trip to iceland how much

How Much Does an Iceland Trip Cost? (2024 Iceland Budget)

Iceland is known for being an expensive destination and after visiting Iceland three times and helping over 30 people plan their Iceland trips, I’ve gotten a good sense of the average Iceland trip cost. While it is pricey, your Iceland vacation cost can still be within reach if you build your Iceland budget carefully.

To be honest, I’ve seen everything, from people who found a cheap flight, stayed in hostels, and signed up for group bus tours to keep costs down, all the way to luxury travelers who book private drivers, luxury hotels, and go all out with adventure experiences. Did someone say private helicopter rides?

So how much does a trip to Iceland really cost? It depends on what type of experience you are looking for, what kind of traveler you are, and ultimately, how much you want to spend. And while I wouldn’t recommend taking big bus tours, if that is the only way you can see Iceland, it is still worth it to visit this incredible country.

There are few places in the world that have touched my soul and captured my heart like Iceland has. For its raw beauty, fire and ice extremes, vast emptiness (outside of main tourist stops), to the endearing quirkiness of the Icelandic culture, it is a place I will return to again and again.

The good news is that Iceland has greatly expanded its hotel inventory, which helps balance supply and demand. The exchange rate from U.S. Dollars to Icelandic Króna has also been trending in the favor of American tourists recently. And, Play Airlines has brought a budget airline option back to Iceland.

Average Iceland Trip Cost

I’ll cut to the chase and give you the bottom line on how expensive a trip to Iceland can be, but be sure to read on to see the breakdown and ways that you can save money in each category. The average trip to Iceland cost adds up to about $300-350 per person, per day including airfare. (Based on current exchange rates) This assumes budget airfare, budget accommodations, limited organized activities, self-driving, and being careful in your food choices.

If you are traveling solo, your best bet will likely be staying at a hostel or renting an Airbnb. Though it definitely helps to travel with others so that you can split the costs.

Since hostels and bus tours aren’t our things, I’ve based the average cost for a trip to Iceland for a family of four staying in nice (but not extravagant) hotels or guesthouses and renting a car for a self-driving vacation. I’ve also included a few activities since I think it would be a shame to get to a bucket list destination like Iceland and not get to take part in a few adventures. But keep in mind, that there is enough natural beauty and hiking available that you can easily bypass these to conserve your budget.

The average Iceland trip cost for a family spending a week in Iceland is around $8,545 including airfare. Yup, that is about $1,220 a day for the entire family. Of course, I have worked with families of five that have spent $25,000 on a 10-day trip, and couples who have spent $5,000 on a week-long trip. I’ve even planned an Iceland vacation for a solo traveler that cost them only $2000, all costs included, for a five-day trip. Making Iceland one very versatile vacation.

Iceland Budget Tips

Note: This post contains affiliate links. If you click a link and make a purchase, I may receive a small commission. 

If you want to save some money, my partner Hidden Iceland offers my readers 10% off scheduled group tours if you use promo code WE3TRAVEL. We have traveled with Hidden Iceland and highly recommend this company for its expertise, professionalism, and friendliness. See all their available tours . You can also book private tours or get help planning your whole itinerary — just be sure to mention We3Travel when you contact them.

You can visit Iceland on any budget, at least in theory, but here are some suggestions for keeping costs down:

• Try camping instead of staying at hotels or guesthouses. You can rent a campervan that fits two people for about $130 a night, up to about $300 per night for larger campervans. You can camp for free in Iceland but if you are in a camper van, you will probably want to stay at a campground with facilities so budget another $10-50 per night for a campsite reservation.
• If you don’t want to camp, you could also stay in hostels, which will run you around $40-100 per person per night in Reykjavik.
• Airbnb or vrbo is another option for vacation rental apartments and cabins, which is a great option for families compared to renting two hotel rooms because there are only a few hotels in Reykjavik for families that offer family-size rooms with beds enough for 4-5.
• Food is one of the especially high expenses in Iceland so to save money, purchase and prepare your own food or buy snacks at the gas station convenience stores. If you want a foodie experience, you are going to pay through the nose for it so get used to sandwiches, burgers, and those famous Icelandic hot dogs.
• Avoid paid attractions like the Blue Lagoon and costly excursions like off-roading tours and focus instead on scenic drives, stops at waterfalls, and nature hikes.
• Stay in the countryside and avoid the biggest tourist spots instead of Reykjavik as things are going to be more expensive in the capital city. I was surprised by how affordable the accommodations are in the Westfjords and Snaefellsnes Peninsula .

Before you worry about having to convert and carry a ton of cash around Iceland, don’t stress. Almost everywhere takes credit cards in Iceland. Be sure to read my Iceland tips for some caveats.

How Much Does an Iceland Trip Cost?

Let’s break down the average Iceland budget. As with other posts where I’ve broken down vacation costs for Italy , London , Greece , and Paris , this post outlines pricing for two adults and two children between the ages of 6-11, traveling from a major airport hub in the United States during the summer high season, such as NYC to Reykjavik , and spending a week in Iceland.

I find that in Iceland, some hotels list their prices in Euro, and most show rates in Icelandic Krona. To make it easier, I’ve converted to U.S. dollars to create an even playing field.

I can’t even count the number of emails that I’ve gotten from people traveling to Iceland that start with “I found a great airfare to Iceland next month (or some other close time frame)…” I then go on to pop their bubble about how expensive the rest of the trip will be.

Once WOW went out of business, prices went up a bit but I still have found rates on IcelandAir or Play Airlines from Boston for about $300-500 per person, roundtrip. However, you then need to build in the cost of checked luggage (unless you are an amazing packer Iceland will typically mean a checked bag) and seat selection. This can easily add another $100-200 per person.

I highly recommend signing up for a membership to Going to get alerts on flight deals and set up preferences for your dream destinations.

If you want to find the best way to accumulate points and miles through credit card spending and sign up bonuses, I’d suggest downloading the  Travel Freely app  to track your credit cards and learn how to earn points.

Total airfare cost ($500 per person, round trip x 4 people): $2,000

Accommodations

If you are traveling solo, it is easy enough to stay in a hostel to save money on accommodation in Iceland. But most families will prefer either a hotel or Airbnb/VRBO. A rental will certainly save you money as there are only a few hotels that offer family rooms .

Most Reykjavik hotel rooms either have a double bed (two twins pushed together) or two twin beds. Occasionally you can find a triple or a family room, but a family of four often needs to reserve two rooms. A nice hotel in downtown Reykjavik with a family room will cost between $400-600 per night. You can also get two rooms at a moderate hotel for about $150-250 per night each.

Renting a vrbo apartment will save you a significant amount, as long as you are comfortable as an independent traveler. You should be able to find an apartment in the city large enough to fit everyone for about $300 per night. And if you have been saving up your hotel loyalty points, Hilton Honors and Marriott Bonvoy members are now in for a treat with multiple properties now available in or near Reykjavik.

Full-service hotels in the countryside will start at around $150 per night for a standard room and $350 per night for a family room. There are also some guesthouses that start around $150 per night per room or lower, especially in less crowded areas.

In the countryside, there is a large selection of vacation cabins available on vrbo . Expect to pay about $200+ per night for a cabin that sleeps four. Just plan in advance if you want to stay in popular locations along the south coast or by the Glacier Lagoon, as these sell out early.

If you are looking to do Iceland on a budget, renting an Airbnb or VRBO is the way to go unless you want to camp or stay in hostels, as covered above.

Total accommodation cost: assuming an average of $300 per night (if you primarily use vacation rentals) x 7 nights = $2,100

Find more places to stay in Iceland:

When visiting Iceland, if you want to get away from crowded bus tours and see the country or drive the Ring Road, you will need to rent a car. If you don’t rent a car, you will need to take a shuttle bus (about $30 per person) from Keflavik airport into downtown Reykjavik and then arrange group tours with pick up and drop off from there. Just don’t take a taxi as those can run about $150 one way between the airport and Reykjavik.

Car rentals can be pricey and you may be tempted to save money by skipping the insurance. Before you do, check with your credit card or car insurance provider because you probably still need to buy the ash and rocks coverage. Insurance can greatly increase the cost of the rental car, but you may need it.

There are plenty of budget car rentals but before you book, double-check their hours and location (how far from the airport, shuttle hours), and see the cost of add-ons so that you can compare apples to apples. (See other tips for Iceland car rentals .)

If you are visiting in the winter, you will definitely want an SUV or four-wheel drive. Otherwise, if you are sticking to the Ring Road, a four-wheel drive isn’t necessary. However, access to some hikes and activities will be on gravel roads and you will be more comfortable (and less likely to sustain damage from rocks) in a car with a higher clearance. I’ve seen a sedan get stuck on a rock in the parking lot for a hike before and people literally had to lift the car to get it off. Luckily it wasn’t totally ruined.

Also, keep in mind that to drive on the interior “F roads”, you will need a car that is allowed on those roads. Since many of those roads aren’t passable for much of the year or are extremely hard to navigate (I’ve literally seen a road sign in the middle of a field of snow), I wouldn’t bother with F roads.

The other thing to pay attention to is that you will want to make sure that your car is large enough to fit luggage for your family. Unless you are a super light packer, you will probably need checked bags for Iceland to make sure you are prepared for any weather. (See my Iceland packing list for tips!) I would recommend either a station wagon or an SUV for a family of four.

I use Auto Europe to check for the cheapest car rental rates in Iceland. Don’t forget to budget for gasoline as well (and please, if you rent a diesel car, make sure you use diesel petrol!). Currently (December 2023), gas costs about $8.82 per gallon.

If you don’t want to drive, your best bet is to stay in Reykjavik and take tours that offer pick-ups from the city as day trips. If you want to hire a private driver-guide, you should expect to pay around 120-350 per person, so at least $500-1500 for the day.

Total car rental cost: A station wagon with insurance and unlimited miles will be approximately $650-1,200 for a week. Also, add about $300 for gas if you are driving a lot.

You have probably heard that food in Iceland is expensive. If you have traveled to Scandinavian countries in the past, then you are probably used to high food prices, but for many, it can be a shock. This is especially true in the nicer restaurants in Reykjavik .

In Iceland, even a hamburger can run you $15 and most fish entrees will be closer to $30+. So dinner for a family of four can easily cost $100.

I’ve talked to many people who have felt Iceland was the most expensive place that they have traveled to when it comes to food. My advice is to splurge on one meal but keep the rest casual to keep the costs down.

You will want to try some of the specialties like Arctic char, langoustines, lamb, and if you are brave even try some reindeer or puffin. But to balance out those specialties, you can have a hearty lunch of meat soup or lobster bisque with bread. In the countryside, you can find many restaurants that offer buffets of amazing fresh, homemade food that will fill you up for hours so try to have a light breakfast, one large meal, and one lighter meal.

There is also no need to buy bottled water in Iceland as clean tap water is readily available (although it could have a bit of a sulfur smell at times), just be sure to bring along a refillable water bottle. You can also save by stopping at one of the markets, like the BONUS grocery store, and picking up supplies, especially if you are staying in a rental home or apartment.

Be sure to check out my recommendations on where to eat in Reykjavik .

Total food cost for a family of four: $200 x 7 = $1,400 (keep in mind that this can vary widely depending on if you cook and how much you splurge)

Tours and Activities

How much you spend on tours is entirely a personal preference. You can plan a private helicopter tour for over $3,000, or you can take a free hike. And just about everything in between. There are also plenty of free things to do in Reykjavik too. I would recommend trying at least a few of these unique things to do in Iceland.

Whatever you do, don’t feel like you need to take a tour for everything. You don’t. For example, you can easily do the Golden Circle and Thingvellir National Park on your own full-day road trip. But you may want to splurge on something like a glacier hike or an ATV tour that you CAN’T do on your own.

You can also forgo the touristy and expensive Blue Lagoon (if you go you need to book in advance), in favor of other hot springs around the country, like Krauma, the Sky Lagoon, the Secret Lagoon, or Fontana Spas.

There are a few things that I always recommend to clients. First, this is the land of ice and fire. Do at least one activity that takes you out onto a glacier (the ice part) such as:

• A glacier hike (minimum age 10-14 depending on provider) – see my age-based guide on things to do in Iceland with kids
• Snowmobiling on a glacier
• Ice cave trip (winter only)

Another option is to take a boat tour of the Glacier Lagoon .

For the “fire” part, I would recommend either a lava tube cave tour , a stop at the Lava Center , and/or a visit to at least one hot spring or spa.

There are so many fun things to do in Iceland. If you are adventurous, I would recommend splurging on something like a super jeep tour or ATV/buggy adventures.

I would recommend staying away from large group bus tours (e.g. Reykjavik Excursions) and instead book a small group or private tour with my partner Hidden Iceland . You can save 10% on scheduled group tours with Hidden Iceland using promo code WE3TRAVEL or for private tours, just tell them I referred you when you contact them.

If you can splurge on a few activities, here is what they would cost (based on current exchange rates):

• Secret Lagoon (2 adults, kids are free) = $47
• Into the Glacier (2 adults, 2 kids) = $727
• Lava Cave tour (2 adults, 2 kids) = $122
• Super jeep tour (2 adults, 2 kids under 11) = $1052

Total Activities Cost for 2 adults and 2 kids under 12: $1545

Total Iceland Budget: $8,545

So yes, Iceland vacation costs are high. If you look closely at the breakdowns, you can find ways to save money. You can also easily spend more. This was meant to be a guide to how much a trip to Iceland costs based on my experience helping so many families. Larger families or groups will cost more. Couples or solo travelers will be much less.

Traveling off-season will save you money (see my tips for visiting Iceland in the winter. ) You can also reduce the number of days you stay. If you stick to just one region, you can actually pack a lot into just five days, but I wouldn’t recommend staying any less.

Plan Your Iceland Trip

This article was sponsored in part by Moon Travel Guides. All opinions are my own.

Planning a trip to Iceland can make your brain hurt as you try to decipher between all of the words ending in foss (hint: that’s a waterfall), jökull (glacier), or vik (bay) and struggle with the logistics involved in mapping out an Iceland road trip. I’d recommend ordering a copy of Moon Travel Guides’ Iceland with a Road Trip on the Ring Road .

This guidebook provides options for a variety of itinerary ideas and road trips (with helpful maps!) It offers honest advice on where to eat, where to stay, and when to go, including a helpful phrasebook! Even after three visits to Iceland, I’ll be digging into this guide with up-to-date information to plan my next trip too.

Where to Go in Iceland

If you need some help deciding where to go in Iceland, be sure to check out our guides and itineraries:

• Iceland five day itinerary on the South Coast
• Four days in the Westfjords
• Day trips from Reykjavik
• Day trip to the Snaefellsnes Peninsula

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Tamara Gruber is the Founder and Publisher of We3Travel. A former marketing executive and travel advisor, Tamara is an award-winning travel writer and recognized expert in family travel. Tamara is a member of SATW and the Adventure Travel Trade Association, and serves on the Board of the Family Travel Association. She is also the publisher of YourTimetoFly.com and the co-host of the Vacation Mavens travel podcast.

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Publish Date: November 23, 2023

1 thought on “How Much Does an Iceland Trip Cost? (2024 Iceland Budget)”

We did AirBNB’s and avoided the capital. Saved us lots! Iceland was my milestone 50th country!

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The Cost of Travel in Iceland: My 2024 Expense Report

Iceland is one of the most visually spectacular countries I’ve ever been to.

From the breathtaking landscapes to the welcoming locals, the wonders of this country were obvious from my first cold steps on Icelandic terrain. 

During my time spent traveling in the Land of Fire and Ice , I gazed in awe at waterfalls streaming from towering mountains, explored a volcanic crater-turned-lake, stood mere steps away from an active geyser, skipped over black sand beaches, and crunched my way across turquoise glaciers.

But today, we’re here to talk about the prices.

Iceland has a reputation for being expensive — one of the most expensive countries in Europe, in fact — and things have only grown worse since the pandemic. Most shockingly of all, accommodation that I stayed at a year ago has now doubled in price[!]. It really is quite shocking.

But you know what? This is the case for practically every single major tourism destination right now, in Europe and further afield. Prices everywhere are skyrocketing, but there are still some ways that you can keep your costs down.

I’m going to be sharing all of those with you today.

The most expensive time of year is mid-June through to August, so you can expect prices to double again during these summer months.

Once you leave Reykjavik, however, you’ll find prices on food and accommodation dip to a more comfortable level. And with free activities scattered all over the island, there’s plenty of ways to keep your costs even lower.

So how much does it cost to travel in Island? In this article, I’m going to be sharing exactly how much you can expect to spend in 2024. Note that I’ve mentioned all prices in USD, since there are more visitors to Iceland from the United States each year than anywhere else.

The Ultimate Iceland Itinerary

Before I start diving into the nitty-gritty details of costs, I want to first go over where I visited in Iceland and how you can spend two weeks seeing the most epic parts of the country.

Iceland, fortunately, is one of the easiest countries to plan a road trip in. Why? Well, there’s essentially only one road!

That is, of course, an exaggeration, but the Ring Road of Iceland is the main road in the country and it encircles the entire island. Taking a road trip, then, is all about circling your way around the country and choosing the most epic spots. Here’s what I recommend, taking a counter-clockwise route from Reykjavik:

Day One: Reykjavik Day Two: Selfoss Day Three: Vík Day Four: Höfn Day Five: Egilsstaðir Day Six: Mývatn Day Seven: Mývatn Day Eight: Akureyri Day Nine: Sauðárkrókur Day 10: Ísafjörður Day 11: Staðarhólskirkja Day 12: Midhraun Day 13: Reykjavik Day 14: Reykjavik

How to Save Money on the Cost of Accommodation in Iceland

As always with travel, it’s possible to cut your accommodation costs down to zero if you have the time and patience to seek out an offer.

Housesitting  is a great option for  free  accommodation. This is where you’ll take care of somebody’s house while they’re away, and usually look after their pets, too. It’s best for long-term travellers or retirees as you can’t pick and choose dates and destinations, so you need to have a lot of flexibility as to where you go and at what time of year. If you  do  have that freedom, it’s a wonderful way to cut down your travel expenses, soak up some home comforts, and live like a local for a while. I have friends who have housesat in castles before! For free!  Trusted Housesitters  is the best site for getting started with housesitting, as they have the highest number of listings.

I’m suspecting, though, that for most of you, you’re not interested in the free accommodation and just want somewhere clean, safe, and affordable to rest your head each night. If that’s the case, there are several options available for you.

The first of these are  hostels . In Iceland, you’ll come across hostels dotted all over the country, although most of them are unsurprisingly in Reykjavik. They’re one of your best options for saving money as a solo traveller.

Hostels in Iceland  are on a par with the rest of Northern Europe, and you can expect to spend around  $40 a night for a dorm bed  for a well-reviewed hostel in Iceland, with the price increasing to about  $6 0 a night  for the absolute best of the best.

When it comes to private rooms in hostels, you can expect to spend around  $150 a night  for a clean, basic room in a good location, so if you’re travelling with friends or with your partner, it doesn’t always cost a lot more to grab some privacy over settling for two beds in a dorm room.  $200 a night  will get you an exceptionally well-reviewed private room in a hostel.

I use  HostelWorld  to find the cheapest hostels, as they tend to have the greatest number of listings at the lowest prices.

But what about the hotels? That’s what most of you are interested in learning about anyway!

The Cost of Accommodation in Iceland

If you’re travelling as a couple and were getting worried by the cost of private rooms in hostels that I talked about earlier, I’ve got some good news for you. There’s much more competition when it comes to hotels, so they can often be cheaper and nicer than their hostel equivalents.

In this section, I always like to share my favourite accommodation for a destination: where I chose to stay, how much I paid for it, and what I thought about the property. Here’s my choices for Iceland:

Reykjavik: Freyja Guesthouse ( $145 per night for a deluxe double room)

Not only is this guesthouse one of the highest-rated properties in Reykjavik on Booking, but it’s also one of the most affordable options, too. And I loved this place. It’s in the perfect location for exploring Reykjavik, right around the corner from the iconic Hallgrímskirkja church. The rooms are clean and cozy, and I especially liked the little kitchenette that let me save a bit of money on breakfast and drinks. It’s run by the most incredible family, and there are even free bikes for guests to use at any time. This place offers exceptional value for money in Iceland!

🇮🇸 Don’t forget to check out my post on the 19 Best Things to Do in Reykjavik !

Selfoss: Ásahraun Guesthouse ( $127 per night for a, um, barrel)

Now, I don’t know about you, but whenever I come across the opportunity to sleep in an unusual style of accommodation, I always leap at the chance. Life is too boring to spend every night in a hotel, right? … Right? So that’s what brought me to Ásahraun Guesthouse , where you can stay in a, um, barrel. Yes, you read that correctly. But in all seriousness, it’s such a cool spot and way, way nicer than you’re expecting. It receives a remarkable score of 9.5 on Booking, and that’s all due to the incredible setup. For your money you get to stay in the cosiest barrel-style room with its own fridge and kettle, have access to a hot tub (if you’re lucky you might spot the Northern Lights from it), and be fully immersed in the incredible natural surroundings. There’s a high-quality shared kitchen to prepare meals if you’d like to, and the owners are absolutely lovely and fully committed to helping you have the best stay ever. I wouldn’t be surprised if this ended up being the accommodation highlight of your time in Iceland.

Vík: Guesthouse Galleri Vík ( $287 per night for a double room)

This is such a wonderful place to stop for the night, and we were so glad we chose to do so. It’s cosy, comfortable, and clean, with a welcoming owner who makes amazing homemade waffle dough and jam: there’s a waffle iron in the room so you can put it all together for a delicious breakfast. The guesthouse itself is in a great location in Vik, right in the centre of town and within walking distance to that beautiful black-sand beach.

Höfn: Old Airline Guesthouse ( $133 per night for a double room)

Now, I’m not going to say that my favourite thing about this guesthouse is the fact that it had a washing machine and dryer, but I will tell you that it was very much appreciated after several days of road-tripping! The accommodation itself is right in the heart of Höfn, close to all of the best restaurants (I recommend Pakkhús for dinner; it’s the best restaurant in town!) as well as a supermarket and petrol station. The room was clean, spacious, and bright, and the hosts couldn’t have been nicer. All in all, this was a really good (and affordable) place to stay for a night on our road trip!

Egilsstaðir: Hotel 1001 Nott ( $284 per night for a double room)

This was one of priciest places we chose for our road trip but the beautiful location and epic views from the room made it more than worth it. You’re nestled in between the mountains and the lake here, with hot tubs to take a dip in (I recommend doing so at sunset) and even a waterfall to stroll to. A delicious breakfast is included in the price: for other meals, you can either eat onsite or drive 5km back down the road to Egilsstaðir. I’d definitely suggest having dinner at the hotel at least once, though: the food there is absolutely delicious (reindeer burgers for dinner, anyone?) This would be a particularly wonderful option if you’re in Iceland on a romantic getaway.

Mývatn: Vogafjós Farm Resort ( $251 per night for a double room)

Mývatn doesn’t have much in the way of accommodation, and most of what it does have doesn’t receive the greatest reviews. This property stands out from the crowd, then, and we loved loved staying there! You’ve got cosy wooden log cabins to sleep in, helpful staff who can help you make the most of your time in the area, and you’re just 10 minutes from the local thermal pools. Throw in an excellent restaurant in a cowshed a three-minute walk away that’s run by the same family (breakfast there is included), and you’ve got yourself an excellent stay in Mývatn.

Akureyri: Hafdals Hotel ( $233 a night for a twin room)

This hotel is just outside of Akureyri — a five-minute drive to the centre — but it’s worth staying a little way out of town because it lands you with some spectacular views instead. You’ll be looking over the city, gazing out at the fjords, and admiring the river while you stay here, in a clean and modern hotel, with a lovely owner, and a delicious breakfast. This is a great place to base yourselves while day-tripping around the north of Iceland, too.

Sauðárkrókur : Karuna Guesthouse ( $113 a night for a twin room)

We considered staying in Blönduós for this night, but the accommodation was so poorly-rated there, that we decided to opt for Sauðárkrókur instead. And what a great idea! This guesthouse felt like a steal — it was one of the cheapest places we stayed in Iceland, but it didn’t feel like it: we had the best sleep of our trip in those comfortable beds (plus blackout curtains — always appreciated!), and the owner was absolutely wonderful. The free food she left out for breakfast was so appreciated (freshly baked bread!), and the views across the fjords were magnificent. All in all, a great place to stay.

Ísafjörður : Tangs ( $260 a night for a 4-person apartment)

If you plan on venturing into the Westfjords, this is the place to stay ! It’s an apartment, rather than a hotel, and located in the centre of town within walking distance to everything. The place is clean, spacious, and stylishly-decorated, and even offers free bicycles for guests to use. And trust me — as somebody who has stayed in over 100 Airbnb apartments over my years of travel — this apartment has one of the best-equipped kitchens I’ve ever come across. Oh, and having a washing machine and dryer were a huge bonus after many days on the road!

Staðarhólskirkja: Miðjanes Reykhólahrepp ( $90 a night for a double room)

This cosy guesthouse and working farm (wait until you taste the fresh milk from the cows!) was such a lovely place, with beautiful views over the ocean — great for sitting in the living room and bird-watching. You’ve got access to a communal kitchen and living room, which resulted in so many new friendships, and the owner has tons of useful advice on where to go and what to do. It’s a little isolated, so soak up those peaceful vibes, because you’ll be heading back to Reykjavik in just a couple of days!

Midhraun: Lava Resort ( $176 per night for a double room)

This is the cutest collection of cottages ever! You’ll be staying in beautiful surrounds in an adorable cottage , with plenty of nearby trails to wander along while you’re here — I recommend the one that takes you out on to a nearby lava field. The cottages have plenty of amenities with fully-equipped kitchens, plenty of storage space, and a laundry room to get any washing done. It’s perfect location for exploring everything the peninsula has to offer!

My average cost for accommodation in Iceland was $189 a day between two people. 

The Cost of Transportation in Iceland

Let’s talk first about the costs involved in getting to Iceland. For all of my North Americans and Europeans out there, you’ll most likely be pleasantly surprised by the prices.

When you check flight prices on Skyscanner , you’ll be greeted by a wall of IcelandAir flights. And the great news about that is that IcelandAir offers free stopovers in Iceland whenever you opt to fly between Europe and North America. I utilised this when flying from Washington D.C. to London several years ago and it was epic . I was able to stop in Iceland for three days on my way over at no additional cost, so I used that time to explore the Golden Circle.

If you’re planning a trip to Iceland itself, know that you’ll be looking at around $400 for return flights from the east coast of the U.S. to Reykjavik.

If you’re in Europe, flights are inexpensive. From London, you’ll be looking at around £70 return. For other major flight hubs within the continent, such as Paris, Madrid, Milan, and Berlin, flights will usually be around €150 return — not too bad at all!

Don’t forget to have a quick check of Secret Flying before you book your flights either — there may be a bargain up for grabs that coincides with your travel dates!

But what about transportation within Iceland?

Iceland is made for road-tripping. If you’re planning on spending a week or two within the country, it’s the absolute best way to get around. Renting a car within the country is inexpensive and navigating is easy — you simply follow the iconic Ring Road around its 1,300 kilometres — or 828 miles — until you end up back in Reykjavik. The roads are well-paved and there’s hardly any traffic, which makes for an incredibly easy road trip.

I used RentalCars to find my car in Iceland; they check prices across all of the major hire companies to surface the cheapest options out there. Within Iceland, you can expect to pay between $38 and $52 a day for a rental, which really isn’t too bad at all. If you’re not having any success with RentalCars, take a look at the Iceland-based Northbound , as you can sometimes pick up a deal through there.

Self-drive tours are popular within Iceland, although I don’t personally believe they’re necessary — it’s so easy to drive around Iceland on your own!

With these self-drive tours, you essentially pay for somebody to put together an itinerary, get you a rental car, book your accommodation for you, and even provide you with breakfasts. But there’s plenty of itineraries available online for free (I shared mine in the previous section!), it’s easy to find your own rental car online, and it’s better to head out to local restaurants to try the breakfasts anyway. Icelandic Nordic Visitor has dozens of self-drive itineraries to sign up for — as an example, a 7-day self-guided tour starts from $1586 per person .

If you’re considering a self-drive tour, I’d urge you to save your money and use it on nicer accommodation.

If you can’t drive, or don’t want to, there are buses and tours that can help you see the country without needing your own set of wheels. Straeto gives some great bus routes for traveling in and around the capital city, but public transport in general is hit and miss outside Reykjavik: there isn’t a lot of it, and it doesn’t necessarily go where or when you want it to. Here are some typical prices for transport in Iceland:

• Flight from Reykjavik to Akureyri: $66
• Flight from Reykjavik to Seydisfjordur (EGS): $96
• Single bus ticket in Reykjavik: $4.50
• Bus from Reykjavik to Stykkisholmur: $38
• Strætó Bus app fare per month : $76
• 3-day bus pass in the Reykjavik area: $41
• 1-day bus pass in the Reykjavik area: $18

The Cost of Food in Iceland

We all must eat and thank goodness for that because both the traditional and contemporary cuisine in Iceland is top notch. I know, I know — Iceland doesn’t have the best reputation for cuisine, with rumours abounding of fermented shark and smoked puffin, but dig a little deeper and you’ll find plenty of treats.

First and foremost, you can’t leave the country without eating a hot dog. That’s right, a hot dog . This popular street food has made a tasty name for itself in Iceland and you’ll find them everywhere. It’s a dish that’s cheap, good, and easy to find, from basic street cart varieties to fancy or vegan versions in restaurants all over the country.

Prices vary, but expect to pay somewhere between two and four dollars . Start by heading to Bæjarins Beztu Pylsu, a hot dog stand that by now has achieved near-legendary status in Reykjavik, so that you know what a good one is meant to taste like!

Moving on from the street food options, if you plan to eat out, breakfast will be your cheapest meal. Budget around $10-25 , depending on how hungry you are. Expect to pay around the following prices:

• Coffee: $3 for filter, $4-5 for latte/cappuccino
• Croissant: $4
• Skyr (thick, tangy yoghurt) and granola: $7
• Hafragrautur (Icelandic oatmeal): $10
• Salmon/bacon, potato, and scrambled eggs: $21

Lunch tends to be a relatively light affair in Iceland; think soups, salads, and sandwiches rather than large, heavy meals. Expect to pay somewhere between $15 and $25 , based on where you are in the country and whether you’re still full from breakfast! Some typical options include:

• Soup is a common lunch meal, although the type you’ll see on menus changes with the season. Expect lamb or thick, chowder-like fish and potato during the colder months, and tomato or a lighter fish soup during summer. $17
• Open-faced sandwiches on rye bread with salmon, ham, cheese, or hummus and vegetables: $14
• Chicken or fish salad: $19

Alternatively, you’ll find a few restaurants offering a lunch buffet with a range of options for a set price: this is a good way of trying different Icelandic dishes, and is a good way of saving money, since it’s cheaper than eating out at dinner time. Having a larger meal for lunch and something small for dinner might not be traditional, but it is cheaper, especially outside weekends! You’ll pay around $25-40 per person for this.

Dinnertime will likely be your most hefty splurge, where you can expect to spend anywhere from $25 to $50 or more for a meal and a drink.

Reykjavik Fish Restaurant is a great spot to get a feel for Icelandic fare with their standard fish and chips dish costing $22 , and several other tasty seafood options on the menu.

Reykjavik’s Islenski Barinn, or the Icelandic Bar, is where you’ll want to go to if you’re craving a local vibe with traditional Icelandic eats. Yes, it’s a bar but no, you won’t find your typical boring bar food. From puffin on crumpet to lamb and salmon hotdogs to shark bits and reindeer burgers, you can expect a more upscale and unusual pub experience. Prices aren’t too bad, however, at around $15 for smaller dishes and $25-35 for larger ones.

When it’s time to treat yourself, find Von Mathús in HafnarfjordurIf. The best thing about Von Mathús is you get to soak up the classy, contemporary setup and splurge on the delectable food, without the wild prices of fine dining. The menu isn’t large, but it’s well thought out and delicious. A 3-course set menu costs $76 , or you can pick and choose from the a la carte offerings instead. When it comes to drinks, be sure to check out the happy hour offerings; they run practically all day (11:30 am to 2 pm/4 to 8 pm)! 

Speaking of happy hour, it’s kind of a thing in the capital. Loft Hostel is very popular thanks to the rooftop terrace that yanks locals and visitors in from the street, begging them to sit and sip for a while. They have beer deals from 4 to 8 pm daily. 

Veður Bar & Café is a classy establishment that loves sharing their discounted beverages. So much in fact their “happy hours” stay happier longer. Beer and wine is discounted every day from 2:00 to 7:35 pm (yes, they are precise on their cut-off time), starting at $6.50 , a bargain by Icelandic standards! There’s also a cocktail “hour” from 7 to 9 pm that pulls in the patrons, with drinks from $16 . You should also know, Thursdays are a special day at the Vedur: that’s when bubbly flows for only $7.50 .

Of course, if you opt to not drink, it will definitely lower your costs. Alcohol isn’t cheap in Iceland, especially if you are buying it a full price in a pub. Your best option for a tipple is to load up at the grocery store, where local beers cost around $4 for a 500ml can, imported beers run a dollar or two more, and the average midrange bottle of wine goes for approximately $20 . 

If you have access to a kitchenette in your hostel or hotel, then buying food at the supermarket is the cheapest overall option. Groceries are comparable to what you might spend in the U.S. — here are a few examples:

• a gallon of milk: $6.50
• a pound of chicken fillets: $10
• a dozen eggs: $6
• a load of bread: $3.50
• a pound of cheese: $9

Whenever possible, shop at Bonus: there are over 30 of them around the country, they’re easy to find (being bright yellow), and they offer the best discounts on food. 

The average price for eating out in Iceland is $79 a day

The average cost of food when cooking simply at home in Iceland is $18 a day

The average cost of food when combining both eating out and cooking is $51 a day

The Cost of Activities in Iceland

Iceland is Mother Nature’s playground. It feels like there’s almost no limit to the outdoor activities and sightseeing on offer in this geographic wonderland. That, on top of the nightlife, daytime biking adventures, and a strong gastronomic scene, make it very easy to keep busy. 

The first thing you’ll want to do when you arrive is head to the Blue Lagoon . One of the biggest tourist attractions in the country, it’s absolutely worth taking a dip in the milky-blue waters, but expect to share the experience with many others. It’s popular for a reason!

We opted for the $148 package that includes a silica mud mask, free drink (we chose champagne!), and towel. If you’re not into commercial tourist activities, fear not: solitude and free hot springs aren’t hard to find as long as you’re up for the adventure. 

Reykjadalur Hot Springs requires an hour-long hike to get to but once you arrive you have a whole river to soak in. Grotta Lighthouse Footbath is in Reykjavik and is easy to access but note the word “foot” in the name: it’s not very deep, but it is unique!

There’s a wide range of day trips available to visitors from Reykjavik through Get Your Guide for those of you who are short on time. They’re great options if you’re taking that three-day layover between the US and Europe that I mentioned earlier: some of the best day tours include:

• a south coast day trip , where you walk behind a waterfall, walk on the black sand beaches of the southern coast, visit the southernmost village in the country, and check out the Sólheimajökull glacier: $101
• going lava tunnel caving , where you take a guided tour through the Raufarhólshellir lava tubes that were formed after a volcanic eruption over 5000 years ago: $108
• a Golden Circle day trip that takes in the best waterfalls, lakes and geysers in the southwest of the island, and includes seeing where the North American and Eurasian tectonic plates meet: $74
• a small-group trip to the Snæfellsness Peninsula , visiting the Berserkjahraun lava fields, Snaefellsjokull volcano, and Kirkjufell mountain along the way, not to mention a delightful seal colony: $146
• An ice cave day trip , where you get to hike across Myrdalsjokull glacier (crampons provided!) and walk inside the incredible ice caves of Kötlujökull glacier: $204

One of the most memorable moments from our trip was hiking the Sólheimajökull Glacier, where we were able to rappel down crevasses and drink the most delicious 400-year-old water. 

