare yourself the cost of an expensive restaurant meal and make food to your taste.
• If your accommodation or itinerary does not allow you time or space to cook meals, then this could be the time to embrace the fast food options in Iceland; after all, it is a vacation. But if you have it in the budget, we do recommend trying out some local Icelandic cuisine . 
• Enjoy free activities and attractions as opposed to tours and paid entertainment. For example, instead of going to a paid Iceland hot springs or geothermal bath, you can opt for more remote, free hot springs enjoyed by locals while also getting a more authentic experience.
• There are also several accessible black sand beaches , glacier lagoons , Iceland waterfalls , and hiking trails that satisfy your thirst for adventure in Iceland without costing more than gas money or transportation to reach these areas since they are free to access. 
• Bring your own water bottle. A simple water bottle will save you money that you would have otherwise spent on bottled water, as you can safely drink tap water in Iceland and fill your water bottle at rest stops instead of buying water at different venues and public attractions. 
• Consider traveling with a friend or family member to split the costs. Many essentials like gas, food, rental cars, and accommodation can be divided between two or a larger party to break heavy expenses into lighter loads for each individual. 
• Eat in local markets and food halls in Iceland is not just a culinary adventure; it’s a smart way to keep your dining budget in check. These places offer a diverse array of Icelandic specialties at prices that are much more wallet-friendly than what you might find in upscale restaurants. For instance, at Reykjavik’s Grandi Food Hall or Hlemmur Food Hall, you can savor everything from traditional Icelandic snacks to international dishes, all without breaking the bank.
• Making the Most of Tax-Free Shopping. This is particularly beneficial for tourists planning to make substantial purchases. Look for stores displaying the “Tax-Free Shopping” signage, and remember, your total purchase needs to be at least ISK 6,000 to qualify. Keep your receipts and fill out the tax-free form provided by the store. When you’re heading home, show these forms along with your items at the airport or port customs for validation, and you can claim your refund right there in the departure area. This process effectively reduces the cost of your shopping, giving you more value for every dollar spent.

Cost Guide to Iceland

This cost guide to Iceland has provided detailed information on how much it costs to go to Iceland, along with key details on the average cost of trip essentials and factors that could cause those prices to change throughout the seasons. By following our tips on the best ways to save money while on vacation in Iceland, you can keep your trip within your budget, regardless of what that is. 

One of the best ways to save money on your trip to Iceland is to book a rental car online and in advance with Hertz Iceland to lock in the rental rate before it fluctuates. By securing your rental car prior to your trip, you can ensure you get the best deal and the perfect vehicle to explore the wondrous landscapes of Iceland. 

Best rental cars in Iceland for all seasons

Hyundai Tucson Plug-in Hybrid or similar | Automatic | 4×4

Ifai | group: n3 (ifai).

• Airconditioning

This vehicle is NOT allowed in the highlands F-roads. NOTE: Allowed on roads no.35 and 550. You must be 23 years of age to drive this vehicle.

Additional Features

• 3 Large Luggage
• 4 Wheel Drive
• 46 C0 2  g/km
• Adjustable Steering
• Cruise Control
• Electronic Stability Control
• Power Steering
• Power Windows
• Remote Locking

Kia Sorento Plug-in Hybrid or similar | Automatic | 4×4

Sfdi | group: o6 (sfdi).

This vehicle is NOT allowed in the highlands F-roads. NOTE: Allowed on-road no.35 and 550. You must be 23 years of age to drive this vehicle.

• 4 Large Luggage
• 38 C0 2  g/km

Land Rover Defender or similar | Automatic | 4×4

Pfan | group: g6 (pfan).

Suitable for highlands, Please read the Terms & Conditions. You must be 25 years of age to drive this vehicle.

• Petrol or Diesel
• 234 C0 2  g/km

Tesla Model Y or similar | Automatic | 4×4

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Is Iceland expensive? If you’re asking that then you’re probably planning a trip across to this far-flung corner of Europe , up where colossal ice fields creak above whale-filled Atlantic waters and where spurting geysers issue from fissures in the volcanic-rock ground. It’s an incredible place, but…

Sadly, Iceland isn’t famed as a cheap destination. Chances are that you’re going to have to fork out a lot more than you normally would for this particular jaunt. It might just be worth it though, what with roaring waterfalls, epic multi-day hikes, eye-watering glaciers, and quaint fishing towns by black-rock beaches all on the menu.

This guide will run through what we think you’ll need to have in the bank account for a trip to Iceland. It’s got information on what hotels will set you back, how much you’ll have to have at the ready for the most popular activities, and even what it costs to get over to the Land of Ice and Fire in the first place.

Table of Contents

How much does a holiday cost in Iceland?

A vacation to Iceland isn’t likely to be the cheapest trip you’ve ever made. We’d estimate that the average week-long jaunt will set you back around $2,370. That’s based on staying in midrange hotels the whole way, eating out to a total of no more than $60 per day, having one night on the town, and your own car hire. We haven’t included the cost of getting over to Iceland in the first place, which can be cheap from Europe but a lot more expensive from the US.

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There’s plenty of scope to do Iceland cheaper than this. For that, you’ll need to seek out the hostel stays and campsites, which can cut nightly accommodation rates to around $90-110 per night. You should also consider cooking for yourself (as supermarkets are cheaper) and ditching drinking sessions in Iceland for duty-free booze that’s bought before you even cross the border.

It’s also possible to spend stacks more than what we’ve outlined above, especially since Iceland is home to some particularly spectacular backcountry hotels that have access to their own natural spas and boast viewing platforms for the Northern Lights. They can command rates of over $700 per night in the peak season, and not much less in the low season.

Is Iceland expensive to travel to?

Iceland is now way more accessible than it once was. Not only has it emerged as a convenient stopover point for transatlantic carriers going between Europe and America, but it’s also become a bit of a destination of choice for some of the globe’s best-known budget names – easyJet, Jet2, Wizz. And those low-cost carriers don’t just fly in from the EU. There are also services withe start-up brands like PLAY that link to big east-coast cities like Baltimore, Boston, and even Orlando.

Virtually all international air traffic drops into the Keflavík International Airport 30 miles south of Reykjavík, the Icelandic capital. Airfares vary considerably, changing a lot with the seasons and a lot depending on your origin destination. That said, stats made available on flight comparison site Momondo show that the average cost of links in from New York is just over $400 return but around just $150 from London.

You should find that the cost of flights to Iceland dips in the winter months. That’s because fewer travellers will be looking to tour the country at that time, especially since some of the most famous hiking trails and scenic drives will be shut due to snow coverage.

We’d say add about $150 to the budget to reach Iceland in the first place but around $300-500 if you’re planning on coming in from the USA or Canada.

Is Iceland expensive for hotels?

Generally speaking, hotels in Iceland will be pricier than what you pay in a lot of Europe’s popular destinations, from Spain to Italy, London to Berlin. It’s just that the going rate for a night’s sleep here is a touch higher, putting the average cost of a hotel at around the $150-180 mark.

There are some options that mean you’ll pay less, but even a hostel in Iceland costs something like $110 per night. You can, however, really push the boat out if you want to, with exceptionally high-class spa hotels in the capital and romantic dome hotels that are built specifically for watching the Northern Lights in the backcountry.

Here’s a look at a couple of hotels from across the spectrum in Iceland:

• Bus Hostel ($) – A cool, clean hostel that has discounted beds near the bus station (hence the name). You’ll also save money at the bar, where there’s a generous nightly happy hour.
• ODDSSON Hotel ($$) – This midrange hotel option has an edge of the boutique about it and offers a stay in the quiet streets of east Reykjavík.
• Hotel Grimsborgir – Your Golden Circle Retreat ($$$) – Situated in the wild Icelandic backcountry amid the famous sights of the Golden Circle, this hotel has rooftop hot tubs and a sumptuous breakfast buffet.

The main thing you’re likely to notice affecting the price of stays in Iceland is the season you travel. Winter means some great deals as demand plummets when the snows hit, although city breaks to Reykjavík do remain popular so hotels there don’t cost all that much less. Summer, on the other hand, is peak time, and means you’ll usually need to pay at least a 20% premium on rooms.

We’d say a budget of $150-170 per night is a good way to go in Iceland.

Is Iceland expensive for food?

Perhaps a little surprisingly, Iceland has transformed into something of a foodie hub in the last few years. The spreading trend of New Nordic cooking has made its name here with fancy restaurants like Sjávargrillið and Grillmarkaðurinn leading the way. But there’s also been a boom in interest in the local cuisine, its fresh fish, fermented dishes, and hearty comfort food.

The downside? Sampling all that hardly ever comes cheap. You’re going to need a hefty budget of something like $80-100 per person if you want to eat out everyday in Iceland. To put that into perspective, that’s double what we’d recommend setting aside for Spain and Italy, which are foodie destinations extraordinaire.

One way to save is to shop at supermarkets and cook for yourself. However, that brings the added requirement that you book a stay with self-catering facilities or have the ability to cook for yourself if you’re camping. What’s more, supermarkets are still pretty pricy in Iceland, with average monthly shopping bills here topping $1,050 per person!

Is Iceland expensive for nightlife?

First off – no one travels to Iceland for the nightlife. If you’re looking to party, party, and then party some more, this probably isn’t the destination for you. Europe hosts capitals like Madrid, isles like Zante, and buzzy Central-Eastern European cities like Krakow and Budapest for the hedonists. Iceland is much more about nature, and – here’s the main point – far too expensive to be a clubbing mecca.

