Visit Iceland On A Budget | Tips To Save You Money
Iceland Is An Expensive Family Destination, But Can It Be Visited on a Budget?
As a bucket list destination known for its diverse landscapes and unique activities, you can visit Iceland on a budget!
For years we opted for less expensive destinations until the desire to see the magical landscapes of Iceland couldn’t wait any longer! We managed to visit with our kids on a tight family budget and want to show how you can too.
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Why Is Iceland Expensive To Visit?
Iceland is often said to be one of the most expensive countries in the world. Its high living and import costs mean that accommodation, food, transport, and activities are not cheap compared to other destinations, but that doesn’t mean it can’t be visited on a budget.
With some planning, you can explore its stunning landscapes and make family memories. By being selective about where to save money and still doing unique activities without breaking the bank,
Tips For Visiting Iceland On A Budget
Our family visited Iceland over New Year by carefully planning and budgeting. We left in awe of the land of fire and ice without overspending.
While Iceland may not be cheap to visit, combining these tips can lead to an enjoyable budget-friendly trip:
❄️ Be Selective When To Visit Iceland
Iceland is a popular country to visit in summer and winter, but the time of year you travel can save you money.
Summer is Iceland’s peak season. The mild weather, long hours of daylight, and the unique midnight sun also make it the most expensive time to visit. Accommodation is in demand and longer hours equal more places to spend money.
Visiting Iceland in Winter can be cheaper due to shorter exploring days, but you may spend more on dining and indoor activities. Off-season travel in April, October, and November is the quietest time to visit, when you may find better-priced deals.
❄️ Book Flights Early
Budget airlines and Icelandair offer budget-friendly flights from Europe and layovers from America to Iceland throughout the year. The best flight prices are usually booked in advance, as demand pushes up prices as the date approaches.
Be flexible with flight dates when searching to find the cheapest day to fly in and out to make savings. Midweek is usually the most budget-friendly option for travel.
❄️ Find Affordable Accommodation
It is essential to book accommodation in advance to get the best price, as demand is high in Iceland during peak periods. Serviced accommodation and campsites are usually more budget-friendly than hotels and guesthouses.
Kitchen and laundry facilities can help you save on food and washing costs in serviced apartments. Travelling by campervan is the ultimate budget saver in Iceland, combining accommodation, transport and dining costs.
❄️ Eating & Drinking On a Budget
Iceland may be famous for hot dogs, meat, seafood and yoghurt, but eating out can be your budget breaker, especially when you have a family to feed!
While eating is necessary, there are ways to enjoy local Icelandic food on a budget.
Avoid tourist areas with inflated prices; find local bakeries, food stands or service stations for hot, affordable food. Bring snacks from home or buy in bulk to satisfy children and avoid expensive snacks and drinks at attractions.
Our kids take on the challenge when travelling to seek out budget-friendly supermarket alternatives. The cheapest grocery stores in Iceland are Bonus, Kronan, and Netto, where you can purchase ingredients for picnics or cook your meals in accommodation kitchens.
Icelandic tap water is safe to drink and is classified as some of the best in the world. Bring a refillable bottle to save money.
❄️Saving on Transport Costs
Iceland is an easy country to road trip with kids. Navigation is straightforward, with good signage. Attractions are close together and easily accessible, so you don’t spend a fortune on fuel.
Renting a car for a family can be the most cost-effective mode of transport, allowing flexibility in your itinerary compared to taxis or guided tours.
Public transport is not efficient for sightseeing on a budget, but it can be cost-effective for travelling long distances.
❄️ Affordable And Free Activities
There are so many exciting activities and sightseeing opportunities in Iceland that it is easy to think it is impossible to visit on a budget.
This would be true if you were to take expensive guided tours to popular attractions.
Plan an itinerary, do your research, and avoid the need to pay for a tour guide where possible. For safety reasons, certain activities, such as glacier hikes or whale watching, can only be undertaken through an experienced tour.
Consider booking a free city tour in Reykjavik to learn from a local and pay what you can afford!
Many of Iceland’s natural attractions, from hiking to exploring waterfalls, geothermal geysers, hot springs, and beaches, are free to access without an entrance fee (most have car parking charges). Prioritise these to protect your budget and negotiate group discounts for tours and excursions.
While the Blue Lagoon is world famous, it is a tourist attraction. Try one of the many free or cheap hot springs for a more authentic Icelandic experience.
❄️ Currency and Payments
Currency exchange can be avoided by going cashless. Use bank cards that do not charge a foreign transaction fee for all of your purchases in Iceland, from shops to car parking.
Top Free Attractions In Iceland
Iceland is a top bucket list destination with expensive activities. There are many options for free activities to get the best out of Iceland, even on a tight family budget. Mix up budget-friendly with your must-do attractions to make your visit to Iceland fun, Icelandic and affordable.
- The Golden Circle: Explore iconic sights like Geysir, Gullfoss Waterfall, and Thingvellir National Park; they are all accessible without entry fees.
- Explore Reykjavik: Explore the capital’s street art and sculptures, including the Sun Voyager, Rainbow Street, and Hallgrimskirkja Church or take a free walking tour.
- Seljalandsfoss and Skogafoss Waterfalls: These waterfalls are easily accessible and offer starting points for longer hikes to explore remote areas of Iceland.
- Reynisfjara Black Sand Beach: The striking black sand, basalt columns, and interesting rock formations are perfect for a family day out.
- Hot Springs and Geothermal Areas: You can save money by visiting free natural hot springs across Iceland, like Reykjadalur Valley, which also involves a hike.
Visiting Iceland On A Budget FAQs
Iceland is one of the most expensive countries in the world, but budgeting can help families enjoy a fun and memorable trip.
Iceland is one of the most expensive countries, with costly accommodation, dining, and tours. There are ways to visit Iceland on a budget, including staying in service accommodation with kitchens to cook meals and visiting free attractions.
It is possible to visit Iceland on a budget by planning your visit to explore free and low-cost attractions while still enjoying the land of fire and ice. This may give you a more authentic and enjoyable trip.
Winter is a marginally cheaper time to visit Iceland, with November, February and March being the most affordable months for accommodation as demand is lower.
Final Thoughts | Iceland On A Budget
With careful planning and a little flexibility, even expensive countries like Iceland can be visited on a budget.
Using money-saving tips while indulging in Iceland’s free and cheap attractions means families can make the most of what the country is best known for.