Biking is also a fun way to sightsee in the capital, at least when the weather is good. If you’re feeling more adventurous, you can book a tour to navigate other parts of the country on two wheels as well. Reykjavik Bike Tours offer guided day trips to the Golden Circle, Coast of Reykjavik and Westman Isles, to name a few. Prices for bike rentals start at $29 while guided tours vary depending on location.

Driving the rural roads of Iceland is one of the best ways to see and feel the essence of the country. Beginning in Reykjavik, the Golden Circle is a 190-mile loop that offers a wealth of natural beauty. Big ol’ blocks of ice, more commonly referred to as glaciers, black sand beaches with natural ice sculptures the size of me, funky moss, and tiny elf houses line the route around the circle. There’s something remarkable to see around almost every corner. 

The great thing about the Land of Fire and Ice is the best things are often free. Exploring the more remote parts of the island and soaking up the natural beauty is the best way to experience the country on a budget, whether that’s by car, bicycle or foot. Even walking out of your hostel can be a beautiful experience with the right vantage point!

And, of course, there’s the Northern Lights. 

I can’t write an article on Iceland and not highlight the lights! We went in late September with the goal of seeing that incredible night sky. That’s quite early for the lights to appear, so it was a bit of a gamble, but a gamble we won. Soaking in our hot tub, we were able to gaze up in awe at the illuminated fluorescent swishes dancing above us. It was a moment I’ll never forget.

If you can, book your trip during the months of September to March and hunt down those lights. You won’t regret it! 

The average cost of activities in Iceland is $29 per day

The Cost of Travel Insurance in Iceland

I’m all about ensuring that every single one of my readers understands the importance of travel insurance. When you work in the travel industry, as I do, you’re inundated with news of destitute backpackers on GoFundMe who fell ill while travelling, didn’t have travel insurance, and now can’t afford the hundreds of thousands of dollars needed to be airlifted home for medical care. It happened to an old school friend of mine just last year. In short, if you can’t afford travel insurance, you can’t afford to travel.

Travel insurance  will cover you if your flight is cancelled and you need to book a new one, if your luggage gets lost and you need to replace your belongings, if you suddenly get struck down by appendicitis and have to be hospitalised, or discover a family member has died while you’re overseas and need to get home immediately. If you fall seriously ill, your insurance will cover the costs to fly you home to receive medical treatment.

I use  SafetyWing  as my travel insurance provider, and recommend them for trips to Iceland. They’re one of the few companies out there who will actually cover you if you contract COVID-19. On top of that, they provide worldwide coverage, don’t require you to have a return ticket, and even allow you to buy coverage after you’ve left home. Finally, they have a clear, easy-to-understand pricing structure, which is always appreciated. A two-week trip to Iceland costs $21 with SafetyWing.

How Much Does it Cost to Travel in Iceland?

So how much can you expect to spend on an incredible trip to Iceland? At the end of these budget breakdowns, I always like to pore over my receipts, tally up my every expense, and tell you guys exactly how much my travel adventures cost.

A two-week long road-trip in Iceland, during which I was travelling on a mid-range budget as part of a couple and moving almost every day, came to the following:

• Accommodation:   $189 per day for two people ( $94.50 each )
• Transportation:   $46 per day for two people ( $23 each)
• Food:   $51 per day
• Activities:   $29 per day

Total amount spent per day: $197.50 each

Sure, it’s not the cheapest vacation option out there, but I promise you: Iceland is so, so worth the money! It really is one of the most remarkable places I’ve ever been.

So what do you think? Is Iceland more or less expensive than you expected? Have the prices put you off or made you all the more determined to get over there? And, as always, let me know if you have any questions and I’ll reply to them all in the comments below!

Further reading.

• Best Things to Do in Reykjavik: Don’t forget to check out my in-depth guide to all the best things to do in Iceland’s capital!
• 22 Mind-Blowing Things to Do in Iceland : All of my favourite things to do in Iceland!
• How Much Does it Cost to Travel?: If you enjoyed this budget breakdown, I’ve got a whole lot more to share with you! I’ve been recording my travel expenses for 13 years and counting, and have published over 70 detailed expense reports on my site.
• How to Find Cheap Flights Around the World: My biggest and best tips and tricks for scoring a great deal on flights.

Lauren Juliff

Lauren Juliff is a published author and travel expert who founded Never Ending Footsteps in 2011. She has spent over 12 years travelling the world, sharing in-depth advice from more than 100 countries across six continents. Lauren's travel advice has been featured in publications like the BBC, Wall Street Journal, USA Today, and Cosmopolitan, and her work is read by 200,000 readers each month. Her travel memoir can be found in bookstores across the planet.

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Great photographs of Iceland! The waterfalls are amazing. $41 dollars a day is completely reasonable if not downright cheap. Thanks for laying of the expenses so clearly.

This post is so helpful! Money is always something I’m worried about when traveling.

Thanks for this post it was super useful in planning our trip to Iceland! Your pictures are so inspiring too!

Thanks for this useful guide! Planning my two week road trip to Iceland now that I’m fully vaxxed and can’t wait to see some of these beautiful landscapes with my own eyes. Your article helped so much with my trip planning.

I guess prices must have shot up since you went there. I was just pricing rental cars and for the cheapest car I could find, it was over $4500 for 12 days. The self-guided tours that included budget accommodation and a cheap car were a bit cheaper, but were $5000 for 2 people for 12 days.

What dates are you looking for, Brett? I’m happy to have a look and see what I can do. I’m seeing prices of $700 for a 12 day hire for September, for example.

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Iceland Vacation Cost: How Much Does a 4-Day Trip to Iceland Cost?

How much does a trip to Iceland cost? Figuring out your Iceland travel budget can be grueling, so I want to make this process as painless as possible by providing budget hacks and helping you set realistic spending expectations for your upcoming trip to Iceland. F or this Iceland travel cost breakdown, I’ve hoarded all of my receipts from my 4-day trip, and here’s how much it cost me. Since I’ve visited three times, I also included other fun facts here.

Depending on your needs and interests, your Iceland budget breakdown may look different from mine. Nevertheless, this is a great resource for figuring out how much money you’ll need. Although Iceland has a reputation for being an expensive country, I’m confident that if you plan and budget accordingly, you’ll have a blast visiting one of my favorite places in the world.

How expensive is Iceland relative to other countries? According to Numbeo’s Cost of Living Index by Country , Iceland is the sixth most expensive country, followed by the Bahamas, the U.S. Virgin Islands, the Cayman Islands, Switzerland, and Bermuda .

• How Much Should You Expect To Spend in Iceland?

Table of Contents

Round-Trip Flights from NYC + Hostel: $562 USD

Shuttle bus to/from keflavík international airport: $32 usd, average daily food cost: $60-$105 usd, average activity cost: $120 usd, citywalk reykjavik, day trips from reykjavík, average daily alcohol cost: $18 usd, total cost of trip to iceland, how to save money in iceland.

Is Iceland expensive?

Based on my three trips to Iceland, the average trip costs between $300 and $400 per person per day , including flights, budget lodging like hostels and Airbnbs, and activities, mostly guided group tours around the country.

This does not include car rentals or gas.

For a detailed breakdown of the cost of a trip to Iceland, keep reading to get a better understanding of the expenses you’ll incur.

Cost of Visiting Iceland: 4-Day Iceland Vacation Cost Breakdown

I purchased my flight and accommodation package six months ahead of time on Expedia and redeemed a $25 Expedia+ coupon with all my accumulated points.

I flew with Delta Air Lines and stayed at Loft Hostel . Although hostels in Iceland aren’t as cheap as in other parts of Europe, they’re still a cost-effective option. If hostels aren’t your thing, search for hotels and guest houses in Reykjavík here .

I booked my flight and lodging separately for my second trip to Iceland. I flew with Icelandair and booked my flights three months before departure. My round-trip ticket to Reykjavík from New York City cost $273.45 USD. At the time, this was the cheapest flight I’ve ever seen to Reykjavík on a non-budget airline. Also, flying with Icelandair meant that the first checked bag was free! The average flight to Reykjavík from New York City costs over $400 USD.

During this trip, I stayed at Kex Hostel Reykjavík in a six-bed female dorm for 6,800 ISK or $63.11 USD per night. I saved $36.10 USD this time by finding an amazing flight deal and booking the essentials separately. I recommend signing up for Thrifty Traveler Premium to find incredible flight deals worldwide.

For my third trip to Iceland, I booked flights with WOW Air for $176.76 USD and stayed at Captain Reykjavik Ránargata. Unfortunately, WOW Air went out of business in 2019.

Gray Line Iceland Airport Express is one of the most convenient ways to get to Reykjavík from Keflavík International Airport. The bus ride takes 45 minutes, and there’s  free Wi-Fi onboard. Order your tickets at the counter or confirm your booking online.

Children between the ages of 12-17 pay half price, and children under 11 travel free. Departures are scheduled 25-45 minutes after arriving flights, so even if you arrive late at night or early morning, there’s always a bus available. Flybus is another shuttle bus alternative. It is slightly more expensive.

With Gray Line Iceland Airport Express, you have two options. The “Terminal to Terminal” service takes you to the Gray Line Bus Terminal at Holtagarðar 10. The “Door to Door” service drops you off at your hotel or near your guesthouse.

Airport Express Terminal-to-Terminal Costs

2,400 ISK one-way or $19 USD

3,900 ISK round-trip or $31 USD

Airport Express Door-to-Door Costs

2,900 ISK one-way or $22.86 USD

4,900 ISK round-trip or $45.72 USD

Iceland Transportation Money Saving Tip

I saved 5% on my bus tickets with the promo code “SIGHT5”.

Before booking, Google “Gray Line promo codes” to find other coupon codes and more savings.  

Gray Line Iceland also offers promo codes right on their website. During my second trip to Iceland, I booked a Snaefellsnes Peninsula and Cave Exploration tour and saved 10% with the promo code “LABOR10”.

What’s the cost of food in Iceland?

Food in Iceland is extremely expensive.

Even though I saved money on breakfast (included in my hostel stay), I suggest budgeting $20-$35 USD per meal. On the other hand, my roommates bought a lamb stew for $80 USD. I know, crazy, right?

The cheapest lunch I had cost $15 USD. The most expensive dinner was $34 USD.

Check out my Iceland food prices guide for how much things cost at supermarkets, restaurants, and bars.

Iceland Food Costs: How Much Does Food Cost In Iceland?

How much to tip in Iceland?

Tipping isn’t mandatory in Iceland. Icelanders don’t tip because it’s included in the price and taxes. Feel free to tip your server or bartender if you feel they went above and beyond , but there’s no obligation or expectation. You may see tip jars in coffee shops, but you don’t have to tip them unless you want to.

More Money-Saving Tips in Iceland

Remember that you don’t need to buy bottles of water in Iceland. The water is pure, and you can get it free anywhere. My tour guide encouraged me to drink water from a glacier lagoon—and that’s normal.

Press play to listen to this podcast episode, where I share even more tips for saving money in Iceland . These tips are based on my book Iceland: Nature, Nurture & Adventure .

Listen to this episode on Apple Podcasts and Spotify .

Considering shopping in Iceland? Here’s how you can get up to 14% off items by claiming a tax-free refund .

How To Claim Your Tax-Free Refund Shopping in Iceland

Iceland has much to offer, especially if you’re looking for adventure. There are waterfalls to walk behind, glaciers to climb, and you can even go inside a volcano or snorkel between continental plates. If you’re feeling really adventurous, try extreme motorsports like formula off-roading. 

Things To Do in Reykjavík

• Hallgrimskirkja Church : $8 USD
• Admission to Vesturbaejarlaug swimming pool: $8 USD
• Tip for CityWalk Reykjavik walking tour: $12 USD (set your own price)

CityWalk Reykjavik offers free walking tours in Reykjavík. They also lead pub crawls, running tours, and private tours. The free “History and Culture Walk” is a great introduction to the city, Icelandic culture, and history. Best of all, the tour guides are witty Icelandic historians. During the walking tour, you’ll walk through the most historic parts of town , including the oldest neighborhood and the oldest cemetery. I would have missed so many hidden gems if I skipped this tour. At the end of the tour, set your own price and tip in any currency.

Day trips in Iceland are pricey, but the good news is that I also found plenty of cheap things to do in Reykjavík if you’re on a budget.

• Horseback riding: $106 USD 
• Iceland’s South Coast   bus tour: $138 USD 
• Snorkeling at Silfra (including photos): $205 USD

I booked a snorkeling Silfra tour ahead of time with DIV.IS.  If you have a  GoPro camera , bring it with you. You can save money by not paying extra for photos and videos.

If you want to see Iceland’s landscape, it’s worth visiting the countryside. Lots of people recommend renting a car in Iceland, but taking a guided tour was informative and convenient. I would have missed so much if I were on my own!

I also booked a last-minute South Coast sightseeing tour with Sterna Travel.  Sterna Travel offered the cheapest South Coast bus tour,  and the value was incredible! I saw many waterfalls and a glacier tongue, and I even learned about the effects of volcanic eruptions and global warming on the island.

Getting a drink or two in Iceland adds up quickly. A beer costs roughly $11 USD.

Loft Hostel has one of my favorite bars  in Reykjavík. They offer a variety of Scandinavian beers, and you can jam out to live music on Fridays. Their rooftop patio is also a great place to scope out the city skyline.

A friend introduced me to Ölsmiðjan Bar, a dive bar where beer costs only $5.48 USD or 590 ISK!

Lastly, use the Appy Hour app to find cheap drinks in town. Appy Hour conveniently lists every happy hour in Reykjavík in real time.

How much does it cost to go to Iceland? W hen I totaled all of my expenses, I spent $1,240 USD for my 4-day trip. I am both shocked and relieved I decided to spend only four days in Iceland. The more time you spend in Iceland, the more you’ll spend. An average trip to Iceland costs approximately $300 per day, including flights and lodging.

Food, alcohol, and activities were the most expensive budget categories, but  I’m amazed Natasha over at The World Pursuit spent a  week in Iceland and only spent $100 USD ! Nevertheless, I have no financial regrets whatsoever about my trip. I’m happy I got to visit one of the top destinations on my travel wish list.

Would I go back? Ugh….duh!  I’m already planning my fourth trip.

Although visiting Iceland isn’t the cheapest, it’s still worth it. With that in mind, here are some quick pointers to help you and your wallet make the most of your Iceland vacation.

• Shop Duty-Free. While you can buy alcohol at a local bar or restaurant, alcohol is pricey in Iceland because of taxes. To make matters even worse, alcohol taxes are levied based on the volume of alcohol in a drink. The first piece of advice is: buy your drinks at the airport. If you’re flying into Keflavik International Airport, Iceland’s main airport, stop by Duty-Free Iceland . It has a wide selection of alcoholic and non-alcoholic beverages from Argentina to New Zealand and almost anywhere else in between. Keep in mind that each traveler is only permitted six units of alcohol. If it sounds confusing, use this alcohol allowance calculator to see how much beer, wine, and liquor you can purchase at the airport.
• The second piece of advice is to make the most of local happy hours . To know which bars have discounted happy hours, download the app Appy Hour. This app sorts out bars and happy hour deals based on proximity and price.
• Bring a refillable water bottle . While you can buy bottled water in Iceland, Iceland’s tap water is unbelievably pristine, safe, and never chemically purified. Iceland’s tap water is reported to originate from springs and mountains that are naturally purified through molten rocks, which not only cleanse the water of any bacteria or chemicals but also add minerals and nutrients. So why spend your coin on some of the world’s best water when you can get it from the tap for free?
• Ditch cash. Like most countries, Iceland prioritizes plastic, with no need for ATM visits and fees.
• Claim your tax refunds through tax-free shopping. Tax-free shopping is a way to save money when traveling to expensive countries such as Iceland. For more on how to claim your tax refund, check out my article, “ Tax-Free Shopping in Iceland ,” on how to save money and receive a tax refund.
• Unlike the U.S., where tipping can go a long way, tipping is not necessary in Iceland . Gratuity is already included in the bill, so while tipping isn’t necessary, it is always appreciated.
• Regarding finding reasonably priced items to stock your temporary fridge , Iceland has several options for affordable grocery stores. Of these grocery stores, I suggest Bónus and Krónan for household items, food, drinks, and anything else you may need to comfortably enjoy your time in Iceland.
• Prioritize local swimming pools over fancy hot springs. Here, you’ll meet locals and partake in their traditions and customs while also saving money!

For even more helpful tips not covered on the blog, grab a copy of my Iceland travel guide !

In this book, we cover:

• What to expect
• Things to do in Iceland
• Things to pack
• How to save money in Iceland
• How to save money duty-free shopping in Iceland
• The best times to visit Iceland and more!

Continue planning your Iceland vacation. Read these Iceland articles next:

Caving Adventure in Vatnshellir Cave

Top Blue Lagoon Alternatives

Best of Iceland South Coast Tour

Grab copies of my books on Amazon.

Danielle Desir Corbett paid off $63,000 of student loan debt in 4 years, bought a house at 27, and has traveled to 27 countries, including her favorites, Iceland, China, and Bermuda. Go here to learn Danielle’s incredible story, from struggling financially and in debt to finding creative ways to earn more and live on her terms. Listen to The Thought Card Podcast , where Danielle shares how you can creatively travel more and build wealth regardless of your current financial situation. Reach out to Danielle by contacting: thethoughtcard (at) gmail (dot) com.

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Haha, Iceland is awesome right?! I can’t remember our costs but dang it’s expensive there and the FOOD. Like, not even for anything special…

We got so lucky and were able to couchsurf for free (what’s more our hosts’s kid gave up his room for us so we got a comfy bed) and their place had a heated bathroom floor (which is common there…). And our host’s partner gave me this lovely necklace…

Wow! this post sounds amazing.. Iceland looks awesome to explore, there are so many things to do, I love your post and I will be definitely adding to my bucket list..keep sharing!

Thanks Monica, keep an eye out for my Iceland Travel Guide that comes out in July!

Amazing tips and amazing photos too, you guys had a great time and Now Iceland is in my bucket list, thanks for sharing such a beautiful post

Thank you so much Kanika! In July 2019, I’m releasing my Iceland travel guide book with even more info for planning your trip!

Hi, great article. How did you manage jet lag on such a short trip?

Hydrate and try to sleep on the airplane so when you land, you can hit the ground running!

This is so helpful! Heading to Iceland in October, so definitely bookmarking this. Thank you for sharing

Thank you for your post! This helps me figure out what my expenses will be like when I go for the first time. :)

Thank you Christian, I just got back from my third trip to Icealnd and plan to update with more money details soon! When are you heading to Iceland?

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Planning a Trip to Iceland: DOs and DON’Ts (2024)

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Planning a trip to Iceland is more complicated than to many countries. With its stunning volcanoes, lava fields, fjords, beaches, and waterfalls, it’s no wonder that visitor numbers to Iceland have surged in recent years.

But many tourists underestimate how dangerous this wild and remote island can be.

Some take unnecessary risks and end up needing to be rescued, which is putting strain on Iceland’s volunteer rescue service. Visitors have even been injured or killed after accidents on glaciers, beaches, and cliffs.

This can be avoided, though, and there’s no reason you can’t have a wonderful, incident-free trip by following these Iceland travel tips.

I also include advice for making the most of your vacation in this beautiful country, quirky facts that make Iceland such a unique place to travel, and the latest travel restrictions.

Video: Planning an Iceland Vacation

When is the best time to visit iceland, how long should you spend in iceland, what’s the best way to travel in iceland, before you arrive in iceland, planning a trip to iceland: dos and don’ts, more iceland reading.

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I would happily visit Iceland at any time of year as each season offers a different experience.

Many people consider the summer months of June to August the best time to visit Iceland.

This is when the weather is warmest, although that doesn’t mean it’s hot. In Reykjavik average temperatures in July range from 9 – 14ºC (48 – 57ºF) and it can be colder in the north.

Summer is the time of the midnight sun with daylight hours ranging from 21 hours in late June to 18 hours in early August.

This is the best time of year for hiking, driving the Ring Road (as roads are clear), and seeing whales and puffins. Most attractions and cafes are open.

The downsides of visiting Iceland in the summer are that it’s much busier and more expensive.

Spring and Autumn

To avoid the crowds and high prices, it’s worth considering visiting in the shoulder season months of April/May (spring) and September/October (autumn).

The weather is cold at this time of year but not as extreme as the winter and there’s a good amount of daylight for exploring.

It’s also possible to see the northern lights in these months, although you’ll have more of a chance in April and October.

The downside is that some attractions and cafes are closed.

We loved visiting Iceland in late September when it wasn’t very busy.

We had around 12 hours of daylight and temperatures of –2ºC (28ºF) to 5ºC (40ºF). We enjoyed autumn colours in some locations, the first snowfall on the mountains, and even the northern lights.

See my guide to visiting Iceland in September for more on what to expect.

Iceland’s winter from November to March is the quietest and cheapest time of year to visit.

This is the best time of year to visit Iceland for the northern lights, beautiful snowy landscapes, and winter activities like ice caves and dog sledding.

The weather is cold but not as cold as you’d expect (around 0ºC/ 32ºF) and daylight is limited for exploring (only four hours in late December/early January).

The roads are often covered in snow and not all parts of the island are accessible at this time of year—it’s best to stay south. If you aren’t a confident driver, stay in Reykjavik and take tours.

The average length of stay in Iceland is around seven nights.

I recommend visiting for at least five nights—this is enough time to see some of the highlights within a few hours of Reykjavik such as the Golden Circle and Snaefellsnes Peninsula .

If you want to drive the entire 1332km (828 miles) Ring Road, which circumnavigates the island, the minimum time needed is one week. 10-14 days would be much better, though.

We visited Iceland for 12 nights and liked not being too rushed. We were able to have a couple of rest days when the weather was bad. See our western Iceland itinerary for details of where we went.

Public transport is very limited so the best way to tour Iceland is with your own vehicle.

If you can drive, the best way to see Iceland is to hire a car and do a self-drive trip around the island.

We use Booking.com Car Rentals  to find the best deal. We rented a 4WD car, which we appreciated on bumpy gravel roads in the Westfjords, but it isn’t strictly necessary for most Iceland trips.

We found driving around Iceland easy—there aren’t many roads so it’s difficult to get lost and there’s good cell phone signal for using Google Maps.

Renting a campervan is also a popular way to tour Iceland in the summer. You must park in designated camping zones, though.

Take Tours from Reykjavik

Another way to explore Iceland is to base yourself in Reykjavik and take day tours. You can get a shuttle bus from the airport into the city (which is very walkable).

See  Get Your Guide for a wide variety of trips such as the popular Golden Circle tour , whale watching on a luxury yacht , Jökulsárlón Glacier Lagoon , Sky Lagoon geothermal pool , and many more.

This is the best option if you can’t or don’t want to drive or are visiting in winter and aren’t confident driving on snowy roads. It’s also a good way to travel if you are visiting Iceland on your own.

• Save up – Iceland is expensive and you’ll enjoy your vacation more if you aren’t worrying about every penny (on chilly days we really appreciated those hot chocolate and cake breaks). Find out how much our Iceland trip cost . 
• Consider visiting in the off-season – Iceland gets very busy in the June to August summer months, so avoid the crowds by visiting at a different time of year.

• Plan your itinerary – See our off the beaten track Iceland itinerary  for trips of 7 to 12 days or follow the classic ring road around the country (at least 10 days is recommended). Roads in the north are often impassable in winter so stick to the south—here’s a 5 day Iceland winter itinerary .
• Book your accommodation – Especially if you are travelling in the summer high season, you need to book far in advance. You can use sites like Vrbo  to find self-catering cabins and save on high restaurant costs. Search on Booking for hotels, guesthouses, and cottages.

• Buy travel insurance – It’s essential in case anything goes wrong. We recommend SafetyWing (a budget option available worldwide), True Traveller (for UK and EU residents), and Heymondo (available worldwide).
• Book the Blue Lagoon – Iceland’s most popular attraction can book up weeks in advance. It’s near the airport so most people visit after their flight arrives or before they depart. Book the Blue Lagoon with transfers here . We skipped it because it’s expensive, crowded, and we found some gorgeous, isolated hot springs in the Westfjords instead. Next time, I want to visit the new Sky Lagoon in Reykjavik, which should also be booked well in advance.

• Read The Little Book of Tourists in Iceland by Alda Sigmundsdottir – For tips by a local on travelling safely and responsibly and to understand the impact the tourism boom has had on the country. If you have time for more than one book, see my picks of the 10 best Iceland books to read before you visit including non-fiction and fiction. 
• Pack the essentials – In every season you’ll need warm layers (merino wool is great), waterproofs, waterproof hiking shoes or boots, swimsuit and travel towel (for hot springs), tripod (for northern lights photography), and sunglasses (the sun is often low). See our Iceland packing list for what we took.
• Bring a chip and pin debit or credit card – You’ll need it for self-service petrol pumps.
• Don’t worry about cash – Cards are accepted everywhere. We only needed a small amount of cash on our Iceland trip (about 3000 Icelandic krona worth $21) for unattended hot springs and toilets.
• Read safetravel.is – For tips on staying safe on your Iceland vacation. You can also give them your travel itinerary so they’ll be able to respond if you don’t reach your planned destination.
• Check if an EITAS is required – From 2025, the EU will be introducing an online travel authorisation system for travellers from countries that are currently visa-free (including US, UK, and Canada). You’ll need to apply before your trip and pay a small fee, but full details haven’t been announced yet (and it keeps getting postponed).
• Take the Icelandic pledge  
• Be flexible – The volatile weather can mean tours are cancelled or hikes or drives would be too dangerous.
• Check road.is  before setting out each day – For details of road conditions and closures.
• Take a walk through a lava field – They are incredible! Our favourites were on the Snaefellness Peninsula .

• Expect to see many waterfalls – They are everywhere! My favourite was Dynjandi in the Westfjords.

• Drink the tap water – It’s pure and delicious. Bring a lightweight, foldable water bottle like the Vapur with you.
• Look out for the northern lights from September to mid-April – We used the Aurora app and Vedur website to see our chances. We got lucky on a 30% chance day and saw them outside our Bjarkarholt cabin in the Westfjords. It’s best to stay in the countryside where there’s no light pollution. If you don’t have a car, you can take a northern lights tour from Reykjavik . 
• Use a tripod and long exposure  – To take photos of the northern lights. Most of mine were taken in manual mode at f2.8 with a 10 second shutter speed.

• Enjoy the midnight sun – If you visit Iceland in the summer when it’s light almost 24/7.
• Drive with your headlights on at all times .
• Be careful of sheep on the road – And always report it if you run one over (you won’t be fined).
• Fill up with petrol when you can – You might not come across a petrol pump for a while.

• Relax at geothermally heated swimming pools and hot pots – You’ll find them in even the smallest towns and it’s so lovely to swim in warm water when it’s cold outside.
• Shower naked thoroughly (without your swimsuit!) before entering a hot spring or pool – Public nudity isn’t a big deal in Iceland and you’ll draw far more attention to yourself if you don’t. They are very strict about this! There are separate male and female showers. You wear your swimsuit in the pool.
• Use the toilet whenever you find one (they are in short supply) – Be prepared to pay, usually around 200 ISK ($1.40). It’s worth keeping a small amount of cash for this. 
• Admire the cute wooden churches everywhere .

• Look out for seals – We saw them three times lazing on rocks by the sea.
• Ride an Icelandic horse and try its unique, smooth pace, the tölt.

• Create a playlist of Icelandic music – I will forever associate Of Monsters and Men with epic drives through the mountains. Iceland has a huge number of talented bands—check out Björk, Sigur Rós, Solstafir, Ásgeir, Múm and many more.
• Read books by Icelandic authors – It’s a very literary country. Nobel Prize-winning Halldór Laxness is the most famous author, and reading the classic Icelandic Sagas from the 13th and 14th centuries will give you a greater understanding of the country as famous sites from the stories are everywhere. See my 10 favourite books about Iceland including fun, quirky, and mysterious novels.
• Take a walk on a beach – It’s unlikely to be sunbathing weather, but Iceland’s dramatic black, golden, and red beaches are perfect for wild walks.

• Shop at Bonus supermarket – It’s the cheapest place to self-cater.
• Pack a picnic if you are road tripping – There often isn’t anywhere to stop for lunch, especially outside the summer when remote cafes close.
• Stock up on alcohol at Duty-Free on arrival at the airport if you want to drink – It’s much cheaper than in the state-run liquor stores (the only place you can buy booze).
• Enjoy delicious hot chocolate and cake (or a cinnamon bun) at one of Iceland’s excellent cosy cafes.
• Check Grapevine , a free English language newspaper – For what’s on in Reykjavik and enjoy its legendary nightlife and music scene on weekends.
• Call everyone by their first name – Titles aren’t used in Iceland. Instead of surnames, Icelanders use patronymics (or less commonly matronymics) made up of their father’s (or mother’s) name plus “son” (son) or “dóttir” (daughter). E.g. Björk Guðmundsdóttir is Gudmund’s daughter.
• Underestimate the weather – Icelandic weather changes fast and can be dangerous. Check the Vedur website or download their app for weather forecasts. Always be prepared with extra layers and waterproofs. 
• Drive in a storm – Strong winds can blow cars off the road or volcanic rocks into your windscreen in scary sandstorms.
• Stop on the road – I understand, you will feel the urge to take a photo every few minutes, but always pull over into a parking area, even if the road seems empty.

• Speed – Stick to the speed limit of 50 km/h in urban areas, 80 km/h on rural gravel roads, and 90 km/h on rural asphalt roads.
• Feel the need to tip – It’s not rude to do so, but it’s not expected or customary.
• Wild camp – This is now banned and you must park your campervan or put up your tent in a designated campsite.
• Risk your life for a photo – Respect any barriers that have been put up.
• Get too close to cliff edges or the surf – Tourists have fallen off cliffs and been killed by rogue waves (especially at Reynisfjara beach).

• Walk on the ice at Jökulsárlón glacier lagoon – The ice is not stable and the water is dangerously cold.
• Go onto a glacier without an accredited guide – There are hidden crevasses that you could fall into.

• Drive on F roads without a 4WD vehicle
• Drive off-road in any vehicle – It damages the landscape and you’ll receive a high fine.
• Worry about staying connected – Even the remote cabins we stayed in had good WiFi and we had 3G or 4G signal almost everywhere. If you don’t have an affordable data plan for Iceland, buy an Airalo e-SIM and get online as soon as you arrive.
• Feed horses – Yes, they are cute, but it is bad for their health. It’s best to visit a horse farm like Sturlureykir , where can pay a small fee to interact with them (or go on a ride).
• Take rocks or pebbles as souvenirs
• Litter – Have some respect for this beautiful place.
• Ask Icelanders if they believe in elves (aka hidden people) – The majority do not, although they understand that many of their ancestors did and they are part of their heritage.
• Rush – Iceland’s a stunning country, take your time and enjoy it.

I hope this post has answered any concerns about how to plan a trip to Iceland. Let me know if you have any questions in the comments below or share your own Iceland travel tips.

• Iceland Itinerary: Off The Beaten Path on a Snæfellsnes and Westfjords Road Trip
• 14 Places Not to Miss on the Snaefellsnes Peninsula
• How Much Does an Iceland Trip Cost? Our Road Trip Budget
• 10 Best Books About Iceland to Read Before You Visit
• The Ultimate Iceland Packing List for Men and Women
• Visiting Iceland in September: What to Expect and Things to Do

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35 Comments

Hi, great blog. I’m thinking of taking my 3 teenagers to Iceland. I don’t want to be stuck in the hustle of a “tour group” experience. Is it possible to do it on my own with just day trips? How is late June? Will we be able to see glaciers and ice caves or are those only in the winter? Thanks!

Reply ↓

Yes, you could do it on your own with day trips if you hire a car and don’t mind a fair amount of driving.

In this case, you might also want to consider a night or two outside Reykjavik though–the Snafellsness peninsula is only a few hours away and is worth the extra time.

Late June is busy and expensive (book asap), but the weather is at its best (but still be prepared for cold) and you’ll have up to 21 hours of daylight.

Langjokull Ice Cave is on a glacier and can be visited year round as it’s man made. You have to visit on a tour from Husafell or Reykjavik.

Enjoy Iceland!

I loved your article. I would like to ask: is it possible to visit Iceland on day tours from Reykjavik? Or is it better to take a 6 days tour of the country? Is it possible to rent a bus from Reykjavik for a group of people?

You wouldn’t be able to see the whole island, but I wouldn’t recommend trying to do that in 6 days anyway. You can certainly see a lot by taking day tours from Reykjavik. Many people who don’t want to drive do this.

I’m not sure about renting a bus. But if you have a really big group maybe contact an Iceland tour company for advice. Organising a private tour might make more sense than joining a group tour.

Credit card use is very pervasive.

However at campsites where laundry and showers are coin-operated, how does one get the coins needed?

We haven’t stayed at campsites so I’m not sure, but we withdrew a small amount of cash from an ATM at the airport on arrival.

Very good article, we just returned from our two weeks in Iceland. and the only thing I would add it’s the wind, not the temperature that is hard to handle. Plus all the Icelandic people we delta with all spoke perfect English, a couple of times I had to ask them where they were from, only to be shocked that they were from Iceland. Enjoy your trip, we did, oh and make sure you get full car insurance!

It’s really helpful for my Christmas Iceland Trip! I hope I can experience a lot as you said!

Thank you very much, Erin, for this super informative blog. I’m planning to visit Iceland sometime in Feb/Mar 2023. Will visit the places of interests you shared. We come from Singapore – hot climate. Might be a struggle to keep ourselves warm in Iceland. :-(

Great information, You answered all my questions

Planning a trip to Iceland now and this has been a super helpful place to start! Thanks so much for a really awesome guide. Reading your 5-day Winter itinerary next as we’re going February 2022 so that could be perfect for us!

Thank you. Very informative, organized, and superb photography.

Thanks, Jay!

After spending 18 months sequestered and being fully vaccinated, I did an 8-day tour of Iceland and although it was challenging getting there from Western Canada, once I got there I loved it! I can verify all the recommended do’s & don’ts are true and worth your while following. The landscape is like no other in the world and it took my breath away despite not having the best weather. The people very friendly & welcoming, the food amazingly delicious, hotels & accommodations modern, simple & comfortable. Our tour and our guide was amazingly knowledgeable & experieced who kept us entertained with great facts, history, geology, birding knowledge & some tall tales. Loved it and would visit again!

Thanks for the trip report, Aida! It sounds like an amazing trip! You’re making me really want to go back.

Are the travel restrictions for Vaccinated people lifted for Iceland? FYI: I’m an american

Yes, you can travel to Iceland now.

I can’t wait to move to Iceland

Hi, I’m an American, do you think the travel restrictions will be lifted by the summer?

Thank you, Jessica

No one really knows but it will depend if the US can get the virus under control by then. It looks like from 1 May, Iceland hopes to open up a little more but that will be based on each country’s situation. Edit: All restrictions have been lifted: https://www.government.is/government/covid-19/covid-19-news/2022/02/23/COVID-19-Lifting-of-all-domestic-restrictions-and-restrictions-at-the-border/

Personally I wouldn’t book anything unless you have free cancellation.

Hi Erin. Thanks for this guide. My wife and I are planning a trip there in September or October. We are US Citizens, so we hope it can happen. We have travel certificates which expire at the end of the year, so we are sort of up against a wall. We have to check to see what the cancellation policy is. Fingers crossed that it can happen.