It’s not unusual for a beer to cost $10 a pop, but some places will charge up to $15 for locally brewed craft stuff. Things hardly ease up if you decide to pre-drink with your own ammo, either. State-run liquor stores apply pretty hefty taxes to most drinks, to the point where a bottle of vodka could cost in excess of $90 and a basic bottle of wine will set you back in the region of $20. It’s hardly a surprise that most folks stock up in duty free when they jet in!

If you’re determined to party in Iceland, then there’s not really anywhere else to do it other than the capital of Reykjavík. There, we’d budget something along the lines of $200 for a night on the town.

The cost of things to do in Iceland

One of the great pulls of Iceland is the explorations promised by this tundra-dashed, fire-forged, ice-carved world on the edge of the Arctic Circle. The good news is that a lot of that comes cheap. All you need is a good pair of boots, a map, and a sense of adventure.

Oh, and a rental car will hardly hurt. Your own wheels will make it easy to hit the trailheads, explore the Golden Triangle (an area that contains Iceland’s most famous sights), and cruise the scenic byways. Vehicle hire usually costs in the region of $30-60 per day, depending on what model you go for and how long you’re coming for.

On top of those wheels, there are other costs associated with activities in Iceland. Here’s a look at a few examples:

• A night in a refuge hut on the Laugavegur Trail, Iceland’s most famous walking trail – Around $65 per person, with a surcharge of $4 for hot showers. The whole route takes two or three days, so you need to book multiples of these.
• Parking fee at the must-see Thingvellir National Park – $4. Only guests who come on organized tours can avoid this. All people driving must pay.
• Entry to the iconic Blue Lagoon of Iceland – $92. This is for a premium entry to the famous outdoor-indoor spa lagoon near Reykjavík. It’s a great way to finish off a holiday with some rest and recuperation.

Our estimation for a total activity budget in Iceland is around about $60 per person, per day, which covers a car hire and some extra attractions along the way.

Is Iceland expensive? Our verdict

Yes, Iceland is expensive. In fact, it’s up there with the most expensive places to vacation in Europe. Prices are similar to other Scandinavian countries like Denmark, Norway, and Sweden, largely due to high taxes on goods. Hotels are also noticeably pricy here, with rates similar to big city destinations like NYC or London – around $160 a night is normal. Finally, activities can be a lot, but there are also plenty of chances to enjoy the country’s wild backcountry on a budget, though you’re likely to need a hire car that comes in at upwards of $30 per day to do that.

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How to Visit Iceland on a Budget: The Ultimate Guide

Once a sleepy, relatively isolated island, Iceland has recently become one of the hottest travel destinations on earth.

When I first went to Iceland in 2009, right after the country’s famous 2008 financial collapse but before the 2010 volcanic eruption of Eyjafjallajökull, most people were dumbfounded as to what would draw me to this remote speck of land in the North Atlantic. By my fifth trip, in 2015, people no longer asked what drew me to Iceland. They knew—thanks to a plethora of press about Iceland and the staggeringly beautiful photos all over Instagram—and they were planning their own trips too. Now, if you haven’t been to Iceland yet, you probably know someone who has, and if you are reading this guide, it’s likely you are itching to go next.

Visitors go to marvel at the country’s surreal landscapes: its windswept beaches, snow-capped mountains, and steaming geothermal valleys. To pet the friendly, adorably fuzzy Icelandic horses. To soak in hot springs in the snow, stare in awe of the Northern Lights dancing overhead, stand atop Europe’s largest glacier, or bask in the spray of the continent’s most powerful waterfall.

For a small country (roughly the size of the U.S. state of Ohio), Iceland is incredibly diverse, and packs so much punch into a compact space. Here’s your ultimate guide to the wild, rugged, and stunningly beautiful country of Iceland.

How much does a trip to Iceland cost?

Iceland is expensive, there’s no getting around it. Food, activities, and hotel prices are on par with major cities like London and NYC. Think: $100 minimum for a charmless hotel room, $10 for a beer, $35-$40 for a dinner entree in a mid-range restaurant.

How much you spend will depend factors like what level of accommodation you choose, if you opt for a rental car, how many tours you take, how often you eat out, if you like to have a few drinks, and so on. A minimal budget for Iceland is $60-80 USD per person per day — and that’s staying in a hostel dorm, cooking most of your own meals, skipping tours, and taking buses.

A mid-range budget is more like $200 USD per person per day. That provides some wiggle room for nicer accommodation, a rental car, a tour or two, and a few more meals out—though you could easily spend more.

However, there are ways to cut costs. Use HotelsCombined to break down both hostel and hotel options. In summer, camping is a great option; campsites cost about $10 per night and have showers and wifi. Buy snacks and meals at local grocery stores, and refill your water bottle from the tap (fun fact: Iceland’s tap water is among the cleanest on earth). If you plan to drink, do as the locals do and stop by the airport duty free to save big on liquor. You can also check the weekly Reykjavik Grapevine for happy hour deals. And while there are some things you can’t do without a tour ( glacier trekking , for example), many of Iceland’s best sights are free or cost just a few dollars.

Getting there

From the U.S. and Canada, Delta, Icelandair, American Airlines, Air Canada, and others connect dozens of airports with Iceland’s Keflavik international airport, which is located in the southwest about 45 minutes from Reykjavik. To find the best flights prices, use a broad search engine like Skyscanner (which includes budget airlines) and select “entire month” to identify the cheapest dates to fly.

From Europe, it’s even cheaper and easier to reach Iceland. In addition to Icelandair, several European carriers serve the island, including easyJet , British Airways, Wizz Air, KLM, and SAS. Prices from London start as low as $43 USD for a quick 3 hour flight. All of these airlines will appear in Skyscanner search results.

For travelers going to Europe from North America (or vice versa), Iceland is an easy stopover. All flights on Icelandair stop in Iceland, where passengers are allowed to extend their layover  before continuing on, though this must be arranged at the time of booking. You can also extend your layover yourself with a multi-city search engine like Skyscanner or Momondo by following our guide to free extended layovers .

The budget airline WOW Air was instrumental in making Iceland more accessible and affordable to reach from both North America and Europe, but unfortunately, the airline went bankrupt in March 2019. Fortunately, the airline is under new ownership, and flights are scheduled to resume in October 2019, starting with 2 planes in operation, then 10-12 planes by summer 2020. If the airline operates like before, expect base prices as low as $99 each way, as well as frequent sales, especially around holidays like New Years and Black Friday. But like any budget airline , watch out for extra fees, as they charge for everything from carry-on luggage to bottled water.

Natural wonders

Iceland is known for its otherworldly landscapes. There are volcanic black sand beaches, absurdly shaped basalt cliffs, turquoise waterfalls, abundant hot springs, multi-colored rhyolite mountains, puffing volcanoes, brilliant glaciers, and more. Best of all, you don’t even have to venture far from Reykjavik to see these natural wonders. Among the highlights are Reynisfjara black sand beach, the multi-tiered Dynjandi waterfall, Jökulsárlón glacial lagoon, Vatnajökull glacier, the Reykjadalur hot spring valley, and Katla volcano.

Pools and hot springs

The same geothermal activity that produces Iceland’s volcanoes produces its hot springs—and lots of them. Some of the notable ones include Laugarvatn Fontana Spa , Secret Lagoon , and Myvatn Nature Baths . Nearly every town in Iceland has a geothermal pool open all year round (admission costs only a few dollars). Of course, the most famous hot spring is the Blue Lagoon, a man-made pool fed with mineral-rich milky blue geothermally heated water. It’s located between Keflavik airport and Reykjavik, making it a great stop at the beginning or end of your trip. If you're based in Reykjavik, consider booking a return transfer with instant confirmation on GetYourGuide or Viator .

The Golden Circle

The Golden Circle is a route that connects three of southwest Iceland’s most popular sights. In one day, you can watch a geysir erupt at Geysir, marvel at the thundering Gullfoss Waterfall, and walk between the rift of the Eurasian and North American tectonic plates at Thingvellir National Park . Not technically en route but worthy of stopping for are the nearby Friðheimar tomato restaurant and greenhouse, Fakasel Horse Theatre, Laugarvatn Fontana Spa , and Secret Lagoon . If basing yourself in Reykjavik, the top sights in The Golden Circle can easily be seen in a day trip booked with immediate confirmation and pickup from your hotel on GetYourGuide or Viator .

While Iceland’s natural wonders deserve the bulk of attention, Reykjavik itself begs space in your itinerary too. This small, cosmopolitan city is the northernmost capital in the world and home to two-thirds of Iceland’s population. It also offers plenty to do, especially in inclimate weather. See the multimedia exhibits and excavated millennia-old Viking longhouse at the 871 +/- 2 Settlement Exhibition , wander the stunning Harpa opera house, or shop the Kolaportið weekend flea market. Reykjavik’s nightlife is also not to be missed. On weekends, locals hit the streets around 1am and the clubs stay packed until 4 or 5 in the morning.

The Northern Lights

The Northern Lights, or Aurora Borealis, can be spotted over Iceland from early September to early April. However, seeing them is never guaranteed despite Iceland being one of the best places to see them. Good solar activity and a clear night sky are essential. The Icelandic Meteorological Office forecasts the conditions on a scale of 0-9, and brilliant shows can be seen when the level is as low as 2-3. Generally it’s best to see the lights away from the city, but when they are particularly strong they are visible from Reykjavik. For more tips on seeing the Northern Lights, check out our guide here .

Sample Itinerary

While you could, technically, drive the entirety of Iceland’s Ring Road (the main highway that encircles the island – not to be confused with the Golden Circle) in about 24 hours, it’s far better to allow at least a week to take in all the sights—and allow for any weather delays.

