Here is a comprehensive and practical Iceland travel guide to help visitors plan a fun-filled itinerary.
Iceland tops the bucket list of many travelers worldwide, owing to its surreal and bizarre landscapes. Rugged terrains, towering mountains, scenic hot springs, blue lagoons, stunning volcanoes, and northern lights are among the impressive natural wonders that make up the country.
One may think, “How come this small island country hosts such an amazing diversity of natural beauties?”
But it’s not really for those who’re looking for budget-friendly destinations. While the country will blow your mind, it will certainly blow your wallet too. Thankfully, there are some tips and practices visitors can implement to save money! We’ll cover that in this article.
Iceland Travel Guide: Top 3 Essential Information to Know (and more!)
Iceland Travel Costs
- Hostels – Rates for hostels in Iceland range from 3,500 ISK to 7,500 ISK per night. Visitors who are members of Hosteling International can get 650 ISK off.
Non-HI members will pay 12,500 ISK for private rooms while the cost for members is around 11,500 ISK per night. Most of the hostels in Iceland are members of HI but there are also hostels in Reykjavik, which are not part of the HI network.
- Hotels – Hotels in Iceland typically have higher rates compared to guesthouses and hostels. Don’t expect, however, that all hotel rooms have a private bathroom.
For a double room, the standard rate is 20 000 ISK per night, and that already includes a private bathroom. For a basic room without a private bathroom, the typical rate is around 13 000 ISK.
Because hotels are expensive in Iceland, budget travelers can check out Airbnb rooms or apartments with rates ranging from 6,500 ISK to 12 000 ISK.
Airbnb can also be the best option for those traveling with friends or family members. Make sure to book in advance because cheap options like Airbnb sell fast.
- Food – The cheapest foods for eating out in Iceland typically cost 1,300 ISK or higher. With this price, tourists can buy kebabs, soup, sandwiches, and other quick meals. Some of the outdoor kiosks offer sandwiches for around 1,000 ISK.
When planning to dine at a sit-down restaurant, prepare at least 2000 ISK for a main dish with table service. Rates for happy hour beer starts at 700 ISK while non-happy options cost around 1000 to 2000 ISK. Basic groceries such as rice, basic pasta, chicken, skyr, vegetables, and eggs can fetch around 8,700 ISK every week.
- Activities – Budget travelers will love it as we disclose in this article that almost all tourist attractions in Iceland are free! You can enjoy the views of the Northern Lights, geysers, and impressive waterfalls for zero dollars. Moreover, there is no entrance fee for all the national parks despite the numerous attractions.
Visitors can literally spend zero to a few dollars when exploring natural destinations. That’s in contrast with man-made attractions, especially in Reykjavik.
Entrance fees to museums can cost 1650 ISK to 2000 ISK. Those taking adventurous activities will also have to pay way more. One can go glacier-hiking for 13 990 ISK while ice-climbing costs 16,000 ISK to 25,000 ISK.
Money-Saving Hacks to Know
As we’ve mentioned earlier, Iceland costs a big slash on one’s budget. But that doesn’t mean that visitors would have to break the bank. After all, there are several ways on how to save on budget while in Iceland. Here are some of them.
Consider Hitchhiking
Iceland is considered the safest country in the world for hitchhikers! The Southern part of the country, in particular, makes up the best venue for this kind of adventure. Take note.
Visitors can easily find rides throughout the country. In the northern part, however, that is quite a challenge, but no worries, there will always be a ride.
You just have to bear patience and wait longer. Hitchhikers can always inquire from hostels or wait along the main Ring Road, which circles the entire country.
Bring a Bottled Water
A plastic bottle of water can fetch 350 ISK in stores. But visitors don’t have to buy every time. Grab one, and during the rest of the trip, you can just refill from springs.
The water in Iceland is incredibly drinkable, especially those within natural reserves or parks. There are numerous bodies of waters such as lakes, springs, and streams where visitors can stop for a refill.
Try camping
Visitors can find designated camping sites throughout Iceland, and this is a way cheaper option compared to staying in hotels.
The standard rate is around 1,600 ISK every night. Some hostels also allot spots for camping. If you’re into this, make sure to bring your own sleeping bag and gear.
You can also avail of the Campingcard as it can help you save a lot on budget. Those who want to pay zero fees can go to a wild camp since it’s legal. That’s as long as there’s no sign prohibiting so, and the chosen spot is not a protected reserve.
Bring your own sleeping bag or sheets
Many hostels in Iceland charge a fee for bed sheets just like in other Scandinavian countries. So it’s best to bring your own to avoid added costs. But make sure the hostel allows that, so make your research beforehand.
Skip Drinking
Drinking liquor is one of the most expensive things to do in Iceland. That’s because the government imposed heavy taxes on the industry.
Resist the urge of it, and you’ll be surprised to know how much you’ve saved. Besides, visitors cannot enjoy exploring Iceland’s natural wonders when they’re drunk.
Cook your own meal
Since eating in restaurants in Iceland is way too expensive, visitors can opt for grocery shopping. Purchase everything you need, especially foods that can satisfy longer at cheaper rates such as cereals and pasta.
You can also buy pre-made sandwiches. It’s a good idea to shop at BONUS food stores as they offer the cheapest rates. Moreover, amenities such as campsites, guesthouses, and hostels provide kitchens for those who want to cook their own meals.
Where to Stay in Iceland
Here are the recommended HI hostels in Iceland:
- Ljosafossskoli Hostel in Selfoss
- KEX in Reykjavik
- Start Hostel in Keflavik
- Hafnarstraeti Hostel in Akureyri
- Borganes HI Hostel in Borganes
- Hlemmur Square in Reykjavik
- Akureyri HI Hostel in Akureyri
How to Move Around Iceland?
Here are the options to take.
- Public Transportation – Both the larger cities of Reykjavik and Akureyri offer a reliable network, although they are also big enough for visitors to walk around everywhere. Visitors can plot their route on the website of Straeto, the public bus network.
The fare for a bus ride is 460 ISK.
Visitors can also opt for a taxi, which doesn’t come cheap, but it’s reliable. Rates start at around 650 ISK and another 300 ISK for every additional kilometer.
- Air Travel – Eagle Air and Air Iceland Connect are the only two domestic airlines in the country.
They cover destinations such as Egilsstaoir, Reykjavik, Grimsey, Isafjorour, and Akureyri. The airport in Aurekri is the biggest outside of Reykjavik.
Taking a flight can get visitors across the country for as short as 30 minutes. This is an ideal option for those who want to visit the northern attractions but have limited time. Standard rates start at 15 000 ISK for a one-way trip.
- Hitchhike – Iceland offers one of the safest and easiest routes for hitchhiking. Anywhere you are in the country, you can easily find rides. If you’re not sure where to go, you can ask for guidance from the hostels.
- Car Rental – Car rental is ideal for those who are staying for a week or those who arrive in the off months. Rates typically range from 4,860 ISK to 8,500 ISK per day, although you can split that with other traveling companions. By renting a car, visitors will get more flexibility and have more control over their time.
Now those are some of the essential information you need to know to guide you in your Iceland travel guide. Consider them when planning your itinerary to ensure a fun-filled, meaningful, and budget-friendly experience.