Good luck with it! It’s so hard to say what will happen with travel this year.

Thank you very much for this guide! I’ve been looking at pre-paid packages and trying to decide whether to do one of those or create my own. Do you have any advice for a solo female traveler? It’s my first solo trip and I am excited but nervous.

I don’t have any experience of solo travel in Iceland but it’s a very safe country and we know plenty of women who loved it. Probably the easiest way would be to stay in Reykjavik and take day tours. If you are a confident drive you could also rent a car and head off by yourself. It’s pretty easy to arrange your own trip. Enjoy!

we are planning a trip this summer. thanks for all the information!

Enjoy, Elana!

The pics are literally breathtaking. Can’t wait to see it all with my own eyes next summer. Thank you for the tips, really valuable for me planning my first encounter with this beauty.

It is one of the most stunning places we’ve ever visited. Have an amazing trip!

This is a great resource! Thanks so much for taking the time to put it together. I particularly appreciate the tips regarding the need for a credit/debit card with a chip and pin for buying gas/petrol, the custom for gratuities, the Icelandic music playlist (perfect for the road trip!) and reading suggestions, and where to buy alcohol and groceries. And my favorite tip is to enjoy the hot chocolate and cake…don’t need to tell me twice!

I’m so glad you found it useful Heather!

Good list! I have two comments:

– Love the thing about tipping! During my trip, I actually asked one waitress what would be an appropriate tip and she said: “We have normal wages here, we don’t need tips”. ??

– I tried to read Independent People by Laxness while in Iceland but I had to give up. There’s only so much interest I can muster about the sheep… ?

Ha! I haven’t read Independent People yet as I heard The Fish Can Sing is a more accessible, lighthearted introduction to Laxness and I did enjoy it.

Erin what a rocking list. All noted. Iceland reminds me somewhat of New Zealand. Insane beauty, kinda expensive and yep, gotta have you head on a swivel sometimes. Especially driving.

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How Expensive Is Iceland? When to Visit & How To Save Money

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Find out how much a trip to Iceland would cost to help you better budget for your trip. How expensive is Iceland? What’s the condition of the Icelandic currency? Read on to discover our guide on spending and saving money in Iceland.

The nature of Iceland, which boasts glaciers, waterfalls, active volcanoes, ancient mountains, geysers, and black beaches, draws a myriad of international visitors every year, each searching for adventures and memories to last a lifetime. However, there's no reason it needs to break the bank.

If you're hoping to go on a road trip around the country, rent a budget car and explore the largest selection of hostels in Iceland  to stay at. In case you haven't booked your flight, find the cheapest flights to Iceland and make the most of the land on ice and fire!

Top Budget Self Drive Tours

Best 7-day northern lights self drive tour through south iceland to jokulsarlon ice cave, amazing 6-day northern lights winter self-drive tour on iceland's south coast with ice caving, 5-day northern lights winter self-drive tour with the golden circle & jokulsarlon glacier lagoon.

• Discover 19 Tips on How to Save Money in Iceland
• Learn how to steer away from the 9 Worst Tourist Traps in Iceland

This picturesque country holds a reputation other than the allure of its natural wonders. The question on everybody’s minds before they decide to book their flight to Iceland  is precisely how much money they will need in Iceland. Is Iceland expensive to visit, or is it possible to travel on a tighter budget?

According to Numbeo's Cost of Living Index , Iceland currently ranks as the fifth most expensive country in the world. In 2018, Icelandic banks made an extensive report about essential travel costs for visitors, and the numbers were staggering.

Staying in hotels is 10-32% more expensive in Reykjavik than in other Nordic capitals; prices of restaurants and lodging exceed the EU average by 44%, while the cost of alcoholic beverages outstrips the same standard by a whopping 123%.

Of course, following the consequences of COVID-19 travel restrictions in Iceland , these numbers can't be considered dependable. But it gives a general idea of how expensive Iceland is compared to other Nordic countries.

Knowing how expensive Iceland is, you shouldn’t get too disheartened; there are multiple ways to travel in Iceland without emptying your bank account.

Top Nature Tours in Iceland

Photo from Wikimedia, Creative Commons, by Thorsten Schmidt . No edits made.

It might surprise some people that a nation of roughly 370,000 people has its very own currency. The currency of Iceland is called the  Krona (ISK). It has a long history of independent monetary policies, including being pegged to the Danish krone and the Euro.

The history of the Krona is complicated, with the locals regularly arguing for or against keeping it. What you should bear in mind when traveling to the country is that the currency of Iceland has little value outside its shores. The Central Bank of Iceland determines its worth, and very few banks outside of Iceland ordinarily carry or exchange it.

This is why, when traveling here, you don't need to carry large amounts of currency with you. You can exchange your notes at the airport, but the exchange rate is more favorable if you do so in a bank in Reykjavik.

Also, remember to change your money before leaving to avoid getting stuck with a currency that no bank abroad can accept.

It’s most common for travelers and locals alike to pay for everything on their credit or debit cards. From small food shacks to large shopping centers: everywhere in Iceland accepts card payments, so it may be worth packing light and paying with your plastic.

To make it easier to understand how much you’ll spend in Iceland, all prices have been converted from ISK to USD. However, it’s important to remember that exchange rates do fluctuate constantly. So the prices quoted here are bound to vary slightly, and you’ll always pay the actual ISK amount.

• See the  Icelandic Krona Official Exchange Rates

What you’ll end up paying for accommodation in Iceland largely depends on the type of lodging you select. From cottages in the nature of Iceland and affordable hostels in Reykjavik to Icelandic guesthouses with a local flavor , the variety at hand has a vast price range, and there are indeed options that will suit your particular needs.

• Find out Where to Stay in Iceland
• See also: Top 10 Best Hotels in Reykjavik

Expensive as the overall selection might be, you won’t find any five stars hotels as of yet since the upscale market isn’t large enough. Despite that, you could pay the same for a hotel as in New York or London. For   three or four-star hotels, the prices range from an affordable 50 USD to 850 USD per night, with most establishments offering free Wi-Fi and breakfast.

Expensive lodging is the case for visitors and locals; the price of a roof over one's head is soaring. There’s a housing problem on the rise in Reykjavik, where the top percent of the community monopolizes the current generation of renters incapable of investing in homes.

A significant factor in this situation is the staggering number of apartments leased through Airbnb in Reykjavik. If you're considering this route, think about the community you're coming to, and try not to exacerbate this problem for the locals.

Consider booking official accommodations, and remember that  renting entire apartments in Iceland  is also available, as is booking people's summer cottages in the countryside, which is much more appreciated. These summer houses offer closeness to nature, tranquility, and exclusivity. They often come with a private hot tub while still being very affordable.

Nobody wants to stay cooped up in a hotel for the duration of their stay, so even if you book the cheapest accommodation with this in mind, booking tours, transportation, and the issue of food still add to your spending.

However, by booking a complete vacation package in Iceland  that combines exciting tours and things to do as well as accommodation, transportation, and breakfast, you save yourself the jolt when taking care of the bill. You only need to drive from place to place, while everything else will have been taken care of at an affordable price.

Your cheapest bet, however, will most usually be camping. Luckily, that is an option of steadily increasing availability when traveling around Iceland. Camping sites are common around Iceland and allow you to get closer to the nature you're here to see. Camping is the most sustainable option, providing that you leave the area in the same state you found it.

• See also: Camping in Iceland | All you need to know

When camping in Iceland, you still need the means to travel to your selected locations. That is where renting a car in Iceland or booking a  self-drive tour  comes in handy. You’re provided with a vehicle or a camper with a rooftop tent and a detailed itinerary that makes you the guide, enabling you to move around the island and visit sights on your own.

Remember that Iceland is situated on the edge of the Arctic Circle, so camping is an infinitely easier option during the summer months. Camping in the Icelandic winter is an activity reserved for only the most avid trekkers, who are experts in reading the weather forecast and possess all the proper equipment, and have years of experience when it comes to surviving in the wild.

• Check out our  great selection of winter self-drive tours
• See info on What to Pack for Travel in Iceland
• See our guide for How to Drive Safely in Iceland

If you're feeling adventurous, there’s also the option of hitchhiking, which is exceptionally safe in Iceland. If you're driving a rental, picking up hitchhikers and suggesting that they pitch in for petrol is an excellent way of saving gas money.

• See also: Weather and Best Time to Visit Iceland

As for the case of inner-city transport, do not take a taxi unless necessary, and only if you're going to be traveling short distances within the city. The flag rate starts at about 5 USD, and from there, the meter runs fast. Reykjavik is, in fact, a very pedestrian-friendly capital. It also boasts the public bus service Straeto , where the regular fare is around 3.80 USD and limitless within the hour.

Public transportation outside the capital is not as good, though. If you’re traveling anywhere outside the city, you should know that renting a small car in Iceland is always a lot less expensive than taking a public bus.

Some newcomers make a big mistake by taking a taxi from KEF Airport to the city. Rent a car, or book the shuttle bus to Reykjavik instead for 32 USD, which will save tenfold.

Top Airport Transfers

In the last few years, Iceland has witnessed a surge in its local food scene, with numerous world-class restaurants sprouting all over the capital. The possibilities for dining are endless. Traditional Icelandic food is fused with other cuisines or spiced up with exotic ingredients to create venues for fine dining that stand tall amongst the competition.

• See a selection of The Best Restaurants in Reykjavik
• Read our guide for Vegan & Vegetarian Dining in Reykjavik

Eating out is relatively expensive (the average plate will cost between 15 USD and 30 USD), so the locals consider restaurant dining a treat instead of a regular occurrence. If you're going to be eating out in Iceland every night of your stay, expect your expenses to soar.

Instead, you should research the possibilities and plan for one or two special occasions. As with most things in Iceland, they might come at a cost, but they’re well worth it for the unique and quality experience.

Be careful when you buy fast food like pizza, burgers, or sandwiches. One might think it's more cost-effective, but Reykjavik's casual dining pretty much falls within the same price range as the more refined dining. A pizza usually costs around 15-20 USD - virtually the same as a meal at a nice restaurant.

Eating out in Reykjavik is expensive. The best way to save a buck is to take advantage of lunch hours when numerous inner-city restaurants offer reduced prices or two-for-one deals on selected dishes.

The most economical way of eating food in Iceland is to cook it yourself. If you're purchasing groceries, avoid the supermarket chains 10-11 or Krambudin, the most expensive grocery stores in Iceland. Shopping there might go as far as doubling your grocery bill.

Photo from Nathan Dumlao

Instead, hit low-price stores like  Netto , Kronan , and Bonus . Each has numerous locations in and outside the capital. These stores are ideal for lunch-pack shopping before you leave town and embark on your adventures. Road-side kiosks tend to offer things like burgers and hot dogs, but for sky-high city restaurant prices.

As for alcohol, Iceland’s relationship with it is rather complicated. Beer prohibition was lifted as recently as 1989, and although Icelanders like to wet their whistle, the accessibility is somewhat limited compared to international standards.

Alcohol only sells in the state-run liquor store known as Vinbudin  (Icelanders call it "Rikid," which simply means "The State"), which has limited opening hours. Therefore, stock up beforehand if you plan to go out or even stay in. In these state-run stores, taxes are high, so an even better bet is to shop duty-free at the airport on arrival.

Photo courtesy of Von Mathus Gastropub . No edits made

You should also watch out for what appears to be beer on the shelves of local supermarkets - it's not. Supermarkets are only allowed to sell beverages with a maximum alcohol content of 2.25%. Therefore, these are nearly alcohol-free beers, but many travelers have been fooled by their appearance and become placebo-drunk.

Despite all of this, you can’t avoid hitting the streets at some point, and you shouldn’t since Reykjavik boasts over 50 quality bars and pubs that are a joy to visit. Although the prices are high (roughly 7 USD for a pint), Reykjavik has a vibrant happy-hour culture, where you can hit the bars at the correct times for the best prices.

• See a comprehensive Happy Hour Guide to Reykjavik
• Learn about Best Bars for Craft Beer in Reykjavik

Now that you know how expensive Iceland is, don’t expect to save money on shots, mixers, or cocktails since those rarely fall under the happy hour menus. Most happy hours include the house’s red and white wines if beer is not your preferred drink.

How much is a cup of coffee in Iceland? You may want to consider it an odd treat instead of a daily buy. A cup of latte or cappuccino goes for around 5 USD, tea at about 3 USD (usually with free hot water refills), and a regular black coffee goes for anything from 2.50 USD to 4 USD (depending on if refills are included).

There are a few ways to get around this. Since Iceland is one of the biggest coffee-consuming nations globally, your accommodation might include it as complementary. You'll also find free cups of coffee at most banks and some grocery stores, such as Bonus, intended for customers.

Now that you know some prices in Iceland avoid buying bottled water. Water from the faucet in Iceland is among the cleanest and purest in the world and full of healthy minerals, and is always safe to drink. Just bring a water bottle with you, and rest assured that every establishment will happily refill it.

Shopping in Iceland 

Photo courtesy of Smaralind mall

When shopping in Iceland, the estimation ultimately depends on what you're here for and what you're willing to spend. Although enjoying Iceland is not solely reserved for the wealthy, shopping here might very well be.

Fashion wear in Iceland is taxed through the roof. For instance, a pair of Levi jeans is sold with a roughly 40 percent markup compared to Scandinavia, the UK, and the US.

Most locals prefer to do their most extensive shopping online or abroad, heading to discount stores in Copenhagen or Berlin in unison with their travel plans. Icelanders also love to hunt for discounts and sales, in which case the two Reykjavik shopping malls, Kringlan and Smaralind , are the prime destinations.

Photo courtesy of Hordur Ellert Olafsson at the Reykjavik Record Shop

The city offers a wealth of local design stores, each holding unique and hand-made garments for an attractive price. Shopping vintage is another option. There are a lot of great second-hand stores on Laugavegur street , where you could even score your very own lopapeysa for cheap.

You can also head to Kolaportid Flea Market - the only place in Reykjavik where you can practice the art of haggling. The market is only open during the weekend, and you should go here if you want to pay next to nothing for Icelandic wool products, stamps, postcards, weird knick-knacks, or vintage wear.

The so-called "puffin shops" that litter the local streets might promise a bargain on authentic Icelandic memorabilia if you're looking for souvenirs. But they’re specially tailored tourist traps selling only mass-produced plastic ornaments from faraway lands.

These shops also drive out local businesses, so you should hunt for the more authentic souvenirs at the National Museum gift shop, the Handknitting Association of Iceland , or the aforementioned Kolaportid Flea Market.

The best memories you can buy are the numerous adventures you’ll embark on and all the stunning natural sights you’ll behold. Just remember to pack a camera, and you can bring back all those memories.

Top Reykjavik Tours

The best things in life are free, they say. Icelandic nature boasts wonders unparalleled anywhere else in the world. It’s a place where the geothermally active terrain of hot springs and geysers meets with rural coastal villages, in contrast with wild and uninhabited Highlands .

• Read about Iceland's mountains , fjords , and waterfalls
• Read about Iceland's glaciers , caves , and volcanoes

Although feasting your eyes on these marvels comes at no cost, you still need the means to get there, a place to stay, and the proper gear and guidance. Nature isn't only there to be looked at; you can and should participate in activities offered to experience it fully.

So when you head to, for example, Thingvellir National Park , a rift valley at the conjuncture of two tectonic plates, you can add significantly to that experience by  snorkeling in Silfra fissure . Or, if you visit Skaftafell National Park , home to the largest ice cap in Europe, you can embark on a glacier hiking tour  or  venture inside an ice cave .

Luckily, Iceland offers various guided services to make these activities available to visitors. This is the case even with a celestial phenomenon like the northern lights in Iceland .

Though they appear in the winter sky of their own accord, some people work around the clock to calculate their arrival for you by using solar wind readings and weather forecasts. If that fails, most companies offer you compensation for your tour.

That compensation usually allows you to embark on the same tour on a different night to try your luck again. Therefore, the best way to see the northern lights is to  book a northern lights excursion for the beginning of your stay.

Tours differ significantly in expenses, but we advise you to book packages, as one adventure will undoubtedly leave you thirsty for more. If you buy your tours one at a time, the costs will add up much faster than if you allow the experts to join a few together.

Iceland also offers endless possibilities for hiking and trekking, where you can explore the vastness of the Highlands over a few days while staying in cabins in between. Hikes are a summer activity, but you still need warm clothes, good hiking boots, and food since there are no shops around.

• Read about Hiking in Iceland

Remember always to make a travel plan and then leave the said plan at safetravel.is so you can be located and rescued if you get into trouble. The nature of Iceland should not be underestimated, but if you follow the proper guidelines, you should be fine.

Apart from embarking into the wild, there are also plentiful opportunities to go sightseeing within municipal limits. The capital of Reykjavik possesses a myriad of museums and sights, some of which are free of charge and some of which you can save a buck when visiting by purchasing passes.

• Check out the 13 Best Cheap Things to Do in Reykjavik

The Reykjavik City Card is an economical and excellent way to get the most out of your stay in the capital, providing access to a great selection of galleries and museums, all swimming pools in Reykjavik and public transport.

The pass also gives you a discount on multiple tours and services when you want to leave town, meaning you won't only save money if you stay in the city.  You can purchase a 24 , 48 , or 72-hour Reykjavik Card to meet your needs.

• See also: Top 10 Things to do in Reykjavik
• See also: Secret Reykjavik | Hidden Gems in Iceland's Capital

Weekly and Daily Budgets: How Much You’ll Spend in Iceland

We hope this article has given you an idea of the different expenses and possibilities when traveling in Iceland. There's nothing left now except to present you with estimated budgets to better your abilities to plan the journey of your dreams. 

The Backpacker's approach to traveling in Iceland includes no transport except  booking the affordable airport shuttle to Reykjavik . Otherwise, they can hitchhike. 

They would camp in the city , where the night goes for about 20 USD, provided they booked the whole week. Included are a couple of additional spendings, such as electricity rent or using a washing machine once.

This person would cook their meals, of which 62 USD should buy them groceries for the week. When we throw in two 72-hour Reykjavik City Cards, showers are covered with daily trips to one of Reykjavik's geothermal swimming pools. 

The Backpacker can sightsee the city, hike up Mount Esja and hitchhike to nearby municipalities such as the hot spring valley in Hveragerdi or the black sand beach in Vik . 

One week's expenses for this approach come to around 280 USD, or 40 USD daily. 

Extra: Backpacker's Splurge

With one night out, one night eating out, and one budget tour such as a Golden Circle Minibus Tour , the estimation rises to about 364 USD for the week or 52 USD per day. 

Route 2 - The Minimalist 

The Minimalist's approach includes hostel accommodation at about 31 USD per night, where cooking facilities enable them to groceries for the week for around 42 USD. Let's throw in a case of Icelandic beer for roughly 16 USD to keep the fridge stocked!

This individual would go to a cafe a couple of times and eat out once and allow themselves to purchase one combo tour, such as  Whale Watching and the Golden Circle combo tour , for approximately 143 USD. 

They would book an affordable airport transfer from Keflavik Airport  but otherwise use the public transport system or rent a small car for one day for 46 USD. 

The Minimalist could spend a day driving along the South Coast or visiting the Snaefellsnes peninsula . A small car will suffice if the season is summer. 

One week's expenses of this route come to about 490 USD, or 70 USD daily. 

Extra: Minimalist's Splurge

Booking admission to the luxurious Sky Lagoon and one good night out in Reykjavik , the estimation would rise to around 580 USD for the week or 82 USD per day. 

Route 3 - The Traveler 

The Traveler would book hotels or a guesthouse for around 85 USD per night and rent a four-wheel drive car in Iceland  for the whole week, with gas prices at roughly 2.30 USD for the liter. 

They would hit a cafe three times, eat out maybe four times and buy additional groceries for 62 USD. They might purchase a couple of meet-on-location tours, such as a  horse riding tour in beautiful scenery near Hveragerdi for 67 USD and a  Silfra snorkeling adventure at Thingvellir for 140 USD. 

The Traveler uses their four-wheel drive car to explore the Highland roads and sightsee the wild nature of Iceland and stay outside Reykjavik for several nights. 

A week like that would come to about 1,380 USD, or 197 USD daily. 

Extra: Traveler's Splurge

With one all-included Beer & Food Tour in Reykjavik for 77 USD and admission to the world-renowned Blue Lagoon , the week goes up to 1,594 USD or 227 USD per day. 

Route 4 - The Big Spender 

The Big Spender might book a nice hotel for 235 USD per night and a cottage in the countryside for 118 USD per night. That way, they could enjoy the full extent of gorgeous rural landscapes and the capital city.

They would rent a luxury car for seven days at 95 USD per day and go on three combo tours for 490 USD. 

They might hit a cafe five times during the week and eat out every night. They wouldn't hesitate to match their meals with wine and craft beer, doubling restaurant expenses. 

The Big Spender could, of course, spend a lot more, but this data is meant to showcase a week where the goal isn't to spend money but to see Iceland off a budget.

This approach would leave the week at 2,720 USD or 388 USD per day.

Extra: The Big Spender's Splurge

If this individual wants to splurge, the sky's the limit. Why not add a helicopter tour , exploring Iceland from above and maybe even touching down on an actual glacier for 590 USD? 

Now that you've seen the different approaches to estimated Iceland budgets, you can compare the costs with self-drive tours and all-included travel packages. 

A week's self-drive tour around the whole country, with a car, accommodation, breakfast, and a Blue Lagoon voucher such as this one is 754 USD, where added meals and gas expenses would bring the estimation to 140 USD a day. 

This would top the Traveler's approach - while including more comforts and a lot more sightseeing. There are also budget self-drives, such as this budget-friendly Golden Circle & South Coast tour , available for 743 USD that don't have breakfast or vouchers - ideal for the Minimalist!  

A package such as this customizable Icelandic Wonders tour offers Reykjavik accommodation for five nights, one night at a country hotel, two bus tours, and a Blue Lagoon voucher, all for 1,092 USD. 

Add a few night outs to that, and the estimation would come to 210 USD per day, which matches the Traveler's approach and tops the Big Spender route by miles in being economical. The possibilities are endless, but this should give you an idea.

PLEASE NOTE that all prices listed are subject to change, and we do our best to keep them updated to show the correct information. If you have any additional questions on the costs of traveling in Iceland, don't hesitate to ask them in the comments below, and we will answer them as soon as possible.

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How to Visit Iceland on a Budget: The Ultimate Guide

Once a sleepy, relatively isolated island, Iceland has recently become one of the hottest travel destinations on earth.

When I first went to Iceland in 2009, right after the country’s famous 2008 financial collapse but before the 2010 volcanic eruption of Eyjafjallajökull, most people were dumbfounded as to what would draw me to this remote speck of land in the North Atlantic. By my fifth trip, in 2015, people no longer asked what drew me to Iceland. They knew—thanks to a plethora of press about Iceland and the staggeringly beautiful photos all over Instagram—and they were planning their own trips too. Now, if you haven’t been to Iceland yet, you probably know someone who has, and if you are reading this guide, it’s likely you are itching to go next.

Visitors go to marvel at the country’s surreal landscapes: its windswept beaches, snow-capped mountains, and steaming geothermal valleys. To pet the friendly, adorably fuzzy Icelandic horses. To soak in hot springs in the snow, stare in awe of the Northern Lights dancing overhead, stand atop Europe’s largest glacier, or bask in the spray of the continent’s most powerful waterfall.

For a small country (roughly the size of the U.S. state of Ohio), Iceland is incredibly diverse, and packs so much punch into a compact space. Here’s your ultimate guide to the wild, rugged, and stunningly beautiful country of Iceland.

How much does a trip to Iceland cost?

Iceland is expensive, there’s no getting around it. Food, activities, and hotel prices are on par with major cities like London and NYC. Think: $100 minimum for a charmless hotel room, $10 for a beer, $35-$40 for a dinner entree in a mid-range restaurant.

How much you spend will depend factors like what level of accommodation you choose, if you opt for a rental car, how many tours you take, how often you eat out, if you like to have a few drinks, and so on. A minimal budget for Iceland is $60-80 USD per person per day — and that’s staying in a hostel dorm, cooking most of your own meals, skipping tours, and taking buses.

A mid-range budget is more like $200 USD per person per day. That provides some wiggle room for nicer accommodation, a rental car, a tour or two, and a few more meals out—though you could easily spend more.

However, there are ways to cut costs. Use HotelsCombined to break down both hostel and hotel options. In summer, camping is a great option; campsites cost about $10 per night and have showers and wifi. Buy snacks and meals at local grocery stores, and refill your water bottle from the tap (fun fact: Iceland’s tap water is among the cleanest on earth). If you plan to drink, do as the locals do and stop by the airport duty free to save big on liquor. You can also check the weekly Reykjavik Grapevine for happy hour deals. And while there are some things you can’t do without a tour ( glacier trekking , for example), many of Iceland’s best sights are free or cost just a few dollars.

Getting there

From the U.S. and Canada, Delta, Icelandair, American Airlines, Air Canada, and others connect dozens of airports with Iceland’s Keflavik international airport, which is located in the southwest about 45 minutes from Reykjavik. To find the best flights prices, use a broad search engine like Skyscanner (which includes budget airlines) and select “entire month” to identify the cheapest dates to fly.

From Europe, it’s even cheaper and easier to reach Iceland. In addition to Icelandair, several European carriers serve the island, including easyJet , British Airways, Wizz Air, KLM, and SAS. Prices from London start as low as $43 USD for a quick 3 hour flight. All of these airlines will appear in Skyscanner search results.

For travelers going to Europe from North America (or vice versa), Iceland is an easy stopover. All flights on Icelandair stop in Iceland, where passengers are allowed to extend their layover  before continuing on, though this must be arranged at the time of booking. You can also extend your layover yourself with a multi-city search engine like Skyscanner or Momondo by following our guide to free extended layovers .

The budget airline WOW Air was instrumental in making Iceland more accessible and affordable to reach from both North America and Europe, but unfortunately, the airline went bankrupt in March 2019. Fortunately, the airline is under new ownership, and flights are scheduled to resume in October 2019, starting with 2 planes in operation, then 10-12 planes by summer 2020. If the airline operates like before, expect base prices as low as $99 each way, as well as frequent sales, especially around holidays like New Years and Black Friday. But like any budget airline , watch out for extra fees, as they charge for everything from carry-on luggage to bottled water.

Natural wonders

Iceland is known for its otherworldly landscapes. There are volcanic black sand beaches, absurdly shaped basalt cliffs, turquoise waterfalls, abundant hot springs, multi-colored rhyolite mountains, puffing volcanoes, brilliant glaciers, and more. Best of all, you don’t even have to venture far from Reykjavik to see these natural wonders. Among the highlights are Reynisfjara black sand beach, the multi-tiered Dynjandi waterfall, Jökulsárlón glacial lagoon, Vatnajökull glacier, the Reykjadalur hot spring valley, and Katla volcano.

Pools and hot springs

The same geothermal activity that produces Iceland’s volcanoes produces its hot springs—and lots of them. Some of the notable ones include Laugarvatn Fontana Spa , Secret Lagoon , and Myvatn Nature Baths . Nearly every town in Iceland has a geothermal pool open all year round (admission costs only a few dollars). Of course, the most famous hot spring is the Blue Lagoon, a man-made pool fed with mineral-rich milky blue geothermally heated water. It’s located between Keflavik airport and Reykjavik, making it a great stop at the beginning or end of your trip. If you're based in Reykjavik, consider booking a return transfer with instant confirmation on GetYourGuide or Viator .

The Golden Circle

The Golden Circle is a route that connects three of southwest Iceland’s most popular sights. In one day, you can watch a geysir erupt at Geysir, marvel at the thundering Gullfoss Waterfall, and walk between the rift of the Eurasian and North American tectonic plates at Thingvellir National Park . Not technically en route but worthy of stopping for are the nearby Friðheimar tomato restaurant and greenhouse, Fakasel Horse Theatre, Laugarvatn Fontana Spa , and Secret Lagoon . If basing yourself in Reykjavik, the top sights in The Golden Circle can easily be seen in a day trip booked with immediate confirmation and pickup from your hotel on GetYourGuide or Viator .

While Iceland’s natural wonders deserve the bulk of attention, Reykjavik itself begs space in your itinerary too. This small, cosmopolitan city is the northernmost capital in the world and home to two-thirds of Iceland’s population. It also offers plenty to do, especially in inclimate weather. See the multimedia exhibits and excavated millennia-old Viking longhouse at the 871 +/- 2 Settlement Exhibition , wander the stunning Harpa opera house, or shop the Kolaportið weekend flea market. Reykjavik’s nightlife is also not to be missed. On weekends, locals hit the streets around 1am and the clubs stay packed until 4 or 5 in the morning.

The Northern Lights

The Northern Lights, or Aurora Borealis, can be spotted over Iceland from early September to early April. However, seeing them is never guaranteed despite Iceland being one of the best places to see them. Good solar activity and a clear night sky are essential. The Icelandic Meteorological Office forecasts the conditions on a scale of 0-9, and brilliant shows can be seen when the level is as low as 2-3. Generally it’s best to see the lights away from the city, but when they are particularly strong they are visible from Reykjavik. For more tips on seeing the Northern Lights, check out our guide here .

Sample Itinerary

While you could, technically, drive the entirety of Iceland’s Ring Road (the main highway that encircles the island – not to be confused with the Golden Circle) in about 24 hours, it’s far better to allow at least a week to take in all the sights—and allow for any weather delays.

The itinerary below assumes a trip in late spring, summer, or early fall. In winter (and especially if you don’t have experience driving in snow), it’s highly recommended to stick to the south coast, Golden Circle, and Reykjavik.

Day 1: From the airport, drive about 20 minutes to the Blue Lagoon . Soaking in its milky blue water is the perfect way to relax after hours cramped in a small airplane seat. Head southeast and stay the night in the small town of Selfoss . If not driving, book an airport transfer ahead of time.

Day 2: Drive east along Iceland’s south coast for a day filled with waterfalls, including Urriðafoss , Seljalandsfoss , and Skógafoss . Admire the cliffs at Dyrhólaey and then step out onto the black sand beach at Reynisfjara . Stay the night in the small village of Vik .

Day 3: Spend the day in Vatnajökull National Park, home to two huge glaciers Skaftafellsjökull and Svínafellsjökull . Join an ice-climbing tour or hike through the park’s Skaftafell wilderness area to the Svartifoss waterfall. In the afternoon, head farther east to Jökulsárlón , a stunning iceberg-dotted glacial lagoon where you can view the lagoon from shore or join a boat tour. Spend the night in Höfn , a seaside fishing village.

Day 4: Drive north to the quirky town of Seyðisfjörður in the less trodden East Fjords. Visit the Skaftfell Center for the Arts, head out on kayaking tour of the fjords, and snap instagram pics of the domed Tvisongur sound sculpture and the rainbow walkway leading to the blue Seyðisfjarðarkirkja church.

Day 5: Continuing northwest around the island, visit the most powerful waterfall in Europe, Dettifoss (just be prepared for a bone-jarring drive on a rough road) and then stop for a short hike around Ásbyrgi , a deep, horseshoe-shaped canyon that legend says was formed by the hoof of a Norse god’s eight-legged horse. Spend the afternoon in Húsavík , the whale watching capital of Iceland. If it’s whale season (spring through fall) go on a whale-watching tour; if not, stop by the Húsavík Whale Museum.

Day 6: Swing by the Mývatn Nature Baths , the north’s less-crowded version of the Blue Lagoon, and stop to marvel at Goðafoss , the “waterfall of the gods.” Spend the night in lively Akureyri , Iceland’s second-largest city.

Day 7: Complete your circuit of Highway 1, the Ring Road, by driving back to Reykjavik . See the view from the top of Hallgrímskirkja, the city’s iconic church; learn about Icelandic history at the 871+/- Settlement Museum, which features an ancient Viking longhouse and interactive exhibits; and treat yourself to a fantastic fish dinner at one of the city’s great (but pricey) restaurants.

Day 8: Explore three of Iceland’s most famous attractions, which together are called the Golden Circle. Start at Kerið ; the volcanic crater lake isn’t technically part of the Golden Circle, but it’s on the way. Then head to Gullfoss , a massive waterfall that rivals Niagara Falls, and on to Geysir . Though the eponymous geyser here no longer erupts, a geyser called Strokkur does every 15 minutes or so. You could break up the day with a visit to one of the nearby hot springs, like Laugarvatn Fontana Spa or the Secret Lagoon. Then finish the loop with a stop at Þingvellir National Park . The site of Iceland’s first parliament, it’s also where two tectonic plates meet, and you can walk in the rift between them. If you aren't driving, a day tour is the easiest way to see the Golden Circle's highlights, and can be booked through GetYourGuide or Viator .

Day 9-10: With a few more days in Reykjavik, plan some organized activities, like riding on an adorably stout Icelandic horse, snorkeling in the Silfra rift, caving, an Icelandic cooking class at Salt Eldhús or a food tour or pub crawl of the city.

If you have an additional few days, add on the Snaefellsnes Peninsula (Rauðfeldsgjá, Arnarstapi, Hellnar, Öndverðarnes, and Stykkishólmur), the Westfjords (Ísafjörður, Dynjandi, Patreksfjörður, Látrabjarg, Rauðasandur), or both. Another option would be to detour off the Ring Road into the interior Highlands (only from late May to mid-September) and camp overnight at Landmannalaugar.

If you’re limited on time, base yourself in Reykjavik. Allot one day for the city, one day for a day trip along the south coast or Golden Circle, and reserve one day for an activity like snorkeling the rift at Silfra or riding an Icelandic horse.

Where to Stay

As Iceland’s popularity has grown, so has the number of accommodation options available to travelers. Iceland now offers a wide variety of accommodation through the country, though Reykjavik still has the most options. On the budget end, prices start at around $30-50 per night for a dorm bed in a hostel. A one-bedroom Airbnb or double room in a guesthouse is typically $100-$150 per night. Check both Airbnb and HotelsCombined to see the cheapest prices across major booking sites for homestays, hostels, and hotels.

In Reykjavik, the no-frills Guesthouse Sunna goes for around $100 per night and offers small kitchenettes, a free breakfast, and a great location near Hallgrimskirkja church. Worth a splurge at around $250 per night, the Kvosin Hotel and Room with a View both offer stylish, modern rooms with kitchens and excellent city views in the heart of downtown.

Outside the city, you’ll find a range of hotels, lodges, Airbnbs, farmstays, guesthouses, b&bs, and cabins ranging from $100-$300 per night. Airbnb and Hey Iceland list apartments, cabins, guesthouses, and farm stays around the country.

Iceland’s peak season is June-August and it’s easy to see why. Nearly the entire country is accessible, the sun shines for almost 24 hours per day, the weather is generally mild, purple lupines and other wildflowers dot the startlingly green landscape, and temperatures range from 48F-55F (8C-12C). However, this is also when prices are at their highest.

Low season is the cold winter months of November–February (aside from New Year’s Eve and the annual Iceland Airwaves festival). Prices are at their lowest during these months—as are the temperatures, though Iceland’s winter temperatures are actually on par with New York City’s. Averages hover around 36F-39F (2C-3C), but strong winds can make it feel colder.

While you can still do many activities in the winter (even snorkeling!), there are some parts of the country you can’t visit, such as the interior Highlands, and you need to allow more flexibility in your plans in case a storm makes travel impossible on some days. These downsides, however, are offset by an increased chance to see the Northern Lights.

Iceland’s shoulder seasons are March-May and Sept-October. During these months the weather is relatively mild, crowds are fewer, and prices are lower. In May, spring flowers begin to bloom. In September, the lichen on the hills turns beautiful shades of yellow and orange. By March and October you may see some snow. There’s also a chance to see the Northern Lights, which are generally visible from early September to early April.