The itinerary below assumes a trip in late spring, summer, or early fall. In winter (and especially if you don’t have experience driving in snow), it’s highly recommended to stick to the south coast, Golden Circle, and Reykjavik.

Day 1: From the airport, drive about 20 minutes to the Blue Lagoon . Soaking in its milky blue water is the perfect way to relax after hours cramped in a small airplane seat. Head southeast and stay the night in the small town of Selfoss . If not driving, book an airport transfer ahead of time.

Day 2: Drive east along Iceland’s south coast for a day filled with waterfalls, including Urriðafoss , Seljalandsfoss , and Skógafoss . Admire the cliffs at Dyrhólaey and then step out onto the black sand beach at Reynisfjara . Stay the night in the small village of Vik .

Day 3: Spend the day in Vatnajökull National Park, home to two huge glaciers Skaftafellsjökull and Svínafellsjökull . Join an ice-climbing tour or hike through the park’s Skaftafell wilderness area to the Svartifoss waterfall. In the afternoon, head farther east to Jökulsárlón , a stunning iceberg-dotted glacial lagoon where you can view the lagoon from shore or join a boat tour. Spend the night in Höfn , a seaside fishing village.

Day 4: Drive north to the quirky town of Seyðisfjörður in the less trodden East Fjords. Visit the Skaftfell Center for the Arts, head out on kayaking tour of the fjords, and snap instagram pics of the domed Tvisongur sound sculpture and the rainbow walkway leading to the blue Seyðisfjarðarkirkja church.

Day 5: Continuing northwest around the island, visit the most powerful waterfall in Europe, Dettifoss (just be prepared for a bone-jarring drive on a rough road) and then stop for a short hike around Ásbyrgi , a deep, horseshoe-shaped canyon that legend says was formed by the hoof of a Norse god’s eight-legged horse. Spend the afternoon in Húsavík , the whale watching capital of Iceland. If it’s whale season (spring through fall) go on a whale-watching tour; if not, stop by the Húsavík Whale Museum.

Day 6: Swing by the Mývatn Nature Baths , the north’s less-crowded version of the Blue Lagoon, and stop to marvel at Goðafoss , the “waterfall of the gods.” Spend the night in lively Akureyri , Iceland’s second-largest city.

Day 7: Complete your circuit of Highway 1, the Ring Road, by driving back to Reykjavik . See the view from the top of Hallgrímskirkja, the city’s iconic church; learn about Icelandic history at the 871+/- Settlement Museum, which features an ancient Viking longhouse and interactive exhibits; and treat yourself to a fantastic fish dinner at one of the city’s great (but pricey) restaurants.

Day 8: Explore three of Iceland’s most famous attractions, which together are called the Golden Circle. Start at Kerið ; the volcanic crater lake isn’t technically part of the Golden Circle, but it’s on the way. Then head to Gullfoss , a massive waterfall that rivals Niagara Falls, and on to Geysir . Though the eponymous geyser here no longer erupts, a geyser called Strokkur does every 15 minutes or so. You could break up the day with a visit to one of the nearby hot springs, like Laugarvatn Fontana Spa or the Secret Lagoon. Then finish the loop with a stop at Þingvellir National Park . The site of Iceland’s first parliament, it’s also where two tectonic plates meet, and you can walk in the rift between them. If you aren't driving, a day tour is the easiest way to see the Golden Circle's highlights, and can be booked through GetYourGuide or Viator .

Day 9-10: With a few more days in Reykjavik, plan some organized activities, like riding on an adorably stout Icelandic horse, snorkeling in the Silfra rift, caving, an Icelandic cooking class at Salt Eldhús or a food tour or pub crawl of the city.

If you have an additional few days, add on the Snaefellsnes Peninsula (Rauðfeldsgjá, Arnarstapi, Hellnar, Öndverðarnes, and Stykkishólmur), the Westfjords (Ísafjörður, Dynjandi, Patreksfjörður, Látrabjarg, Rauðasandur), or both. Another option would be to detour off the Ring Road into the interior Highlands (only from late May to mid-September) and camp overnight at Landmannalaugar.

If you’re limited on time, base yourself in Reykjavik. Allot one day for the city, one day for a day trip along the south coast or Golden Circle, and reserve one day for an activity like snorkeling the rift at Silfra or riding an Icelandic horse.

Where to Stay

As Iceland’s popularity has grown, so has the number of accommodation options available to travelers. Iceland now offers a wide variety of accommodation through the country, though Reykjavik still has the most options. On the budget end, prices start at around $30-50 per night for a dorm bed in a hostel. A one-bedroom Airbnb or double room in a guesthouse is typically $100-$150 per night. Check both Airbnb and HotelsCombined to see the cheapest prices across major booking sites for homestays, hostels, and hotels.

In Reykjavik, the no-frills Guesthouse Sunna goes for around $100 per night and offers small kitchenettes, a free breakfast, and a great location near Hallgrimskirkja church. Worth a splurge at around $250 per night, the Kvosin Hotel and Room with a View both offer stylish, modern rooms with kitchens and excellent city views in the heart of downtown.

Outside the city, you’ll find a range of hotels, lodges, Airbnbs, farmstays, guesthouses, b&bs, and cabins ranging from $100-$300 per night. Airbnb and Hey Iceland list apartments, cabins, guesthouses, and farm stays around the country.

Iceland’s peak season is June-August and it’s easy to see why. Nearly the entire country is accessible, the sun shines for almost 24 hours per day, the weather is generally mild, purple lupines and other wildflowers dot the startlingly green landscape, and temperatures range from 48F-55F (8C-12C). However, this is also when prices are at their highest.

Low season is the cold winter months of November–February (aside from New Year’s Eve and the annual Iceland Airwaves festival). Prices are at their lowest during these months—as are the temperatures, though Iceland’s winter temperatures are actually on par with New York City’s. Averages hover around 36F-39F (2C-3C), but strong winds can make it feel colder.

While you can still do many activities in the winter (even snorkeling!), there are some parts of the country you can’t visit, such as the interior Highlands, and you need to allow more flexibility in your plans in case a storm makes travel impossible on some days. These downsides, however, are offset by an increased chance to see the Northern Lights.

Iceland’s shoulder seasons are March-May and Sept-October. During these months the weather is relatively mild, crowds are fewer, and prices are lower. In May, spring flowers begin to bloom. In September, the lichen on the hills turns beautiful shades of yellow and orange. By March and October you may see some snow. There’s also a chance to see the Northern Lights, which are generally visible from early September to early April.

Eating & Drinking

Iceland isn’t known for its cuisine, at least outside its less enticing foods like boiled sheep’s heads and rotten shark. While those foods are still consumed on special feast days like Þorrablót, they bear little resemblance to modern Icelandic food.

Among the can’t-miss dishes that one must sample on a visit are:

•       Tender, free-range lamb, served braised, grilled, or in soup
•       Sweet langoustines (Norwegian lobster) served grilled with garlic and butter or in creamy soups
•       Skyr, a low fat yogurt-like dairy product used in dips and desserts or eaten on its own
•       Fish like cod, wolffish, plaice, haddock, and halibut.

As with accommodation, Reykjavik is home to the most options when it comes to dining in Iceland. For a splurge, head to Ko l, which serves creative cocktails and specializes in grilled fish and meats, or check out Dill , Iceland’s first Michelin-starred restaurant, which serves a prix fixe menu focused on using traditional ingredients in new ways. At either, expect to spend about $100 per person for dinner, not including drinks.

For a mid-range meal, try Icelandic Fish and Chips , which offers a healthier take on the classic dish, with fish fried in organic spelt batter and potatoes served with low-fat skyr-based dips. There’s also Eldsmiðjan, an Icelandic pizza chain, or Noodle Station , which serves hearty bowls of chicken or beef soup for around $13.

The cheapest meal in the country is also one of the most quintessential: the hot dog. For $4, get one loaded with raw and fried onions, ketchup, sweet brown mustard, and remoulade. The most famous place to get one is in Reykjavik at Bæjarins Beztu Pylsur, but you can find them at just about any gas station or convenience store in Iceland.

Alcohol is extremely expensive in Iceland, with a beer costing around $8-$12 and cocktails ranging from $15-20, however, many bars offer happy hour specials. There are several craft breweries in Iceland (sample their beers at bars like Kaldi or Bryggjan Brugghús) and a growing craft cocktail scene (like at the aforementioned Kol or Slippbarinn) . If you’re up for a challenge, try Brennivín, an anise-flavored liquor that’s known as “The Black Death.”

Transportation

Iceland has one of the highest rates of per capita car ownership in the world, and a correspondingly poor public transportation system. The FlyBus (cheapest on GetYourGuide ) provides affordable, reliable transport from Keflavik airport to Reykjavik and within Reykjavik there are city buses and taxis (though the downtown is compact and easily walkable). But if you want to go exploring beyond Reykjavik—and you should—your best bets are to either join a tour (we recommend browsing GetYourGuide and Viator ) or rent a car. Car rentals cost about $100 per day (more if it’s peak summer or you want 4WD) and gas costs almost $2 per liter. Use BookingBuddy to find the best price across major car rental websites from one place.

During the peak summer months, a network of long-distance buses connects Reykjavik to major towns and points of interest, including the interior Highlands, but you’ll need to plan ahead as there’s often only one bus per day. Some travelers have reported great success with hitchhiking as well, but this is only recommended during peak summer; in off season or on less-traveled roads you could be waiting hours until the next car comes by.

