Thanks to Shiver Me Timbers – the legend of the buried treasure have made Iceland, the land of fire and ice with its fascinating natural phenomenon and folklore fascinating to many. Nevertheless, due to the stereotype of the high prices in Iceland few tourists with the restricted budget would be willing to visit Iceland. Fear not my fellow adventurers though. If you have read my previous post about my dollar-a-day challenge, you will see that it is definitely possible to travel around Iceland on a small budget. This guide is your treasure map to cheap travel in the Viking country and will help you understand that you can find the fairy dust of Iceland without breaking the bank.
From the adrenaline-junkie backpacker to the ecotourist on a shoestring or the fluent Icelandic speaker trying to get more bang on his krona, this column has you covered. To help you travel Iceland and save, we’ll discover where to stay, the best ways to get around, and what to eat, all for a fraction of the price!
Prepare yourself for an amazing adventure through gorgeous terrains, hot springs, and art and history treasures without making a hole in your pocket. Welcome to the first blog post exploring the realm of budget traveling in Iceland!
Slashing Accommodation Costs in Iceland – Iceland on a Shoestring
One of the biggest costs of activities or a trip is often the lodging, especially in countries such as Iceland. Do not despair though, because costs can be cut while in Iceland and still get a comfortable and quality accommodation. Here are some budget-friendly options:
Camping: The Iceland Nature Hiking
Camping is then deemed one of the best ways to explore Iceland on the cheap for those people with a spirit of adventure and those who love the natural world. As there is a large number of campsites all over the country, one can get a lot of emotions looking at the beautiful views while saving quite a lot on the staying.
Why chooses camping?
- Affordability: Campsites are cheaper than hotels or guesthouses, tent sites range from one thousand to three thousand ISK per person per night.
- Flexibility: I binding with camping one can wander around as desired and remain in places that are relatively far from concrete facilities.
- Connection with nature: Camps offer guests stunning views in the morning and sky or night, and it is hard to feel any more interconnected with nature than when camping in Iceland.
Tips for camping in Iceland:
- Essential gear: You need to carry a good quality tent, sleeping bag and warm clothes with you. In case you are flying to Iceland it is more advisable to hire equipment on arrival decided by the amount of time needed.
- Campsite etiquette: Think and act like there are no rules, except those of the “Leave no trace” policy. Bring out all your trash, do not feed or bother the wild life animals, and be courteous to other campers.
- Weather preparedness: The weather is divided more per season than per summer and winter for Iceland so come prepared for what can be rain, strong winds, or even snow.
Resources:
- Camping card: This card gives one the opportunity to use a number of campsites in Iceland for a specific price. Visit their website to find more about it and the costs.
- Tjalda.is: This site gives lists of campsites throughout Iceland; it also provides details on some of the amenities as well as charges.
Hostels: Socializing and Saving
Hostels are perfect for inexpensive accommodation for people who like to communicate and meet new like-minded travelers. They provide an enjoyable environment and an opportunity to meet with different individuals throughout the globe.
Why choose hostels?
- Budget-friendly: Dorm beds are really cheap and can range from 3,000-5,000 ISK per night.
- Social atmosphere: Because they are usually budget accommodation most of the hostels offer a good chance to interact with other travelers and share experiences.
- Amenities: They also have shared kitchens, which give you an opportunity to cook your own meals so that you can also cut down your expense bill.
Recommended hostels in Iceland:
- Kex Hostel (Reykjavik): It is especially renowned for its beautiful architecture, numerous parties and the location within the city.
- Loft Hostel (Reykjavik): Beautiful city views can be enjoyed from the roof terrace; the place is rather homelike.
- Bus Hostel (Reykjavik): Described as cheap and the people working there are very friendly.
Guesthouses and Farm Stays: Real Iceland Encounters
Guesthouses and farm stays will offer a much more firsthand experience of the place and culture. These give a small impression of a traditional Icelandic accommodations, and other various services while often offering a more homey, and, in most cases, cheaper form of lodging than the hotels.