Eating & Drinking

Iceland isn’t known for its cuisine, at least outside its less enticing foods like boiled sheep’s heads and rotten shark. While those foods are still consumed on special feast days like Þorrablót, they bear little resemblance to modern Icelandic food.

Among the can’t-miss dishes that one must sample on a visit are:

•       Tender, free-range lamb, served braised, grilled, or in soup
•       Sweet langoustines (Norwegian lobster) served grilled with garlic and butter or in creamy soups
•       Skyr, a low fat yogurt-like dairy product used in dips and desserts or eaten on its own
•       Fish like cod, wolffish, plaice, haddock, and halibut.

As with accommodation, Reykjavik is home to the most options when it comes to dining in Iceland. For a splurge, head to Ko l, which serves creative cocktails and specializes in grilled fish and meats, or check out Dill , Iceland’s first Michelin-starred restaurant, which serves a prix fixe menu focused on using traditional ingredients in new ways. At either, expect to spend about $100 per person for dinner, not including drinks.

For a mid-range meal, try Icelandic Fish and Chips , which offers a healthier take on the classic dish, with fish fried in organic spelt batter and potatoes served with low-fat skyr-based dips. There’s also Eldsmiðjan, an Icelandic pizza chain, or Noodle Station , which serves hearty bowls of chicken or beef soup for around $13.

The cheapest meal in the country is also one of the most quintessential: the hot dog. For $4, get one loaded with raw and fried onions, ketchup, sweet brown mustard, and remoulade. The most famous place to get one is in Reykjavik at Bæjarins Beztu Pylsur, but you can find them at just about any gas station or convenience store in Iceland.

Alcohol is extremely expensive in Iceland, with a beer costing around $8-$12 and cocktails ranging from $15-20, however, many bars offer happy hour specials. There are several craft breweries in Iceland (sample their beers at bars like Kaldi or Bryggjan Brugghús) and a growing craft cocktail scene (like at the aforementioned Kol or Slippbarinn) . If you’re up for a challenge, try Brennivín, an anise-flavored liquor that’s known as “The Black Death.”

Transportation

Iceland has one of the highest rates of per capita car ownership in the world, and a correspondingly poor public transportation system. The FlyBus (cheapest on GetYourGuide ) provides affordable, reliable transport from Keflavik airport to Reykjavik and within Reykjavik there are city buses and taxis (though the downtown is compact and easily walkable). But if you want to go exploring beyond Reykjavik—and you should—your best bets are to either join a tour (we recommend browsing GetYourGuide and Viator ) or rent a car. Car rentals cost about $100 per day (more if it’s peak summer or you want 4WD) and gas costs almost $2 per liter. Use BookingBuddy to find the best price across major car rental websites from one place.

During the peak summer months, a network of long-distance buses connects Reykjavik to major towns and points of interest, including the interior Highlands, but you’ll need to plan ahead as there’s often only one bus per day. Some travelers have reported great success with hitchhiking as well, but this is only recommended during peak summer; in off season or on less-traveled roads you could be waiting hours until the next car comes by.

For longer distances when you don’t want to drive, internal flights are another option. From Reykjavik’s city airport, you can fly to Akureyri in the north, Isafjordur in the Westfjords, Egilsstaðir in the East Fjords, or to the Westman Islands. Search Skyscanner by “entire month” to find the cheapest dates to fly.

While most of Iceland’s main attractions and natural wonders are free (or cost just a few dollars), there are several things you simply can’t do on your own and will need a tour to do, such as glacier trekking , snowmobiling , ice caving , whale watching , horseback riding , and snorkeling or diving between tectonic plates at Silfra Rift (in some of the clearest water in the world).

These tours don’t come cheap; plan for at least $100-$200 per person. Even pricier, but worth the splurge: a helicopter tour or a journey “ Inside the Volcano ,” in which you descend via an open-topped metal basket into the belly of a dormant volcano.

Given Iceland’s incredible natural beauty, it’s probably no surprise that most activities are outdoors. If you’re looking for something indoors—or just want a break from the adrenaline—check out the hands-on classes at Salt Eldhús cooking school.

Iceland is one of the safest countries in the world when it comes to danger from other humans, but that doesn’t mean there’s nothing to watch out for. Iceland’s dangers come in the form of volatile weather, the power of nature, and the people who take needless risks by ignoring those factors. There are steaming hot pots that can scald you, sneaker waves that can pull you out to sea, and winds so strong they can rip an opened door off a car. Driving can also present danger, especially for those unfamiliar with wintery conditions. There are one-lane bridges, blind heads, and frequent road closures.

Stay on marked paths, respect warning signs, obey the posted speed limits, never drive off-road (it’s strictly illegal and comes with huge fines), always check the weather before heading out, and if you’re not comfortable driving in the conditions, don’t.

Packing for Iceland

No matter what time of year you visit Iceland, it’s wise to bring layers, a hat and gloves, waterproof pants, hiking boots, a fleece jacket, sunglasses, and a waterproof windbreaker. Add more layers in the winter, and include a few lighter layers for the summer months.

If you plan to spend time in Reykjavik, add in some jeans or other clothes you’d be comfortable wearing in another major city. Locals may don fleece and gore-tex out in the countryside, but on the streets of Reykjavik, they are the definition of Nordic chic.

It’s one more example of Iceland’s many dichotomies. The land of fire and ice is both untamed and totally civilized, modern and traditional, extremely safe and a little dangerous. It’s a small country with landscapes that are larger than life and natural wonders that look completely out of this world.

The Thrifty Gist

• A trip to Iceland won’t come cheap. Minimize costs by focusing on free activities, staying in basic accommodations (or camping), and cooking most of your own meals.
• Use Airbnb and HotelsCombined to see all homestay, hostel, and hotel options. Use BookingBuddy to compare car rental prices across major websites, and Skyscanner to find the cheapest flights, including budget airlines (choose “entire month” for your dates to find the cheapest date to fly).
• There’s no bad time to go to Iceland, though peak season means higher prices and more crowds. For temperate weather and fewer fellow tourists, go March–May or September–October.
• With eight days or more you can make a circle of the entire island along its Ring Road, but even with less time, you can see a good chunk of Iceland’s main attractions.
• An adventure in Iceland is about just that: adventure. Make the most of a trip with activities like snorkeling, horseback riding, snowmobiling, and hiking that take you out in the beautiful countryside. Use GetYourGuide and Viator to browse tour reviews and book with immediate confirmation and free cancellation.
• Remember that nature is a powerful force in Iceland; respect warning signs, stay on marked paths, leave no trace, and use common sense.

• Travel Planning Guide

How much does a trip to Iceland Cost?

How much money should you budget for your trip to Iceland?

• How much does a one-week trip to Iceland cost?
• How much does a two-week trip to Iceland cost?
• How much does a one-month trip to Iceland cost?
• Hostel Prices
• Hotel Prices

The Cost of a Trip to Iceland

A trip to Iceland for one person usually costs between $89 and $477 per day and $179 to $955 for two people. This is a wide range of costs, and the daily average per person from our data is $205 (kr28,676) per person. This average includes food, accommodation, sightseeing, and local transportation expenses contributed from other travelers. Prices can vary based on travel style and activities. While the overall price for a trip to Iceland is dependent on your personal travel style and the specific places you visit, if you book standard accommodation and travel with an average level of convenience, then your budget should be somewhere within this range. Also, the prices for individual destinations such as Reykjavik, Akureyri, and Hofn may vary, but generally fall somewhat close to this range. Below you can find a breakdown of travel expenses by category, plus a comparison of guided tour costs versus traveling independently.

For budget travelers in Iceland, planning for around $89 (kr12,465) per day should cover essentials such as accommodations in hostels and budget hotels, affordable meal options, local transportation, and engaging in various activities. If you're a mid-range traveler, setting aside around $205 (kr28,676) per day would allow for more comfortable stays in typical hotels, dining at regular restaurants, and exploring a diverse range of popular attractions. Luxury travelers, on the other hand, should consider a daily budget of approximately $477 (kr66,669) to accommodate higher-end hotel stays, dining at nicer restaurants, and indulging in more exclusive private tour options. It's important to note that these price ranges are derived from our extensive travel cost data for Iceland, which is based on valuable insights from other travelers as well as hotel and tour data provided by travel companies. For a more detailed breakdown of travel costs, you can refer to our comprehensive travel cost data for Iceland .

How much does a one week trip to Iceland cost?

When planning a one-week trip to Iceland, most visitors to Iceland spend between $625 and $3,342 for their trip, with the average cost falling around $1,437. This estimate includes essential aspects such as sightseeing, local transportation, food, and accommodations. With a full week, you'll have sufficient time to explore one, two, or possibly three locations within Iceland, depending on the amount of time you want to spend in each place. The most popular places worth considering are Reykjavik , Akureyri , and Hofn . Keep in mind that these numbers are based on overall averages and may vary depending on your individual preferences.

How much does a two week trip to Iceland cost?

With two weeks, you should budget between $1,250 and $6,684 for your trip to Iceland. The average price for a two week trip is $2,875. Two weeks will allow you enough time to visit between three and five places. If you're on a budget, you might want to consider some of the more affordable places such as Akureyri.

How much does a one month trip to Iceland cost?

When embarking on a month-long trip to Iceland, expenses can range from $2,678 to $14,322, with an average cost falling around $6,161. For those fortunate enough to have a full month, considering a vacation rental with a kitchen for at least a portion of your stay can help save money with meals. Backpackers often opt for hostels due to their affordability and the added benefit of a social vibe.

Hostel Prices in Iceland

With more than 20 hostels in Iceland, the average price is $45 per night for a dorm bed. Hostels are a terrific option for younger independent travelers looking to save money while staying social during their trip. With many types of hostels, it can be overwhelming to sort out the best places, though. Our analysis of the hostels in Iceland not only found the average price, but also uncovered some surprises about the overall quality, amenities, and atmosphere of hostels in the region. You can see more details from our analysis about typical hostel prices in Iceland here .

Here are a few sample prices from popular hostels in Iceland.

• $36 for a dorm bed at KEX Hostel in Reykjavik more details
• $36 for a dorm bed at Akureyri Hostel in Akureyri more details

Hotel Prices in Iceland

You'll find a wide range of hotel options across Iceland. Below are prices for some of the destinations, and for more details see our analysis of hotel costs in Iceland .

Reykjavik Residence Apartment Hotel

Milk factory.

Should you do an organized tour or travel independently in Iceland?

When planning a trip to Iceland, there are two primary options to choose from: organized tours and independent travel. Organized tours offer a convenient and hassle-free experience, as all the details of your trip are handled by travel experts. Additionally, you'll have the benefit of an expert guide who can provide valuable insights and knowledge during your journey. This option is often favored by travelers who appreciate the convenience and ease it offers, with many tours providing transportation and expert guides to enhance the overall experience.

On the other hand, independent travel provides a different set of advantages. It offers a higher level of freedom and flexibility, allowing you to customize your itinerary and explore at your own pace. This option appeals to travelers who value the ability to make spontaneous decisions and have more control over their travel plans. The independence of traveling on your own can provide a sense of adventure and the opportunity to immerse yourself in the local culture on a deeper level.

Ultimately, the choice between organized tours and independent travel depends on your personal preferences and travel style. Consider your desired level of convenience, the amount of guidance you prefer, and the level of flexibility you seek when making your decision. Both options have their own merits, and the decision should be based on what aligns best with your travel goals and preferences.

Comparing Trip Costs in Iceland

When we compare the prices of organized tours to the average costs of independent travelers, we can see that sometimes the prices are fairly even.

Tours vs. independent Travel: Pros & Cons

Organized tours.

• An expert guide familiar with the culture
• Convenient transportation
• Fellow travelers to socialize with
• Well researched activities
• Efficient and thought out itinerary
• The security of have a trip leader if something goes wrong
• Limited options
• Usually not customizable
• The fast pace often means you can’t visit one place in depth
• Usually more expensive than independent travel
• There may be limited time to interact with the local culture and community

Independent Travel

• Completely customizable
• Opportunity to visit off-the-beaten-path destinations
• Can fully immerse yourself in the local culture
• Freedom to move at your own pace
• Flexibility to change your itinerary at any time
• More affordable
• Challenging to plan an efficient itinerary
• Transportation may be challenging or inefficient
• Booking and trip planning can be a hassle
• Popular sights may sell out well in advance
• If something goes wrong, you're on your own

Are organized tours more expensive than independent travel in Iceland?

Organized tours typically average around $609 per day and provide the convenience of an all-inclusive package with one comprehensive payment. On the other hand, independent trips usually average around $205 (kr28,676) per day and involve individual payments for accommodations, local transportation, meals, and sightseeing. Both organized tours and independent trips have their own unique challenges and benefits, so it's crucial to thoroughly understand the aspects of each to make a fair comparison. For a detailed analysis of tour prices in Iceland, check out our comprehensive guide on tour prices in Iceland here .

Here are a few sample tours in Iceland:

• 7 day Self-drive tour | Geysers, Glaciers and Waterfalls ($1,124) 7 days, 27 destinations more details
• The Great Round Tour: Around Iceland in 13 days ($3,885) 13 days, 30 destinations more details
• 6 Day - Iceland Ring Road Small-Group Tour ($1,941) 6 days, 27 destinations more details
• 12 Days Grand Tour of Iceland ($6,284) 12 days, 38 destinations more details
• 17 Days Self-drive | Complete Iceland Tour ($56,132) 17 days, 31 destinations more details

More for Iceland

If you're planning a trip to Iceland, check out these other informative travel guides.

We've been gathering travel costs from tens of thousands of actual travelers since 2010, and we use the data to calculate average daily travel costs for destinations around the world. We also systematically analyze the prices of hotels, hostels, and tours from travel providers such as Kayak, HostelWorld, TourRadar, Viator, and others. This combination of expenses from actual travelers, combined with pricing data from major travel companies, gives us a uniqe insight into the overall cost of travel for thousands of cities in countries around the world. You can see more here: How it Works .

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• Activities, Day Trips, Things To Do, and Excursions

How Much Does An Iceland Trip Cost in 2024: Detailed Budget Breakdown

Written By: ThePlanetD Team

Iceland , Travel Planning

Updated On: February 19, 2024

An Iceland vacation is never ‘cheap,’ even if you plan it on a strict budget. The country is known as an expensive destination. You’ll need to get savvy to save money on your trip to Iceland . The average Iceland trip cost is $200-300 per day – without factoring in the most extortionate (yet fantastic)  things to do in Iceland.  

Certain activities, like  snorkeling between the tectonic plates , can cost that just for one trip. And you’ll need to factor in rental car costs if you plan to venture anywhere outside of Reykjavik, the capital city, that day trips don’t cater to. All things considered, you can quickly see how things add up. Maximizing your budget as much as possible is essential so you don’t miss out on memorable activities and experiences. So, let’s figure out an Iceland budget together.

Table of Contents

How Much a Trip to Iceland Costs

When you visit Iceland, all your decisions impact your final Iceland trip budget – be it rental cars or private rooms. In this guide, we’ll provide you with all the average trip cost factors so you can build an idea of what budget you’ll need as an individual visiting Iceland. We’ll cover everything, from accommodation prices to food costs and the costs of some of the most sought-after tours.

Airfare Cost

Airfare won’t be a massive part of your Iceland travel budget. Depending on where you travel, the average price of flights is only a few hundred dollars. The average flight from the east coast of the US to Iceland is just $450 return, which gets even cheaper when you are flying to and from Europe. Compared to flying to other destinations, especially Australasia, Iceland is not expensive to reach airfare-wise.

Even then, you can save money when visiting Iceland by taking advantage of off-season flights and using air miles. Look into airline reward programs like British Airways, Qantas, and Delta SkyMiles. Airline loyalty programs get a bad rep for not actually being worthwhile. Still, choosing wisely and actively saving points can be a great tool to get cheap flights. Always compare flight prices by using websites and tools like Skyscanner – always using a private browser, of course, since those pesky cookies hike up prices on flights you view.

How flexible are you with your Iceland vacation as well? It is worth noting that if you fly from Europe to North America with Icelandair, they offer a complimentary layover in Reykjavik , which you can extend to anywhere between 1 to 7 days if you’d like a mini trip to Iceland. This is a brilliant way of squeezing in an Iceland vacation at a cheaper price than direct flights usually cost. If you are already making this journey, knowing about this little tip is handy. Why not take advantage of a stopover you’ll already be making and take advantage of Icelandair’s typically cheaper flights? Just picture it; you could combine London, New York, and Iceland in one trip.

As you can see, your Iceland vacation cost will not be massively impacted by flight prices. However, if you want to take extra steps to reduce the cost of your trip to Iceland, there are a few tricks you can have up your sleeve. You should budget $500 maximum for return flights to Iceland from North America or Europe with a mid-range airline.

But if you fly off-season and from specific destinations like London, you can snag flights for as little as $100 return. The more flexible you are, the lower your airfare budget needs to be. And, of course, the more ready you are to fly outside of peak season, the better deals you’ll find. Our advice is to get hunting on Skyscanner or a flight comparison tool equivalent.

• Budget: $500 for return flights or under $200 if you are flexible and departing from Europe.

Accommodation Prices

Accommodation prices in Iceland are steep. It’s surprisingly steep, actually. Accommodation costs are one of the largest chunks of the average trip budget when visiting Iceland. Even the most basic of hotel rooms are extremely expensive, even more so when looking at mid-range hotels and – God forbid – luxury hotels. It is also worth noting that the cheapest hostels and best value-for-money properties get snapped up quickly. In remote areas of Iceland, you quickly become short on options. Compare prices when booking accommodation in Iceland, but also make sure you don’t stall too much and book far enough in advance to avoid missing out on the best prices.

If you act quickly and book in advance, the  average price  for a budget hotel is $150 per night. For a three-day trip, you can expect to pay around $499; for a week, you are looking at $1,047. If you don’t book in advance, these prices rise as you are left to front bills to stay in more luxurious hotels and vacation rentals than you usually would choose. It also pays to consider location, as certain areas will have more expensive hotel rooms, like on the Ring Road and Golden Circle.

Typical prices average $150 per night, but remember that this is across all over Iceland as a general average. Be prepared to spend more in certain areas. When planning a trip to Iceland, cost is a huge factor when choosing accommodation, and you need to be fast-thinking to get the best deals.

These are a few examples of average accommodation costs in different Iceland hotels:

Hofn Cottages

Hofn Cottages  are as budget-friendly as accommodation gets in Iceland. These basic cabins cost just $70 per night; you get your own patio and cooking facilities. These sell out quickly. But their remote location means slightly cheaper prices.

Reykjavik Konsulate Hotel

This  mid-range hotel  in Reykjavik costs approximately $250 per night, but you can see why. It has a trendy design and an onsite wellness center and gym. It is a glossy version of a mid-range stay in the capital, and it has a great location to enjoy central Reykjavik.

Hotel Ranga

This  luxury hotel  costs upwards of $500 for an average room. It is a brilliant example of top-tier luxury in Iceland. If you sleep through the magical phenomenon, you get a star gazing observatory onsite and even northern light wake-up calls. Oh, and you get volcano views out of your window.

• Budget: $150 per night for the average rate for a cheap hotel.

Transportation

Regarding transport in Iceland, you need to realize one major thing – transport barely exists outside the realm of rental cars. Tourists fly into Iceland’s Keflavik International Airport, located just outside of Reykjavik’s capital; from there, you can organize a shuttle service into the city center. Reykjavik itself is really walkable and a tiny city, much more like a town than an actual city, let alone a ‘typical’ capital city.

Iceland has a minimal bus service. It isn’t safe to rely on public transport in very remote areas. We wouldn’t recommend it if you are venturing out of Reykjavik or the main settlement areas.

If you stay in Reykjavik and don’t rent a car, you can organize tour experiences to take you to the main tourist attractions. For instance, you can get tours to the Blue Lagoon , Golden Circle , and Ring Road on the  South Coast.  

You can also get tours to experiences like horseback riding on black sand beaches , hiking on glaciers , seeing exploding volcanoes, and snorkeling between the tectonic plates at Silfra . The caveat is that you will pay hundreds of dollars for each of these experiences, almost like paying for mini holidays on your actual holiday. If you don’t want to rent a car, you can still enjoy Iceland, but be prepared to splurge a little on booking private tour day trips. It will rocket the total cost of the average Iceland budget.

The best way to get out of Reykjavik and  see  Iceland is to book a rental car . If you are wondering ‘how much does it cost to rent a car,’ it depends on which car rental companies you look at, what season you visit, and whether you want a camper van or not. The cheapest option is a car, for which you can buy a tent and camp or book cheap hotels.

Or you can spend more upfront on a camper van and have the whole road trip experience, saving money on accommodation. With rental options, you could embark on the classic week road trip along the South Coast and complete the classic  Ring Road road trip.  It is the most liberating form of transportation around Iceland. And you’ll save loads of money by avoiding the aforementioned expensive organized day trips while opening up to more free attractions and off-the-beaten-track experiences.

•  Budget: $350 plus $100 petrol for a week of hiring a rental car, or approximately $870 on transfers for day trips and airport journeys.

Food is another significant expense when it comes to visiting Iceland. When calculating a trip to Iceland cost, you must set aside at least $500 per week as a food budget. For $500, you can afford a few meals at local restaurants, a food shop at one of the cheaper grocery stores, and a few drinks on a night out. Food prices are high in Iceland, especially for imported and taxed goods. However, you can soon chip the price tags down if you are flexible with trying local brands.

Need an idea of what food prices are in Icelandic grocery stores? They aren’t extortionate, but you can see that some products have much higher prices than others. You should also have an ISK to USD calculator ready, as the conversion is a little whacky. Average food prices include:

• $1.60 for milk
• $3.20 for white rice
• $3.50 for a loaf of bread
• $2.20 for a bottle of water
• $14.90 for a block of cheese
• $19.60 for 1kg of chicken fillets

It is also worth mentioning that Iceland is famous for its hot dogs. A standard tip for saving money is to snack on a hot dog for lunch instead of sitting in at local restaurants. The sausages are served on little takeaway carts and are one of the most traditional, budget-friendly  Icelandic dishes .

They date back to the Viking era and are called ‘bjuga’ sausages. Bought at little street stands, these hot dogs cost as little as $2.50 – a real bargain. This fun little tip might be more aimed at novelty than genuine money saving, but the spirit and overall meaning are spot on. Avoid sitting down regularly to eat to save money, and remember that local specialties are your best friend.

Remember that if you want to enjoy grocery store food in Iceland, you must have cooking facilities. And this is where the accommodation crossover comes in. You should book accommodation with private kitchen facilities in an apartment or a shared kitchen in a hostel or homestay environment.

By choosing this accommodation setup, you can easily still have a food budget of $500. If you stay in a hotel and don’t have access to a kitchen, expect prices of around double the same period. The average meal price is nearly $120 for two people at a mid-range restaurant, which quickly adds up.

Food is $500 per week if you eat out a couple of times and have a kitchen in your accommodation. Alternatively, your food budget will be closer to $ 1,000 per week if you expect to eat out daily.

• Budget: $500 per week for eating out a couple of times and then cooking in with grocery-bought food, or $1000 for eating out all week.

Tours and Activities

Entertainment prices are where the majority of your budget will come in – especially if you don’t hire a car and instead rely on guided day trips. These guided excursions can reach prices of over $300, and if you plan on doing 4-5 activities, you can see how this starts to add up. You can take guided trips to the Golden Circle, whichever volcano is exploding and attracting enamored tourists, and do things like snorkel between the tectonic plates or spot the northern lights. All these things come at a cost, but at the same time, you don’t want to miss out on any dream excursions. This little conundrum is what makes visiting Iceland so expensive. And also, so impressive – you wouldn’t want to stay somewhere with nothing to see, would you?

Recommended Tours in Iceland

Below are some of the top tours in Iceland. Don’t forget to plan ahead when  visiting Iceland!

• Reykjavik: Golden Circle Full-Day Tour with Kerid Crater ( Most Popular In Iceland )
• Silfra: Fissure Snorkeling Tour with Underwater Photos (Our Favourite)
• Húsavík: Big Whales and Puffin Island Speedboat Tour (Likely to Sell Out)
• From Reykjavik: Golden Circle, Kerid, & Secret Lagoon Tour (Best Deal)

One way to make this cheaper is to rent a car. Specific day trips, especially ones to see natural beauty spots or spot the northern lights, are easily replicated for free apart from petrol costs if you rent a car. By paying a single upfront fee for a car rental, you can pick fascinating tours and complete them independently – like the Golden Circle, Ring Road, and things like the best Icelandic waterfalls.

Sure, things like a boat tour to see whales or glacier hiking experiences require a guide. Still, lots of Iceland can be visited independently with a rental car. Even northern lights hunting can be done by yourself and without a guide. To be honest, most Northern Lights tours are just guessing and driving to remote spots anyway. Download one of the many maps and get up-to-date information on predictions so that you can go out it alone, much cheaper.

Alcohol prices can get really expensive in Iceland, so we suggest stopping by a duty-free shop or cutting alcohol to cut costs. Nightlife can get understandably expensive in Iceland, so while partying can be fun and a short night out can be budget-friendly in Reykjavik (when in Rome, right?), stick to just the odd night out if possible.

It is worth adding that clothing is an additional cost when enjoying day trips and activities in Iceland. You will likely need to invest in a winter wardrobe with some merino additions; thermal clothes are necessary during most months in Iceland. You can’t compromise on this, and we’d recommend making the most of clothing sales in the run-up to your trip to Iceland. With proper clothing, you will be warm. And if you aren’t warm, how will you enjoy your experience? Make the most of your money by investing smartly in suitable clothing for your activities beforehand.

So, how much should you budget for tours and activities in Iceland? And what should you budget for the additional cost of purchasing suitable clothing for each tour beforehand? These are our budgeting stats for a week in Iceland without a car rental:

• $1,200 for four-day trips with an organized tour operator, including transportation.
• $200 for suitable clothing, including two Merino top and bottom base layers and shoes.
• $200 for a couple of nights out in Reykjavik.

Total: $1,600

As you can see, having a car rental makes a considerable difference when budgeting for tours and activities in Iceland. These are our stats for a week in Iceland with a car rental:

• $400 for four-day trips, including two organized tours without transportation and two free experiences.

Total: $900

• Budget: Without a car, expect to pay around $1,600 over a week-long period, while with a car, this totals up to about $900.

Overall Trip Cost

So, if you’ve been frantically trying to add things up, don’t worry; we’ve got you. This is how much traveling to Iceland costs, not including your travel insurance. We’ll acknowledge the main influencing factors in each budgeting area – whether you rent a car, visit in off or shoulder seasons, and book accommodation with cooking facilities. This is precisely how much you should budget to visit this beautiful country.

Airfare costs approximately $500 for a return trip to Iceland when you fly from Europe or North America. However, if you are flying from Europe, are flexible with visiting in off or shoulder seasons, and fly with mid-range airlines, budget less than $200 for return flights.

Accommodations

For accommodation, you should budget $150 per night for an average but cheap-ish hotel somewhere reasonably well-located. If you are willing to compromise on location, you can pick up cheaper accommodation for around $70 per night. Or, if you want luxury accommodation, be prepared to pay up to $500 per night. With all accommodation types, book early to secure the best rates.

Figuring out a transport budget is a tough one. If you get a rental car , you should budget $350 for renting the vehicle upfront for a week and approximately $100 on fuel. If you don’t rent a car, you can easily explore Reykjavik on the bus for as little as a few dollars each time. However, you will spend a lot more on transfers, and we estimate an $800 difference in your day trips and excursion costs as opposed to self-drive attractions. You should also add airport transfers at over $70 for return tickets on the shuttle bus. For a week in Iceland, budget $450 for transportation if you hire a car and $870 for transportation if you rely on shuttles.

The message is simple regarding food: find accommodation with a kitchen to take advantage of grocery store prices. Budget $500 if you want to eat out a couple of times and then cook the rest of the time. Budget $1000 if you plan on eating out every day for most if not all, meals.

Tours and activities are your main cost when visiting Iceland, especially if you don’t rent a car. Without a car, expect to pay around $1,600 over a week, while with a car, this totals up to about $900.

10 Top Money Saving Tips

Are you ready to cut some money off that average Iceland trip cost we’ve just given you? If you are up for the challenge, there are ways to save money when visiting Iceland. After all, an average price is exactly that – an average price of what most people spend when they visit. You can do better than that if you utilize our top 10 tips on reducing your Iceland trip cost and saving your valuable money.

Anything from car rentals to hostels, and even some lesser-known things like campsites and bus passes, can make a massive difference to what your holiday to Iceland costs. So, buckle up and prepare to jot these top money-saving tips down. Using these could knock hundreds, and perhaps even thousands, off your Iceland budget.

1. Visit Off-Season

It goes without saying, but visiting Iceland in the off-season is the best way to save money. Iceland gets super busy over winter when tourists flock to enjoy snow sports and try to spot the northern lights. If you want to do these things, why not visit in February or late January? Avoiding the December crush by picking these shoulder seasons is the perfect way to snag reduced tours and day trips, plus find cheaper hotel rates thanks to lower booking competition.

Of course, if you are flexible with your Iceland activities, visiting in the off-season is even better. June until October is perfect for lower car rental rates, cheaper hotels, and tour deals. Remember that this period has certain tour and attraction closures, and you likely will miss the northern lights. This season is also famous for the midnight sun, where Iceland stays light for 24 hours a day.

2. Buy From Grocery Stores

Grocery stores are so much cheaper than local restaurants. You don’t want to stick to a budget while eating out for every meal because it just won’t happen. The average cost for a two-person meal at a mid-range restaurant in Reykjavik is  nearly $120.  An average McDonald’s meal is over $16. Grocery prices are much more reasonable, like $1.60 for a liter of milk or $3.44 for apples.

Buying food from grocery stores might sound obvious, but this only works effectively if you’ve found accommodation with a kitchen, so this is a catch-22. We’d suggest finding a communal kitchen or apartment hotel to make the most of this money-saving technique. Trust us, it will be worth it.

3. Rent a Car

This might sound more expensive at first, but renting a car is one of the best ways to explore Iceland on a budget – especially if you want to sightsee a lot. This is because tours are one of the most expensive in an average Iceland trip cost. Companies charge extortionate amounts (we are talking hundreds of dollars) for simple things like transfers. If you rent a car, yes, it will be an initial upfront investment, but you’ll save hundreds if you purchase more than 2-3 day trips. Being able to drive yourself is one of the best ways to cut travel costs in Iceland. Check rates here!

4. Take Advantage of Free Attractions

If you rent a car, it also stands you in good stead for saving money – enjoying Iceland’s free attractions. Iceland has a ton of free attractions, be it waterfalls or the beautiful geothermal area at Geysir. If you are road-tripping Iceland, you can stop at these places for free and quickly build a low-cost itinerary. Everyone knows Iceland is expensive, but with some research, you can soon find budget-friendly and often entirely free things to do.

5. Try Camping

Camping is one of the best ways to save money while visiting Iceland. You can camp in one of two ways – with a campervan or by renting or bringing a tent. It goes without saying that this is a better idea in summer (read: do not attempt in cold weather). Still, if you visit Iceland at a warm time of year, it is a brilliant way to reduce accommodation prices. You’ll find campsites all over Iceland, so this is also one of the most straightforward money-saving tips to put into practice.

6. Try out a Bus Pass

We’ll preface this by saying that bus connections are limited. You will only be able to use the bus network to access specific places at specific times, so you’ll need to be happy to use a pretty rigid travel style if you are going to take advantage of this travel hack. However, if you are happy to color between the lines to save yourself some cash, bus passes are well worth looking into. You pay a single flat rate fee and get unlimited use of the bus network for a designated period. This saves you money on otherwise expensive day trips or car rentals. And if you don’t have a driving license, it is the cheapest alternative.

7. Buy Alcohol From Duty-Free Shops

Another huge tip is to buy alcohol from duty-free shops. If you can pick up alcohol from the airport when you land, it will save you a ton of money on your trip to Iceland since alcohol is heavily taxed. The duty-free shop is your best friend if you want a fancy tipple. With that said, though, a better approach would be not drinking while visiting Iceland. Iceland actually banned alcohol in 1915, and the ban was only fully lifted in 1989 – which is now hailed as beer day. The country has a longstanding political objection to the consumption of alcohol. If you want to save substantial money when visiting, you should do your best to conjure up a financial objection.

8. Find Hot Springs that Aren’t the Blue Lagoon

The Blue Lagoon is dreamy; we’ll be the first to admit it. However, to save money on visiting Iceland, you should consider alternatives. You can read all about the Blue Lagoon  here , created using a factory’s thermal byproducts. But it is also worth looking at free hot springs you can visit in Iceland. Definitely look at alternatives to mainstream tourist attractions.

9. Skip Bottled Water

Skip the bottled water; seriously, Iceland has some of the purest tap water in the world. Bottled water is a massively unnecessary expense, so bring a refillable water bottle and cut the dollars you spend on your trip to Iceland. Of course, reducing plastics also helps the environment – a huge win-win situation. If you fancy going one step further, especially if you plan on camping, it is worth investing in a filter bottle, too, because then you can fill up from natural water sources like rivers and lagoons.

10. Book in Advance

Sure, there’s a time and place for carefree, last-minute travel. But if you want your trip to Iceland to be budget-friendly, try something other than this travel style while trying to reduce your Iceland trip cost. The more you book in advance, the more options you’ll have regarding accommodation and tours. Since these things sell out fast, with the cheapest options going first, you can shoot yourself in the foot by waiting. Check out refund policies and rebooking flexibility if you are worried about committing too far in advance – just don’t wait until the last moment and bank on finding budget alternatives.

To Conclude

Your Iceland trip cost might depend on what you decide to do on your trip to Iceland. Still, this guide gives you a pretty clear idea of an average Iceland trip cost. By considering all of these factors – accommodation, food, transport, airfare, and tours – you’ll have a ready-made budget for visiting Iceland. And if you use some of our budgeting tips, you might even save some money. Who doesn’t want to knock a chunk off one of the world’s most expensive destinations?

Are you looking for more Iceland inspiration? Check out these  fun facts  ahead of your holiday to Iceland. We also have a guide dedicated to the  best things to do in Reykjavik  – Iceland’s walkable and vibrant little capital city. Don’t forget to explore Reykjavik, even if you head off on a week-long road trip around the rest of Iceland.

Plan Your Next Trip To Iceland With These Resources

• South Coast of Iceland: 31 Best Things to Do and See
• 22 Best Things to Do in Iceland
• Best of Iceland’s Ring Road – GLACIERS, VOLCANOES AND WATERFALLS
• The Blue Lagoon Iceland – Your Ultimate Guide
• 30 of the Best Places To Visit In Iceland

Travel Planning Resources

Looking to book your next trip? Why not use these resources that are tried and tested by yours truly.

Flights: Start planning your trip by finding the best flight deals on Skyscanner

Book your Hotel: Find the best prices on hotels with these two providers. If you are located in Europe use Booking.com and if you are anywhere else use TripAdvisor

Find Apartment Rentals: You will find the cheapest prices on apartment rentals with VRBO . 

Travel Insurance: Don't leave home without it. Here is what we recommend:

• Allianz - Occasional Travelers.
• Medjet - Global air medical transport and travel security.

Need more help planning your trip? Make sure to check out our Resources Page where we highlight all the great companies that we trust when we are traveling.