For longer distances when you don’t want to drive, internal flights are another option. From Reykjavik’s city airport, you can fly to Akureyri in the north, Isafjordur in the Westfjords, Egilsstaðir in the East Fjords, or to the Westman Islands. Search Skyscanner by “entire month” to find the cheapest dates to fly.

While most of Iceland’s main attractions and natural wonders are free (or cost just a few dollars), there are several things you simply can’t do on your own and will need a tour to do, such as glacier trekking , snowmobiling , ice caving , whale watching , horseback riding , and snorkeling or diving between tectonic plates at Silfra Rift (in some of the clearest water in the world).

These tours don’t come cheap; plan for at least $100-$200 per person. Even pricier, but worth the splurge: a helicopter tour or a journey “ Inside the Volcano ,” in which you descend via an open-topped metal basket into the belly of a dormant volcano.

Given Iceland’s incredible natural beauty, it’s probably no surprise that most activities are outdoors. If you’re looking for something indoors—or just want a break from the adrenaline—check out the hands-on classes at Salt Eldhús cooking school.

Iceland is one of the safest countries in the world when it comes to danger from other humans, but that doesn’t mean there’s nothing to watch out for. Iceland’s dangers come in the form of volatile weather, the power of nature, and the people who take needless risks by ignoring those factors. There are steaming hot pots that can scald you, sneaker waves that can pull you out to sea, and winds so strong they can rip an opened door off a car. Driving can also present danger, especially for those unfamiliar with wintery conditions. There are one-lane bridges, blind heads, and frequent road closures.

Stay on marked paths, respect warning signs, obey the posted speed limits, never drive off-road (it’s strictly illegal and comes with huge fines), always check the weather before heading out, and if you’re not comfortable driving in the conditions, don’t.

Packing for Iceland

No matter what time of year you visit Iceland, it’s wise to bring layers, a hat and gloves, waterproof pants, hiking boots, a fleece jacket, sunglasses, and a waterproof windbreaker. Add more layers in the winter, and include a few lighter layers for the summer months.

If you plan to spend time in Reykjavik, add in some jeans or other clothes you’d be comfortable wearing in another major city. Locals may don fleece and gore-tex out in the countryside, but on the streets of Reykjavik, they are the definition of Nordic chic.

It’s one more example of Iceland’s many dichotomies. The land of fire and ice is both untamed and totally civilized, modern and traditional, extremely safe and a little dangerous. It’s a small country with landscapes that are larger than life and natural wonders that look completely out of this world.

The Thrifty Gist

• A trip to Iceland won’t come cheap. Minimize costs by focusing on free activities, staying in basic accommodations (or camping), and cooking most of your own meals.
• Use Airbnb and HotelsCombined to see all homestay, hostel, and hotel options. Use BookingBuddy to compare car rental prices across major websites, and Skyscanner to find the cheapest flights, including budget airlines (choose “entire month” for your dates to find the cheapest date to fly).
• There’s no bad time to go to Iceland, though peak season means higher prices and more crowds. For temperate weather and fewer fellow tourists, go March–May or September–October.
• With eight days or more you can make a circle of the entire island along its Ring Road, but even with less time, you can see a good chunk of Iceland’s main attractions.
• An adventure in Iceland is about just that: adventure. Make the most of a trip with activities like snorkeling, horseback riding, snowmobiling, and hiking that take you out in the beautiful countryside. Use GetYourGuide and Viator to browse tour reviews and book with immediate confirmation and free cancellation.
• Remember that nature is a powerful force in Iceland; respect warning signs, stay on marked paths, leave no trace, and use common sense.

Is Iceland Expensive? What You Need to Know Before You Go

So you’re planning (or dreaming of) a trip to Iceland and you have one burning question… Is Iceland expensive? The short answer is yes. But not as expensive as you might think. Here’s what you need to know before you go.

Iceland has a reputation as a fiercely expensive destination. The kind that will make your wallet cry and your bank account beg for mercy. But is it really that bad?

Not really. There are a lot of myths about how expensive Iceland is, as well as quite a few truths. Here’s a breakdown of what you can expect, along with 15 tips for reducing the cost of your trip.

Planning a trip to Iceland? Read more of my Iceland travel blogs

• The Best Time to Travel to Iceland – Season by Season
• What do I Need to Pack for Iceland?
• When Can I See the Northern Lights in Iceland?
• What to do in Iceland on Your Trip

First Up, Is it Expensive to Travel to Iceland?

For the most part, no, it is not expensive to travel to Iceland.   

A new wave of budget airlines such as Norwegian and Wizzair, plus Iceland’s own national carrier, Icelandair offering free stopovers in Iceland has meant that the cost of travelling to Iceland is pretty cheap (or even free!).

Flights from the UK start at £29 each way and flights from the US start from $129. That’s pretty reasonable right ? Right.

Check flights to Iceland on Skyscanner

As an aside, I’d avoid Wizz Air like the plague. I flew with them on my most recent trip to Iceland. The flights were significantly delayed in both directions, a fact they only told us once we were kettled in at the check-in gate. They have particularly aggressive rules and high penalties around online check in . Thumbs down.

How Expensive is Iceland: At a Glance

Not sure what to expect when it comes to costs in Iceland? Check out this quick guide.

I took these from my recent trips in 2018, so they should be up to date.

Currency conversions change, so you may want to check the current rates, particularly if you’re British (like me) and the pound is singing a very sad little song at the moment.

That Looks Pretty Pricey – But Is Iceland Expensive to Visit Overall?

The short answer is… it depends. Some things are expensive in Iceland, but there are a lot of things that aren’t.

If you’re visiting Iceland, the three things that will cost you the most money are accommodation, eating out and taking tours/ other activities.

Check out my money-saving tips for each of them below.

OK, so if Iceland is Expensive, How Can I Make the Most of My Money? Money Saving Tips for Travelling in Iceland

Visit all of the free attractions.

One of  the things that is often overlooked when people consider the question “is Iceland expensive to visit” is that a lot of the best things to see in Iceland are free.

A huge amount of Iceland’s appeal stems from the incredible landscapes and natural attractions the country has to offer. The good news is that visiting a lot of these attractions is completely free!

Pretty much all of Iceland’s major attractions are free – Gullfoss Waterfall , Geysir, Jokulsarlon Lagoon , Seljalandsfoss  – the list could go on for your Iceland ring road itinerary .

If you’re not so bothered about shelling out for things like glacier hiking or whale watching, a trip to this expensive country can be surprisingly reasonable.

Whenever people say that Iceland is really expensive, I think they often forget that a visit doesn’t have to cost the end of the earth because there are a lot of things you can do without spending any money if you travel independently.

Ditch the Expensive Tour and Hire A Car

Tours in Iceland can be eye-wateringly expensive, particularly for the big-ticket activities like whale watching, glacier hiking or paragliding. Even Golden Circle tours can be really pricey.

Now if you have your heart set on doing some of these activities, you don’t have much option other than to suck it up and pay the price.

I would totally advise against trying to do paragliding without an expert guide – same for anything involving being on a glacier. However, you can drastically cut the cost of going on the more standard tours by just hiring a car and visiting destinations independently, or, if you’re in Reykjavik, follow some budget-saving tips.

Another alternative is if you are travelling Iceland in a campervan , you can not only save on some of the guided tours but also on accommodation too.

On my most recent trip to Iceland, we simply hired a car for collection at the airport (you can check car hire prices on Holiday Autos , which I’ve found to be reliable) and used this to visit lots of Iceland’s coolest spots on our own.

One of the most memorable days we had was when we drove down to Jokulsarlon Lagoon (otherwise known as Diamond Lagoon) via Skogafoss, Svartifoss, Reynisfjara and the Reynisdrangar Sea Stacks.

During that day, we saw some of Iceland’s most spectacular natural attractions for a fraction of the cost we’d have had to pay for a tour.

Add to that the fact that we were able to operate on our own schedule, able to stop wherever and whenever we pleased and were able to play some banging tunes in the car in between stops and you can start to see the appeal.

Lower Your Accommodation Costs

There’s no getting away from the fact that accommodation in Iceland is expensive. As an example, hotels in Reykjavik cost, on average, over 10% more than in other Nordic capitals.

That percentage jumps to a staggering a staggering 44% more when compared to the average cost within the EU.

OK, so accommodation is expensive. All hope is lost right? Wrong.

Focus on Good Value Rather than Low Costs

So first up, I want to say that just because accommodation in Iceland costs a lot, that doesn’t mean that it can’t be good value.

Overall the quality of accommodation in Iceland is high – rooms are clean, well-designed and cosy and generally the standard is high.

That’s not going to be much comfort to you if you are looking to travel in Iceland on the cheapest budget possible, but if you’re not, it’s good to know that you’re not spending all of that money on crappy digs.

Most hotels and hostels offer free breakfast and wifi, both of which can go some way to reducing the overall cost of your trip.

For example, during my stay at the gorgeous Hotel Ranga , we’d maximise the delicious breakfast on offer and as a result, we only had to have a small lunch.

Free wifi is pretty common in most accommodation around the world, but in Iceland, it’s fast and reliable. If you do have to be connected while you are in your hotel, B&B or hostel, you can use the wifi rather than completely relying on expensive roaming internet.

There are ways to cut the costs of accommodation in Iceland. The most obvious one is camping.

Now I know that some of you are going to look at the word camping and tremble with a shiver of uncontrollable repulsion. Some people just hate camping – that’s OK, if you’re one of them you should probably just skip this section.

You can go camping in Iceland, though I’d tend to say that it’s a more realistic option if you are travelling to Iceland for more than a couple of days.