Why guesthouses or farm stays?
- Local experience: Communicate with Icelandic families, hear about their culture and traditions, and try Icelandic dishes.
- Unique charm: Inns and bed & breakfast are usually focal and household accustom, which is more accommodating the commercial hotels.
- Cost-effective: Rates may be similar to, or even slightly lower than, those of hostels depending on duration of the stay or low seasons.
Resources:
- Airbnb: Provides a plethora of choices of guest house and farm stay accommodation all over Iceland.
- Booking.com: Another site with a satisfactory list of guest house and farm stays available.
- Farm Holidays in Iceland: A website, that focuses on country home and farm holiday rentals.
Off-Season Travel: Score the Best Deals
Staying in the low and shoulder seasons will ensure you find cheaper accommodation in Iceland, even during the festive winter. , you can experience some rather turbulent weather, but in exchange for that, you can get 30% of the price less and, on average, 40% less tourists.
Benefits of off-season travel:
- Lower prices: Tentative prices for accommodations are slightly lower outside of the busy summer months.
- Fewer crowds: Perfect your experience with less crowding and noise in several popular sites.
- Unique experiences: The Northern Lights are visible during winter and there is always the option to take a trip in autumn to catch the colors.
Tips for off-season travel:
- Be prepared for the weather: Take warm and wet weather gears and sometimes the roads might be closed due to accumulation of snow during winter seasons..
- Check availability: There are also tend to restrict the accessibility to some activities and tours during the off-season.
- Book in advance: Well, even though the prices are lower, it’s often possible to sell out the room, particularly in the high season.
Getting Around Iceland Without Breaking the Bank
This brings us to the fifth area that would help you to travel around Iceland on the cheap; transport. As already mentioned, hiring a car is convenient but there are more economical ways to discover this stunning island.
Renting a Car in Iceland: Strategies of searching for the Cheap Offers
The cost of hiring a car in Iceland varies greatly with the period of hire and even the time of year you are hiring the car. But if you want to be more flexible and unleash your inner traveler, there are ways to make an academic trip to Europe cheap at the same time.
Tips for finding affordable car rentals:
- Book in advance: However, prices cannot be that high when you decide to book a car far in advance, particularly for a car rental service in the peak season.
- Compare prices: If purchasing online, then try Guide to Iceland, Kayak or Skyscanner in the search of a good deal.
- Consider smaller cars: Compact cars are cheaper to rent than the large models and normally they better in terms of fuel consumption.
- Look for promotions: Always make sure to wait for promotion and rebates when it comes to rental of cars.
- Opt for manual transmission: The cars that gear shift by hand are usually cheaper than those with automatic transmission.
Benefits of renting a car:
- Flexibility: Discover on your own timetable, go off the beaten track, and make your own plans.
- Convenience: It is convenient to haul the luggage and supplies especially if you are out for a camping.
- Comfort: It is now possible to have a comfortable and private means of transport for traveling over a longer distance.
Campervan rentals:
If you are intending to launch a camping trip then don’t forget to book a campervan hire. This serves as a double whammy by covering your transport and lodging needs in one package, which is very affordable and a perfect way to experiencing the country of Ice and Fire, Iceland.
Public Transportation: Navigating Iceland by Bus
It may shock some to learn that Iceland does have efficient public bus transport that links most of the towns and most villages. Perhaps it is not as convenience as hiring a car, but overall it is much cheaper, especially when travelling alone or in a pair.
Benefits of public transportation:
- Affordability: The fares of the bus are cheaper in contrast to the expenses on the car rental.
- Relaxation: Take a ride and view the magnificent sights, while the professional does the legitimate driving.
- Environmental friendliness: Be an environmentally friendly person employing the services of a public conveyance system.
Tips for using public transportation:
- Plan your route: This official public transport website should be used to plan journeys and to check timings on the Strætó.
- Purchase a bus pass: If your intention is to use the bus a lot you can purchase a ticket for one or several trips.
- Be aware of limitations: Using public carriers, certain sites and regions might not be reachable thus, should be considered while planning your program.