You May Also Like

Ultimate Iceland Ring Road Itinerary: Explore the Best of Iceland in 10 Days

20 Best Things to do in Reykjavik in 2024

South Coast of Iceland: 31 Best Things to Do and See in 2024

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3 thoughts on “How Much Does An Iceland Trip Cost in 2024: Detailed Budget Breakdown”

massive post, Useful And Helpful Thankyou.

what i observed after my trip is getting around Iceland can be pricey, but it depends on your chosen mode of transportation.

My Actual Iceland Trip Cost: Detailed Budget Breakdown

Adventurous Kate contains affiliate links. If you make a purchase through these links, I will earn a commission at no extra cost to you. Thanks!

How much does an Iceland trip cost? A LOT OF MONEY! Ha. This is a famously expensive destination. But in all seriousness, Iceland gives you quite a bit of value for that money.

Recently my friend Amanda from A Dangerous Business and I took a 13-day road trip to Iceland in August 2022. This is one of the best trips I’ve taken in a very long time — but holy hell, was it expensive!

We were traveling at peak season, plus it was the biggest travel summer in three years, making it a popular time for travelers (and expensive time for both rental cars and gas).

I know it can be helpful to see what other people paid for trips to Iceland, so here’s a detailed Iceland trip budget. I hope this is helpful for you to plan your own Iceland trip!

Table of Contents

Is Iceland Expensive?

Yes, Iceland is very expensive. It’s one of the most expensive countries of the 80+ I’ve visited, up there with Sweden and Australia, though I think Norway and Switzerland are a TINY BIT more expensive than Iceland.

There are reasons for this. Iceland is an isolated island, and they have to import the vast majority of supplies. Most fresh produce is grown outside Iceland and shipped in.

And like all of the Nordic countries, Iceland has a high cost of living. It’s not as jarring for locals, who earn high salaries — thanks in part to more than 90% of Icelandic workers being part of a labor union — and having their taxes pay for healthcare, education, infrastructure, and an excellent quality of life.

The time of year has a huge impact on your costs, too. Summer travel — considered mid-May through August — is much more expensive, and for good reason. Summer is the best time to travel Iceland, as everything is open, weather is at its best, tons of tours are running, and the roads are in much better condition.

Winter can be much cheaper and far less crowded, but keep in mind it can be very cold, very dark, and you may have to deal with winter storms and road closures.

Your Iceland trip cost can be as low as $100-150 USD per day if you hitchhike and camp or stay in hostel dorms. More realistically, I think $250+ USD per day will land you a much nicer trip .

In August 2022 we spent around $400 USD for gas to drive the Ring Road in its entirety, plus a few detours like Snaefellsnes and Húsavík.

We found the cheapest non-terrible hotel rooms with shared bath to be around $82 per night , but in expensive areas like Lake Myvatn, that could be as high as $300+.

The cheapest item on restaurant or gas station menus is a hot dog, usually for around $6 USD . An entree in a restaurant is often $25-30. But the best way to save money is to buy groceries.

How I Budgeted My Iceland Trip

Tracking travel expenses is a relatively new thing for me. People have often asked me for budget breakdowns, but I haven’t kept close track until I started using YNAB (You Need a Budget) software in 2020.

Guys, YNAB is the best thing I have ever done for my finances. It literally changed my life. My finances are so much better than they used to be, and I have a much better system of budgeting for trips and saving up over time!

If you want to try YNAB, you can get a free monthlong trial through my link . (If you sign up, they’ll give me a free month of YNAB.)

During your free monthlong trial, join in YNAB’s live Zoom tutorial sessions — they have several each week. They’re super helpful. And join the YNAB Facebook group and/or subreddit. It takes a bit of time to wrap your head around, so make the effort. I promise you it’s so, so worth it.

Since I started YNAB, along with Profit First, I allocate 30% of my travel blogging revenue to operating expenses — 20% to admin and 10% to travel costs. (You can do the same by budgeting a set amount for travel per month or per paycheck.)

Over time I automatically transferred that money directly into my “General Travel” category, then the “Iceland Trip 8/22” category, and as I made expenses before and during the trip, automatically deducted from money set aside for that trip.

As soon as Amanda and I decided to do this trip, we booked flights, our rental car, all accommodation, and several activities. We kept track of Iceland costs on a Google Docs spreadsheet. After arriving in Iceland, we took turns paying for mutual expenses on the road, like gas, but paid other expenses separately, like food. We used credit cards for every single purchase.

After the trip, we went through our credit card bills and added our mutual expenses to the spreadsheet, saw who had paid more, and Venmo’d the difference. Easy!

We kept track of everything in USD, as it was easier for us to just go by our actual credit card statements than go through and convert lots of receipts.

Our Travel Style

In an expensive destination like Iceland, it’s smart to drop down a travel level . I usually stay in mid-range hotels with occasional high-end splurges, as does Amanda, but on this trip we stayed in the cheapest budget hotels with non-terrible ratings, often with shared bathrooms.

Food-wise, we mainly ate in restaurants and cafes. A few hotels included breakfast. We bought groceries for breakfast in Akureyri.

Additionally, many accommodation prices were actually charged in Euros, not Icelandic Kroner, and the Euro dropped significantly against the US dollar between when we initially booked (June 2022) and when we traveled (August 2022).

For example, our Akureyri Airbnb was set to charge us in two payments of 334.39 euros. They ended up charging us $359.17 for the first payment and $342.88 for the second payment thanks to the euro dropping.

Finally — if you’re traveling with a friend, I can’t overstate the importance of being on the same financial page. Have conversations early and often about how you want to spend your money, with specific numbers, before booking anything.

Luckily, Amanda and I were in agreement on our priorities. We cared about spending lots of money on activities and didn’t care as much about food or accommodation (save a few cool spots).

Amanda published a post about a 10-day Iceland itinerary that is definitely worth checking out!

Total Cost of Iceland Trip: $4303.11 each or $8606.21 for two

This is for two people sharing accommodation, car rental, and gas, and paying for their own activities and food.

I tracked every expense except Amanda’s airfare and food, but for cost-for-two purposes, let’s assume she spent the same amount as me on those two categories.

• Airfare: $548.20 for Kate (approximately $1096.40 for two)
• Car Rental and Ground Transportation: $2608.04 for two or $1304.02 each

Accommodation: $2371.80 for two or $1185.90 each

Food: $690.60 for kate (approximately $1381.20 for two), activities: $1,141.81 for two or $570.91 each, restrooms: $6.96 for two or $3.48 each, souvenirs: $0.

Airfare: $548.20 for me

• Flixbus, Prague Florenc to Vienna Airport: $50.98
• Vienna to Reykjavík on WizzAir: $260.14
• Reykjavík to Prague on Play: $237.08

Airfare can depend on a million different factors; this is simply what I spent flying from my home in Prague. Amanda flew from her home in Cleveland via a layover in Boston. These flight prices include checked luggage; I didn’t end up using checked luggage, so they could have been cheaper.

There are direct flights from Prague to Reykjavík on Play, but they get in at 12:30 AM and I didn’t want to deal with that (especially since that would be 2:30 AM to my Prague body — and then you have to rent a car, drive 45 minutes to Reykjavík, check into the hotel…)

Prague’s bus station is an 8-minute walk from my apartment, so sometimes I just book a flight from Vienna and take a 4.5-hour bus directly to the Vienna airport. Vienna’s WizzAir flight to Reykjavík gets in at a much more reasonable 6:30 PM, so that worked for me.

How to Make it Cheaper: It’s hard to siphon down airfare costs, but you can save by flying carry-on only or planning a trip during the winter. For cheap flights from North America, I recommend booking 3-6 months in advance as soon as you spot a good fare.

Car Rental and Ground Transportation: $2615.30 for two or $1307.65

• Car rental, 12 days: $1991.32
• Extra driver fee: $25.65
• Gas: $400.71
• Tunnels: $54.30
• Parking: $40.77
• Ferry: $102.55

Car Rental: This was our biggest expense of the trip, not least because there has been a car rental shortage since COVID began. This was the price for an automatic sedan (we got a Toyota Corolla) for 13 days. Our rental was at Europcar, right in the airport terminal; this was a priority for me, as I wanted to get out quickly and many rental companies are located a 15-20-minute drive from the airport.

Gas: We filled up gas most days and tried to fill up frequently, as gas stations are often far apart.

Tunnels: There is only one paid tunnel in Iceland, just east of Akureyri. Many people driving the Ring Road only pass through the tunnel once, but our schedule and itinerary had us going through it five times total for an average of $10.86 each time.

Parking: While free in most locations, we ultimately paid for parking at Fagradalsfjall Volcano ($7.33), Kirkjufellsfoss ($5.13), Hverir ($5.05), Skaftafell for Svartifoss ($7.26), Kvernufoss ($5.33) and Seljalandsfoss/Gljúfrabúi ($10.67).

Ferry: We took the Westman Islands ferry round-trip with our car for $102.55. We could have done it without the car for cheaper, but we both enormously appreciated how much easier having a car made things.

How To Make it Cheaper: Renting a manual car is cheaper than an automatic car, but you need to be willing to drive a manual car. Renting from an off-site car rental spot is a good option for saving a bit more. You can also plan an itinerary that doesn’t go through the tunnel five times!

• 201 Hotel in Kópavogur, near Reykjavík (1 night): $177.34
• Hamralid 9 Guesthouse in Grundarfjördur (2 nights): $185.94 for two nights or $92.97 per night
• Hvammur 2 Guesthouse near Blönduós (1 night): $82.05
• Airbnb rental in Akureyri (3 nights): $702.05 for three nights or $234.02 per night
• Sel Hotel in Myvatn (1 night): $347.06
• Lyngas Guesthouse in Egilsstadir (1 night): $146.79
• Hotel Smyrlabjörg near Jökulsárlón (1 night): $213.12
• Puffin Hotel in Vík (1 night): $277.21
• Glamping and Camping in the Westman Islands, plus linens (1 night): $93.40
• Asahraun Guesthouse near Selfoss (1 night): $146.84

As you can see, our search for budget stays led to an enormous range of accommodation costs — from $82.05 to $347.06 per night! Our average cost of accommodation was $182.45 per night.

All of our hotels offered private rooms; some had shared bathrooms. We shared a single room everywhere except the Airbnb apartment in Akureyri, which had two bedrooms.

In terms of value for money, I think that we enjoyed immense value at Asahraun Guesthouse near Selfoss, with our adorable little hobbit house, hot tub on site, and lots of cozy amenities. The shower was shared with two other houses but we had our own toilet and sink, which was great.

And Hvammur 2 Guesthouse near Blönduós was a cheap and cozy place that reminded me how hostels used to be: people hanging out, watching TV together or cooking in the kitchen. We never even got formally checked in; we just got an email with our room number and were told to enjoy ourselves!

The worst value? Sel Hotel in Myvatn, by far, at $347.06 per night for a basic twin hotel room with private bathroom and breakfast included. Yikes!

Lake Myvatn in general was shockingly expensive and super-crowded. I’ve heard you can save money by staying in Húsavík instead; it’s an hour’s drive away.

How to Make it Cheaper: These were the cheapest non-terrible hotels we could find during the peak summer months, two months before our trip. You can also stay in hostel dorms or camp for less.

Hiring a camper van sometimes ends up a bit cheaper than a budget hotel, but the difference isn’t usually significant. Don’t get a camper van to save money; only get a camper van if you want that style of trip.

• Groceries: $20.32
• Lunch Kate bought for 2 at Godafoss: $11.24
• Kate’s restaurant expenses: $674.82

Iceland is not a place you go to for the food. The food isn’t terrible, but it isn’t special, either, and I don’t think there’s much of a need to splurge.

We mainly ate at restaurants and cafes throughout our trip. Though we generally kept things cheap, we did have the occasional splurge (Gott in the Westman Islands was lovely, as was Naustið in Húsavík, and we enjoyed langoustine sandwiches at Z Bistro in Höfn). We only had a few alcoholic beverages throughout the trip: a fancy cocktail each at Gott, and I sampled a few local craft beers throughout the trip.

We bought groceries to cover our three breakfasts in Akureyri (yogurt, fruit, bread and butter).

How to Make it Cheaper: Self-cater all the way. Shopping at the grocery store is one of the easiest ways to save money in Iceland. If you do eat out, usually the cheapest thing on the menu is a hot dog, whether at a restaurant or gas station.

Activities are where we went nuts. Keep in mind that this trip was for work reasons, though. We had a lot we wanted to write about!

Paid Activities

• Thermal Baths: $427.04 for two or $213.52 each
• Tours and Activities: $541.20 for two or $270.60 each
• Museums: $155 for two or $77.50 each
• Outdoor Attractions: $18.57 for two or $9.29 each

Thermal baths included Krauma in Reykholt ($71.82 for two or $35.91 each), the Forest Lagoon in Akureyri ($87.17 for two or $43.59 each), GeoSea in Húsavík ($80.04 for two or $40.02 each), Myvatn Nature Baths in Myvatn ($86.62 for two or $43.31 each), Vök Baths in Egilsstadir ($87.17 for two or $43.59 each), and Vestmannaeyjar Swimming Pool in the Westman Islands ($14.22 for two or $7.11 each).

Tours and activities included whale watching in Húsavík ($157.02 for two or $78.51 each), horseback riding in Húsavík ($167.35 for two or $83.68 each), and a RIB boat trip in the Westman Islands ($216.83 for two or $108.42 each).

Museums included the Bjarnarhöfn Shark Museum in Bjarnarhöfn ($20.52 for two or $10.26 each), Herring Era Museum in Siglufjördur ($32.02 for two or $16.01 each), Whale Museum in Húsavík ($25.34 for two or $12.67 each — included a small discount from our whale watch), Jaja Ding Dong Eurovision Museum in Húsavík ($14.44 for two or $7.22 each), Petra’s Stone Collection in Stöðvarfjörður ($21.46 for two or $10.73 each), and Eldheimar in the Westman Islands ($41.22 for two or $20.61 each).

Outdoor attractions included Stokksnes , including Viking Village ($12.88 for two or $6.33 each), and Kerid Crater ($5.69 for two or $2.85 each).

Free Activities

And a nice thing about Iceland is that lots of outdoor activities are free!

• Hiking to the volcano (paid parking)
• Free waterfalls: Svodufoss, Bjarnarfoss, Glanni, Reykjafoss, Goðafoss, Dettifoss, Gufufoss, Folaldafoss, Nykurhylsfoss (Sveinsstekksfoss), Skógafoss, Hestavadsfoss, Gluggafoss
• Free waterfalls that charged for parking: Kirkjufellsfoss, Hundafoss/Svartifoss, Kvernufoss, Seljalandsfoss/Gljúfrabúi
• Free canyons: Rauðfeldsgjá Gorge, Kolugljúfur Canyon, Stuðlagil Canyon, Múlagljúfur Canyon, Fjaðrárgljúfur Canyon
• Free lagoons and beaches: Skarðsvík, Djúpalónssandur, Jökulsárlon, Fjallsárlón, Diamond Beach, Reynisfjara Beach
• Free outdoor sites: Saxhóll Crater, Hvitserkur, Hofsós basalt columns, Skútustaðagígar, Dimmuborgir Lava Field, Grjótagjá Cave, Hverir, Seydisfjördur Rainbow Street, Eggin í Gleðivík
• Free churches: Ingjaldshólskirkja, Búðakirkja, Stykkishólmskirkja Víðimýrikirkja, Grafarkirkja, Hofskirkja
• Free indoor sites: Akureyri Christmas House
• Free viewpoints: TOO MANY TO COUNT.

Comped Activities

As travel bloggers, Amanda and I wanted to pay for things on this trip ourselves and have full editorial freedom, rather than get free stuff and feel indebted to companies.

Still, thanks to our connections, we were kindly offered comped entry for two hot springs that we planned to cover anyway (and one I had previously covered two months earlier): the Sky Lagoon and Hvammsvik.

• Sky Lagoon : $143.82 for two or $71.91 each (Pure Package, which I think is the package most worth it)
• Hvammsvik : $100.24 for two or $50.12 each

Best Activities Overall

Almost everything we did was excellent and I would happily do again. At the same time, I understand that most travelers are going for fun, not work, and need to pick and choose their spending more carefully than we did.

For thermal baths, I absolutely adored the modern, funky Vök Baths in Egilsstadir, with the gorgeous natural facilities of Hvammsvik second. GeoSea is a great place with spectacular views on a nice day, and if you’re basing in Reykjavík, the Sky Lagoon is worth it if you include the Seven-Step Ritual.

For paid activities, one of the best things we did was our RIB boat trip in the Westman Islands . It was so fun, we immediately regretted doing the one-hour trip instead of the two-hour trip!

Also, if you want to go whale watching in Iceland, do it in Húsavík if you can, not Reykjavík. The whale watching is significantly better there, and I know too many people who saw nothing on their Reykjavík whale watches.

And for museums, I LOVED THEM ALL. But I was deeply moved by Eldheimar , which tells the story of the 1973 volcanic eruption in the Westman Islands, and the Herring Era Museum in Siglufjördur is outstanding, especially its final building. Petra’s Stone Collection was an unexpected delight.

What to skip? The only thing I would skip would be the Myvatn Nature Baths ; it felt a bit ramshackle in comparison to the other baths.

How to Make it Cheaper: Go to local swimming pools instead of fancy baths; every town has them and they’re a great option for a cultural experience (especially with kids). Go all in on free outdoor activities; you’ll always have plenty to do.

• Restroom near Hvitserkur: $3.66 (we held the door so we only had to pay once)
• Restroom at Studlagil Canyon: $1.15 each or $3.30 for two

I was going to call this category “miscellaneous,” but literally the only thing left was restrooms.

(Let me add that it’s helpful to have Apple Pay if you have an iPhone — that way you can just scan it and run in if you sprinted to the bathroom from your car and left your wallet behind. Hehehe.)

How to Make it Cheaper: Lose your shame and just pee out in the open, man.

Yes, zero! I had actually been in Iceland in May and bought a small lava sculpture for my living room (around $35) and a gift for my fiancé Charlie (around $15), but I didn’t feel the need to buy anything on this trip.

Spending is purely discretionary, but I know a lot of people who like to buy Icelandic sweaters (they’re called lopapeysa ), yarn, and jewelry.

For me, my photos are my souvenirs. These are what I truly treasure.

Travel Insurance: Already Paid For

I am not buying travel insurance anyore because I get it for free. My bank account in the Czech Republic comes with free travel insurance as long as I deposit a significant amount of cash per month. A great benefit.

If you don’t already have travel insurance — and trust me, you need it — I recommend World Nomads for most travelers , which I used for years before moving to the EU.

How to Save Money in Iceland

In such an expensive country, you want to cut costs wherever you can. Here are my top tips for saving money:

Travel in the winter (October to April). It’s a completely different experience from summer travel, which is high season, but airfare, accommodation, and car rental — three of your biggest expenses — tend to be much lower. Plus, you can see the Northern Lights.

Travel with a friend. As much as I love traveling solo in Iceland, I saved SO much money by splitting accommodation, gas, and car rental with Amanda!

Book your trip super-early. The good accommodation — especially the good CHEAP accommodation — tends to sell out first.

Spend limited or no time in the most expensive destinations. I found the most expensive destinations to be the capital city of Reykjavík, Lake Myvatn, the Golden Circle, and the South Coast. Places like Snaefellsnes and the rural north were much cheaper by comparison.

Book guesthouses with shared bathrooms. These are common in Iceland. Shared bathrooms usually lower the price of an equivalent room with ensuite bathrooms, and most of the time it’s not a nuisance whatsoever.

Consider non-hotels: hostels or Airbnb rentals. Hostels with shared dorms will always save you money; Airbnbs can go either way.

Consider camping. It’s a different kind of trip, but it’s much cheaper than staying in the cheapest hostels or guesthouses! But if you don’t already have equipment, you’ll need to pay to rent it.

Use a credit card that covers car insurance. I haven’t paid for supplemental car rental insurance ANYWHERE since I got my Chase Sapphire Preferred card. This and several other credit cards provide a car insurance benefit.

Rent a car with a manual transmission. ONLY if you can drive one and are willing to drive one in Iceland.

Consider taking the bus. You can take buses along the Ring Road, though keep in mind stops are limited and this won’t get you to most places without supplemental hitchhiking. Many public transportation routes shut down in the winter.

Consider hitchhiking. Iceland is one of VERY few countries where I would ever consider hitchhiking, as it’s extremely safe. Please do your research beforehand.

Don’t take Icelandic króna out at the ATM. In our 13-day trip, we didn’t use cash ONCE. So we always got a good rate with our credit cards, and there was no extra cash at the end of our trip! (You may want to take out a small amount — think under $50 — in case you come across any donation-only attractions.)

Pack carry-on only. It will save you luggage fees. You can book accommodation with on-site laundry halfway through your trip (which we did in Akureyri), or pack fabrics like merino wool that you can wear several times without smelling.

Self-cater your meals. Shopping at grocery stores will save you so much money over going to restaurants. Look for Bónus, the cheap grocery store chain in Iceland.

Eat at gas stations. It’s not THAT gross, I swear. Many gas stations serve decent cheap meals. This is the closest thing you have to McDonald’s in Iceland.

Get into hot dogs. Wherever you go, hot dogs are usually the cheapest thing on the menu. Often even cheaper than a little bowl of soup!

Bring a water bottle and refill it everywhere. Iceland has excellent tap water. There is zero reason to buy bottled water.

Skip the alcohol. Alcoholic drinks tend to be very expensive in Iceland. If you want something nicer to drink than water, I suggest Collab — an Icelandic soda with collagen and caffeine. It comes in several fun fruity flavors and I tried to try them all!

Spend your time visiting free natural attractions. You saw how many waterfalls and canyons and cool outdoor sites we saw, all for free!

Hike, hike, hike. You might occasionally need to pay for parking, but for the most part, you can hike for hours for free.

Go to swimming pools instead of fancy hot springs. They’re a cultural experience and super fun. And if you have kids, THIS is where you should go instead of the fancy spots.

More on Iceland:

• 35 Awesome Things to do in Reykjavík, Iceland
• Things to Know Before You Visit the Blue Lagoon, Iceland
• Why Iceland is Great for First-Time Solo Female Travelers

My Favorite Places in Iceland:

• How to Visit Kvernufoss, My Favorite Iceland Waterfall
• A Look Inside the Sky Lagoon, Iceland
• Sail Through the Sky with FlyOver Iceland
• Snorkeling Silfra: The Cold Neon Waters of Iceland
• How to Visit Studlagil Canyon, Iceland
• Visiting Stokksnes and Vestrahorn Mountain, Iceland
• Guide to the Gorgeous Tröllaskagi Peninsula, North Iceland
• Are the Vök Baths Iceland’s Best Geothermal Spa?

How much did your Iceland trip cost? Share away!

7 thoughts on “My Actual Iceland Trip Cost: Detailed Budget Breakdown”

I love a good spreadsheet! But since discovering Splitwise for traveling in groups, I haven’t looked back. You essentially do the same thing- each person enters what they spent on dinner, etc and how it should be split. The app tallies who owes what on a running basis. At the end of the trip, you settle up and can pay/receive right from venmo. Even my digital-averse travel buddy uses it- and she’s one who until a couple years ago would write me a check for what she owed after I tallied the spreadsheet… 🙄 you might totally be aware of it already but wanted to throw it out there… Thank you for all your great content- even for this “older lady”. Husband and I head to Prague on Wednesday!!!

I enjoy how your blog is in general not about budget travel. I find those blogs to be very repetitive and perhaps sometimes people could be missing the forest for the trees, or penny wise and pound foolish – although they certainly serve a certain sector.

Anywho, it completely makes sense to provide info on how to visit Iceland (or other extremely expensive places) on a budget. Because otherwise, a lot of us would simply never visit! I think this is why I have held off on Japan, Sweden, Switzerland.

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My 2018 trip to Iceland and the Faroe Islands cost about $6500 over 18 days. I traveled with a partner and things like lodging and car rental were shared expenses. But flights from the US cost a chunk, then we flew to and from the Faroe Islands and to and from Akureyri. Once we got grounded in a snowstorm and needed to book a hotel until the storm cleared, while also paying for the Airbnb for where we were supposed to go.

We did had a car for 9 days. Did a lot of self catering outside of Reykjavik. Did lots of hikes. We capped lodging at $150/night, except for a splurge at the end for 2 nights.

Activities add up quickly – snorkeling the Silfra Fissure, horseback riding, touring ice caves. And nice meals in Reykjavik do as well. They were having their annual food festival and brought in chefs from all over (Paris, New York, etc). So it was definitely worth the splurge.

I think the main takeaway from your post is to lower your expectations with meals and lodging – and try to make it work, if it’s a place you truly want to experience. That all makes perfect sense!

I’ve been thinking a lot about the Faroe Islands lately! Would love to get back there. And I agree with you. Many of the super-budget blogs are just too abstemious for my taste these days. (Not to mention the dudes who creep into their 40s and still hit on 20-year-olds in the hostel bar.)

Which Czech bank offers free travel insurance? (I live there and haven’t heard anything about this!)

Unicredit! Their top tier account. Requires 40k czk/month deposit.

This is so helpful, I’ve been worried about adding Iceland to my travel list because of the costs so it’s good to see what the required budget could be. Also really great tips on how to save overall!

Thank you for the great tips! We kind of locked into August due to school breaks but the rest of this was very helpful. We’re going to have a big group with lots of kids so saving money is important 🙂

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How Much Does it Cost to Go to Iceland? 2024 est.

It’s no secret that a trip to Iceland can be expensive. But did you know that the cost of your trip largely depends on variables like what season you plan to travel in? The ever-fluctuating prices of accommodation, activities, and even daily meals can play a big role in the final tally of your expenses.

Budgeting for your trip, whether you plan to splash out or you’re looking to travel on an extreme budget, can take some sleuthing. Moreover, currency conversion and unfamiliar pricing can sometimes be a challenge for travelers.

To make it easier for our readers, all the prices we discuss in this guide will be in USD . This way, you can get a clearer picture without getting bogged down with currency conversion rates. Read on to see how much it costs to travel in Iceland and how to properly budget for your trip to the Land of Fire and Ice.

How to Calculate The Cost of Traveling in Iceland: Things That Can Affect Cost

When you travel.

What season you travel to Iceland can drastically affect the cost of your trip. Summer, from June to August, is the high season in Iceland. With the midnight sun gracing the horizon and landscapes in their full glory, visitors can expect virtually everything to cost double or even triple what it might cost in the winter months.

Winter, on the other hand, offers its own charm with the Northern Lights and snowy sceneries. If you’re looking for a less expensive trip, plan for winter or shoulder month’s like May and September. If good weather is more important than cost, summer is perfect. But remember, each season has its unique offerings, from winter’s Northern Lights to summer’s endless days.

• Related readings: Best places to go in Iceland

How You Travel

Your mode of transportation and approach to exploring Iceland plays a pivotal role in your expenses. For instance, joining a tour will almost always be much more expensive than a DIY road trip along the Ring Road.

Moreover, organized tours provide the convenience of planned itineraries and knowledgeable guides. Doing it yourself, however, is almost always cheaper – and usually more fun! It offers the flexibility to discover hidden gems and explore at your own pace.

• Related readings: Cheap car rental tips in Iceland

Stay Duration

Naturally, the duration of your stay will have a significant impact on the overall cost. While the daily costs might seem high, longer stays can sometimes yield deals or weekly discounts on accommodations.

Visitors who plan to stay longer may experience less expensive accommodation costs. However, other costs, like food and car rental, will be higher. So, it’s always good to plan ahead and perhaps prioritize where to splurge and where to save.

• Related readings: Things to do in Iceland

Traveling with Friends or Solo trip

Solo travel has its own perks, but traveling with friends or family can be economically advantageous. A great way to reduce cost – and have an incredible time – is bringing your friends along! Splitting the most expensive costs of your trip, like accommodation and car rental, can cut your trip cost quite literally in half.

Plus, it’s not just about the savings. You’ll have the added benefit of making unforgettable memories with your besties, laughing at shared jokes, and experiencing the magic of Iceland together.

How Much Do Flights to Iceland Cost?

The gateway to any overseas adventure begins with booking a flight. As with most things in Iceland, flight costs will vary vastly depending on when you plan to travel.

Summer is always an expensive time to visit the Land of Fire and Ice, and airfare skyrockets during this time due to variables like fair weather and seeing the puffins. These unique birds, with their colorful beaks and playful nature, are a top attraction. Holidays, like Christmas and New Year’s Eve, can also drastically increase the price, as with any destination.

For this purpose, let’s delve a bit deeper. When comparing flights from major cities such as New York City and London to Iceland’s bustling capital, Reykjavik, there are notable differences. NYC, being further away, might generally have higher airfares.

Meanwhile, flights from London, thanks to its proximity and numerous daily connections, could offer more competitive rates. Yet, always remember, other destinations could be much more or less expensive depending on proximity to Iceland and the time of year. So, keep an eye out for deals, and consider signing up for fare alerts to get the best bang for your buck!

●     NYC to Reykjavik in June: $500 – $1,000

●     NYC to Reykjavik in July: $650 – $1,275

●     NYC to Reykjavik in August: $700 – $1,700

●     London to Reykjavik in June: $155 – $300

●     London to Reykjavik in July: $120 – $350

●     London to Reykjavik in August: $175 – $400

●     NYC to Reykjavik in November: $400 – $1,000

●     NYC to Reykjavik in December: $400 – $1,100

●     NYC to Reykjavik in January: $500 – $1,000

●     London to Reykjavik in November: $60 – $500

●     London to Reykjavik in December: $60 – $350

●     London to Reykjavik in January: $90 – $300

How Much Does It Cost to Stay in Iceland?

Iceland, with its unparalleled landscapes and mystical aura, offers a diverse range of accommodation options. However, as with many things in this enchanting Nordic island, the prices can be quite steep. The spectrum of accommodation in Iceland reflects its natural and cultural diversity. Whether you’re after the elegance and sophistication of a high-end hotel, the community vibe of a bustling hostel, or the raw and authentic experience of a camping ground, Iceland caters to all desires.

In Reykjavik, the capital city known for its modernist architecture, pulsating nightlife, and rich history, the costs and experiences of accommodation can be particularly varied.

Staying in a plush hotel might mean being treated to views of the Harpa Concert Hall shimmering in the midnight sun, while a hostel could place you in the heart of the city, steps away from the iconic Hallgrímskirkja church.

Camping, on the other hand, though less common within city limits, can be an option for those looking to be closer to the surrounding nature, such as the serene beaches of Nauthólsvík.

While we will delve into specific price ranges shortly, it’s essential to understand that these costs are influenced by various factors. Seasons, proximity to popular attractions, ongoing festivals or events, and even the type of travel group (be it solo, a couple, or with friends) can all play a role in the final accommodation cost. As with any travel destination, it pays—quite literally—to research and book ahead, especially if you’re traveling during Iceland’s peak tourist seasons.

Hotels in Iceland

●     Summer: $150 – $450 (per night)

●     Winter: $130 – $280 (per night)

Hostels in Iceland

●     Summer: $45 – $90 (per night)

●     Winter: $30 – $70 (per night)

●     Summer: $150 – $300 (per night)

●     Winter: $130 – $190 (per night)

●     Summer: $5 – $40 (per night)

●     Winter: Unfortunately, Iceland’s extreme winter weather makes camping prohibitive. Most campsites are closed and visitors may be putting their lives at risk camping during the winter months.

How Much Does It Cost to Eat in Iceland?

When planning your trip to Iceland, it’s essential to factor in one often underestimated expense: food. One of the largest costs when traveling Iceland is sneaky. It’s food!

After all, Iceland is an island, and while it boasts of fresh seafood and local delicacies, a great proportion of specialty foods are imported. This import-heavy approach drives up the prices, making them naturally higher than one might expect.

However, Iceland offers a culinary experience that ranges across a spectrum of costs. But – if you know where to look it is possible to find inexpensive options. Street food and local stalls offer an authentic taste without burning a hole in your pocket.

Prices range from around $6 for a delicious Icelandic hot dog to well over $100 a plate in Reykjavik’s high-end restaurants. For those keen on exploring local flavors without the lavish price tags, it’s advisable to venture into smaller towns and villages where eateries offer traditional meals at more pocket-friendly rates.

Here’s an estimate of how much it will cost to eat in Iceland per person.

High-End Restaurants : $100+ (per meal)

The sky is truly the limit when it comes to the price of high-end meals in Iceland. Most of the country’s fancy restaurants are located in the capital and can be an excellent splurge if you’re a foodie!

Regular Restaurants : $30 – $55 (per meal)

Eating at regular restaurants in Iceland is comparable to eating out in a major city in Western Europe or the United States. These prices can be even higher depending on where you’re dining and what you order.

Fast Food ：$6 – $15 (per meal)

Fast food in Iceland is common in the capital of Reykjavik and it’s easy to find cheap eats in the plentiful gas stations on road trips too. Icelandic hot dogs are always a good go-to fast food to grab.

Groceries : $10-$15 (per day)

Buying groceries is a great way to save money on your trip to Iceland – and it’s a great way to dive deeper into their food scene. There’s nothing better than exploring a grocery store in another country and uncovering delicious goodies like Icelandic skyr.

• Related reading: 6 Best Cheap Eats in Iceland

How Much Do Tours and activity in Iceland cost?

The allure of Iceland isn’t just its captivating landscapes; it’s the immersive experiences that the country offers through various tours and activities. Tours in Iceland do have price variations, especially depending on the season. However, the fluctuations might not be as pronounced as some travelers anticipate. Instead, the most significant distinctions in cost often hinge on the duration and nature of the tours.

Golden Circle Tour

○     All Seasons: $70, per person from Reykjavik

For those looking to venture into the heart of the nation’s natural wonders, the Golden Circle Tour, which includes visits to several national parks and iconic geothermal spots, stands out

Blue Lagoon w/ Entrance

○     All Seasons: $150 per person from Reykjavik

The ethereal charm of the Blue Lagoon, with its therapeutic waters, remains an unmissable experience for many, as does the mesmerizing Glacier Lagoon, although pricing for the latter can vary based on specific tour packages.

Southern Coast

○     All Seasons: $100, per person from Reykjavik

The Southern Coast, with its array of waterfalls, black sand beaches, and scenic views, is another coveted destination.

Northern Lights Tour

○    Winter: $100, per person from Reykjavik

Chase the Aurora Borealis in winter. No two light shows are the same, making every tour unique.

Snæfellsnes Peninsula Day Tour

○ All Seasons: $140, per person from Reykjavik

Known as “Iceland in Miniature”, this tour provides a sampling of all the kinds of landscapes you can find in Iceland, from the Snæfellsjökull glacier to beautiful beaches and rugged cliffs.

How Much Does It Cost To Rent a Car in Iceland?

Exploring Iceland’s rugged terrains, winding roads, and panoramic vistas often demands a mode of transportation that offers both freedom and flexibility. For many, this means renting a car. The undeniable allure of setting your own pace, making spontaneous stops to capture the ethereal beauty of the landscape, and veering off the beaten path makes renting a car a top choice for many travelers.

However, as is often the case in Iceland, the privilege of experiencing the country’s untouched beauty comes at a price. Renting a car here, especially during the peak tourist seasons, can be a significant investment. Still, when weighed against the price tags of guided tours and the potential limitations of public transportation, many find that the autonomy of a personal vehicle provides value that transcends its cost.

It’s crucial to recognize that the costs associated with renting a car in Iceland aren’t static. Seasonal shifts, particularly the contrast between the snowy challenges of winter and the more navigable roads of summer, play a pivotal role in determining rental rates. While winter may offer more affordable rates, travelers should also be prepared for Iceland’s unpredictable winter driving conditions, which can sometimes require vehicles equipped with four-wheel drive or winter tires.