Shorter than this and I don’t think it’s worth it – up to you to decide though.

The easiest and most comfortable way to do your camping trip is to hire a campervan , get a map and head off onto the open road.

Now, I haven’t spent time camping in Iceland – but if you want to get a better idea of what to expect on a camping trip, you can read this piece with handy tips and spots for camping in Iceland.

If you do decide to go camping, don’t forget to leave each place exactly as you found it. Bring your rubbish with you.

Iceland is crammed with magnificent landscapes and they don’t need lazy and selfish tourists messing it all up for them.

Buy Some of Your Meals from Supermarkets

Eating out in Iceland is expensive. One of the easiest ways to cut the cost of your trip is to buy groceries in Iceland or at least a couple of your meals from a supermarket to have as a packed lunch or to cook at home.

I personally love eating out when I’m in a different country but try to think ahead about which meals I want to spend my money on.

I don’t know about you, but I’d much rather spend my money on one or two blow-out three course meals of stellar quality than dribble money constantly on a stream of mediocre food.

During my trips to Iceland, I’ve tended to spend money on a couple of great meals and then buy packed lunches from supermarkets or cheaper cafes for the rest of the time.

Supermarkets tend to get more expensive the further away you get from Reykjavik, so stock up on supplies before leaving the capital.

Take Public Transport

Getting a taxi in Iceland is a costly business. If you want to save money during your trip to Iceland and won’t be renting a car, you should try and get public transport as much as possible. That starts at the airport.

Tempting as it is to just hop in a cab from Keflavik Airport to take you to Reykjavik, it’s going to cost you a lot of money. Generally, taxis from Keflavik to the centre of Reykjavik cost 15,000 ISK.

Compare that to the nifty and efficient Flybus , which costs around 5,000 ISK and you’ll start to get the idea.

Cut Down on the Booze

Boozing in Iceland is expensive. Fact. Now I’m not suggesting that you go teetotal for the duration of your trip, but you should know that alcohol is not cheap in the country.

If you are going to drink, the cheapest option is to buy what you need at Duty Free as you enter the country.

The second cheapest option is to buy alcohol at the state-run booze shop, ÁTVR or Vínbúðin, though this will still cost quite a bit thanks to the tax added to the cost of the alcohol.

Other than that, I found that if you go direct to microbreweries (Olvisholt Brewery is one of Iceland’s hidden gems ), and buy directly from them, it’s also pretty reasonable price-wise.

Another handy hint is that bars and pubs in Reykjavik often have happy-hours where the drinks are half price or at least discounted. If you’re staying in Reykjavik, or even popping in for the day, you can take advantage of these.

Don’t Go on a Shopping Spree

Shopping in Iceland is generally quite expensive.

Don’t get me wrong, there are some absolutely beautiful things to buy in Iceland, like the gorgeously-patterned Icelandic wool sweaters, but if you’re on a bit of a budget, there are wiser ways to spend your money.

It’s not just handmade items that cost a pretty penny either. Branded items in Iceland tend to be quite expensive – in fact, there’s a reasonable chance that they’re cheaper in your home country.

Try and bring any clothing and accessories you need for your trip along with you.

Not sure what to pack for Iceland? Check out this in-depth Iceland packing list.

I know that can be tough if you’re flying carry-on only, but do it and you’ll save yourself a lot of money along the way.

It might mean that you need to pay for a checked bag, but it’s going to be cheaper than having to buy a new pair of hiking boots or a tripod when you get into the country.

But if you do, Don’t Forget to Claim Back Your Tax on Larger Purchases

If you do go shopping, you can claim your tax back on certain goods over the value of ISK 6,000. This can really add up – J bought a hand-knitted Icelandic jumper and his tax claim was over £30 / $40.

Ensure the salesperson provides you with the correct form and submit your claim at the bureau in Keflavik airport.

Want to See the Northern Lights? Download the Aurora App

Now I’ve written an extensive piece on How to Plan Your Northern Lights Trip to Iceland – you should definitely read it if you are travelling to Iceland within the Northern Lights viewing season.

Northern Lights tours in Iceland are expensive. But guess what… If you have a car or you’re staying somewhere remote, you don’t have to take a tour at all.

All you need to do is wrap up warm, stand outside and wait for the lights to reveal themselves.

There are a lot of things that influence whether you’ll be able to see the aurora borealis, even during the viewing season (which generally runs from the end of September to mid-April).

Clouds, solar flares, the earth’s position – all these factors play a role in whether you can see the lights.

The handy Aurora app helps you to see what the chances are of spotting the Northern Lights in particular locations for the next 72 hours.

It also has a useful map of where aurora displays are visible and the strength of the display. It’s a tiny fraction of the cost of taking a tour too.

Heading to Reykjavik? Buy the Reykjavik City Card to Help Keep the Costs Down

I haven’t spent very much time in Reykjavik (I’m 100% going to change that on my next trip to Iceland), but if you are going to spend a bit of time there, you should consider buying the Reykjavik City Card .

The card gives you free or significantly discounted entry to a number of sights in the city, as well as free use of public transport and access to the city’s swimming pools during the card’s duration.

Ultimately, you need to decide how many of the attractions you will actually visit in order to work out if it’s good value for you. It can save you a lot of money.

Go to the Local Pool

Ok, so we’ve all seen pictures of the Blue Lagoon and the new (and totally stunning) Sky Lagoon . It’s a great experience but here’s a secret… Iceland is full of hot springs , geothermal pools and public baths that you can visit at a fraction of the cost.

No, you might not get the iconic shot of the steam rising off the silica blue water, but you can sink in the hot water, hang out with the locals and get a taste of the real Iceland to boot. Sounds like a winner to me.

Travel in the Shoulder or Low Season

Iceland’s high season runs from June to August – one easy way to keep costs down is to travel outside of these periods, when accommodation (and some tours) are much cheaper.

The weather during the shoulder season (May and September) can be really nice too.  

Buy a Bus Passport

If you don’t want to be tied to taking tours but also are not keen on hiring your own car, you should definitely consider buying a bus passport.

Sterna Travel’s South Coast Bus Passport co vers travel between Reykjavik and Glacier Lagoon, and you can hop on and hop off at as many stops along the way as you please. Stops include major towns along the route, such as Selfoss, Hella and Vik, as well as many sights like Skaftafell and Seljalandsfoss.

Reykjavik Excursions also offer an Iceland on Your Own Route Pass during the summer months. This offers unlimited travel on their bus routes across Iceland. Rates start at 30,200 ISK for a three-day pass.

Is Iceland Expensive to Visit: Sample Daily Budgets for Budget, Mid-Range and Luxury Travellers (Price for Two People Sharing)

So, is iceland actually expensive to visit.

If you’re a mid-range traveller and you’re used to travelling to destinations in the UK and Europe, particularly Scandinavian countries, I say not really.

Depending on what you want to see and what you want to experience, you could reasonably take an amazing trip to Iceland where the only things you spent money on were your accommodation, car hire, fuel and food. That’s not something that you can say in a lot of places.

Now, the cost of accommodation, car hire, fuel and food can mount up, that’s true. But, if you compare Iceland to many destinations where you have to pay to visit national parks and other attractions and it goes a long way towards balancing it out.

Is Iceland Expensive? What You Need to Know Before You Go: Read Next

• 18 Spectacular Iceland Waterfalls + Map
• 9 Beaches in Iceland you Need to See
• Iceland off the Beaten Path – Discovering Iceland’s Secret Gems
• Camping in Iceland: What You Need to Know
• Where to Stay in Iceland
• Top Iceland Travel Tips

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I’m Julianna Barnaby - a professional travel writer and geek extraordinaire. I started The Discoveries Of to help you to discover the best of new destinations from around the world.

Discovering new places is a thrill - whether it’s close to home, a new country or continent, I write to help you explore more and explore differently.

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Ahh!! These are very serious myths in the head of people. One thing I want to say is that you need to see it before believe it. And with real-life experiences, the myths can be reduced. Thank you for the wonderful article!!!

Hey Harry – Yes it’s true isn’t it! I hope that Iceland’s price tag doesn’t put people off going – it’s such an amazing country to explore. Thanks for your kind words.

This is really insightful! I have wanted to go to Iceland for years, this has definitely answered a few questions for me!

Thanks Craig – really glad that you’ve enjoyed. I hope you get there soon – it’s truly spectacular!

Dream vacation right here. Love the camping idea too. Always been a bit of an outdoorsman, and on top of that, cash flow is a little low. Very helpful tips.

Thanks for the kind word – so glad that you found it useful. Iceland is a dream location – I really hope you get there and try out the camping, it will be a blast. Think I’ll be heading back (AGAIN) to do the full ring road in a couple of months with a campervan.

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The Cheapest Time to Go to Iceland

• The Cheapest Time of Year in Iceland
• The Cheapest Time to Fly to Iceland
• The Worst Time to Visit Iceland
• Other Ways to Save Money in Iceland

When is the cheapest time to go to Iceland? What is the best time to fly to Iceland? Are there any times of the year where the country’s services become more expensive? Continue reading for the ultimate guide on the cheapest time to go to Iceland.

Iceland, a sought after destination due to its natural and cultural wonders, is a notoriously pricey country. Food, drink, accommodation, tours and car rentals do not come cheap, especially when compared to many other European destinations. To many, this makes the country seem totally inaccessible for those on a tight budget.

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Best 7-day northern lights self drive tour through south iceland to jokulsarlon ice cave, amazing 6-day northern lights winter self-drive tour on iceland's south coast with ice caving, 5-day northern lights winter self-drive tour with the golden circle & jokulsarlon glacier lagoon.

