Visit Iceland On A Budget | Tips To Save You Money
Iceland Is An Expensive Family Destination, But Can It Be Visited on a Budget?
You might be surprised to learn that, although Iceland is a bucket list destination known for its diverse landscapes and unique activities, you can visit on a budget!
For years we opted for less expensive destinations until our desire to experience the magic of Iceland couldn’t wait any longer! We were able to visit on a tight family budget and want to show you how your family 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 certainly not cheap.
This is especially true when compared to other destinations, but that doesn’t mean it can’t be visited on a budget.
With some careful planning, you can explore its stunning landscapes and make lasting family memories without breaking the bank.
Tips For Visiting Iceland On A Budget
Our Iceland trip coincided with the New Year, and while there were plenty of visitors, there were still many available hotel rooms. Visiting outside peak season is just one way to keep your costs down. While Iceland may not be cheap, combining these tips can lead to an enjoyable yet budget-friendly trip:
❄️ Be Selective When To Visit Iceland
Iceland is a popular destination regardless of the time of year, but certain months can be cheaper than others.
Summer is Iceland’s peak season, and the mild weather, long hours of daylight and 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 a cheaper option. While there are short days, there’s still plenty to do after the sun goes down! Iceland’s towns and cities come alive with festive lights, and the many museums and restaurants will keep you busy for hours. April, October, and November are classed as ‘Off-Season’ and are the quietest times to visit. These months are also when you may find better-priced deals.
❄️ Book Flights Early
There are many budget-friendly flights to Iceland from all across Europe and layovers from America throughout the year. The lowest-cost flights are usually booked well in advance, as reduced availability pushes up prices as the date approaches.
To improve your chance of bagging a cheap flight, be flexible with your departure and return dates. Midweek flights are often the most budget-friendly option.
❄️ Find Affordable Accommodation
It is essential to book your accommodation as far in advance as possible to get the best prices. Demand for hotels can be exceptionally 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 like where we stayed in Vik. Travelling by campervan is the ultimate budget saver in Iceland, combining your accommodation and transport costs into a neat self-catering package!
❄️ Eating & Drinking On a Budget
Iceland may be famous for hot dogs, meat, seafood and yoghurt, but eating out can be a real budget breaker. This is especially true when you have a family to feed!
There are plenty of ways to enjoy local Icelandic food, even on a limited 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 often take on the challenge when travelling to seek out budget-friendly supermarket alternatives. The cheapest grocery stores in Iceland are Bonus, Kronan, and Netto. We used these to purchase ingredients for picnics and for cooking meals in self-catering 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 with straightforward navigation, good signage and short distances between attractions. Its compact size also means you won’t end up spending a fortune on fuel!
Renting a car for your family can be extremely cost-effective and allows much more flexibility compared to taxis or guided tours. Alternatively, public transport may not be quite as good for sightseeing on a budget, but it can sometimes be cheaper for travelling long distances.
❄️ Affordable And Free Activities
Looking through Iceland’s many exciting activities and the associated high prices, it’s easy to think it is impossible to visit on a budget. While this might be true if you were to take expensive guided tours, there are plenty of alternatives.
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. It’s worth noting that while they are free, the guides are not paid and rely on donations, so do pay what you can afford if you enjoy the tour.
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 lots of expensive activities. If you can, mix up budget-friendly options with any must-do paid attractions, but don’t worry if you can’t; there are many options for free activities that will still give you a great experience of Iceland, even on a tight family budget.
- 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 marginally cheaper than summer, with November, February, and March being the most affordable months, with lower demand for accommodation.
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… Fire and Ice!