The type of vehicle, from compact city cars to robust 4x4s designed for highland adventures, further complicates the price equation. As we delve into the specifics, we’ve sourced our average costs from one of the country’s more budget-friendly options, Firefly Iceland Car Rentals. This provides a snapshot, but always remember to factor in additional costs such as insurance, fuel, and any additional equipment like GPS or child seats when budgeting for your Icelandic road trip.

Small Cars (e.g. VW Polo)

●     Summer: $106 – $148, per day.

●     Winter: $46 – $65, per day.

Mid-Sized Cars (e.g. Dacia Duster)

●     Summer: $155 – $268, per day.

●     Winter: $70 – $120, per day.

Full-Sized Cars (e.g. Mitsubishi Pajero)

●     Summer: $365+, per day.

●     Winter: $165+, per day.

How Expensive Is Gas in Iceland?

Like in any country, the cost of gas in Iceland is variable and highly dependent on the overall cost of oil and getting it to the island. Iceland is actually one of the most expensive countries in the world to get gas. Luckily, driving distances are relatively short compared to other countries!

At the time of this writing, average petrol prices in Iceland hovered around $8.80 (ISK 1,182) a gallon or $2.30 (ISK 312) a liter.

A Few Budget Saving Tips & Tricks

Iceland, while mesmerizingly beautiful, is known for its hefty price tag on most travel-related expenses. However, with some planning and smart choices, you can enjoy this Nordic wonder without burning a hole in your pocket. Here are a few comprehensive strategies to make the most of your Icelandic adventure on a budget:

1. Visit during the off season.

Iceland’s peak tourist seasons, mainly summer, see a surge in prices across the board. On the flip side, traveling during the off-season, particularly during the shoulder months like late September or early May, can offer more affordable rates on accommodation, car rentals, and even some tourist activities. Plus, you might enjoy attractions without the usual crowds, granting a more intimate experience.

2. Book your trip well in advance.

Last-minute bookings, especially for popular destinations like Iceland, can be pricey. By planning your trip several months ahead, you can snag early-bird discounts and promotions. This not only pertains to flights and accommodation but also to excursions and adventure activities that Iceland is renowned for, like glacier hiking or lava tube caving.

3. Rent a car and DIY your trip.

While organized tours offer convenience, they can also come with a premium price tag. Renting a car and charting your own course can be a cost-effective alternative. This allows you to tailor your itinerary, spend as much time as you wish at specific locations, and even discover lesser-known spots that tour buses might not frequent.

Firfly offers Older model cars rental in Iceland , which means they are even cheaper! If you want to save big on rental cars in Iceland, go for the older model cars is the perfect option!

4. Stick to free attractions – especially if you rent a car. Most of Iceland’s natural attractions are free to visit!

One of the charms of Iceland is its abundant natural wonders, many of which don’t require an entry fee. From the mighty waterfalls of Skógafoss and Seljalandsfoss to the geothermal activity at Geysir, the enchanting Northern Lights, or simply pulling over to pet a herd of friendly Icelandic horses, there’s plenty to see and experience without spending a dime. If you have a rented car, this freedom increases tenfold.

5. Go grocery shopping.

Dining out in Iceland can be a gourmet experience, but it can also be quite pricey. To offset some of these costs, consider visiting local cheap grocery stores like Bónus or Krónan. Stock up on essentials, and maybe even try some local delicacies. Preparing your own meals, even if it’s just a few times during your trip, can lead to substantial savings.

Plus, with the country’s strict food quality standards, you’re in for some fresh and delicious self-catered meals

6. Opt for Local Sim Cards or Portable Wi-Fi.

Rather than incurring hefty international roaming charges, consider getting a local SIM card or renting a portable Wi-Fi device. This way, you can have access to maps, information, and essential apps without breaking the bank.

7. Stay in Guesthouses or Hostels.

Instead of hotels, look for guesthouses, hostels, or even farm accommodations. These often provide a more local experience and are lighter on the wallet. Some even offer communal kitchens, saving further on food costs.

8. Fill Up Your Bottle with Tap Water.

Iceland boasts some of the cleanest and freshest tap water in the world. Rather than spending on bottled water, bring a reusable water bottle and fill up directly from the tap or natural springs.

9. Enjoy the Nightlife During ‘Happy Hours’.

Alcohol can be particularly pricey in Iceland. However, many bars and pubs in Reykjavik offer ‘happy hour’ deals, cutting down costs significantly. Check local listings or use apps like “Appy Hour” to find the best deals.

Maximizing Your Money with Cashless Transactions

After considering all these budget-saving strategies, there’s another financial aspect of traveling in Iceland that’s worth noting for convenience and potential savings. In Iceland, the preference for cashless transactions is pronounced.

Whether you’re sipping on a coffee in Reykjavik or checking into a cozy guesthouse in the countryside, credit and debit cards are the standard mode of payment. This not only provides a hassle-free experience, eliminating the need for constant currency exchanges, but can also be a hidden avenue for savings.

Before embarking on your Icelandic adventure, dive into the terms of your credit card. Many offer rewards or cashback for international purchases. By strategically using such a card for your expenses, you might just earn benefits that pave the way for your next travel escapade.

How much you need to visit Iceland?

Budgeting is one of the most crucial steps in planning a trip to Iceland – especially if you’re looking to do it on a budget. From buying groceries to renting a car to see the country, there are countless ways to save a buck or two on your next trip to the Land of Fire and Ice.

Book your rental car with Firefly Iceland Car Rental for an inexpensive way to see this beautiful country!

Best cheap rental car in Iceland

Dacia Duster or similar | Manual | 4×4 | 2020-2021 (CFMX)

Group e2 reservations are made by car category only. we cannot guarantee a specific car model. or similar.

• 5 Passengers
• Airconditioning

Suitable for the highland F-roads. Please read Terms & Conditions. You must be 23 years of age to drive this vehicle.

Additional Features

• 4 Wheel Drive
• 116 C0 2  g/km
• Adjustable Steering
• Electronic Stability Control
• Power Steering
• Power Windows
• Remote Locking

VW Golf or similar | Automatic | 2020-2021 Model (CDAX)

Group: b2 reservations are made by car category only. we cannot guarantee a specific car model. or similar.

• 2 Large Bags

This vehicle is NOT allowed in the highland F-roads. You must be 20 years of age to drive this vehicle.

• 1 Small Bag
• 2 Large, 1 Small
• 138 cc
• Cruise Control

VW Golf or similar | Manual | 2020-2021 Model (CDMX)

Group: b reservations are made by car category only. we cannot guarantee a specific car model. or similar.

• Front Wheel Drive
• 125 C0 2  g/km

VW Polo or similar| Manual | 2020-2021 Model (EDMX)

Group a reservations are made by car category only. we cannot guarantee a specific car model. or similar.

• 99 C0 2  g/km
• Satelite Navigation

VW Tiguan or similar | Automatic | 4×4 | 2020-2021 Model (IFAX)

Group: o reservations are made by car category only. we cannot guarantee a specific car model. or similar.

VW Up or similar | Manual | 2020-2021 Model (MBMX)

Group: z reservations are made by car category only. ,we cannot guarantee a specific car model. or similar.

• 4 Passengers
• Petrol or Diesel
• 95 C0 2  g/km

Manage Booking

How Much Money Do You Need to Visit Iceland (+ Tips How To Travel Cheaper)

By Author Jurga

Posted on Last updated: May 6, 2024

Whether you are traveling to Iceland soon or just starting to plan a trip, you have probably already heard it hundreds of times – Iceland is very expensive. But how expensive is Iceland actually? And how much money do you need for a trip to Iceland?

I often say that the definition of what’s expensive is different for everyone. It depends on where you come from and what you are comparing with. However, when it comes to budgeting for Iceland, no matter where you come from, or what you compare it to, traveling in Iceland is expensive .

Still, to help you budget your trip and get a better idea of how much money a trip to Iceland costs, I want to show you some real-life examples of how much everything costs in Iceland . This article contains lots of real-life examples of prices in Iceland. This way you can better estimate how much money you need to visit Iceland.

READ ALSO: Best Things to Do in Iceland

Disclaimer. Note that the prices indicated here are correct at the time of the last update. The exchange rate is used just for your information, but the currency rate fluctuates quite a lot. You can check current exchange rates on Google .

Iceland money FAQ

Before we continue with some real-life examples of how much everything costs in Iceland, here are some practical tips and answers to the most frequently asked questions in regards to money and budgeting for a trip to Iceland.

Icelandic currency is the Icelandic króna (ISK). Depending on the current exchange rate, 1000 ISK is about 7-9 USD.

No, you cannot pay in US dollars or in Euro in Iceland. Icelandic króna (ISK) is the only currency officially accepted in the country. You could, for example, use these currencies to tip the tour guides. We advise using your credit card for all payments in Iceland.

No, you don’t need any cash in Iceland. And yes, you can pay everywhere by debit or credit card. Note that some places (such as unmanned petrol stations) only accept credit cards with a 4-digit pin.

No, tipping isn’t common in Iceland. However, it is appreciated. If the service is extremely good, you may tip 10% at upscale restaurants, but it’s really not customary. Tour guides generally expect a small tip.

While some places will accept these cards, they are not as widely used in Iceland as Visa or MasterCard. So to be sure that you can use it everywhere, better take Visa or MasterCard with you.

Iceland has a reputation of being a very expensive country. However, in recent years, the Icelandic currency has weakened a lot and the prices now are very comparable to those in Western Europe. You can find more information and price examples below.

While credit cards with a pin are widely used in Iceland, you will be able to use your ‘regular’ American credit card at most places as well. If, however, you need to get gas at an unmanned petrol station, you will need a card with a pin. You can avoid this by purchasing a prepaid fuel card from one of the bigger petrol stations upon arrival in Iceland and using it at all the gas stations from the same group throughout the country.

TIP:  If you don’t have a good credit card for travel, check out this selection of  the best American credit cards for travel . I recommend choosing  a card with no foreign transaction fees .

FREE things to do in Iceland

Before we continue with the price examples of what food and other things cost in Iceland, you should know that some things are actually free of charge. The best things in Iceland are free of charge!

• For example, visiting natural landmarks is FREE in Iceland, – there are no National Park fees or similar.
• There are quite some natural hot tubs in Iceland that are free to use for everyone. Note that most of them require some hiking.
• Another thing that is free of charge in Iceland is drinking water . Tap water is really tasty, so don’t forget to pack your reusable water bottle to Iceland. You can also ask for tap water at the restaurants and normally they don’t charge for it.
• There are no toll roads in Iceland, so all the roads are free of charge. The only place where you need to pay (at the time of writing) is Vaðlageiðargöng Tunnel, near Akureyri. However, you can also choose to drive through the mountains (in summer, just 10-15 minutes extra) and skip the tunnel altogether.
• Bathroom facilities at most petrol stations and at most landmarks are free of charge. Some places ask for a fee and it’s becoming more and more common in the busiest tourist areas.
• There are also some free attractions . Here you can read more about  free things to do in Reykjavik .

LEARN MORE: Top Places to Visit in Iceland

How expensive is it to rent a car in Iceland

Renting a car in Iceland can be quite affordable or it can cost you a fortune. A lot depends on the type of car that you rent, the season when you travel, but also on how long in advance you book it.

I just checked a couple of different dates to use as an example. These are base rates, if booked months in advance, not taking into account any additional insurance.

• The cheapest tiny rental car in the low season will cost from about 300-400 USD/week. Renting the same car in high season will cost from 800 USD/week.
• A small 4WD (Dacia Duster or similar) will cost from about 350 USD/week in the low season, and about 1,000 USD/week in high season.
• Estate cars (large cars, ideal for 4-5 people and luggage) cost about 400 USD/ week in the low season, and over 1,000 USD/ week in the summer.

TIP: Make sure to read the small letters and compare different providers. Additional insurance costs and all kinds of extras might mean that the cheap car rental turns out to be more expensive than you first thought.

How to save money when renting a car in Iceland:

• Book well in advance . In general, the earlier you book, the cheaper your rental car will be. On top of that, when booking online in advance, you can compare the prices, what’s included, and find the best car rental deal for your trip to Iceland. We use and recommend this website for all car rentals anywhere in the world, also in Iceland AND we always take full insurance offered by them (this is much cheaper than paying it at the counter in Iceland).
• Pick up your car at Reykjavik airport . This will save you some expensive airport transfers to town. Reykjavik is not the place where you need to stay longer than half a day or a day, so if you are already renting a car, rent it for the whole duration of your trip.
• You don’t really need a 4WD if you are only driving the Ring Road in Iceland in the warm months. It’s nice to have a car that is higher, so an SUV might be advisable, but in general, you can visit the main landmarks of Iceland in summer by regular car.

Good to know: If you are planning on visiting Icelandic highlands and driving on the F roads, or if you are driving in Iceland in winter , then you should definitely hire a 4WD or a 4×4.

Just remember, no matter which car you have, driving in Iceland in winter is dangerous and requires caution and skill. The weather changes quickly and so do driving conditions. 4wd might be very useful in case of snowstorms, but it doesn’t automatically mean you will be safe. Don’t let money be the main deciding factor in which car you rent for your trip and DRIVE SAFELY.

How expensive is petrol in Iceland

At the moment of the last update,  petrol prices in Iceland are around 320 ISK per liter (+-2.3 USD/liter or 8-9 USD/ gallon).

With the Icelandic krona being weaker, the exchange rate is quite good, and the fuel price is quite comparable to what it costs in Western Europe.

How expensive is car parking in Iceland

Car parking used to be free pretty much everywhere in Iceland, but this has changed.

Most natural landmarks still have free parking, some others charge a small fee. For example, car parking at Seljalandsfoss Waterfall costs 900 ISK (6.5 USD) for a regular car.

Parking costs in Reykjavik city depend on where exactly you want to park your car. Parking inside the most expensive zone in the city center will cost you about 3 USD per hour, a bit further – about half the price, but outside of the city center, you can still park your car for free.

TIP: Download the Parka app – it makes paying for parking in Iceland simpler.

How expensive is public transport in Iceland

Public transport is, in general, not the best option to get around Iceland. There is a good bus network in Reykjavik town, and a regular fare inside the city costs about 630 ISK (4.5 USD). A one-way ticket on bus 55 that connects Keflavik airport to Reykjavik town costs 2280 ISK (17 USD). It’s much easier and faster to book a shuttle bus .

There are public transport connections between major towns in Iceland, but, once again, it’s not the best way to see the country since the most beautiful places and natural landmarks cannot be reached by public transport.

You can find all the practical information about public transportation on the website of Straeto , the Icelandic public transport company.

How expensive is a taxi or airport transfer in Iceland

A local once told me that taking a taxi isn’t all that expensive in Reykjavik. But the few times we took we found that it was expensive – like 20 USD for a 5-minute ride. I also heard people complain that they were charged about 200-250 USD for a taxi ride from Keflavik airport to Reykjavik (about 45 minutes)… So we never tried it for bigger distances…

I guess it all depends on what you compare it with and also with how many people you share the cost.

TIP: It’s cheaper to book a taxi ride or a private transfer online in advance than just hop in a taxi, especially if you are traveling long distances. Most companies display the rates for airport transfers or other popular destinations around Reykjavik on their websites, so you know in advance how much it will cost.

If you are looking for cheap airport transfers , you should know that most shuttle bus transfers cost around 25-30 USD – see here . Private transfers around 150-200 USD (up to 4 people), but you have to book in advance !

READ ALSO: Reykjavik Airport Transfers

How expensive are hotels in Iceland

The price of accommodation in Iceland highly depends on the place and on the period when you are visiting. Here are just a few examples:

• A night in a double room at a really nice Fosshotel near Jokulsarlon glacier lagoon costs about 200-250 USD in November and about 500-600 USD in July. Breakfast not included (+-32 USD/ person if paid at the hotel, less if booked in advance).
• A night in a double room at Fosshotel Reykjavik costs 200-300 USD in November and 350 USD in July (+ breakfast).

In general, in the low season, you should count at least 200 USD per night for a 2-person room in a mid-range hotel in rural Iceland, and 250-300 USD in the more popular places and in Reykjavik. In the high season, expect to pay much more.

Of course, there are many more expensive options and also some budget accommodations.

You can find more suggestions and prices for your trip in our Iceland accommodation guide and also in our guide to Reykjavik hotels . Check it out!

How to save money on accommodation in Iceland:

• Book in advance! I cannot stress this strongly enough. The earlier you book, the more choice you have, and the better deals. The moment you know your travel dates, book your hotels.
• Check for the best available deals. We book 99% of all our accommodations on Booking.com . It’s so easy to find the best available deals for the location you’re looking to stay at. They have hotels, B&Bs, and self-catering accommodations all in one place.
• Travel in the low season . As you could see from the examples above, hotels in Iceland can be twice as expensive in summer.
• If you stay in hotels, book a room with breakfast included in the rate. It’s much cheaper than having to pay for breakfast afterwards.
• Book self-catering accommodation and save not just on accommodation, but also on food. Cooking, instead of dining out, will save you a lot of money in Iceland (you can find what food costs further down in this post). You can book an Airbnb, but in rural Iceland, you can find more self-catering accommodation options on Booking.com. Instead of hotels, try guesthouses , apartments , or cottages and cabins . Another option is just to go on the Booking.com  website, bring in your travel dates and Iceland as location, then in the ‘filter by’ section under ‘room facilities’ choose ‘kitchen/kitchenette’. Then click on the map and you’ll see all the available self-catering accommodation options.
• If renting apartments or houses from private owners, check for any hidden fees . Often, you have to pay a cleaning fee, bed linen fee, sometimes even wi-fi, etc. So unless you’re staying in such a place for a longer period of time, it might not be much cheaper than staying in hotels.

TIP: Using the map below, you can quickly get a good idea of how much your accommodation in Iceland would cost and compare all the best options . Simply insert your travel dates, location, and travel dates, and you’ll get an overview of what’s available. Check it out!

How expensive is camping in Iceland

The costs of camping in Iceland depend a lot on when you travel and how you decide to camp – using a tent, a small campervan, or a big motorhome.

Prices for a campervan vary a lot depending on the season, soaring from June through August. You can expect to rent a very small campervan from about 70-100 EUR per day; you’ll pay twice or even three times that price for a big motorhome or a 4×4 mountain camper.

Campsites in Iceland cost around 15-20 EUR per person per day, but you can also get a 28-day card for 2 adults and 4 kids for 179 EUR…

LEARN MORE: Camping in Iceland

How expensive are tickets for museums, pools, and other attractions in Iceland

As already mentioned, the most beautiful natural landmarks of Iceland are completely FREE to visit for all (please also see the section about free things in Iceland above). Also, children under 7 are often free of charge, older kids usually pay a seriously discounted rate, and some places also offer family tickets.

Here are some examples of entrance ticket prices of some popular attractions in Iceland:

• Hallgrímskirkja church tower (great views over Reykjavik): about 10 USD for adults and 2 USD for kids.
• Perlan in Reykjavik : around 40 USD for adults, kids between 6 and 15 – half price, free under 6.
• Skogar Museum (turf houses along Iceland’s South Coast ): about 20 USD for adults, kids under 12 free of charge, older kids half the price.
• Husavik Whale Museum: around 20 USD for adults, kids free of charge.
• The Herring Era Museum in  Siglufjörður : 16 USD.
• Blue Lagoon. There are different packages. A standard ticket with round-trip transfers from Reykjavik is about 150 USD (and you absolutely have to book in advance !).
• Sky Lagoon in Reykjavik – about 130 USD (also here, book well in advance !).
• Myvatn Nature Baths. Again, lots of different prices, starting from around 45-50 USD in the low season. Discounts for kids and seniors. You can check prices and book here .
• Local community pools usually cost around 5-10 USD, often very cheap or even completely free of charge for the children.

How to save money on activities in Iceland:

• Visit free attractions .
• Spend more time in nature . Seeing the most beautiful places in Iceland doesn’t cost anything.
• Visit community pools and skip expensive touristy baths. Not only are they cheaper and less busy, but they also have hot tubs, special kids pools and often even slides for the children.

How expensive are organized tours in Iceland

It’s difficult to put a price on tours in Iceland, there are so many different choices. In general, organized   day tours cost around 100 – 200 USD per person, depending on the tour and activities.

Some things you can do on your own or with a tour – seeing the Nothern Lights in Iceland is a good example of that. However, some other tours require a guide and cannot be done on your own. Some examples are glacier hiking, ice caving, whale watching, lava caves, etc.

Here you can find some of my hand-picked Iceland tours for all seasons and the best winter tours in Iceland . Here you can also find some really nice ideas for half-day tours from Reykjavik .

TIP: Also tours are best booked in advance. That way you can save money by comparing the best deals (and read customer reviews!) rather than blindly booking a tour suggested by your hotel.

For our own trips, we book pretty much all our day tours and organized activities via  GetYourGuide . It’s our favorite one-stop-shop for all organized tours because they have the best customer service and cancelation policy we have ever seen.

Booking directly with a local company usually means that you can’t cancel for free, let alone get a refund in case something goes wrong (as recent events and a few user-unfriendly local Icelandic companies have shown time and again…). For that, it’s always helpful to have a strong intermediary and GetYourGuide is the best one we know and personally use for all our trips.

READ ALSO: Iceland Itinerary for a Self-Drive Trip

How expensive is dining out in Iceland: food, drinks, alcohol

The sky is really the limit when it comes to restaurant prices in Iceland. Let’s just say that you can praise yourself lucky if you manage to find a hamburger or a pizza under 25 USD.

Most meals at dinner will be at least 40-50 USD. It’s not uncommon to find a 3-course menu that costs 150-200 USD in a restaurant in Reykjavik.

Hotels often have a set menu price, which will often start from 5000 ISK (45 USD).

That being said, we noticed that there is a very big difference in prices at the restaurants in Reykjavik, around the Golden Circle, and along the South Coast and those in the less popular areas like northern Iceland. While we could have a decent dinner for less than 100 USD for our family of 5 in the north of Iceland, it would often cost at least 50% more in the south…

Here are some food prices you can expect in Iceland’s restaurants. Remember, that restaurant prices can vary a lot, depending on the place. The prices indicated below come from non-fancy restaurants in Iceland.

• Hamburger: 2500-3500 ISK (20-25 USD).
• Small courses and appetizers: 1500 – 3000 ISK (13-26 USD).
• Pasta or pizza: 2300-4000 ISK (20-35 USD).
• Fish or meat dish: 4000-7000 ISK (35-60 USD).
• Dessert: 1200-2300 ISK (10-20 USD).
• Children’s meal (if you can find it): 1600-2500 ISK (14-22 USD).

Here are some average prices you can expect to pay for the drinks and alcoholic beverages at the restaurants in Iceland:

• Tap water is delicious and is FREE.
• Tea or coffee: 400-600 ISK (4-5 USD).
• Cappuccino, latte, and similar: 500-800 ISK (5-7 USD).
• Soft drinks and juice: 400-600 ISK (3.5-5 USD).
• Beer: 1050 – 1700 ISK (9-15 USD).
• Glass of wine: 1500-1700 ISK (13-15 USD).
• Bottle of wine: from around 5000 ISK (40 USD).

How expensive is food in the supermarkets and petrol stations in Iceland

Buying  food in supermarkets in Iceland can save you a lot of money. Here are just some examples of what food costs in the shops and petrol stations. It’s mostly fruit and snacks, but it gives you an idea of what to expect.

Food prices in Iceland:

• A hot dog costs 300-600 ISK (3-5 USD).
• Sandwiches cost about 990 ISK (8.5 USD).
• Bananas (1kg/ 2,2 lbs) cost 220 ISK (2 USD).
• Apples: 500 ISK (4.5 USD) for 6 apples.
• Small Skyr (Icelandic yogurt): 180-220 ISK (1.5-2 USD).
• Small pack of cheese: 700-800 ISK (6-7 USD).
• Small bag of cinnamon cookies: 480 ISK (4 USD).
• Sliced dark bread: 700 ISK (6 USD).
• Small pack of sliced meat: 400-700 ISK (3-6 USD).
• Orange juice: 360 ISK (3 USD)/ litre.
• Small bottle of water or soda: 260-300 ISK (2.5 USD).
• Small ready-to-eat snacks and salads: 1000 – 2000 ISK (8-17 USD).

How to save money on food in Iceland:

• Book accommodations with breakfast included .
• Buy food at the supermarkets and have picnics during the day. Not only does it save money, but also lots of time.
• You can find some small meals at the petrol stations along the Ring Road – usually much cheaper than in the restaurants.
• Pack a thermos and fill it with coffee or tea at your accommodation in the morning.
• Pack a reusable water bottle and refill it with tap water whenever you get the chance.
• Cook at your accommodation, order takeaway meals (in big towns only), or look for cheaper restaurants.
• Don’t drink alcohol . It will save you a fortune. Come on, you can do a week without it! You’ll be too tired after the whole day exploring outdoors anyway.

How much money would a trip to Iceland cost

How much would a trip to Iceland cost? As you can see from the examples above, this is a really tough question to answer. So much depends on when you travel, what kind of car you rent, which accommodations you choose, and how often will you be dining in restaurants. Also, traveling with 4 people will cost much less per person compared to traveling alone.

Nowadays, I would count at least 2000 USD per week per person in Iceland, not including the flights (and with at least 2 people sharing the room/car). A few years ago, my 1-week winter trip to Iceland cost about 1500 USD, staying in mid-range accommodations, dining out every evening, and doing just two paid excursions:  Iceland glacier hiking  and Blue Lagoon . These days, this budget is too low, unless you don’t do any paid activities and don’t go to restaurants every day.

If you travel in summer, stay in somewhat cheaper hotels, and dine out less, you’ll probably need at least $2500 per person for a week. In winter, you might be able to do it for a bit less. But if you want to stay at nicer hotels, visit several hot springs, and dine out every evening, it will probably be more like $3000-3500.

The best way to budget for your trip is by checking the cost of accommodations, rental cars, and guided excursions. Then add +-500 USD per week for food and other expenses. It won’t be exact, but it will give you a pretty good estimate of how much your trip to Iceland will cost.

TIP: One of the easiest ways to take a trip to Iceland without worrying about going over the budget, is to join an organized multi-day tour. That way you know exactly what the trip will cost; you just need to budget for the food. I wouldn’t necessarily do this in summer, as driving is easy and a self-drive trip is advisable. But if you are traveling to Iceland in winter , you can save yourself so many headaches by going on a multi-day tour .

Make sure to read what’s included before comparing tours, as some included excursions like glacier hiking, ice caving, or similar can make a big difference in price.

Shopping in Iceland

And finally, one last note and an often asked question by people planning an Icelandic trip – shopping in Iceland . Iceland is expensive and is really not the most suitable place to do shopping, especially if you are traveling on a budget.

Many tourists consider buying traditional wool Icelandic sweaters . Quality Icelandic sweaters can easily cost 200-250 USD and more in Iceland.

Note that souvenir shops are full of sweaters that are made in China and the quality doesn’t resemble much. If you want to get an authentic Icelandic sweater, check the store of Handknitting Association of Iceland in Reykjavik downtown. Another option is to look for sweaters from Farmers Market (it’s an Icelandic brand that has two stores in Reykjavik).

Amazon also sells some really nice Icelandic sweaters from ICEWEAR . Often, they are cheaper than in Iceland, and sometimes, you can also find hand-knitted sweaters online.

If you decide to buy an Icelandic sweater, do it at the beginning of the trip (or before even going there) – you’ll definitely need it in Iceland. For more suggestions on what to wear in Iceland, please check our Iceland packing tips for summer (June-September) and our Iceland winter packing list (end of September-May) .

TIP: If you buy any souvenirs or clothing in Iceland, don’t forget to ask for a Tax-Free receipt . You can claim the VAT back when leaving the country at the airport. Just keep in mind that it can take several months to get that money back. My latest tax-free claim took almost 5 months; I had long given up on it…

So, here you go. I hope that seeing these examples of prices in Iceland helps you budget for your trip to Iceland and know what to expect. Do you have any questions? Check our Iceland travel guide for more information! If you still don’t find an answer to your question, feel free to leave a reply below.

READ ALSO: Top Travel Tips for Iceland

Planning a trip to Iceland, but are not sure where to start? Check out these itineraries:

• 4 days in Iceland
• 7 days in Iceland
• Iceland’s Ring Road in 10 days
• 10 days in Iceland (off the beaten path)
• Iceland itinerary suggestions for any trip
• 1 day in Reykjavik

Some of our favorite lesser-known places in Iceland:

• Haifoss Waterfall  – amazing waterfall near the Golden Circle
• Siglufjordur  – probably the most beautiful town in Iceland
• Hvitserkur  – worth a detour when driving in northern Iceland
• Heimaey Island  – an amazing day trip in the south
• Grafarkirkja, Road 76, and Hofsos Pool  – hidden gems in the North
• Raudasandur Beach – red sand beach, unique in Iceland

Also the popular areas are full of hidden gems that most people never see. Here are some of our favorites with the detailed guides on what to see:

• Things to Do in Reykjavik
• Things to Do in Myvatn
• Things to Do in Snaefellsnes Peninsula
• Things to Do in Reykjanes Peninsula
• Things to Do in South Iceland

If you found this post helpful, don’t forget to bookmark it and share it with your friends. Are you on Pinterest? Pin this image!

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Wednesday 28th of February 2024

I live in Iceland and my family is coming to visit from UK. This is the best and most update article I could find. All the prices and details are rwally helpfull. Thank you

Thank you for your feedback and glad to help!

Sunday 25th of June 2023

Can you take a large suitcase for in the planes hold hall as it's me and my grandaughters so was thinking of putting most of our stuff together and just taking back pack for under seats plz

@Jurga, Thank you I'm not flying till Oct but wud I be best contacting the airline now to arrange one large suitcase or arrange it thru the tour operator that I booked with Thank you

Hi Angela, yes, you can always check-in large suitcases and just take hand-luggage with you on the plane. However, how many bags you can take, size, weight, etc. depends on the airline you're flying with and the ticket conditions that you chose. So you have to check your ticket conditions and the website of the airline for more information on what you can take with you. Also, most airlines allow you to buy additional hold luggage online before your trip, so if it's not included in your ticket, you can always do that. Best to arrange this online in advance since it costs much more if you have to do it at the airport. Hope this helps.

Thursday 7th of April 2022

I may have missed this information in one of your responses. Can you let me know which supermarkets you recommend? I know there is one that's open 24 hours a day that is very expensive.

Thursday 14th of April 2022

Perfect. Thank you so much for your reply. I don't have a tight budget but I don't want to overspend on groceries if there are better options.

We personally just go to the supermarket that is closest to our accommodation when we need to get something. If you are on a really tight budget, you may want to check BONUS supermarkets, but in general, the choice of a supermarket shouldn't have such a huge influence on your overall travel budget.

Tuesday 4th of January 2022

how much currency would you recommend an individual should bring with them for a 7 day trip. Breakfast and dinners are provided, accommodation and transportation is already paid for. So I would only need cash for lunch and some small souvenirs.

@Jurga, I'm in Canada, would a Canadian credit card work or would I need to get a US Credit Card?

Hi Angela, as already mentioned in the article, unless you absolutely want to feel Icelandic money in your hands, you really don't need cash in Iceland. Everything can be paid by card. It's so much easier and you don't have to worry about how much cash to take from an ATM or how to spend it all at the end of your trip. Some people like to take some cash for tips for tour guides, but tipping isn't that customary in Iceland, and if you tip in USD or Euro, the guides will probably be just as happy as with local currency.

Thursday 20th of May 2021

Great info and details. Thank you!

Saturday 22nd of May 2021

Glad you found this useful, Malik. Have a great time in Iceland!

How Much Does it Cost to Go to Iceland? A Travel Budget 2024

In this travel budget estimate for Iceland in 2024, we will cover the cost of going to Iceland, why the prices in Iceland are so high, how much it costs to rent a car, and a full breakdown of all costs associated with a trip to Iceland, along with some money-saving tips that you can implement on your travels. 

Famous for its breathtaking natural beauty and unique cultural heritage, Iceland is a truly unique travel destination for any world adventurer. Like with every trip, budgeting remains a top consideration when planning a trip to Iceland. And although Iceland is known as one of the most expensive destinations to visit, understanding the various costs associated with a trip to Iceland, along with some insider tips and tricks, will allow you to enjoy the country regardless of your budget. 

The first question people ask before booking a trip is, “How much does it cost to go to Iceland?” Getting around Iceland is one of the main considerations when it comes to budgeting, as the country has limited transportation options and no metro or trains. That means you have to rely on either public tours or book a rental car to travel with full freedom. 

Table of content

• Travelling time

Traveling method/Travel style

Stay duration 

Group size 

Type of experience 

How Much Does a Flight Ticket Cost?

How much does it cost to stay in iceland estimated price per night, how much does it cost to eat in iceland estimated price per person, how much does it cost to travel around iceland , how much does it cost to rent a car in iceland , how much does gas cost , how much to budget for other expenses are attractions in iceland free, why is iceland an expensive country, budget saving tips.

Calculating the Cost of Traveling in Iceland: What Affects the Cost?

Several factors can influence how much you will spend on your trip to Iceland, including what time of the year you visit, how long you plan on staying, what you plan on doing in Iceland, and what you do during your trip. Any of these factors can increase or decrease your expenses, and they are worth understanding. 

Seasonality and its Impact on Costs

Traveling time

The most significant factor impacting the costs of a trip to Iceland is the time of year you choose to travel, as different seasons will have different cost implications. Since the summer period is high in traffic from tourists, prices of most goods and services tend to increase due to supply and demand. In the Iceland winter months and during off-season, prices are generally cheaper due to reduced crowds.

That said, you will need a more sturdy and well-equipped 4X4 vehicle to handle the winter road conditions, which could come with an increased price. It’s also important to note that you may want to book a longer stay during the winter as you will need to account for delays due to bad weather and build some extra buffer time into your itinerary. Additionally, the week of Christmas and New Year’s will typically be more expensive than the rest of the winter months. 

How you travel will also impact how much you spend while in Iceland. Renting a car is the cheaper and preferred option since it costs way less than going on multiple tours. Plus, it allows you to plan your itinerary and change your mind without incurring further expenses than originally planned.

Many of the top attractions in Iceland are free to visit, but you’ll need a car to get there. Tours will always cost you money and will also limit the places that you can actually visit. 

How long you choose to stay in Iceland is another important factor in determining how much your trip to Iceland will cost. Regardless of season or vehicle choice, longer stays mean more money spent on expenses like food, lodging, rental cars, and gas. 

A great way to save money when traveling to Iceland is by traveling in a group, which allows you to compile resources for shareable expenses like accommodation, food, transportation, and even some experiences and attractions. In addition to creating lasting memories with loved ones, sharing the costs is one of the best ways to make your trip more budget-friendly. 

Ultimately, deciding how much you will spend on a trip to Iceland depends on how much you have available in your budget. Solo travel on a shoestring budget at the right time of the year would cost about ISK 12675 ($90) per day, while an all-expense luxurious trip would set you back up to ISK 40,843 ($290) per day. On average, however, people spend around ISK 27,531 ($195) daily on trips to Iceland, excluding airfare.

Breakdown of Costs for a Trip to Iceland

Now, let’s break down the costs of each aspect of a trip to Iceland so you can effectively budget how much you will need to spend. 

In the summer, when crowds are always at their highest, flight tickets from North America to Iceland typically cost between ISK 84,504 ($600) and ISK 211,260 ($1,500), while flights from Europe would cost between ISK 60,203 (€400) and ISK 135,457 (€900). 

During the offseason in winter, flight tickets from North America to Iceland typically cost between ISK 70,420 ($500) and ISK 169,008 ($1,200), while flights from Europe would cost between ISK 30,101 (€200) and ISK 90,304 (€900). 