This, however, need not be the case. With some consideration of the time of year and knowledge about flights to Iceland , it is possible to organise a holiday that allows you to marvel at the country’s beauty without breaking the bank. 

Car rentals that overstretch your budget in June, for example, may not do so in February; flights that are extortionate over Christmas may be much more reasonable in January.

Thousands across the world see Iceland as a must-visit destination, with its untouched landscapes, unique culture, and phenomena such as the Northern Lights and the Midnight Sun . Just because you are short on money, saving, or simply cautious about overspending does not mean you should be excluded from the marvels that the Land of Ice and Fire has to offer. 

The Cheapest Time of Year in Iceland                

Put simply, the cheapest time of year in Iceland is during its off-peak season; this covers September to November and January to May . Visiting Iceland in Autumn or Spring will be kind to your wallet and allow you to visit popular destinations without them being crowded, a win-win!

Due to school holidays, a more temperate climate and the Midnight Sun, June to August are the most popular - and thus most expensive - months to visit Iceland. Christmas in Iceland is also a pricey time for travellers; thousands flock over because of the country’s reputation as a winter wonderland and the gusto with which the people embrace the festivities.

Trvelling outside of these peak months will save you money on tours, car rentals, souvenirs and, in some cases, meals and nights out. That is not to say, however, that your experience itself will be cheapened. The reasons that the peak months are so popular are limited to the factors mentioned above, and have nothing to do with the country’s allure and beauty the rest of the year.

Coming between September and April provides guests with the once in a lifetime opportunity to seek the Northern Lights ; the more free-spending summer travellers will have no such luck. In some of the most off-peak months, November, February and March , you’ll have an opportunity to marvel at the ice caves of Vatnajökull , which are only open and safe to visit in Winter.

On the edges of the winter season, you can still partake in a wealth of summer tours. Highland hikes , for example, often run until October , whereas adventures such as river rafting start in May. Those travelling to Iceland to see its incredible migratory wildlife, such as the great whales and puffins , can easily do so in September.

In many cases, therefore, you can actually find a wider range of activities on offer if you plan your trip to during the cheaper times. You’ll also find much less competition for spaces on tours, and thus are likely to have more personalised interactions with your guides. Furthermore, the natural sites should be much less crowded, particularly if you are travelling to more remote regions such as the north , the Eastfjords and the Westfjords .

It is even arguable, therefore, that the best time to go to Iceland may also be the cheapest.

If you are determined to see Iceland under the Midnight Sun and to embrace its full range of summer activities while saving money, it is recommended to book a trip for early June. This is because most schools will not have broken up for the year yet, and some airlines, rental companies and tour operators may not have raised their prices yet.

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The cheapest time to fly to iceland             .

Travellers from Europe and even North America will often find incredibly cheap flights to Iceland using websites such as Skyscanner , throughout the year. These comparison sites will sift through all the airlines that frequent Keflavík International Airport to get you the best deal. 

For travellers from further afield, such as Asia, the Pacific, Africa and South America, it is not quite so simple. Iceland’s distance from such regions means that flights will usually be expensive, even if they are part of a great deal.

Regardless of where you’re coming from, the cheapest time to go to Iceland is usually February and March. The festive season is over, and though the Northern Lights are on full display, the months are cold, dark, icy, and thus less popular with the vast majority of tourists. Airlines usually lower their standard seat prices and offer better deals over this time to make the journey to and from the country worth their while.

April and May are also usually cheap times to fly to Iceland, compared to the summer months. But you can expect to pay a little more for a plane ticket in April and May than over winter, considering the weather is markedly better in these months.

As June, July and August coincide with the school holidays for children in the Northern Hemisphere, flights will be much more expensive in these months from all operators. Even though September through to November is a part of the quiet season, it’s still a popular time of the year to travel, so you can also expect pricier tickets.

As noted, December is a particularly expensive time to visit Iceland due to the seasonal festivities. Flights over this month will naturally reflect this.

If you are travelling from the United States to another European destination (or vice versa) with Icelandair , it is often possible to organise a short stopover in Iceland without any additional charge.

The Worst Time to Visit Iceland                           

For those with a reasonable budget, there is no worst time to visit Iceland. Each month has its own magic, whether you want to indulge in the festivities of December, the arts and music festivals of June or the beginning of the Northern Lights season in September. 

Those with tighter purse strings, however, will find that there are times where prices for a range of services and goods will be much higher than the rest of the year.

Christmas, as touched upon, is the worst time to visit Iceland for those on a budget. Many restaurants will alternate to more indulgent festive menus; bars and breweries will often do the same with their choice in beverages; and shops will tick up the prices on standard souvenirs , knowing that the demand is there. 

Over this season there are a number of public holidays , which occur on the 24th, 25th, 26th and 31st of December, and the 1st of January. Because of this, services and tours that are still running may charge more to accommodate the staff’s holiday.

The weather in Iceland is also particularly fickle during this time and it’s more likely that your tours will get cancelled or rescheduled in Winter. This can derail the whole trip for those who’ve been frugal with their tour bookings.

The other worst time to visit Iceland in terms of expense is the ‘high season’, when most tourists flock to the country. As stated, this coincides with the summer holidays of the Northern Hemisphere: June, July and August. Car rentals and other such services often operate differently during these months, hitching up prices as demand increases. 

While the prices of shops, restaurants and bars will usually stay consistent throughout summer, those who want to explore Iceland’s spectacular nature and not just stay in Reykjavík should look to visit outside of these months.

Other Ways to Save Money in Iceland                    

There are plenty of other ways to save money outside of choosing the best time to go to Iceland, the most important of which are outlined within this article , which lists 19 tips and tricks. Some are as simple as eating in; others are tricks known only to locals, such as spots where you can find coffee for cheap or free, and how to track the Happy Hours of Reykjavík’s bars .

Of course, you can also save money by tailoring your holiday to a lower budget. Traveling the Ring Road around Iceland can get pricey, so if you don’t leave the city, you’ll save on tours and car rentals. 

Reykjavík is a great place to enjoy a city vacation, it has excellent cuisine , nightlife , an art scene and many cultural attractions . However, if the city isn’t enough for you, many affordable day tours to popular destinations such as the Golden Circle leave from Reykjavík.

There is even great nature around the capital accessible by city bus , such as Mount Esjan , the Reykjanes Peninsula , and the Blue Mountains .

If you’re only planning to take a few trips further out, you’ll find cheap bus tours a great alternative to more pricey private tours. However, if you plan to see the whole country, you can do so by renting a car and making your own plans, rather than purchasing multiple excursions.

There are a range of budget self-drive tours on offer for the cost-averse traveller, and in summer, camping is a great and cheap alternative to booking hotels.

If you want the holiday of a lifetime, booking a vacation package or combo tour is a great way to shave down prices without missing out on a second of adventure.

While a holiday to Iceland is no doubt an investment, it need not be a bank-busting one for the savvy traveller. Visiting Iceland in its off-peak season, when you can catch the cheapest flights, can allow guests of all budgets to immerse themselves in the spectacular Land of Ice and Fire.

What do you think the best time to go to Iceland is? Did you find any ways to save money on flights to Iceland? How cheap did you find off-peak travel in Iceland? Let us know in the comment section below!

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45 Things You Should Know Before Traveling to Iceland

Posted: February 15, 2024 | Last updated: February 15, 2024

Iceland, the stunning Nordic gem, known for its beautiful lagoons, waterfalls, and their magnificent night sky.

But did you know that there’s no McDonald’s in Iceland? Or that pretty much the entire country is on a first-name basis?

Here are 45 weird and interesting things you should know about Iceland, The Land of Fire and Ice .

Iceland is One of the Last Countries to Have Human Settlers

Iceland is one of the last counties in the world to have human settlers. It was still uninhabited long after the rest of Western Europe had been settled.

Iceland Had the First Parliament

Iceland has one of the oldest known parliaments in human history.

Dating all the way back to the year 930, the first national parliament was founded in Thingvellir—which is now a national park.

Iceland Has a Low Population

Iceland’s population is only about 350,000 —which is around 1/10th of the population of San Francisco.

They have about 8 people per square mile, with Reykjavik housing roughly one-third of the country’s entire population.

There is No Standing Army in Iceland

Iceland is known to be a fairly laid-back country with minimal unlawful activity going on—thankfully, because is it the only NATO country to not have a standing army, air force or navy.

It does have a small Crisis Response Unit (ICRU), but the staff do not carry arms or wear a uniform in most circumstances.

There is No McDonalds in Iceland

At one time, Big Macs were available—until the financial crash in 2008. Imported ingredients were hard to come by and prices soared leading to the shut down of all McDonalds restaurants in the country (which weren’t very many to begin with).

Even after things seemingly got better, Iceland chose to keep McDonalds outside their borders.

Iceland is a Free Country

Iceland is known as one of the freest countries in the world. It was ranked 4th in the 2019 Index of Economical Freedom, with high rankings for “labor freedom” and “government integrity”.

The country ranked 3rd in the world in a Personal Freedom chart by the Legatum Prosperity Index.

Iceland Has a Celebratory Brew Day

Back in 1908, Iceland voted on an alcohol ban—but that didn’t stick around because it started to affect their import/export business. So, instead, they put the ban on beer only.

The beer ban stuck around for 74 years, finally being squashed in 1989. The country now celebrates “ Beer Day”, on March 1st.

Iceland Had the First Female President

Vigdís Finnbogadóttir is an Icelandic politician who served as the fourth president of Iceland from 1980 to 1996. Vigdís is the first woman in the world to be democratically elected as president.