Hitchhiking in Iceland: A Free and Adventurous Option
For those who do not mind taking risks & being experimental and those who can spared little money to spend while traveling, hitchhiking is possible in Iceland. Yes it does take time, and a little luck, but it is an all-expense-free means of getting from place to place while being entertained by conversations with strangers.
Tips for hitchhiking in Iceland:
- Be prepared: Bring along a very clean and clear written or printed sign with the intended location, wear bright colored clothing, and be as patient as possible.
- Choose safe locations: Travel by hitch to areas that are well illuminated with sufficient visibility and traffic light conditions.
- Be mindful of safety: If you have a bad feeling about someone just don’t get in the car.
- Be respectful: Be polite to your driver and if you were given a ride in his/her vehicle and especially if the fare was cheap you can offer to refund the driver for the fuel used.
Important note: However, you have to be careful, despite this is one of the safer countries to hitchhike in, there are the usual hitchhiking dangers to consider.
Eating Well in Iceland on a Budget
Another big cost in Iceland again it comes to food but like the way we have expounded, you do not necessarily have to spend an arm and a leg on food. Here are some tips for eating well in Iceland on a budget:
Grocery Shopping: Your Wallet’s Best Friend
Iceland happens to be one of the cheapest countries where you can try to embrace self-catering as much as possible. Cooks for yourself and you will manage your cash better while you have many choices for dishes to make.
Tips for grocery shopping in Iceland:
- Shop at budget supermarkets: Bónus and Krónan are two well-liked supermarket stores famous for their low prices.
- Plan your meals: A very useful strategy is to prepare a shopping list in advance to make a meal plan that will help you avoid a purchase of foods that are not needed.
- Pack lunches and snacks: Make your own sandwiches and pack other snacks for the day trips so as not to be duped by overpriced meals at ‘touristy’ places.
- Embrace Icelandic staples: Taste some frugal and tasty Icelandic meals including skyr (thick yogurt), hot dogs, lamb all toppings included.
Sample grocery list for budget travelers:
| Item | Price (approx.) |
| Skyr (1 kg) | 1,000 ISK |
| Bread | 300 ISK |
| Cheese (200g) | 500 ISK |
| Ham (200g) | 600 ISK |
| Fruits and vegetables | Varies |
| Pasta (500g) | 200 ISK |
| Sauce (jar) | 400 ISK |
| Eggs (10) | 500 ISK |
| Coffee | 1,000 ISK |
| Tea | 500 ISK |
Note: Prices may vary depending on the supermarket and location.
Happy Hour Deals: Enjoying Icelandic Cuisine Without the Price Tag
Iceland is famous among bars, nightclubs or restaurants with so called Happy Hours when food and drinks are cheaper. This is a good chance of tasting some of the specialty of Icelandic foods and beverages at very humble rates.
Tips for finding happy hour deals:
- Ask locals: You can inform your hostel staff, or the people you meet on the street about the places with good happy hour prices.
- Look for online resources: Blogs such as, Appy Hour or Reykjavík Grapevine usually mention happy hour deals.
- Check restaurant websites: Some of the restaurant commonly post their happy hour offers on their website and on their available social media platforms as well.
Example happy hour deals:
- Two-for-one drinks: Most bars have promotions where customers can take one free when the buy one beer, wine or cocktail during the happy hour.
- Discounted food: Most of the restaurants have promotions on appetizers, small portions or even entrees during happy hour.
- Special menus: Some of the specialty restaurants even offer small happy hour menus at comparatively lower price.
Cooking Your Catch: Embrace the Angling Adventure
If you are so lucky to be on adventurous mood and would like to avoid on spending a lot of money on foods in Iceland region, you can fish for your foods. Iceland has many very good fishing sites, and yes, with a few of the required licenses, you can fish and get fresh seafood.
Tips for fishing in Iceland:
- Obtain a fishing permit: The fishing permits can either be bought online or at numerous centers in Iceland.