• Read more about: Iceland flights: airlines, airports, and destinations guide

Different types of accommodation are available to tourists in Iceland, serving a wide range of price needs. From hostels and guesthouses, which are pretty affordable, to luxurious five-star hotels, which come at a much higher price point, you will always find an option for your budget. 

Hotels 

Hotels are the peak of luxury accommodation in Iceland. During summer, you might find reasonable spots that cost of hotel with private rooms and bathroom between ISK 24,928 ($177) per night and as much as ISK 225,762 ($1,500) for the highest-end places. During winter, hotel prices vary between ISK 14,084 ($100) and ISK 75,349 ($535) per night.

Hostels in Iceland are considering as more expensive then the hostels in other countries, but still hostels are the cheaper accommodation options for tourists travelling Iceland. During peak summer, hostels and guesthouses could cost between ISK 5,633 ($40) and ISK 20,562 ($146) per night. They could cost as little as ISK 3,521 ($25) to ISK 7,042 ($50) per night in winter.

AirBnb 

In the summer, you can get an AirBnB for as low as ISK 8,450 ($60) for shared spaces and as high as ISK 47,322 ($400) for a single unit, but it could easily stretch much higher depending on what type of Airbnb you book. During winter, you can get them as low as ISK 5,633 ($40) for shared spaces and as high as ISK 49,294 ($350) for a single unit. 

Camping 

Camping in Iceland is a great way to experience the country. For campervans or tenting, the cost for a campsite is between ISK 1,408 ($10) and ISK 13,098 ($93) per night. Camping during the winter months in Iceland is highly discouraged, and we do not recommend this due to severe weather conditions like extreme cold and snow storms that could hamper safety.

Additionally, most of the campsites will be closed in the winter months anyway. But during the summer in Iceland , it’s one of the most inexpensive accommodation options. 

Food in Iceland can be expensive when compared to other European countries, but that does not mean there aren’t ways around the high cost. For example, you could spend as little as ISK 2112 ($15) daily if you make your meals from store-bought groceries. 

Expectedly, the best in fine dining and high-end restaurants located in the capital city of Iceland have steep prices. As a result, one meal can cost up to ISK 11267 ($80) at a nice restaurant in the city, and even more depending on what you have to drink. 

On the other hand, some restaurants could cost between ISK 3,943 ($28) to ISK 7,887 ($56) per meal, while fast food is the least expensive food, and you can get Iceland’s famous hotdogs for around ISK 845 ($6) hotdogs or combo meals for ISK 3,943 ($28). 

The price of transportation around Iceland depends mainly on what you intend to see and where you wish to go. Several bus tours operate year-round, and others only operate in the summer. However, the most popular one among visitors to Iceland is the Golden Circle tour, which touches most of Iceland’s iconic attractions. 

A full-day tour of the Golden Circle will usually cost between ISK 16,900 ($120) and ISK 28,168 ($200).

Rather than take tours, we recommend renting a car to visit Iceland attractions yourself since many of them are free to enter. You can find more information on the cost of rental cars below. 

The cost of renting a car in Iceland varies depending on what type of car you require and the time of year when you rent it. 

Small cars like the Volkswagen Golf cost ISK 39,435 ($280) per day when you rent them during the summer, but that price goes down to ISK 18,309 ($130) during the winter. 

Mid-sized cars like the Toyota Corolla, which can seat up to five people, will cost around ISK 46,477 ($330) per day in the summer and ISK 22,534 ($160) during the winter. 

Full-sized cars with lots of space, such as the Toyota Land Cruiser, are priced at ISK 73,236 ($520) per day during the summer and ISK 32,393 ($230) in winter. 

As of the time of writing this, gas in Iceland costs ISK 1,205 ($8.7) per gallon, but the price has fluctuated between ISK 1,162 ($8.25) and ISK 1,234 ($8.76) in the last year.

Most attractions in Iceland are free when travelling around the island via Route 1 Ring Road, only a few classic attractions, for example the black sand beach, Seljalandsfoss waterfall, thingvellir National park, they do charge a small parking fee. But if you want to visit some museums during your time spend in Reykjavik, that will cost.

Approximate cost of Souvenirs and Shopping in Iceland: from 10,000 ISK

When visiting Iceland, shopping for souvenirs is a delightful way to preserve memories of your trip. The prices for common souvenirs vary, with typical items like Icelandic wool sweaters, locally made crafts, and Viking-themed memorabilia.

For instance, a classic Icelandic wool sweater can cost anywhere from ISK 10,000 to ISK 25,000, depending on the quality and design. For more budget-friendly options, tourists can look for smaller items like keychains, postcards, or volcanic rock jewelry, typically ranging from ISK 500 to ISK 4,000.

To find value-for-money purchases, it is advisable to shop at local markets or stores away from main tourist areas, where prices are often inflated. Places like Kolaportið, Reykjavik’s flea market, offer a wide range of items at more reasonable prices compared to souvenir shops at popular tourist destinations.

Entrance Fees for Popular Tourist Spots in Reykjavik: from 6,990 ISK

Iceland is home to numerous attractions, and while many natural wonders like the famous black sand beach at Reynisfjara are free to visit, some popular spots do have entrance fees.

For example, a visit to the Blue Lagoon, one of Iceland’s most iconic geothermal spas, can cost between ISK 6,990 to ISK 9,990 for a standard package, including a silica mud mask and use of a towel. Other notable attractions include the Perlan Museum in Reykjavik, where entrance fees are around ISK 2,900 per adult, and the Whale Museum in Husavik, which charges about ISK 2,200 per adult.

Additionally, some of the national parks and protected areas might have parking fees or charges for guided tours, although access to the park itself is typically free. It’s always a good idea to check for updated prices and book tickets in advance for popular activities in Iceland, especially during the high tourist season, to avoid last-minute price surges and ensure availability.

Being in the far reaches of the North Atlantic Ocean certainly has its perks. The incredible views and the serenity of being distant from more central European countries make Iceland a dream destination. However, the downside to its unique location is how it impacts costs. 

Iceland is at least five-and-a-half hours away from the United States by flight, and its distance from major cities worldwide means that imports are complicated and often expensive. This would be fine if Iceland did not have to depend on importation for most of its day-to-day needs, but unfortunately, the country relies heavily on imports due to a short supply of natural resources. 

In addition, Iceland’s quality and standard of living are high, given that the country’s working population, which is 90% employed, is paid premium wages and, in turn, pays high taxes. The flow of wealth in Iceland’s communities has given rise to a high cost of living in the country and makes it difficult to find cheap alternatives to necessities for tourists because they do not exist for the locals either. 

An upsurge in tourism and exploration of Iceland’s many famous attractions has increased the demand for items and services like accommodation, tours, rental cars, tickets, and activities that make up a large part of any holiday planning. Recent inflation also plays a role in Iceland’s high cost of commodities and services. At the same time, the fluctuating Icelandic currency also requires you to pay attention to global and local foreign exchange trends while in Iceland. 

In-Depth Exploration of Iceland’s Cost Factors

Local Economic Factors Affecting Prices

Iceland’s geographical isolation significantly impacts the cost of goods in the country. Located in the North Atlantic, far from mainland Europe and North America, Iceland relies heavily on imports for many of its essential and non-essential goods. This reliance on importation naturally leads to higher costs. Everything from food items to consumer goods must be transported over long distances, often incurring substantial shipping fees, which are then passed on to the consumer in the form of higher retail prices.

Additionally, the limited local production capacity in various sectors means that the country cannot offset these costs by producing more goods domestically. This situation results in a higher cost of living compared to many other countries, affecting both residents and tourists alike.

Contrary to what one might expect, Iceland’s energy costs, predominantly sourced from renewable resources like geothermal and hydroelectric power, play a unique role in its economy. While these renewable sources provide relatively cheap and abundant energy, the initial infrastructure setup for harnessing these natural resources involves high costs.

These expenses, in turn, can contribute to the overall cost of services and goods in Iceland. However, it’s also noteworthy that the abundance of renewable energy has attracted energy-intensive industries to the country, which positively impacts the economy but can also lead to increased competition for resources.

Impact of Tourism on Iceland’s Economy

Tourism has become a cornerstone of the Icelandic economy. The breathtaking landscapes, unique geological features, and the allure of the Northern Lights have turned Iceland into a popular tourist destination. This influx of tourists has led to increased demand for accommodation, food services, and travel-related services, driving up prices due to the high demand, especially during peak travel seasons. The revenue generated from tourism significantly contributes to the national economy but also results in a cost structure that caters to tourists, often at premium prices.

Sustainable Tourism and Its Costs : Iceland has been a proponent of sustainable tourism, aiming to preserve its pristine natural environments while catering to tourists. Sustainable tourism initiatives often involve investing in environmentally friendly infrastructure, promoting responsible travel practices, and ensuring that tourism does not adversely affect local communities and ecosystems.

These initiatives, while crucial for long-term preservation, often come with higher operational costs. These costs, necessary for maintaining the balance between welcoming tourists and preserving natural beauty, are reflected in the pricing of tours, accommodations, and other tourist-related services in Iceland.

Despite having a reputation for being an expensive destination, there are several ways that you can save money on your trip to Iceland. 

• Consider visiting during the off-season and shoulder seasons , when the crowds will be significantly less than during the summer. This will save costs on flight tickets, accommodation, car rentals, and even food and activities. 
• Always book in advance. Get your essentials, like Iceland flight tickets and rental cars, ahead of schedule as much as possible. This way, you can avoid any last-minute price hikes and also ensure that you don’t miss out on availability and end up unable to book your preferred options.
• With the price of restaurant meals in Iceland, the most budget-friendly way to dine is to cook your own food. Many hostels, Airbnbs, campgrounds, and campervans have provisions for cooking, and grocery stores are never far away. So, with a little effort, you can spare yourself the cost of an expensive restaurant meal and make food to your taste.
• If your accommodation or itinerary does not allow you time or space to cook meals, then this could be the time to embrace the fast food options in Iceland; after all, it is a vacation. But if you have it in the budget, we do recommend trying out some local Icelandic cuisine . 
• Enjoy free activities and attractions as opposed to tours and paid entertainment. For example, instead of going to a paid Iceland hot springs or geothermal bath, you can opt for more remote, free hot springs enjoyed by locals while also getting a more authentic experience.
• There are also several accessible black sand beaches , glacier lagoons , Iceland waterfalls , and hiking trails that satisfy your thirst for adventure in Iceland without costing more than gas money or transportation to reach these areas since they are free to access. 
• Bring your own water bottle. A simple water bottle will save you money that you would have otherwise spent on bottled water, as you can safely drink tap water in Iceland and fill your water bottle at rest stops instead of buying water at different venues and public attractions. 
• Consider traveling with a friend or family member to split the costs. Many essentials like gas, food, rental cars, and accommodation can be divided between two or a larger party to break heavy expenses into lighter loads for each individual. 
• Eat in local markets and food halls in Iceland is not just a culinary adventure; it’s a smart way to keep your dining budget in check. These places offer a diverse array of Icelandic specialties at prices that are much more wallet-friendly than what you might find in upscale restaurants. For instance, at Reykjavik’s Grandi Food Hall or Hlemmur Food Hall, you can savor everything from traditional Icelandic snacks to international dishes, all without breaking the bank.
• Making the Most of Tax-Free Shopping. This is particularly beneficial for tourists planning to make substantial purchases. Look for stores displaying the “Tax-Free Shopping” signage, and remember, your total purchase needs to be at least ISK 6,000 to qualify. Keep your receipts and fill out the tax-free form provided by the store. When you’re heading home, show these forms along with your items at the airport or port customs for validation, and you can claim your refund right there in the departure area. This process effectively reduces the cost of your shopping, giving you more value for every dollar spent.

Cost Guide to Iceland

This cost guide to Iceland has provided detailed information on how much it costs to go to Iceland, along with key details on the average cost of trip essentials and factors that could cause those prices to change throughout the seasons. By following our tips on the best ways to save money while on vacation in Iceland, you can keep your trip within your budget, regardless of what that is. 

One of the best ways to save money on your trip to Iceland is to book a rental car online and in advance with Hertz Iceland to lock in the rental rate before it fluctuates. By securing your rental car prior to your trip, you can ensure you get the best deal and the perfect vehicle to explore the wondrous landscapes of Iceland. 

Best rental cars in Iceland for all seasons

Hyundai Tucson Plug-in Hybrid or similar | Automatic | 4×4

Ifai | group: n3 (ifai).

• Airconditioning

This vehicle is NOT allowed in the highlands F-roads. NOTE: Allowed on roads no.35 and 550. You must be 23 years of age to drive this vehicle.

Additional Features

• 3 Large Luggage
• 4 Wheel Drive
• 46 C0 2  g/km
• Adjustable Steering
• Cruise Control
• Electronic Stability Control
• Power Steering
• Power Windows
• Remote Locking

Kia Sorento Plug-in Hybrid or similar | Automatic | 4×4

Sfdi | group: o6 (sfdi).

This vehicle is NOT allowed in the highlands F-roads. NOTE: Allowed on-road no.35 and 550. You must be 23 years of age to drive this vehicle.

• 4 Large Luggage
• 38 C0 2  g/km

Land Rover Defender or similar | Automatic | 4×4

Pfan | group: g6 (pfan).

Suitable for highlands, Please read the Terms & Conditions. You must be 25 years of age to drive this vehicle.

• Petrol or Diesel
• 234 C0 2  g/km

Tesla Model Y or similar | Automatic | 4×4

Ugdc | group: v1 (ugdc).

This vehicle is NOT allowed in the highlands F-roads. You must be 23 years of age to drive this vehicle.

• Traction Control

5 seats Toyota Land Cruiser or similar| Automatic | 4×4

Ffar | group: i (ffar).

Suitable for the highlands. Please read Terms & Conditions. You must be 23 years of age to drive this vehicle.

• 5 Large Luggage
• 251 C0 2  g/km

Toyota Land Cruiser 7 seater or similar | Automatic | 4×4

Fvan | group: h (fvan).

• 2 Large Luggage
• 252 C0 2  g/km

Manage Booking

How Much Will an Iceland Trip Cost in 2024?

Last Updated on December 11, 2023

by Maggie Turansky

Disclaimer: This article contains affiliate links. That means if you click a link and make a purchase, we may make a small commission. As an Amazon Associate we earn from qualifying purchases. For more information, see our privacy policy.

Is Iceland expensive to visit? How much will an Iceland trip cost if you stick to a budget? A destination that is on many a traveller’s wish list, many wonder if it is even possible to plan a trip to due to a perceived notion that it is an incredibly costly country to travel to.

If you are interested in visiting this gorgeous nation, then it is essential that you’re aware of the average prices in Iceland and budget accordingly. But, in all honesty, the cost of a trip to Iceland does not have to be astronomically high.

An average trip to Iceland cost for travellers who want to vacation in Iceland is approximately $110-400 USD per person per day . This means that the cost of 7 days in Iceland is around $770 to $2,800 USD excluding airfare. You can expect prices at the lower end if travelling on a budget during shoulder seasons and at the higher end as a mid-range traveller in peak season.

Depending on your travel style and tendencies, it is possible to reduce your Iceland vacation cost a lot in some facets in order to spend more in others. If you’re looking to visit this beautiful Nordic nation on a budget and you’re wondering how much your trip will generally cost, read on to find out our best money-saving advice.

Table of Contents

Iceland Trip Cost Guide

This guide will break out the average costs of your vacation to Iceland across accommodation, transport, food, activities and entertainment, helping you understand how much is a trip to Iceland.

Accommodation Prices

An average cost for accommodation in Iceland will be approximately $40-125 per person per day in shoulder seasons or $60-200 per person per day in high season. This assumes you’re either staying in a hostel dorm bed or, otherwise, splitting the cost of hotel rooms with another person.

Hostels in Iceland will set travellers back on average $40-60 per night, will prices tending to be more expensive in the capital city of Reykjavik and during the peak tourist seasons of July and August.

You can sometimes get cheaper prices if you book in advance and it’s worth doing this if you want to stay in hostels as options are limited once you get out of Reykjavik. You can browse the best hostels in Iceland here.

If you’re travelling as a couple or with a friend, then you can get similar costs by choosing to stay in a private room in an Airbnb. Another benefit of staying in an Airbnb or hostel is they often offer self-catering facilities so you can cook your own meals and save money even further.

However, in popular places such as places like Vik and Jokulsarlon options are limited. If you’re looking for a budget hotel like Hotel Kanslarinn in Hella expect prices to begin at around $150 per night and increase to about $250 in the high season months.

If you want to go down this path, it’s worth booking as early in advance as possible as good quality places book out quickly, particularly in high season.

For those looking for a more traditional hotel route rather than wanting to stay in more budget-friendly accommodation, you’re going to have to pay a bit of a premium.

A decent, 3-star hotel in Iceland will start at around $250 per night and increase to roughly $400 per night in the high season. Expect nicer hotels to increase in price from there. Prices don’t vary too much in or out of Reykjavik.

Another popular option among budget travellers in Iceland is to hire a camper van, which kills two birds with one stone as you will also have your transport taken care of.

There are numerous camper rental companies throughout Iceland and the cheapest option for a basic manual-transmission van that sleeps two starts at around $120/day.

An auto-transmission will cost more but you can expect significant discounts to these prices if you choose to visit outside of peak seasons. Many campervans also offer heaters and camp stoves/cooking supplies which allow you to cook your own food easily.

Keep in mind, however, that it’s not possible to sleep anywhere you want in a campervan in Iceland so you will need to also factor the cost of campsites/overnight parking, particularly along the more popular South Coast .

Transport Prices

Contrary to the majority of European countries, public transportation in Iceland is lacking so the most effective and efficient way to get around this island nation is by car.

The cost of a hiring car with basic insurance included will be approximately $30-40 per person per day if splitting costs between two people. However, you can get significantly reduced pricing for basic cars if travelling in shoulder seasons.

In addition, to the cost of hiring a car, you’ll need to factor in the cost of fuel, which will increase your daily costs, as well. The average petrol price in Iceland as of December 2023 is $2.25/litre (or about $9/gallon).

If you plan to hire your own car and drive the Ring Road, there are a number of rental companies to choose from. While you may be inclined to hire a car through an internationally recognised company such as Hertz or Enterprise, often these companies charge a lot more than a local car hire company.

We, for instance, found a great deal from Reykjavik Cars which was by far the least expensive option we were able to find.

If you want to compare prices across companies we recommend browsing options here so you can see aggregate results from a number of the major car hire companies.

Another factor for your Iceland budget to keep in mind is that cars with an automatic transmission often cost considerably more than a manual. So if you can drive a manual and want to save some money, by all means, make sure you’re hiring a manual transmission.

Finally, if you do rent a car in Iceland, a great way to save money on insurance is by going through a third party such as iCarHireInsurance. They offer excess insurance (which means you won’t have to pay anything if you get in an accident) for a fraction of the cost of most car rental companies. 

If you don’t rent a car in Iceland then you’ll need to factor in additional costs such as airport transfers from Keflavik Airport . By booking in advance, you avoid having to wait in line when you arrive and can simply hop on the bus when you land. Click here to book your airport transfer to Reykjavik!

Food Prices

Another expense you will need to consider for your Iceland travel budget is the price of food. It will come as no surprise that food in Iceland is expensive, especially if you eat in a restaurant. If you choose to cook all your own meals then you can expect to spend approximately $10-15 per person per day.

The average cost of a meal at even the most budget-friendly of restaurants will probably set you back about $20-30 per person. This is why the absolute biggest Iceland food budget tip I can give would be to cook your own meals.

That isn’t to say there aren’t cheap eats in Iceland, particularly in Reykjavik, where in the capital a hot dog at the famed Bæjarins Beztu Pylsur is just a bit over $4.

Groceries are significantly cheaper than anything you could get at a restaurant so I would suggest stocking up on as many non-perishable items as you would need for the entirety of your trip while in Reykjavik.

This was something of a shock to us, but grocery prices in the capital city were about 10-15% less than those at supermarkets in the smaller towns along the Ring Road.

But if you want to shave a considerable amount off of your total trip cost I would wholeheartedly recommend cooking for yourself. If you want to incorporate one meal per day at a restaurant then you should expect that to set you back around $30 per person, meaning your average food budget in Iceland will increase to around $40 per person per day.

Activity Prices

Luckily for the budget traveller, it is very possible to visit Iceland and not spend a dime on any activities! However, if you want to splurge on at least one or two of the major activities in Iceland (such as a basic Blue Lagoon visit or an hour of horseback riding) then you should expect to spend an average of $20-25 per person per day over a one-week trip.

Most of the main natural sites in Iceland don’t charge any entry fees and even if they do, they most certainly will not break the bank. For example, I think the only attraction we had to pay to visit was the Kerið Crater Lake on the Golden Circle route and that only set us back $3 per person.

There are also plenty of hot springs that you can visit that aren’t the Blue Lagoon that may require a bit of a hike, but are free to enter.

If you’re planning on spending a bit of time in the capital city, there are a number of things you do in Reykjavik on a budget and one of the best ways to see the main sites of this charming little city is by going on a free walking tour. While these tours advertise as being free, you should always tip the guide if you have enjoyed the tour.

It is certainly possible to splash out on experiences — such as glacier climbing, whale watching, horseback riding , or SCUBA diving along the fault line — these things are not necessary in order to get the most out of your Iceland trip.

If you don’t rent a car and are unwilling to hitchhike then your only option to see the Golden Circle and other stunning natural attractions is to book a guided from Reykjavik. Some of the best options include this full-day Golden Circle tour and this full-day South Iceland tour.

These amounts aren’t included in an average Iceland vacation cost as the majority of people visiting Iceland choose to rent their own transport.

Entertainment Prices

Sometimes there is nothing better after a long day spent outside enjoying stunning natural scenery than a nice, cold beer. However, in Iceland, this is going to cost you.

Iceland has some of the most expensive liquor prices in the world and a pint of local beer at a bar can easily set you back $10-15.

The easiest remedy to this is if you intend to visit Iceland on a budget, simply abstain from drinking. However, if you do enjoy the occasional alcoholic beverages, there are ways to drink in Iceland on a budget.

One great tip is to follow the lead of the locals and stock up on your booze at the duty-free shop in the airport. These are, by far, the cheapest liquor prices you’ll find in the country as the local tax is removed. Another option is to purchase liquor at the duty-free shop at the airport you are departing from.

Reykjavik is famous for its nightlife, but keep in mind that it can be very expensive to go out. While booze prices are slightly less expensive in Reykjavik than in the rest of the country, it’s still going to be considerably more than what most people are used to paying, given that you live outside of the other Nordic countries.

All in all, alcohol prices in Iceland are incredibly expensive and if you really want to cut down on your Iceland travel cost then it’s best not to drink at all. If you want to incorporate a couple of visits to a bar during your Iceland trip, then expect to plan for around $20-30 in your Iceland budget for every night out.

Average Iceland Trip Cost

So how expensive is Iceland? Well, it isn’t a cheap destination to visit, however, it is possible to travel on an incredibly tight budget while in Iceland. For the purposes of this section, I’ve averaged all of the costs so you can have an idea of how much you might spend per day while travelling in Iceland, assuming you are splitting the costs between two.

Accommodation:  $40 – 200 / night

Transport:  $30 – 70 / day

Food:  $15 – 50 / day

Activities:  $25 – 50 / day

Entertainment:  $0 – 30 / day

Depending on your travel style, it is possible to travel to Iceland on a minimal budget. Assuming that you’re not intending to camp and hitchhike your entire trip it’s safe to assume that your Iceland trip budget will be about $110 per person per day if travelling on a budget during shoulder season and up to $400 per person per day if you’re a mid-range traveller visiting in peak season.

This does not include any pre-trip expenses such as airfare or ensuring you have the right gear for your Iceland trip.

Finally, also make sure that you factor in the cost of a travel insurance policy. World Nomads   offers flexible and simple travel insurance policies with coverage for more than 150 activities that you can buy or extend while on the road.

Another affordable option is SafetyWing which offers travel medical insurance policies. Click here to get a quote from SafetyWing.

Travelling in Iceland doesn’t have to be as expensive as you might think. If you do the proper planning and budgeting, you might find that your trip to Iceland cost can be fairly affordable even in one of the most expensive countries in the world.

Are planning a trip to Iceland? Have any questions about prices? Let us know in the comments!

Related Posts:

10 Tips for Planning An Iceland Trip

How to Get From Keflavik Airport to Reykjavik or The Blue Lagoon

The Ultimate 6-Day South Iceland Itinerary

About Maggie Turansky

Maggie is a co-founder and writer for The World Was Here First. Originally from the US, she has lived in five different countries and has travelled to dozens more, both solo and with her partner, Michael. She particularly loves exploring Spain and spending time in the Caucasus and the Baltics. Read more about Maggie

I’m glad that one commenter mentioned the exchange rate. Looking at the most recent exchange rate, is one of the reasons I’m thinking about going this year. I would have thought that would play a significant factor in lowering the cost. How can someone from the U.S. maximize this advantage. Maybe you could explain for a newbie.

We just returned from Iceland two days ago and got the bargain of a lifetime. Since we traveled there for the first time 3-1/2 years ago Icelandair offered us a fantastic deal which we could not pass up. For $595 per person the trip included round trip airfare, three nights in a hotel (which included breakfast), a Hop On Hop Off city bus tour, a boat tour to see the Northern Lights and an afternoon at the Sky Lagoon Geothermal Lagoon. We upgraded the hotel and stayed for 6 nights and paid $953.50 per person. Granted this was 3 nights in January and 3 nights in February 2022 but was well worth the bargain!

Thanks for sharing your experience, Ginny! Seems like you had a great trip 🙂

Was there 10 days in July 2019. You can certainly get your fill of volcanic rock, a beautiful vacation though. rental of minivan, flight cost of 1400$, cost from home to Edmonton airport and back, grocery store pickups, trip to Drangey Island, full ring road with various hiking trips to the coast, 3 hot pools including Blue Lagoon, one restaurant out, and can’t remember what else. 4500$ cdn-was worth every penny!

Sounds like you had an amazing trip, Daryl!

We did Iceland for 15 days this winter 2020 , the best decision ever! Safe traveling , the island for our selves , no camping costs because they where closed .

We did this for 3600€ for the both of us and since we were influencing we worked together with a campervan company that cuts down our van cost with 1600€

That comes down to 2000€ for 15 days . All in, including flights

Thanks for sharing!!

Hi, I am planning to visit Iceland in April 2022 together with my Husband for maybe one week. Which are the places that we definitely should visit? And where should we start?

Do you have good Tips for as?

Thank you 🙂

Hi Lisku, you can find all of our information about Iceland here: https://www.theworldwasherefirst.com/iceland-travel-guide/ Hope you have a great trip!

Hi! 3 years ago I visited Iceland together with my girlfriend: The south-east coast, the ring road, glaciers, geysers, fjords and a lot of waterfalls. By that time prices were quite higher than now because of the change from USD to ISK. I would say we spent around 1000 USD each one for a one week road trip.

The trip went awesome until the moment we were travelling back to home. We boarded the plane and just some minutes before departing the captain said there was a technical issue with the plane, It was one of the the last flights of the day.

At the end the flight got delayed 7 hours and we missed our next flight at JFK (New York). The interesting fact is that because of that delay, one month later the airline gave us a compensation of $720 to each one! Doing the math we got back around 75% of what we spent in Iceland.

I definilety will go back and visit Iceland again!

Thanks for sharing, Gabriel!

Are the costs quote in USD or CAD? Thank you.

Prices are quoted in USD.

Hey! My partner and I are planning to visit Iceland for our honeymoon,from India, for a 7 days trip,can you suggest the best places to visit ,the accomodation ,and an approximate cost of the whole.

Hi Rashi, hope you’re able to have a wonderful honeymoon! You can find more of our Iceland tips and articles here: https://www.theworldwasherefirst.com/iceland-travel-guide/

I hope you went and enjoyed the trip. Could you help me with the details of the costs? Thanks

When I was in the Army my unit went to Iceland two times and I was not chosen to go, but this time I really want to make an effort to during the summer months. I would like to go through a travel agent and be in a group tour. I am a senior citizen and would like to do this trip since I never had the chance to go. Any suggestions from anyone? Thank you and God bless.

Hi Susan, thanks for your comment! As we write mostly for independent travellers, we don’t know of any multi-day tour companies in Iceland that we can recommend. However, if you base yourself in Reykjavik, you should be able to easily see what the country has to offer with a series of organised day tours. I hope you’re able to plan a great trip!

I just got back from an 8 day stay in Iceland, in March 2019. We arrived in Reykjavik. My mom and aunt wanted to do the ring road (which is risky in winter), and requires at least 7 days to enjoy the sights and not rush. we went. Then finished the trip back in Reykjavik.

We split the cost of the rental car, gas, and guesthouses, which are cheaper than hotels (three twin beds in a small room) equally.

Hostels in Reykjavik were about $40 a night and awesome at KEX hostel (old biscuit factory turned hostel with a bar / food). Met a bunch of people from all over the world!

We individually paid for food, attractions and souvenirs. I went Glacier hiking / ice cave tour which was about $170, bought some little things for co workers about $50 and food was roughly $20 a meal for one person (on the low side). My pockets weren’t tight when it came to trying real Iceland cuisine.

I caught a break on round trip airfare for about $530 from Richmond, VA to Reykjavik, Iceland with eleven hour layovers in Boston, Massachusetts each way.

After it was all said and done, my total out of pocket expense was about $2200 USD for 8 days.

I hope this gives you a better idea of how much you may spend on your trip to Iceland. Was it worth it? Absolutely, but I always love to travel. So save up, plan accordingly and have fun in Iceland!

Thanks for that insight, Jeremy!

Do they get to see the northern lights much? And wouldn’t winter be a little cheaper?

You can definitely see the Northern Lights in the winter months! And generally, pricing in the winter isn’t much different from pricing in the summer, as Iceland is generally a popular destination to visit year-round. Hope you’re able to visit soon!

Sounds great. Can I ask did you get to see the northern lights during that time period? Thanks in advance

I went there with my family last month. It is not too much expensive. We really enjoyed it. And It was an amazing experience to go there. Really worth it.

I’m glad you enjoyed your time in Iceland! It really is an amazing country. It’s definitely possible to cut costs and still completely enjoy your experience.

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Find cheap flights to Iceland from $145

This is the cheapest one-way flight price found by a kayak user in the last 72 hours by searching for a flight from the united states to iceland departing on 10/25. fares are subject to change and may not be available on all flights or dates of travel. click the price to replicate the search for this deal., search hundreds of travel sites at once for deals on flights to iceland.

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Best Iceland Flight Deals

Cheapest round-trip prices found by our users on KAYAK in the last 72 hours

Good to know

Faqs - booking iceland flights, what nearby cities are reachable from keflavik international airport (kef) once i arrive in iceland.

It is straightforward to get to other nearby cities served by KEF Airport via a cab, a rental car, or bus services. Njardvik, Hafnir, and Sandgerdi are three additional nearby cities that you might probably visit while in Iceland in addition to Keflavik.

What child safety regulations must I be aware of before I rent a car in Iceland?

Iceland mandates that a child travels in a child seat with a five-point harness until they are large enough to ride in a booster. Additionally, the child seat must be facing backward until the child is at least one year old; rear-facing seats are advised until the child is three.

Are there any airport lounges on flight routes between Iceland and the United States?

Yes. If they wish to use airport lounges before boarding their preferred carriers, travelers going to Iceland from the US need to consider flying out of Salt Lake City International Airport (SLC). The Delta Sky Club is an airport's economy lounge located in Terminal 1 of this airport. This lounge is easily accessible to travelers on a tight budget who are flying from the US to Iceland.

How can I board the first plane departing Stewart International Airport (SWF) on the SWF-KEF route?

Consider making a hotel reservation at a location closest to the airport if you plan to take the first flight from SWF to Iceland. A nearby hotel worth considering is Homewood Suites by Hilton Newburgh-Stewart Airport, which is located 2 minutes from the main terminal.

How do I get to Reykjavik City from Keflavik Airport?

Arriving passengers on flights from the US to Iceland can take the Straeto Routs 55 bus, which provides daily service to the Reykjavik City, or ride Flybus shuttle to Reykjavik Bus Terminal (BSI). Otherwise, you can rent a car or take a taxi downtown.

How can I visit the Blue Lagoon?

The heated water of the Blue Lagoon is world famous for its restorative and healing properties and is one of the biggest attractions on the island. The lagoon and spa are located near Grindavik, about 20m south of Keflavik Airport by car, so it’s very easy to visit after your flight and enjoy a relaxing swim in the turquoise water.

Can I buy local currency at Keflavik Airport?

Yes, you can. The local currency is the Icelandic Krona and there is a branch of Arion Bank in the Arrivals Hall at Keflavik Airport where you can exchange your dollars or make other financial transactions after your flight from the US to Iceland. The bank is open daily until midnight local time for your convenience.

Where should I fly if I wish to view the Aurora Borealis?

The Aurora Borealis, otherwise known as the Northern Lights, is the world’s most spectacular light show and is visible just about anywhere in Iceland with a clear view of the night sky just as long as it’s not snowing. Flying into Reykjavik is sufficient.

How long is the flight to Iceland?

An average nonstop flight from the United States to Iceland takes 10h 03m, covering a distance of 3416 miles. The most popular route is Newark - Reykjavik with an average flight time of 5h 35m.

What is the cheapest flight to Iceland?

The cheapest ticket to Iceland from the United States found in the last 72 hours was $160 one-way, and $226 round-trip. The most popular route is Newark to Reykjavik Keflavik Intl and the cheapest round-trip airline ticket found on this route in the last 72 hours was $375.

Which airlines fly to Iceland?

Icelandair, JetBlue & PLAY fly the most frequently from the United States to Iceland. The most popular route is from New York to Reykjavik, and Air Canada, JetBlue and United Airlines fly this route the most.

What are the most popular destinations in Iceland?

Based on KAYAK flight searches, the most popular destination is Reykjavik (100% of total searches to Iceland). The next most popular destination is Akureyri (0.0%).

How does KAYAK’s flight Price Forecast tool help me choose the right time to buy?

KAYAK’s flight Price Forecast tool uses historical data to determine whether the price for a given destination and date is likely to change within 7 days, so travelers know whether to wait or book now.

