“Iceland is too expensive to visit on a budget” is right up there with “Don’t eat the street food – it will make you ill” as one of the great myths of travel – and it could lead you to miss out on some amazing experiences.
True, Iceland can be eye-wateringly pricey, but with some planning it is possible to visit The Land of Fire and Ice without spending a fortune. Here’s how to make it happen.
Sights
In Iceland, horizons are dotted with volcanic peaks, gushing waterfalls spring from every crevice and beautiful coastlines seem to lurk around every bend in the road. Despite discussions over the years on introducing a nature pass system, which would mean some of the country’s natural sites would command a (small) fee from visitors, this spectacular scenery remains mostly free to explore.
However, parking fees are charged at some sites. The fee varies but is often around Ikr750 (US$6) per day for a regular private car and is used to help fund maintenance of facilities such as walking paths, rest rooms, parking lots and service centers. Some places have introduced a fee – up to Ikr200 (US$1.50) – for restroom use.
Many of the country’s big-name sights are easily accessed from the Ring Road, which circles Iceland. Along the south coast, showstoppers include incredible waterfalls such as Seljalandsfoss, where you can walk behind the falls, and Skógafoss, where rainbows arc through the spray in sunshine. Other attractions include the dramatic black beach at Reynisfjara near Vík, the massive Vatnajökull ice cap and the Jökulsárlón glacier lagoon, where glistening icebergs journey out to sea, occasionally resting along the black sand beach – dubbed Diamond Beach in English – on the way.
The most popular day trip from the capital, Reykjavík, is to the Golden Circle. It’s home to the magnificent Gullfoss waterfall, Geysir, the geyser after which all others are named, and Þingvellir, the site of the world’s first parliament.
Reykjavík itself is an enjoyable city to explore, and some attractions are free to enter, including the must-see Hallgrímskirkja church (though there is a charge of Ikr1000 (US$8) to go to the top for views across the city and its rooftops). The iconic Harpa concert hall, the city’s cultural hub, is also worth a visit even if you’re not shelling out for a performance. City Walk Reykjavik, meanwhile, offers popular guided walking tours of the city, with a pay what you like policy. When getting around the capital, save money by walking, taking the public bus Strætó or hiring a bike (for city cycling check out Donkey Republic’s day deals).
Activities
From relaxing in the famous Blue Lagoon to high-octane experiences such as snowmobiling, glacier hiking and descending into a volcano, Iceland offers incredible activities. Some can be undertaken independently, although you should prepare carefully as Iceland’s natural environment is both wild and fragile. Tour companies offer a spectrum of activities, some taking in the sights mentioned above, but trips don’t come cheap, so pick one or two which you really want to try, and focus on finding the best experience for your money.
If you want to go whale watching, for example, you should do some research into the best locations around the country and compare tour prices. But it’s also worth checking the conditions and optimum times for spotting whales – if it’s not a good time of year to view them you may want to save your pennies and opt for a different activity.
Also consider alternatives. Glacier hiking trips from the likes of Skaftafell in the southeast of the country may well be out of your budget, but walking along the edge of the glacier gives you fantastic views without the cost. Likewise, while the Blue Lagoon (from Ikr6990 (US$54) in low season and Ikr8990 (US$69) in high season) isn’t budget-friendly, you can soak in one of the country’s less famous geothermal hot spots for a fraction of the price.
Transport
You can get around Iceland by car or bus, with a tour company or via internal flights. In summer, as long as you’re careful to stay off mountain roads, a 2WD hire car can open up much of the country, and roads are generally easy to navigate. However, with prices starting at Ikr16,000 (US$123) a day in high season (if booked a good way in advance) and fuel costing in the region of Ikr240 (US$1.85) per liter, having your own wheels doesn’t necessarily come cheap, so price up the alternatives.
How to save money on travel:
• Avoid airport taxis. Keflavík International Airport is 50km from Reykjavík. If you’re not hiring a car, opt for one of the airport bus services, which offer a regular service from Ikr3300 (US$25). For larger groups, ordering a large taxi might work out cheaper. The public bus Strætó also offers a service several times a day. It takes around 30 minutes longer but costs Ikr2000 (US$15).
• In high season, book your hire car well in advance. Better yet, travel outside of the high season for discounted rates.
• Compare tour prices for the area you’re looking to explore with the cost of hiring a car for the day. If you have a few friends with you, a car could be the most affordable option for taking in a route such as the Golden Circle, as well as giving you the freedom to explore the area at your own pace.
• Take the bus. Strætó runs bus services within the capital and to towns around the country. Reykjavík Excursions offers a bus pass to the Highlands during the summer – though check timetables as some services run infrequently. Again, compare with the cost of hiring a car, which could work out cheaper than the bus if you are travelling with two or more people.
• Hitching is never entirely safe, and we don’t recommend it, but some people do hitch-hike in Iceland. You will need plenty of patience and weatherproof clothes. Alternatively, check the carpooling website samferda.is to organize a lift in advance. It’s generally expected that you’ll pay towards the cost of fuel.
Accommodation
Even basic accommodation in Iceland isn’t cheap. Though traveling outside of peak season, from June through August, means accommodation prices will usually be significantly cheaper.
How to save money on accommodation:
• Book early, particularly in peak season. In some popular parts of the country, such as the route between Vík and Jökulsárlón, accommodation options are limited.
• Bring a sleeping bag. A few places offer beds without a duvet or blanket for a cheaper price.
• Join Hostelling International before your trip to get a discount on most hostel stays.
• Camping is not only the cheapest option, but also offers the opportunity to wake up in some of the country’s most incredible locations such as in the shadow of Skógafoss waterfall. If you’re traveling as a family, or visiting Iceland for a longer period, check out the Camping Card, which gives 28-nights access to camping spots all around the country, and may work out cheaper.
Food and drink
Food and drink can eat away at your budget, but there are some simple ways to reduce costs.
How to save money on food and drink:
• Opt for accommodation with kitchen facilitation and buy supplies at the cheaper supermarkets like Bónus and Krónan and pack a lunch for on the road.
• Bring a reusable bottle and drink tap water! Iceland has some of the purest water of any country on earth.
• Buy alcohol at the airport, where it’s tax- and duty-free, making it significantly cheaper than in shops and bars.
• Keep your eyes peeled for happy hours in Reykjavík. The Reykjavík Appy Hour app can help with this.
Getting there
Book your flights to Keflavík International Airport well ahead of travelling, flying where possible outside of the summer high season. Avoid weekends and keep your eyes peeled for offers from budget airlines. If you’re travelling between North America and Europe, opt for a flight which allows a few days stopover in Iceland at no extra cost.
This article was first published on the 1st of May, 2015.