- Respect fishing regulations: Learn some of the rules governing fishing and the number of fish that one can haul per species.
- Find good fishing spots: Consult people around for suggestions of good fishing sites you might not get upon your independent fishing.
- Learn how to prepare your catch: Many videos on how to cook different types of fish are available online, as well as, in several cook books.
Note: There ought to be sustainable harvest of the fish and should respect the ecosystem.
Free and Affordable Activities in Iceland
The superb thing about the Iceland is that most of the beautiful attractions that this country has to offer can be seen for free. From waterfall and glaciers to geothermal area and volcanic land formation nature has given a lot in this beautiful country and all these attractions are easily affordable. Here are some ideas for free and affordable activities in Iceland:
Exploring Iceland’s Natural Wonders:
Iceland is one big piece of paradox and it is replete with natural beauty to marvel at, all for free.
Free activities in Iceland:
- Chasing waterfalls: Each and every individuals, thousands and thousands of waterfalls here in Iceland . It goes without saying that you shouldn’t fail to visit such core highlights as Gullfoss, Seljalandsfoss (you can walk behind the water stream!), and Skógafoss.
- Glacier gazing: It is also indicated by huge glaciers like Vatnajökull, which is the largest Glacier in Europe and Snæfellsjökull which can frequently be seen along the Ring Road.
- Witnessing geothermal wonders: Visit Geysir – home of the geyser with which it shares its name, and watch Strokkur shooting water 60 meters high every 5- 10minutes.
- Hiking scenic trails: Many trackways cover the land and wealth of them grants the possibility to admire mountains, valleys or coastlines.
- Soaking up the Northern Lights: If you are visiting in winter you have to look for the spectacular light display of the northern lights.
Tips for exploring Iceland’s nature:
- Respect the environment: Do not stray off the maintained trails, take your litter with you, and respect fragile sites.
- Check weather conditions: Iceland has different weather patterns most of the times so ensure you consult the weather forecast before going out.
- Pack accordingly: Wear additional clothes, preferably put on practical footwear, and take a coat or other waterproof belongings.
Soaking in Hot Springs: Relaxing on a Budget
Iceland is famous for many hot springs, and everyone can try; it fortifies the spirit and the body simultaneously. Despite the fact that very often the services of luxurious spas are beyond one’s pocket, there are many opportunities to find cheap or even free services.
Budget-friendly hot springs:
- Secret Lagoon: This hot spring is a cheaper version of the Blue Lagoon because it is natural and is not developed commercially.
- Mývatn Nature Baths: They are situated in North Iceland and provide better outlooks on water associated with breathtaking views and visitors congestion is not so frequent as in Blue Lagoon.
- Local swimming pools: Facilities like swimming pools with hot tubs and saunas can be availed in town and villages for far less price than spas could offer.
- Natural hot springs: There are many natural hot springs that can be found in the country and many of the most popular ones have; no entrance fee. Asking the people around or search the Internet for some help.
Tips for enjoying hot springs:
- Respect the etiquette: If using the pools, do take a shower before entering them and be careful about other swimmers.
- Bring your own towel: Some places jack up the price and charge for the towels separately.
- Stay hydrated: You definitely will need to take at least some water, if not more, particularly when bathing in hot water.
Cultural Experiences: Free Museums and Events
You could also take free walks through some of the museums and other aspects of Icelandic culture all without having to spend any money.
Free cultural experiences:
- National Museum of Iceland: This free museum in Reykjavik specializes in the history of Iceland and in the Icelandic culture and tradition.
- Reykjavík City Library: They also provide on premises Free Internet, Tourist Attractions such as exhibitions and events.
- Free walking tours: There are many organizations that give a free of charge walking tour in Reykjavik the city of history and majestically buildings.
- Local festivals: Look for local festivals and events that may occur while on your trip as they are great and maybe free attractions.
Tips for finding free cultural experiences:
- Check local listings: The listings can be found in newspapers and magazines that have regional editions or on the Internet.