Top tips for finding cheap flights to Iceland

• Enter your preferred departure airport and travel dates into the search form above to unlock the latest Iceland flight deals.
• Reykjavik Airport (RKV) is widely chosen as the arrival airport among most travelers flying to Iceland from the US thanks to its closeness to Reykjavik, the capital city of Iceland. Passengers flying this route out of Los Angeles International Airport (LAX) have the choice of flying on indirect flights with one layover at Copenhagen Airport (CPH) on such airlines as Air Canada, Air France, or American Airways.
• Most tourists from the east coast areas of the United States who wish to travel to Iceland depart from John F. Kennedy International Airport (JFK) and arrive at one of the airports in Iceland. Tourists who wish to travel from the US to Iceland as swiftly as possible might consider the JFK to Keflavik International Airport (KEF) route. Icelandair 612 and Icelandair 614 are the two principal airlines that offer nonstop flight services on this route.
• Consider flying from Dallas Fort Worth International Airport (DFW) if you plan to fly to Iceland from the central parts of the United States. No airlines are offering nonstop services on this route, leaving customers flying from the USA to Iceland with only the option of taking connecting flights.
• Most Americans who travel to Iceland frequently prefer to fly out of JFK. Since it acts as a hub for so many respected airlines that fly abroad from the United States, this airport is well-liked. Travelers leaving from this airport towards Iceland are likely to enjoy ticket discounts due to price competition among airlines.
• If you're coming from the northwest region of the United States to Iceland, you might want to consider departing from Seattle Tacoma International Airport (SEA). Consider flying into Akureyri International Airport (AEY) if you want to leave SEA Airport as quickly as possible. On this route, one-stop indirect flights with a layover at Frankfurt Airport (FRA) are offered by the majority of carriers, like Lufthansa and Air Canada.
• US citizens booking flights from the US to Iceland do not require a visa in order to travel. Iceland is part of the Schengen program, therefore US permanent residents from EU countries that are members of the Schengen zone also do not require a visa.
• Keflavik International Airport (KEF) is the only international gateway to Iceland and is situated at the southwestern tip of the island. This airport is used mainly for international flights so if you wish to fly to other areas of the country, you must use Reykjavik Airport (RKV), which is about 2 mi from Reykjavik City.
• There are only a handful of airlines that offer nonstop flights to Iceland from the United States and all of them originate from cities on the Eastern seaboard. Icelandair flies direct from JFK in New York and Newark’s EWR while JetBlue flies nonstop from Logan International Airport (BOS) in Boston.
• Air Iceland is the country’s main domestic carrier and uses Reykjavik Airport as its hub. If you prefer to fly around the country, you can fly Air Iceland to other regional airports such as Raufarhofn Airport (RFN), which services the Northeastern Region of the country, and Isafjordhur Airport (IFJ) if you are traveling to the West Fjords area.
• Iceland is a nature lover’s paradise and no trip is truly complete without a visit to Snaefellsjokull National Park, which is home to a glacier, volcanic lava fields and various local wildlife. The park is found in the outer reaches of the Western Region, not far from Hellisandur, and once you fly into Keflavik Airport, it will take you about 4h to get there by car.

Top 5 airlines flying to Iceland

A regional sized plane was used for a cross country flight with no overhead bin space. I had to "pink check" my laptop and my medications. I was NOT pleased!!!!

Absolutely nothing flight was cancelled and delayed for 2 days. Barely a heads up I want a full refund

The plane from SNA wouldn’t start after 5 tries. The team gave me an option of flying direct from LAX and giving me a Lyft ride there! Perfect!

Best airline! Always friendly and welcoming. Skyclub was great and loved the fast free wifi on board. I also love that you can pre-order your meal on the app!

Atlanta boarding crew at gate were filled with arrogance and were disrespectful. In flight crew showed indifference to the needs of passengers. This is about the flight from ATL to BDL.

The plane was FREEZING SEATS UNCOMFORTABLE Otherwise smooth Thank you

Boarding was chaotic. I didn’t finish dinner because I went to bed early. Breakfast omelet was overcooked and tasteless but croissant was better than usual. Plane was dirty—crumbs in every seam and lavatory was poorly maintained (paint peeling, etc.) and toilet paper had not been refreshed before takeoff. No cubby for storage in first and seat was narrow.

Boarding was somewhat chaotic. Unable to evaluate crew or food/drink because captain kept them seated due to turbulence. Have no idea if entertainment was offered.

West Jet has a horrible boarding process and the seats have no cushion.

Everything went smoothly. I didn’t like that when I booked in the main cabin my wife and I weren’t seated together. One would think when booking on an option that allows picking your seat. They would put you and your travel partner together. Had to call to get it sorted. They did fix.

Delayed departure. Delayed after landing pulling into gate. Delay due to sky bridge malfunction

Great. Loved that there was WiFi on flight to keep in touch and excellent service of beverages and snacks.

Business class is great. New airplane, very comfortable, better than some of the major airlines I am used to

Terrible. Flight was cancelled due to the weather in the east and sout east(florida). Did not get any compesation of any kind. According to them, it was not under their control so I lost all the money paid for the 2 fairs from Raleigh, NC to Orlando, Fl.

great flight. Pilot was communicative, flight attendants were excellent. Really nice experience except my tv didn’t work.

Overall, the flight was better than the flight I took to go to Florida, which had a bunch of problems. The crew is really nice and the plane was new so it had a small problem when we were on the runway, but the flight itself was great. They even made some time back up, which is always a good thing.

at the time for boarding the lady just call Group A and no other goups and everybody from A to F go inside without the right turn,and when we get in theres no more spsce for carry on , the ones that get in at not correct group from the back occupy our space !!!!! a mess !!!!

There were multiple delays but JetBlue tried to make the boarding and departure process as quick and efficient as possible. The crew was as detached from reality as could be, meaning: not very friendly and just doing things by the numbers.

I had back trouble prior to my flight and everyone was great about helping me.

Jetblue needs to improve on Onboarding as it seems to always be behind on departing. It never leaves on time. I would recommend to have an earlier Onboarding in order to leave on time and respect your customers time as well.

Not a fan of the diagonal partially enclosed business class seats or how they have to be converted to beds manually by crew. I prefer more isolation and user control for switching to lie flat.

No lounge access with “United First” ticket. False alarm about late flight, jeopardizing connection. Wrong meal. Loose power socket would not hold plug, could not charge device. In-flight access to text messaging did not work. Toilet seat on plane would not stay up.

We ended up with seats in the very back. So they did not recline. Have no idea why, we reserved and checked in very early. The isles were very narrow and the seats had very little leg room. But they did give us water, and a snack.

Energetic crew - flight full of swiftied going to Taylor's opening show in Paris! Long lines for bathroom made out kind of suck though

Check in etc was very good. As for on the plane, it was like flying in a freezer. It was so cold, i have flown for years and never been so cold on a plane. Staff on board said its always cold when flying which is a load of rubbish. They wouldnt put any heating on and now i have the flu because of this .

I’ve had a couple flights this week on United that were delayed by an hour or more

Flight was delayed 2.5 hours - a big deal on an overnight when you plan to sleep.

I feel like they have upgraded the app since I last flew United and I found it to be super helpful. I had stopped flying United unless absolutely necessary and my experience on this trip indicates they have been working hard to improve their services.

Surprisingly easy! I was hesitant to try this, but the cost swayed me. I actually felt like I had less stress than all the taxiing and possible delays that occur with short regional flights where you spend less time in the air than getting to and from the plane..

This flight was delayed multiple times and eventually canceled around 2-3ish. Original take off time was around 10:30am. By 3, there were no other options out of Houston, so stuck in Houston for from 3pm - 11am the next day.

did not get the seats we had specially paid for

This is a no frills airline. You cant expect much for the price. Low cost flight, clean, nice staff. That's all I need for the price. If you want more, book with another airline and pay more. For Europe trips, PLAY is the ONLY airline I use

Misleading instructions for check in. Although I did virtual check in and was instructed to head to security, once I was at security, they told me to go back to Play ticket counter and get paper tickets. Also, beware that Play doesn’t participate in TSA PreCheck. I didn’t know that, despite entering PreCheck info when I purchased the tickets. I wasted time in the TSA PreCheck line as well. So we had two setbacks at check in.

It's a budget airline, so forewarned is forearmed. Yes, you pay for everything like carry-on, checked baggage, seat selection, but that's becoming the case with major airlines. Bringing your own snacks and entertainment on board is highly recommended. It's no frills, but the crew, the plane and the flight itself was great. If you want pampering go for a larger airline. If you just want to get from A to B in comfort and safety, Play is a great choice.

It is a low cost airline. Staff are courteous. There is no entertainment. Food is purchased.

Upon boarding, the people at the gate were extremely rude, there were no outlets on a 6 hour international flight, there was no entertainment, all food and drink was purchase only (even snacks), and my seat reclining function was fully broken. The only redeeming quality was the flight attendants were extremely nice. This was by far the worst flight I have ever been on in my entire life

I don’t know how international flights can’t have media screens to keep people entertained for the long flight. Ugh.

Typical experience for budget airline. Boarding from KEF required bus transit from the gate to plane, so if you had "priority boarding" it was useless as it was simply a free-for-all when getting off the bus. But still no issues with getting our luggage into overhead bin so not really a problem.

Was very apprehensive about flying Play, but the flight was fine. Nothing special, nothing horrible. Fair price to get from New York to Iceland.

I wasn’t able to check in online the day before or the day of because their web configuration or business model idk. I arrived an hour early and check was closed and there was no one around to speak to and eventually was told there was no possible way to get a digital ticket despite I had no luggage to check and would have easily made it through security to boarding and had to pay for a new ticket for $330 ontop of the $169 I spend for the ticket and then I missed my rental car for $305 because I only arrived at midnight instead of noon that I was originally intended. All booked through kayak. I hope there is some kind of insurance from kayak because this was totally preventable had I not been blocked by play air from getting my check in and plane ticket.

Decent service - nice seats. Crew were not overly attentive but can’t complain overall for the money

Very nice flight, easy connections in Keflavík, and friendly crew.

I will never fly this airline again. Checking in was poor , we had to go back to the check in counter at Raleigh - Durham international airport three times because they didn’t issue my boarding pass but rather duplicated my husband’s twice which caused a big headache at the passport control at the airport which triggered security alert and wouldn’t let us pass through we we had to wait for long time to be able to explain and clear everything after talking to the supervisor.. No food on the plane , not even crackers. No food was offered to buy ether . No ear phone was provided . Very little time to make from one plane to another and nobody to assist with smooth transition. Flight itself , we felt safe so thank you to the pilots . But customer service was terrible . We spent $ 2500 on 2 tickets, so I cannot say that service was consistent with the price .

Seats are way too much now with these new airplanes especially long flights like we had. I was 7 month pregnant and in a lot of discomfort due to small seats.

Food was horrible. This wasn’t business class. No leg space, can’t sleep in row position, huge delay

I liked how easy my transfers between flights in Keflavik were. I would have appreciated more food options in Keflavik.

The plane was flaming hot! Could not breathe. Everyone coughing from heat. Awful.

My biggest problem was the flight from KEF to DUB was delayed, which caused me to miss my connecting flight in DUB and we were forced into an unplanned 10-hour layover in DUB. Crew and boarding staff were all very friendly but this was a real inconvenience and especially uncomfortable for my disabled wife.

Not much! This was my first flight with Iceland air and unfortunately it wasn’t what I have expected. My luggage is lost nothing as of yet where it was left. Not a good service at all!!

The seat size was more like a domestic than an international flight. In fact, i would compare the ammenities, quality and service to a short hall ryan air flight, which was unexpected for an international flight. The plane was extremely hot so sleeping was difficult. My biggest complaint was that they are very strict on carry on luggage only allowing it to weigh 10kg/22lb. I try to limit myself to a carryon so i don't have to mess with bagage claim, but the wieght restriction made it impossible. I have never had a carry on weight restriction (at least enforced) on an international flight. Will not be including them in future searches.

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About Flying to Iceland

Load up your suitcase, chart your Iceland flights, and brace yourself for an excursion unlike any you've ever had before. At Expedia, we know that the fun part is in the planning when it comes time for your next escape. Selecting your region, considering all the finest entertainment, and investigating plane tickets are all a part of creating memories to last a lifetime. And whether you're looking for a thrilling getaway with your loved ones or a serene retreat in solitude, when you use Expedia to arrange your trip to Iceland, you'll find innumerable ways to tailor your adventure with our awesome deals and easy-to-use payment process.

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Regardless of if you're seeking airfare to the country's capital of Reykjavik, or would rather fly somewhere off the beaten path, you're guaranteed to find the ideal destination for your trip here on Expedia. We're devoted to helping you search for cheap seats on planes to this country that won't bust your budget. We realize you want to put more of your hard-earned cash toward exploring the sights and less on the price of your flight to this remarkable region. That's the reason we provide you with an enormous array of affordable plane tickets, including both return flights and single-way reservations, to ensure your Iceland travel plans stay within your budget.

On your vacation in Iceland, surround yourself in the local culture by sampling regional menu items and partaking in the after-hours scene. And if you'd like to explore even more of this region, pay a visit to Reykjavik, South Iceland, or Northern Iceland. No matter where in this country you choose to go, take a trip to the famous landmarks on your journey, and enjoy views of the most breathtaking areas. It's easy to see why so many adventurers, amateur historians, and inveterate travelers alike are attracted to this incredible area.

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If some time off from everyday agendas is coming up for you, there's never been a better opportunity to get a flight to Iceland. Adjust your mouth for tempting food and your camera for stunning landscapes - it's vacation time! Book your adventure to Iceland this instant, and prepare to take off on an unbelievable vacation tomorrow. When it's time to searching for flights to Iceland that match your expectations and agenda, look no further than our options right here. Just select your preferred travel dates now to see the best specials on airfare in Iceland.

Here at Expedia, we’re committed to helping you find cheap flights to Iceland that won’t break the bank. We know you want to put more of your hard-earned cash toward exploring the sites and less on the price of your airfare. That’s why we provide you with a vast selection of affordable plane tickets, including roundtrip and one-way reservations, to ensure your Europe travel plans remain within your budget. Take advantage of our lowest rates on airfare and have leftover money to spare on your travel adventures.

When it comes to finding flights to Iceland that match your price range and itinerary, look no further than our options right here. We offer a variety of airlines, airports, and flight times making it easier for you to book your airfare. Whether you’re looking for a redeye ticket or a flight to a specific terminal, you’ll find exactly what you need. We also provide a hassle-free mobile booking app, which lets you reserve wherever and whenever is most convenient for you. Book your airfare to Iceland today and get ready to embark on an unforgettable getaway tomorrow.

Iceland Flights Information

Frequently asked questions.

• Icelandair - 533 flights to or near Iceland each month, including 533 flights to Keflavik Intl. Airport (KEF) per month.
• Fly Play - 121 flights to or near Iceland each month, including 121 flights to Keflavik Intl. Airport (KEF) per month.
• Delta Air Lines - 60 flights to or near Iceland each month, including 60 flights to Keflavik Intl. Airport (KEF) per month.
• Boston, MA (BOS-Logan Intl.) to Keflavik Intl. Airport (KEF) - 5 hours and 16 minutes
• New York, NY (JFK-John F. Kennedy Intl.) to Keflavik Intl. Airport (KEF) - 5 hours and 46 minutes
• Washington, DC (IAD-Washington Dulles Intl.) to Keflavik Intl. Airport (KEF) - 5 hours and 55 minutes

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13 days Kerlingarfjöll - Westfjord - Snæfellsnes Aug 2024 - Iceland Forum

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We have secured 4x4WD Kia Sportage. Have shortlisted specific accommodations within budget for the revised itinerary below. Yeay!!! Am depending on google map to calculate the distance, Will book once I am assured this is a more sensible plan. Any input to my revised itinerary below will much appreciated. Yes, we are prepared to be flexible to follow the weather condition, Here goes ...

AM KEF arrival. Car rental pick up.

143 km to Fludir

stay at Fludir (1 night)

Q : which road is more interesting ? north via Reyholt or south via Selfoss ?

100 km to Gulfoss and Kerlingarfjöll via F35

stay at the the SUPER EXPENSIVE but fancy Highland Base Kerlingarfjöll (1 night)

Q : Some blogger mentioned it'll take 2.5 hours. Possible? This means we can do one day hike (max 4 hours). What will be THE trail ?

130 km north via F35 - 722 with stops along the way : Hveravellir Hot Spring and Hveradelir.

stay at lodging off Road 722, 10 km to the junction to Ring Road 1 (1 night)

Q : Possible to visit both Hveravellir Hot Spring and Hveradelir? Any other interesting stops along the way?

185 km to Holmavik. Museum of Icelandic Sorcery and Witchcraft

stay nearby Holmavik (1 night)

Day 5,6 & 7

228 km to Ísafjörður. Explore vicinity and seafood, seafood, seafood. If weather permits, ferry over to Hornstrandir for day hike and artic foxes sighting.

stay at Ísafjörður (3 nights)

Q: Safe to do self guided day hike at Hornstrandir? What is THE must do/see in the area?

Day 8 & 9

170 km to South Westfjord via Dynjandi Waterfall. Látrabjarg Cliff and Rauðisandur Beach.

stay nearby Látrabjarg.

Q: Are the hiking trails here marked?

Day 10 & 11

Ferry over to Snæfellsnes Peninsula.

stay at Olafsvik (1 night)

Q: Cafes and restaurant recommendations?

193 km to Reykjavik

stay near City Center (1 night).

Q ; The ONE landmark/thing and restaurant we should check out?

48 km to Keflavik .

stay near airport. Need to return car the next morning at 6 am before checking in at the airport.

Q : Some must see/do/eat nearby?

10 replies to this topic

Add 20% to Google Maps estimates for "Wheels turning" driving time. Plus time for photo/fuel/food/bathroom stops.

If you are flying in overnight from China, do NOT try to. drive all the way to Fludir that first day!

There is a very popular restaurant in Isafjordur called Tjoruhusid, which is a seafood buffet. We were not impressed with it, but many people like it. It was not bad, but they used way too much oil in the cooking which detracted from the seafood itself. If I were to go there again, it would be for lunch which was much more reasonably priced.

Olafsvik is a village of maybe 1300 people . And there are 2 restaurants Sker and Reks.

We will be flying to KEF via Helsinki. On day 1, our one and only plan is to check into Fludir within 12 hours after arrival. The earlier we check in, the better as we will have the rest of the day to rest. Fully prepared to change our plan as we don't take safety for granted.

Thank you for the tip on adding 20% to google time. Will review my draft again using this guide. From experience, we have decided to cap our driving to 4 hours in a day (incl stops). Google can't tell us the driving time estimate for F roads. Do you know any reliable resource I can use as a planning guide for F roads ?

Thanks mathladyca49. Olafsvik sounds like the place we usually visit. Small, local and no tourists except for us. LOL. Google map says Reks is temporarily closed. Sker has a rating of 4.4 out of 794 reviews. From experience, rating of 4.3 and above is a pretty good indication we'll enjoy the food there. Thanks for the tip.

Also the Kia is just a SUV - not really an off road (not that you can do that in Iceland ) car

Unless you are sleeping in Helsinki you shouldn’t go beyond the city that first day. Catch up on the clock and rest and then head out.

Most of your plan is doable without F roads. Your Kia isn’t a strong F road vehicle.

Tours that go to Hornstrandir tend to be on the expensive side.

I would generally not visit a place like Hornstrandir on my own unless I had a reasonably high amount of outdoor expertise. Keep in mind that if you run into problems, nobody will be able to come to your aid for many hours (possibly days).

It really is quite remote.

Yes, the Hornstrandir trips are not cheap. Last summer for the two of us it ran right around $1000 US dollars. We have extensive wilderness expertise, and still would not go on our own there, FWIW, for the reasons that #9 posted. To get help, it could be quite a while.

Going with Borea Adventures though was great. Our hike ended up being 10 miles instead of 9 because of weather conditions and where the boat could get us. So our hiking time was 7.5 hours, but the entire day was 12 hours with all the boat rides. A long day, and exhausting, but we would not have missed it, FWIW.

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Money blog: Tourist taxes being imposed across Europe (and in UK) - here's how much they all are

An increasing number of cities are either imposing or increasing the cost of tourist taxes on visitors. Read this and our other Weekend Money content below, and let us know your thoughts. We'll be back with live updates on Monday.

Saturday 18 May 2024 17:03, UK

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Ask a question or make a comment

As we've been reporting in the Money blog over the last few months, an increasing number of cities are either imposing or increasing the cost of tourist taxes on visitors. 

Many say they are preventing damages from overtourism, as well as funding local infrastructure and businesses. 

Here are the latest tourist fees for the most popular spots in Europe...

Tourists visiting Venice for the day will have to pay a €5 entry fee to enter the city between the hours of 8.30am and 4pm.

Meanwhile, those staying overnight in Venice are charged a fee between €1 to €5 within the accommodation price for the first five consecutive nights.

People visiting the Spanish city now have to pay €3.25 if they're staying in official accommodation, up from €2.75.

Manchester 

Visitors must pay £1 per room, per night across 73 hotels. 

The scheme, which has raised more than £2m within a year, is for improvements to attract more tourists.

Tourists must pay €2 per person for every night they stay, although this is only applied for a maximum of seven nights.

The Greek government has introduced a Climate Crisis Resilience Fee to charge tourists anywhere from €0.50 to €10 per room, per night.

The amount depends on the hotel category and the time of year.

Visitors to the Croatian city must pay €2.65 per person, per night throughout April to September. 

However, the fee has been temporarily reduced to €1.86 for the rest of this year.

Different amounts are charged depending on the type of accommodation.

The most expensive charge is €14.95 for a stay in palaces, and €0.65 at one or two-star campsites, per person, per night. 

Those staying in a typical four-star hotel are charged around €8.

Those staying in the Hungarian capital are charged an additional 4% each night, which is calculated based on the price of the room.

Tourists in Berlin must pay 5% of the room price, excluding VAT and service fees.

The tourist tax here has increased from €0.82 to €1.97 per day. 

Prices researched by travel insurance site Quotezone.co.uk

By Ollie Cooper , Money team

Estate agent fees are one of the big expenses in selling a house - but rule changes and the rise of private sale websites have made it more common for people to go it alone.

But how easy is it - and what do you need to know? We spoke to industry experts to find out.

Firstly, what do estate agents do for their money?

An estate agent will typically charge in the range of 1%-3.5% of the sale price. 

That means for the average house price (£284,691 from December) you could pay anywhere from £2,846 to £9,964 in commission fees.

"When you use an estate agent, their fee includes taking professional photographs, advertising your home, conducting property viewings, and negotiating a price on your behalf," says Jack Smithson  from the home ownership site  Better.co.uk .

In addition, an estate agent will compile comprehensive details of your house, including room sizes and descriptions of fixtures and fittings. 

"They will also provide a concise write-up about the local area, highlighting amenities, schools, and transportation links," Jack adds. 

And they'll conduct checks on buyers for you (more on this later).

It sounds like a lot, but...

"Selling your home yourself can be a manageable process with a few key steps," Jack says.

Preparation 

You should begin by thoroughly researching house prices in your area, using websites like Rightmove and Zoopla - but seek free valuations from local estate agents to ensure you have a realistic asking price in mind.

Next, you want to take high-quality photos of your house.

Jack advises using tutorials on YouTube to learn new shooting and editing techniques that can take you to the next level.

You then want to write down what makes your home unique.

"While browsing other listings for inspiration, take it a step further by emphasising what you love about living in your home and the surrounding area," Jack suggests.

"Whether it's the refreshing scent of the coastline or the tranquil sounds of village life, incorporating these details can help potential buyers visualise living there," he advises. 

Like using YouTube for photography tips, you can use free tools such as ChatGPT and Grammarly if you need help with your writing, Jack says. 

Advertising

This is probably the biggest perk of going through an established estate agent - your home is much more likely to be viewed because they will have an established audience and a market. But it's very possible to do it alone. 

"When it comes to advertising your home, explore a variety of avenues including local newspapers and social media," Jack says.

"Consider using websites like Strike, which allow individuals to list their properties for free on platforms like Rightmove," he suggests.

Viewings 

Once you've secured some viewings, you've got the opportunity to make it a bit more personal than estate agents ever could - a real advantage. 

"Explain the reasons behind your decision to purchase the property, highlight its unique features, and share the aspects of your neighbourhood that make it a desirable place to live," Jack says. 

The small things matter when showing people round - so try to take an objective look around before you bring anyone in.

Do the things you'd do normally - make sure it smells nice and it's clean and tidy.

"Lastly, it's worth knowing that you must legally provide potential buyers with a free Energy Performance Certificate (EPC)."

The sale itself

Perhaps the most daunting aspect is the physical exchange of contracts and money. 

An estate agent would typically oversee the process of the initial offer acceptance to the transfer of keys to the new owner.

However, if you go it alone, you'll need to become the central point of contact - bridging the gap between your solicitor or conveyancer and the buyer and their legal representative.

"Once you've accepted an offer on your property, your first task is to draft what's called a memorandum of sale," Jack says.  

This document is a written confirmation of your acceptance of the offer and details the agreed price along with any specific conditions you've both agreed to.

"It's then recommended to engage the services of a solicitor or conveyancer to ensure all legal obligations are met," Jack says (of course, you'll need to do this even if you have an estate agent).

The cost of hiring one typically ranges from a few hundred to over £1,000, depending on factors such as fixed fees, hourly rates, the complexity of the sale and additional costs like property searches or land registry fees.

"In the absence of an estate agent, you'll be responsible for keeping your buyer informed about the progress of the sale. This involves regular updates on the status of legal procedures and any relevant developments," Jack says, before adding that this can actually be a good thing.

"By taking on these responsibilities independently, you'll have greater control over the sale process. However, it will require you to be exceptionally organised, and you'll need to be very good at communicating too."  

Any risks to be aware of?

Rita Patel, legal director at law firm  Browne Jacobson , tells us the biggest risk for people selling their properties without an estate agent is the lack of a vetting and verification process of the potential buyer.

Estate agents will verify the buyer's identity and check the buyer's proof and source of funds - without this, there's no way to assess the buyer is legitimate and can afford to buy.

"Whilst this process is something lawyers can help with, this is often at an additional cost, and you'll need to start from square one if there is an issue with a potential buyer's identification and/or financial eligibility," Rita says. 

More generally, selling without an agent can extend the time it takes to sell. 

"Zoopla suggests this timeframe is normally around 17-34 weeks, but with no one on hand to consistently promote and drive the property sale at all stages, going solo drags this process out," Rita says. 

"Agents can also help mediate any potential breakdowns in communication between the buyer and seller - reducing the likelihood of having to go back to market and start again."

The advantages

Laura Owen-Brown, a PR manager from Gloucestershire, tells us she is set to sell her house without an estate agent in the near future.

"My disappointment with estate agents stems from their lack of familiarity with the properties they attempted to sell me when I was buying my current house," she says. 

"They couldn't tell me about the details that truly matter, like the optimal times for sunlight in the garden, how much council tax I'd pay, what the roof was made of, the places I could walk my dog off lead or the impact of post-football match traffic on Sundays.

"These types of details can shape the experience of living in a house for years and are just as important as the square footage, EPC rating or how many bedrooms a property has," she adds. 

She says the current "transactional" approach to selling houses feels "impersonal and outdated" to her. 

"Yes, I'll have to handle more admin, but the savings in both money and time will make it worthwhile. Liaising with buyers and solicitors directly without a third party slowing everything down will mean I can be in control and have transparency throughout the process, especially during negotiations," she says.

All in all...

As Laura says, it's very much a case of whether you can stomach the admin and are happy to take the risks on background financial checks. 

If you are aware of all the above and willing to take on the organisational burden, you could save yourself a serious chunk of cash. 

The main topics from the Money blog that got you commenting this week were...

Government-funded childcare

• Michel Roux Jr's comments about the future of the restaurant industry 

Nearly 600 new skyscrapers for London

From last Sunday, eligible working parents of children from nine-months-old in England have been able to register for access to up to 15 free hours of government-funded childcare per week.

Those hours can be claimed from September. 

Some readers pointed out the T&Cs... 

This 15 hrs a week is for term time ONLY. So full-time working parents will have to either tell their employer they can't work in school holidays or pro-rata it across the year which is 10 hours a week. Yvonne grandma

Others said it spoke to issues in the wider childcare sector...

Is the government going to give pay rises to nursery staff? They are very low paid staff, and can't get enough staff as it is!! Nurseries may have to close if they don't get staff, so parents won't be able to take up the offer!! What is the government going to do about it? Carol

Chefs or delivery drivers?

Celebrity chef Michel Roux Jr has suggested that restaurants may only open three days per week because young people prefer other jobs - like delivering parcels. 

"Just because I worked 80 hours a week or more doesn't mean the next generation should," he said. 

"Quite the contrary. That is something that we have to address in our industry."

Readers said...

That's because one [job] is on the verge of slave labour and one definitely is slave labour. And the latter I'm referring to is working in a kitchen for a chef.  Realist2024

Spent 35 years working as a chef. Young people nowadays are not willing to do the extra hours (usually unpaid) and work every weekend. Godsends like my generation of chefs did and do.  Bucks

There's been considerable backlash in our comments section after a thinktank said a total of 583 skyscrapers are "queuing up in the pipeline" to be built across central London.

That is more than double the 270 built in the past decade...

"600 new skyscrapers on way for London" while the majority are struggling. When will something serious be done about growing wealth inequality in the UK? A growing economy is useless while the gap between the ultra rich and everyone else increases. Qwerty1

How many unnecessary skyscrapers for London? It's fine, as long as they are not made using steel, glass, concrete or bricks - don't people know there's a climate emergency? Shanghaiwan

Who's paying for it? What about the North? treelectrical

The energy price cap is set to fall by about 7% in July, a respected energy markets researcher has said.

Ahead of next Friday's announcement by Ofgem for the July-September period, Cornwall Insights said: "For a typical dual fuel household, we predict the July price cap to be £1,574 per annum" - a drop from £1,690.

Looking further ahead, it forecasted the cap will rise again slightly in October, before falling in January next year. 

"A predicted 7% drop in energy prices in July is clearly good news, with the price cap looking likely to hit its lowest level in over two years," a spokesperson for Uswitch said. 

Around 100 more prosecutions of sub-postmasters unrelated to the Horizon scandal could be "tainted" , a Sky News investigation has found, as officials worked with now discredited Post Office investigators to secure convictions.

The prosecutions of Post Office staff were led by the Department for Work and Pensions (DWP) between 2001 and 2006.

It is understood these usually involved the cashing in of stolen order books.

The Post Office itself wrongly prosecuted hundreds of sub-postmasters between 1999 and 2015 - based on evidence from the faulty Horizon accounting system.

Read more from our business correspondent Adele Robinson  by clicking  here ...

The UK's mega rich are dwindling in a sign Britain's "billionaire boom has come to an end" , according to the latest Sunday Times Rich List.

The list reveals the largest fall in billionaires in the guide's history - from a peak of 177 in 2022 to 165 this year.

While the combined wealth of the list's 350 wealthiest individuals amounts to more than £795bn - larger than the GDP of Poland - the guide's compiler says time will tell what impact a drop in billionaires could have.

"This year's Sunday Times Rich List suggests Britain's billionaire boom has come to an end," Robert Watts said.

Read on here ...

The Money blog is your place for consumer news, economic analysis and everything you need to know about the cost of living - bookmark news.sky.com/money.

It runs with live updates every weekday - while on Saturdays we scale back and offer you a selection of weekend reads.

Check them out this morning and we'll be back on Monday with rolling news and features.

The Money team is Emily Mee, Bhvishya Patel, Jess Sharp, Katie Williams, Brad Young and Ollie Cooper, with sub-editing by Isobel Souster. The blog is edited by Jimmy Rice.

The Body Shop’s administrators are to launch an auction of the chain after concluding that an alternative restructuring of one of Britain’s best-known high street retailers was not viable.

Sky News has learnt that FRP Advisory, which has been overseeing the collapsed business since January, is to begin formally sounding out potential buyers in the coming weeks.

The move raises the prospect of new owners taking control of The Body Shop, which was founded nearly half a century ago.

Read more here ...

The UK's mega rich are dwindling - in a sign Britain's "billionaire boom has come to an end", according to the latest Sunday Times Rich List.

Published today, the list reveals the largest fall in billionaires in the guide's history - from a peak of 177 in 2022 to 165 this year.

"Many of our home-grown entrepreneurs have seen their fortunes fall and some of the global super rich who came here are moving away."

Top of the list is British-Indian businessman Gopi Hinduja and his family, whose wealth of £37.2bn is the largest fortune in the ranking's history.

But other familiar names in the list saw their riches fall, with Sir Richard Branson's total dropping by £2.4bn, which is back to his 2000 level.

Last year's top climber Sir Jim Ratcliffe, who bought a stake in Manchester United this year, fell two positions with a decline of £6.1bn.

Euan Blair, Tony Blair's eldest son, made the list for the first time, as did Sir Lewis Hamilton.

It comes as the UK continues to deal with a cost-of-living crisis, with new figures this week revealing a record 3.1 million food bank parcels were distributed over the course of a year.

The top 10:

• Gopi Hinduja - £37.2bn
• Sir Leonard Blavtanik - £29.2bn
• David and Simon Reuben and family - £24.9bn
• Sir Jim Ratcliffe - £23.5bn
• Sir James Dyson and family - £20.8bn
• Barnaby and Merlin Swire and family - £17.2bn
• Idan Ofer - £14.9bn
• Lakshmi Mittal and family - £14.9bn
• Guy, George, Alannah and Galen Weston and family - £14.4bn
• John Fredriksen and family - £12.8bn

A group of social media influencers have been charged in relation to promoting an unauthorised investment scheme.

The Only Way Is Essex (TOWIE) original cast member Lauren Goodger, 37, former Love Island star Biggs Chris, 32, and Celebrity Big Brother winner Scott Timlin, 36, also known as Scotty T, are among seven TV personalities alleged to have been paid to promote the scheme to their combined 4.5 million Instagram followers.

The others charged by the Financial Conduct Authority (FCA) include former Love Islanders Rebecca Gormley, 26, Jamie Clayton, 32, and Eva Zapico, 25 and TOWIE member Yazmin Oukhellou, 30.

The UK's financial watchdog brought the charges in a crackdown on "finfluencers" who use their online platforms to offer advice and information on various financial topics.

It alleges that between 19 May 2018 and 13 April 2021 Emmanuel Nwanze, 30, and Holly Thompson, 33, used an Instagram account to provide advice on buying and selling investments known as contracts for difference (CFDs) when they were not authorised to do so.

The watchdog said CFDs were high-risk investments used to bet on the price of an asset, in this case the price of foreign currencies.

It previously warned that 80% of customers lost money when investing in CDFs.

Mr Nwanze has been charged with running the scheme. He faces one count of breaching the general prohibition of the Financial Services and Markets Act 2000, and one count of unauthorised communications of financial promotions.

Ms Thompson, Mr Chris, Mr Clayton, Ms Goodger, Ms Gormley, Ms Oukhellou, Mr Timlin and Ms Zapico each face one count of unauthorised communications of financial promotions.

All nine will appear at Westminster Magistrates Court on 13 June.

The FCA asked anyone who believed they had sustained a loss due to the scheme to contact its consumer contact centre.

A hotel part-owned by Gary Neville and other ex-Manchester United legends has been named one of the best places to work in hospitality. 

Each year, The Caterer releases its top 30 best places for employees in the sector, with the top six featuring some familiar names.

The list is compiled via anonymous employee survey - with no input from managers or owners. 

Hotel Football, the only hotel with a rooftop five-a-side pitch, was among the top six venues selected by employees across the UK. 

The hotel's benefits package was particularly well-praised by those who work there - given that it "prioritises the financial wellbeing of employees during the cost of living challenge".

Management at the hotel, which is situated next to Manchester United's Old Trafford stadium, was also praised for enhanced maternity, paternity, parental and adoption leave policies and a strong belief in diversity and inclusion. 

The other five to make up the top six are The Biltmore in Mayfair, Cycas Hospitality (which has 18 locations across the UK), Dalata (which boasts some 1,000 employees), Gleneagles Hotel in Edinburgh and Nobu Hotel in Shoreditch, London. 

The energy price cap is set to fall by about 7% in July, a leading thinktank has said. 

Cornwall Insights said: "For a typical dual fuel household, we predict the July price cap to be £1,574 per annum" - a drop from £1,690.

Looking further ahead, it forecasted the cap to rise again slightly in October, before falling again in January next year. 

Reacting to the news, Uswitch said the predicted drop was "clearly good news". 

"The future still remains uncertain, and with the price cap changing every three months – currently expected to rise in October before falling slightly in January –  it's crucial not to be complacent," Richard Neudegg, director of regulation, said. 

However, "a predicted 7% drop in energy prices in July is clearly good news, with the price cap looking likely to hit its lowest level in over two years", he said. 

He also urged  households who want to lock in rates for price certainty to run a comparison to see what energy tariffs are available to them.

"There are many 12-month fixed tariffs available at rates cheaper than the current price cap, and even some that are 2% below these new predicted July rates," he said. 

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