Iceland Has the Largest Glacier in Europe

Vatnajökull is the largest glacier in Europe . It covers over 8100 square kilometers and has around 30 outlet glaciers.

Iceland Has a Naming Committee

Iceland has a naming committee that approves or declines people’s names. There is an official register of approved Icelandic given names, and specific names that are not allowed.

For example, the letter C is not included in the Icelandic alphabet, so any name that begins with that letter is not allowed.

Iceland Has the Purest Water

Almost all of the water in Iceland is pure, refreshing and you can drink it from any and every tap in the country. There is no need for water purifiers, and bottled water is not regularly purchased or consumed by Icelanders, as there is no need.

The tap water is pure, and free!

Iceland Was Named After Its Landscape

Its fairly obvious where Iceland got its name—the ice. Over 10% of country is covered in glaciers. In total, there are about 269 recognized glaciers in Iceland.

You Can Swim Outdoors All Year Round

Even though it is almost always cold in Iceland, you can swim outdoors at any time of the year. This is because there are natural geothermal swimming pools —and there is one in nearly every town in the country.

Geothermal swimming pools are hot springs where the water temperature varies between warm and fairly hot, depending on its location.

Icelanders Favorite Snacks

This may not be true for all Icelanders, but it is a common belief that the most popular snacks in Iceland are ice cream and black licorice.

There is a historical reason for this: the first settlers did not have sugar or honey, so they used licorice root as a sweetener. The flavor stuck, and it is now in all sorts of candy and snacks around the country.

Iceland Has No Dangerous Wildlife

Due to its climate, it’s no surprise that Iceland has almost no dangerous wildlife. There are no snakes, bears, mosquitos, or poisonous bugs in the entire country.

The most dangerous animal would be polar bears—but they are typically far from city life and pose very minimal threat to humans.

There Are No Trains in Iceland

There are no trains or railway system in Iceland. The only way to get in and out of the country are by air and sea. Travel from one city to another is typically by bus or domestic flight.

Iceland is Home to Global Beauties

Even with Iceland’s fairly small population, they still took the crown in several Miss World competitions. It is one of the most successful countries at the Miss World pageant with three victories.

Iceland Holds a Record for Published Books

Icelanders publish more books per capita than any other nation in the world. They even have a book-giving holiday – Jolabokaflod – on Christmas Eve.

Iceland Has a Phallological Museum

This museum is like nothing you’ve ever seen before. It is the world only genuine “manhood” museum.

According to its website, The Icelandic Phallological Museum, is “dedicated to collecting, studying and presenting actual phalluses and all things phallic.”

It’s complete with bistro that serves penile shaped food, and a gift shop with all things penile.

Iceland Has One Seriously Long Word

The longest word found in the Icelandic language is: vaðlaheiðarvegavinnuverkfærageymsluskúraútidyralyklakippuhringur. 

It word refers to, “the key ring to the tool work shed in the road works of Vaðlaheiði”. It is often been considered a joke, but road workers maintain that the word refers to the actual key ring for the shed they use.

Babies Nap Outside in Iceland

From infancy to about 2 years old, Icelandic children sleep outside in baby carriages for their noon nap. This is on the belief that fresh air is imperative for a good sleep, and child development.

It also builds trust, as babies are left alone, and promotes openness.

Icelanders Can Easily Trace Their Heritage

All Icelanders can access a website called Íslendingabók to trace their heritage back to the Vikings and even see how they are related to other Icelanders.

Typically, the question is not if they are related, it is how much they are related.

Icelanders Are on a First Name Basis

Icelanders always address each other by their first names. This is the same for all  Icelanders, even if they might be speaking to the president. Their culture is very laid back.

Icelandic Horses Are Unique

Icelandic horses have a unique gait—referred to as tölt—and have not been mixed with other breeds for over 1,000 years.

Iceland Has a Midnight Sun

The Midnight Sun is an annual occurrence taking place from June to July. This means you can witness light for 24 hours a day during that one-month period.

Men Are Commonly Named After Elves

Traditionally, a lot of male Icelanders were named “Alfur”, which translates to “Elf”. This dates back to their early beliefs about elves—having some sort of control over good and bad things that happen to the community.

Female Clubs Are Banned in Iceland

Clubs where women typically take off their clothing are completely banned in Iceland, specifically “all businesses that profit off unclothed employees”.

Local Authorities Are Unarmed in Iceland

Given that the country is known as one of the safest countries in the world, the local authorities do not feel it is necessary to bare arms.

Most unlawful activity in Iceland is not dangerous and authorities are able to do their job without using force.

The Northern Lights in Iceland Are Different

The Northern Lights you typically see from most parts are the globe are usually green with some yellow. But the Northern lights you witness in Iceland shows stunning hues of red, purple and pink.

This is due to altitude.

Earthquakes and Volcanoes Are Common in Iceland

Earthquakes and volcanic eruptions are fairly common in Iceland. So, the locals are trained to react appropriately from a young age. Their homes are built with this in mind, and children are taught not to overreact to common rumbles and vibrations.

Iceland Only Has One Native Mammal

The Arctic fox is the only species of land mammal native to Iceland.

It apparently survived on the island through the last ice age and stuck around once the thick glacial ice receded.

Iceland Sits on Two Tectonic Plates

Iceland sits on the meeting of two tectonic plates, one is the North American plate and the other is the Eurasian plate.

It is also the only place in the world  where you can snorkel between two tectonic plates.

Iceland’s Airport Sits in a Lava Field

Iceland only has one international airport, and it sits in the middle of a lava field. In fact, a volcano in the area has erupted several times, sometimes twice in one year.

Aside from a 2010 eruption that led to widespread airspace closures in Europe, the erupting volcano doesn’t seem to affect air travel.

Many Waterfalls in Iceland Have No Names

There are so many stunning waterfalls in Iceland—many that are actually quite popular among tourists. However, because they are a common sight to see, many of them are not officially named.

The Icelandic Language is Unique

The Icelandic language is so unique that there are numerous words that do not have any direct English translation. They also have many Icelandic words for one English word, such as “wind”.

Given the county’s isolation, Icelandic is one of the smallest “nation-state” languages in the world.

Iceland Ranks High in Equality

Iceland was once voted the best place for women to live. This is because women’s equality is literally protected by law.

The Act on Equal Status and Equal Rights of Women and Men is the reason gender equality is a hallmark of Icelandic culture.

Iceland's Seasons Are Drastically Different

Iceland is a beautiful place to visit all year round, however the best time to travel depends on what you plan to see.

While winter is better for exploring glaciers and seeing the northern lights, summer is better for swimming in geothermal pools and going on long hikes through lava fields.

Iceland Was the First Country to Have an Openly Gay Prime Minister

Iceland has a president, who is the head of state, and a prime minister who serves as the head of government in a multi-party system.

Jóhanna Sigurðardóttir became Prime Minister in 2009, and was Iceland's first female Prime Minister and the world's first openly LGBT head of government .

Iceland Has Several Different Species of Whales

Iceland has more than 20 different species of whales that can be found swimming in the sea around the island.

There Were No Dinosaurs in Iceland

No dinosaur bones have ever been found in Iceland as the land mass is only about 20 million years old. The last of the giant dinosaurs died out 66 million years ago.

Iceland Has Universal Healthcare

Iceland has a universal healthcare system (which is paid for via taxes), and does not have any private hospitals on the island.

Everyone is entitled to emergency medical assistance covered by Icelandic Health Insurance (IHI).

Iceland Has Religious Freedom

Freedom of religion in Iceland is guaranteed by the 64th article of the Constitution of Iceland.

Although, it also states that the Evangelical Lutheran Church shall be the national church (þjóðkirkja) and the national curriculum places emphasis on Christian studies, the constitution still protects the right to form other religious associations.

Iceland is Expensive

Iceland is the eighth most expensive country in the world with a cost of living 15.8% higher than the US, according to Numbeo's global cost of living index.

The country has fairly high costs of food, housing and transportation, and they also have a limited job market, particularly for foreigners.

Icelanders Love Sauce

This may not be true for all, but it is said that Icelanders love their sauce. Apparently, they enjoy covering their food in all kinds of sauces, but mostly gravy and bearnaise sauce.

They have a sauce for everything—even ice cream!

Icelanders Enjoy Being Unclothed

As with many European cultures, unclothed Icelanders is not an uncommon sight, in fact, it is quite normal.

It is common to shower, without swim suits, prior to swimming in the public geothermal pools in order to keep them clean. Icelanders are typically not shy and will bare all to whomever is around at the time.

Final Thoughts

While Iceland is a relatively cold climate, it remains one of the best countries to live in. While it may be an expensive country to reside, Icelanders are one of the happiest cultures who take pride in equality and love their sauces.

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Trip to Iceland leaves traveller shocked at food prices compared to Canada

It’s no secret a lot of us have been struggling with the high cost of food lately , but one Canadian was left in shock after a recent trip to Iceland.

Despite Iceland being a rather expensive country — especially since it’s an island and food is brought in by air or sea — it seems some food prices there are either comparable — or even cheaper — than here in Canada.

“Just spent 10 days in Iceland. Two years ago when I came here I thought it was the most expensive country I’ve ever visited. Now I’ve come again and I see that our Canadian groceries are the same or more than many of the things I bought at the grocery store in Iceland,” they wrote on Reddit.

Canada groceries more expensive than Iceland by u/yourewrong321 in loblawsisoutofcontrol

They also provided some examples of produce they found to be cheaper or similar in price.

