Seeing Iceland for Less: Budget Tips for an Epic Adventure
Iceland is one of those places that doesn’t feel real. Where, around every corner, is a wild natural wonder waiting to be discovered. It’s the kind of destination that stays with you forever… but it can also come with higher-than-normal prices. Luckily, with a few smart choices, you can experience the awe without spending a fortune.
Skógafoss Waterfall
Utilize IcelandAir’s stopover program
Book a round-trip flight with Icelandair to your final destination and take advantage of their free Stopover program with no extra airfare required. You can stay in Iceland for up to 7 days, immersing yourself in its stunning landscapes and culture before continuing to your next destination. This unique opportunity allows you to experience the country without having to pay extra for round-trip tickets, making it a smart choice for travelers seeking to maximize their journey to Europe or the United States.
Note: This program is most popular among those traveling between the states and Europe in either direction, but can also be combined with Greenland and the Faroe Islands.
Limit/avoid alcohol
Not drinking alcohol in Iceland can save you a surprising amount of money. Alcohol is heavily taxed and sold in specific government-run stores (Vínbúðin), making it far more expensive than in many other countries. Of course, you can find a drink menu at most restaurants, but at a premium price. Purchasing a bottle of alcohol at the duty-free store after landing at the airport can save upwards of 35%.
Pro tip: If you plan to drink, grab a happy hour deal before dinner.
Buy groceries rather than eating out
Dining out in Iceland is notoriously pricey because of high wages and the cost of having to import food due to the climate not being very suitable for farming. Even eating out casual meals every day can take a big bite out of your budget. Instead, shop at local grocery stores, where you can find affordable ingredients to cook your own meals. It’s a simple way to save money some days and experience Iceland more like a local.
Pro tip: Bónus or Krónan are two well-known, budget grocery stores.
Rent a car
Many of Iceland’s main attractions are free, and the tours that bring you to them can be steep in price and add up quickly. Instead, put that money towards a car and do the driving and planning yourself. That will allow you to end up seeing more, go at your own pace, and go during non-peak times. Sites get overcrowded when a coach bus drops off 60 people. Plus, driving will let you better experience the country and get to remote lodgings, which are often more affordable.
Pro tip: A 4x4 vehicle is required for F-roads, which are mountain roads and highland tracks.
Take advantage of free activities and sites
Take advantage of the many free hikes and natural wonders scattered across the country. From breathtaking waterfalls and volcanic landscapes to serene geothermal areas and rugged coastlines, Iceland offers endless opportunities to connect with nature without spending a dime. Whether you’re hiking the famous Laugavegur Trail, wandering around Þingvellir National Park, or admiring the black sand beaches of Vik, there’s no shortage of stunning, wallet-friendly adventures waiting for you.
Note: Even though many sites are free, some popular sites require you to pay for parking, which is typically 750-1,000 ISK (or 6-8 USD)
Pack snacks from home
Bringing your own snacks, such as protein bars, trail mix, or instant oatmeal, can save you both money and time while keeping you energized. These travel-friendly staples are lightweight, easy to pack, and perfect for those moments when you're far from a grocery store, want something familiar, or just prefer to skip the expensive convenience stops. A little prep goes a long way!
Note: You might be a decent drive from the nearest café or restaurant, and outside of Reykjavik, many don’t open until 9 or 10 a.m., so it’s helpful to have something on hand for breakfast or as a snack.
Bring a reusable water bottle to fill up on tap water
Iceland’s tap water is some of the cleanest and freshest in the world as it comes straight from natural springs and glaciers. Carrying a reusable bottle lets you stay hydrated without buying bottled water. Plus, it’s an easy, eco-friendly way to enjoy Iceland’s pure, refreshing water wherever you go.
Pro tip: Bring a Lifestraw or any other type of water bottle purifier for peace of mind.
Find free geothermal baths
Over 700,000 visitors pay to visit the Blue Lagoon a year. While the Blue Lagoon, Sky Lagoon, and Secret Lagoon are spectacular and popular for good reason, the country also boasts a handful of free, less crowded geothermal baths that can be visited by car. Keep in mind that many free ones don’t have showers and changing rooms, and may require a walk.
Pro tip: Reykjadalur, Landmannalaugar, and Seljavallalaug are all great options.
Don’t use taxis
Taxis can be very expensive, especially for long distances or airport transfers. Instead, consider using the reliable public buses available in Reykjavik or renting a car if you want more freedom to explore the country. Not only will this save you money, but renting a car also lets you visit remote spots on your own schedule.
Note: FlyBus is a coach-bus service that connects KEF to spots around Reykjavik. You can book your ticket upon landing in person at the airport, or you can hop on bus route 55 for the cheapest fare.
Iceland’s stunning landscapes and unique experiences don’t have to come with a hefty price tag. With smart planning, like using IcelandAir’s stopover, cooking your own meals, and exploring free natural sites, you can enjoy more of what this incredible country offers. Skip expensive taxis, pack your favorite snacks, and stay hydrated with fresh tap water to keep costs down while making the most of your adventure. This way, you can focus on soaking in every moment without worrying about overspending.
Njóta! Enjoy!
Want to know more about Iceland before your trip? Check out my other articles on my page by searching “Iceland”!
