Looking to travel in Iceland on a budget? While Iceland inspires travelers from all over the world with its unique scenery it is also known for being quite expensive. This should however not keep you from visiting the Land of Ice and Fire. There are ways to enjoy Iceland without breaking the bank.

So, if you´re looking for ways to keep travel costs down on your trip to Iceland we got the answers. Here are 10 travel tips to save money in Iceland:

1.       Travel Off-Peak:

First things first, timing is everything! By visiting in the shoulder seasons (think late spring or early fall), you can snag better deals on flights, accommodations and on rental cars in Iceland. At this time of the year you also avoid the tourist crowds often found during high season. Plus, the weather is still pleasant, and you might catch the Northern Lights!

2.       Booking Smart:

Planning ahead pays off when visiting Iceland. Book your flights, accommodations, and car rentals well in advance to lock in lower rates. You can also get great deals by searching for coupon codes and other discounts. These offers are often linked to special days such as Black Friday and Cyber Monday, to name a few.

3.       Stay Like a Local:

Skip the pricey hotels and opt for guesthouses or hostels. They offer a more authentic Icelandic experience and are significantly lighter on the wallet. Websites like Airbnb are great places to start your search.

4.       Drive Smart:

Having a rental car in Iceland is by far the best travel option. To save money, you can rent a small car. You do not need a 4x4 in Iceland unless you are traveling in the Highland or to remote areas during winter. A compact car is easier on gas (and your budget), considering the high fuel costs in Iceland. Plus, it's all you need to navigate the country's well-maintained roads, including the Ring Road.

5.       Dine-In:

Icelandic cuisine is fantastic, but dining out can quickly add up. Choose accommodations with kitchen facilities and cook your own meals. Bonus: you get to experiment with local ingredients from nearby markets!

6.       Savvy Sipping:

Drinks are expensive in Iceland, but there is a way to keep the cost of alcohol down. Same as eating in, it is much cheaper to buy drinks at stores than in bars and restaurants. Just remember that alcohol is not sold in supermarkets. It is only available in special liquor stores called “Vínbúðin.” 

Prices there might also be more expensive than you are used to. So, if you want to lower the cost, we recommend stocking up at the duty-free store at Keflavík Airport. Alcohol is much cheaper there than in the rest of the country.

7.       Natural Wonders Galore:

The best part about Iceland? Many of its most stunning attractions are free! Here you can bask in the beauty of waterfalls, volcanic landscapes, and geysers without spending a dime. Note that some attractions might have parking fees. Such as the Golden Circle and Reynisfjara black sand beach.

8.       Self-Guided Adventures:

Avoid expensive tours by planning a self-drive itinerary. As mentioned, the best way to travel in Iceland is driving your own rental car. This way, you can explore at your own pace and focus on what interests you most.

9.       Shop Smart:

For souvenirs, look beyond the tourist shops. Local markets often have more unique (and affordable) finds.

10.   Hydrate for Free:

There is no need to buy bottled water. Iceland's tap water is pure and safe to drink. Bring a refillable water bottle and refill it as you explore.

Our Conclusion

With a bit of planning and these savvy tips, your Icelandic adventure can be both memorable and affordable. So, pack your bags, embrace the spirit of adventure, and get ready to explore the enchanting landscapes of Iceland without spending a fortune.

In our blog you can find more travel tips under Practical Info and Driving in Iceland. 

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