“Keep in mind that this is an island in the middle of the North Atlantic Ocean, and everything has to be flown in or shipped by sea freight. Why the hell are we paying equal or higher in Canada?” they asked.

In the comments, others who had visited Iceland shared their insights.

“I was there a couple weeks ago and felt like the groceries/restaurant prices greatly exceeded Toronto prices,” said one commenter.

Comment by u/yourewrong321 from discussion in loblawsisoutofcontrol

The original poster replied, agreeing that restaurants in Iceland are much more expensive than those in Canada, but said that “groceries have been about the same [price].”

Another person who visited Iceland last year said they also noticed that the food there was “about the same price as in Canada.”

One commenter said the claims of how expensive Canada’s food prices are in comparison to Iceland were being exaggerated.

“You could get away with saying “Canada is as expensive as buying food in Hawaii” because it’s relatively close, but it’s not anywhere in the vicinity of what food costs in Iceland,” they stated.

According to the Icelandic Review , prices in Iceland are indeed very high compared to other countries for several reasons, including “high reliance on imports, geographical isolation and high import taxes and tolls.”

Canada vs. Iceland

We conducted a price breakdown of some produce items from the Redditor’s post (onions, celery, and avocado) and a few basic grocery items to do a quick cost comparison of Iceland’s and Canada’s food prices.

For our price test, we searched items on Netto, an Icelandic grocery chain, and Walmart Canada’s website.

According to the current exchange rate, one Canadian dollar is equivalent to 102.31 Icelandic Krona (ISK).

Netto/ Screenshot

The Redditor said that in Iceland, onions were going for C$2.38/kg.

Iceland’s price: Netto’s website says onions are 48 ISK (C$0.47) or 240 Krona per kg. This works out to C$2.35/kg.

Walmart Canada/ Screenshot

Canada’s price: Onions sold at Walmart are priced at $1.88 or $4.34/kg.

The winner: The Icelandic onions.

The Redditor said that in Iceland, celery was C$3.98/kg.

Iceland’s price: Netto has celery priced at 297 ISK for a bunch (C$2.90) or 479 ISK/kg (C$4.68).

Canada’s price: Walmart’s website has celery priced at $2.97 for one bunch.

Walmart/Screenshot

Winner: Iceland’s celery is slightly cheaper.

The Redditor said that in Iceland, avocados were being sold at C$4.79 for two.

Iceland’s price: Netto’s website lists one avocado for 183 ISK (C$1.79).

Canada’s price: Walmart’s website has one avocado priced at $1.87.

Winner: Iceland’s avocados.

Iceland’s price: A loaf of whole wheat bread on Netto’s website is 399 ISK/kg or C$3.90/kg.

Canada’s price: “Great Value” brand bread is $1.97 for 570 grams, which works out to $3.46/kg.

Walmart/ Screenshot

Winner: The Walmart bread is cheaper.

Iceland’s price: A dozen eggs on Netto’s website are 767 ISK ($CA7.50).

Netto/Screenshot

Canada’s price: A dozen eggs on Walmart’s website are $3.98.

Winner: Walmart eggs are cheaper.

Chicken breast

Iceland’s price: A package of two chicken breasts at Netto is 1,447 ISK (C$14.14) or C$30.29/kg.

Canada’s price: Walmart sells three Maple Leaf Prime chicken breasts for $15 or $2.08/100g.

Winner: If Walmart were selling at the same weight (370 grams) as the Icelandic chicken, it would work out to $7.70 for a package of two breasts, making it significantly cheaper than Netto’s product.

Iceland’s price: A one-litre carton of milk at Netto is 255 ISK or C$2.49.

Canada’s price: A one-litre carton of milk at Walmart is C$2.79.

Winner: The Icelandic milk.

Iceland’s price: A 165-gram bag of plain salted Lay’s chips at Netto costs 300 ISK (C$2.93).

Canada’s price: A bag of plain salted Lay’s chips at Walmart is $3.97 for a larger 235-gram bag.

Winner: When we crunched the numbers and converted the Walmart pricing to kilograms, that same Netto bag would sell for $2.79 in Canada, making it slightly cheaper than Iceland’s price.

These are just a few items to provide a glimpse at prices in both countries.

Comments on the post also acknowledged that some factors must be taken into consideration when comparing prices, such as the size of the countries, food transport and distribution costs, and environmental regulations.

According to Numbeo, a website that uses crowdsourced information to compare the cost of living in different places around the world, grocery and restaurant prices remain significantly lower than in Iceland .

What are some places you’ve visited that had groceries that were much cheaper than Canada? Let us know in the comments.

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Trip to Iceland leaves traveller shocked at food prices compared to Canada

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It's no secret a lot of us have been struggling with the  high cost of food lately , but one Canadian was left in shock after a recent trip to Iceland.

Despite Iceland being a rather expensive country — especially since it's an island and food is brought in by air or sea — it seems some food prices there are either comparable (or even cheaper) than here in Canada.

"Just spent 10 days in Iceland. Two years ago when I came here I thought it was the most expensive country I've ever visited. Now I've come again and I see that our Canadian groceries are the same or more than many of the things I bought at the grocery store in Iceland," they wrote on Reddit .

Canada groceries more expensive than Iceland by u/yourewrong321 in loblawsisoutofcontrol

They also provided some examples of produce they found to be cheaper or similar in price.

"Keep in mind that this is an island in the middle of the North Atlantic Ocean, and everything has to be flown in or shipped by sea freight. Why the hell are we paying equal or higher in Canada?" they asked.

In the comments, others who had visited Iceland shared their insights.

"I was there a couple weeks ago and felt like the groceries/restaurant prices greatly exceeded Toronto prices," said one commenter.

The original poster replied, agreeing that restaurants in Iceland are much more expensive than those in Canada, but said that "groceries have been about the same [price]."

Another person who visited Iceland last year said they also noticed that the food there was "about the same price as in Canada."

One commenter said the claims of how expensive Canada's food prices are in comparison to Iceland were being exaggerated.

"You could get away with saying 'Canada is as expensive as buying food in Hawaii' because it's relatively close, but it's not anywhere in the vicinity of what food costs in Iceland," they stated.

Comment by u/yourewrong321 from discussion in loblawsisoutofcontrol

According to the  Icelandic Review , prices in Iceland are indeed very high compared to other countries for several reasons, including "high reliance on imports, geographical isolation and high import taxes and tolls."

Canada vs. Iceland

We conducted a price breakdown of some produce items from the Redditor's post (onions, celery and avocado) and a few basic grocery items to do a quick cost comparison of Iceland's and Canada's food prices.

For our price test, we searched items on Netto, an Icelandic grocery chain, and Walmart Canada's website.

According to the current exchange rate, one Canadian dollar is equivalent to 102.31 Icelandic Krona (ISK).

The Redditor said that in Iceland, onions were going for $2.38/kg CAD.

Iceland's price:  Netto's website says onions are 48 ISK ($0.47 CAD) or 240 Krona per kg. This works out to $2.35/kg CAD. Canada's price:  Onions sold at Walmart are priced at $1.88 or $4.34/kg. The winner:  The Icelandic onions.

The Redditor said that in Iceland, celery was $3.98/kg CAD.

Iceland's price:  Netto has celery priced at 297 ISK for a bunch ($2.90 CAD) or 479 ISK/kg ($4.68 CAD). Canada's price:  Walmart's website has celery priced at $2.97 for one bunch. Winner:  Iceland's celery is slightly cheaper.

The Redditor said that in Iceland, avocados were being sold at $4.79 CAD for two.

Iceland's price:  Netto's website lists one avocado for 183 ISK ($1.79 CAD). Canada's price:  Walmart's website has one avocado priced at $1.87. Winner:  Iceland's avocados.

Iceland's price:  A loaf of whole wheat bread on Netto's website is 399 ISK/kg or $3.90/kg CAD. Canada's price:  Great Value brand bread is $1.97 for 570 grams, which works out to $3.46/kg. Winner:  The Walmart bread is cheaper.

Iceland's price:  A dozen eggs on Netto’s website are 767 ISK ($7.50 CAD). Canada's price:  A dozen eggs on Walmart's website are $3.98. Winner:  Walmart eggs are cheaper.

Chicken breast

Iceland's price:  A package of two chicken breasts at Netto is 1,447 ISK ($14.14 CAD) or $30.29/kg CAD. Canada's price:  Walmart sells three Maple Leaf Prime chicken breasts for $15 or $2.08/100g. Winner:  If Walmart were selling at the same weight (370 grams) as the Icelandic chicken, it would work out to $7.70 for a package of two breasts, making it significantly cheaper than Netto's product.

Iceland's price:  A one-litre carton of milk at Netto is 255 ISK or $2.49 CAD. Canada's price:  A one-litre carton of milk at Walmart is $2.79 CAD. Winner:  The Icelandic milk.

Iceland's price:  A 165-gram bag of plain salted Lay's chips at Netto costs 300 ISK ($2.93 CAD). Canada's price:  A bag of plain salted Lay's chips at Walmart is $3.97 for a larger 235-gram bag. Winner:  When we crunched the numbers and converted the Walmart pricing to kilograms, that same Netto bag would sell for $2.79 in Canada, making it slightly cheaper than Iceland's price.

These are just a few items to provide a glimpse at prices in both countries.

Comments on the post also acknowledged that some factors must be taken into consideration when comparing prices, such as the size of the countries, food transport and distribution costs, and environmental regulations.

According to Numbeo, a website that uses crowdsourced information to compare the cost of living in different places around the world, grocery and restaurant prices remain  significantly lower than in Iceland .

Grand Warszawski /Shutterstock

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