- Ask at your accommodation: The people that work in hostels or guesthouses, usually know about the free activities and events in the destination.
- Visit tourist information centers: They supply you with additional brochures, maps and information on budget sights and things to do.
More Money-Saving Tips for Iceland
There are even more approaches to making your cheap Iceland trip even cheaper and saving on everything from transport to accommodation and activities. Here are some additional tips:
Travel Hacking: Utilizing Points and Miles
To a smart traveler, practice known as ‘travel hacking’ is helpful to look for cheap airlines or affordable accommodation in Iceland. If you are selective in its spending and accept credit card rewards programs and airline miles, your travel costs will definitely be slashed.
Tips for travel hacking:
- Sign up for travel rewards credit cards: Some credit cards provide cash back, or rewards points for purchases on their card and for signing up.
- Utilize airline miles: Earn flight points by travelling with specified airlines or even through other related purchases and then use the points to get the flights at some certain percentage of the actual price.
- Research travel hacking strategies: A lot of articles and blogs can be found on the Internet that explain the essential concepts and tricks of travel hacking.
Resources:
- The Points Guy: A travel rewards program website that offers detailed guides accompanied by reviews.
- NerdWallet: A source that helps to find the best travel credit cards to sign up for as well as to use to optimize rewards.
Avoiding Tourist Traps: Spending Wisely
Still, Iceland has a great many impressive things to offer a tourist; however, several sites and tours are highly overshone. If you pay attention to what may turn into a tourist trap and think of other options, then you’ll be saving your money and having much more of an interesting tour.
Tips for avoiding tourist traps:
- Research prices: Always make a comparison of the prices between shops/banks or with online tours and activities and the souvenir you wish to purchase.
- Seek out local recommendations: Look for places to eat, to shop and what else to visit from the locals.
- Explore off the beaten path: Avoid sticking to the most visited places and try to see what the locals would offer for tourists.
- Consider free alternatives: While there are free charges for the activities and attractions, equal or more beautiful scenery is encountered.
Example of a tourist trap and alternative:
| Tourist Trap | Alternative |
| Blue Lagoon | Secret Lagoon, Mývatn Nature Baths, local swimming pools |
| Expensive souvenir shops | Local markets, craft shops, flea markets |
| Guided tours | Self-guided tours, hiking trails, public transportation |
Packing Smart: Minimizing Expenses
To that end, packing wisely will assist you to minimize on unnecessary costs and travel with more comfort.
Tips for packing smart:
- Pack light: To avoid these charges, the traveler should pack only necessary items.
- Bring reusable items: Bring a bottle or cup to use instead of buying disposable cups, and your own shopping bag when shopping can save you some cash, not forgetting that you will be environmentally friendly as well.
- Layer your clothing: It’s recommended to always carry some warm clothes because the nature of the country’s weather is somewhat unpredictable.
- Wear comfortable shoes: Most of your time will be spent on foot, so it will be wise to use good and lasting shoes.
- Don’t forget essentials: Take along with them wet weather gear, hat and gloves and sun block even in winter travel.
Conclusion
Self-tours, refusing luxurious lodgings, meals, and non-essentialزيหมายlocs; are some of the tips that we have discussed throughout this guide to reveal that traveling to Iceland on the Cheap is quite possible. While divided into mid-range, I want to point out that there are ways to travel Iceland on the cheap, for example by camping, couchsurfing or staying in youth hostels, taking buses, hitchhiking or using cheap internal flights; besides the fact that many activities can be done for free or for a symbolic price.
Don’t forget about self-catering, make use of happy hour specials and but most of all there are so many wonderful natural attractions in this amazing country that are free of charge. Iceland may not be the cheapest place to travel but with certain amount of effort and being ready to go off the tourist trail you can have an amazing adventure without blowing your budget.
Therefore, grab your coat, take on the traveller’s feeling, and allow me to introduce you to Iceland on a shoestring. Cheapest Iceland vacation is here!
Are there any other good budget travel tips related to Iceland with you? Please leave your candid testimonial in the comments section below!
