Top 6 travel tips visit Iceland on a budget

As we all know, Iceland isn’t the cheapest destination in the world (in fact it’s one of the priciest -and that’s coming from 2 Londoners!).

However, we were determined to go to this extraordinary country without bankrupting ourselves.

So here are our top tips to have an amazing trip when you visit Iceland on a budget.


1. Travel offseason when you visit Iceland

Summer is one of the most popular times to visit Iceland – long daylight hours, puffins, lupins… I’m sure you’ve seen amazing photography in Iceland! However, visiting Iceland in summer (peak season) is expensive, and while we probably wouldn’t recommend going in the deepest winter (icy roads and very short dark days), autumn is a fantastic (and less expensive) time to visit!

So, instead of going in the summer months, we traveled in late October, which meant we had 8 hours of daylight and cheaper flights, places were quieter and it was Northern Lights season! Bonus. Obviously, it goes without saying that you should avoid traveling during the October half term. We timed our Iceland trip for the week after and were pleasantly surprised by how quiet a lot of the big tourist destinations were.


2. Fly with a budget airline

Yes, we’ve all heard the horror stories, but when everything goes well, it’s just a flying bus at the end of the day. And when flights to Reykjavik from the UK are only about 3 hours, you only need a no-frills seat. There’s no point paying for a larger, more expensive airline with an entertainment console/food for such a short trip. We flew with Easyjet and had no problems whatsoever.

Another tip for flying low cost when you visit Iceland on a budget: take carry-on only and avoid extra baggage fees. Wear your hiking boots and the big coat onto the plane (bonus points if you can fit your book, wallet, camera, etc. in the pockets!), and minimize the clothes you need. On a cold trip like this, you won’t need fancy evening options – one pair of jeans with enough clean tops and undies will do!


take food when you visit iceland on a budget
Visit Iceland on a budget: take food with you

3. Take food when you visit Iceland on a budget!

One of the main expenses in Iceland (apart from booze) is food. Seriously, groceries are far pricier than back home as most things are imported, and even the most basic sit-down cafe in Reykjavik seemed to be at least £18 for something tiny like soup.

Our tip would be to pack dehydrated foods that you can make up with hot water when you visit Iceland on a budget. Think soups, flavored couscous, and noodles. You can take up to 3 kg of food each, just no raw eggs, raw meat, or milk, so fill your carry on and you’ll save a fortune!

We also took breakfast biscuits, cereal bars, and other snacks, along with a thermos and 2 camping mugs. Each morning we’d boil the kettle in our hostel, fill the thermos and make our lunches and dinners on the road. Another plus with this kind of food is that it doesn’t need a fridge, so you can just bung it all in a tote bag in your car for the whole trip / in your day pack for the day.

bring reusable water bottle when you visit iceland on a budget
Visit Iceland on a budget: bring a metal/reusable water bottle

Similarly, bring a metal/reusable water bottle and refill it from public drinking fountains, taps and even streams – water in Iceland is clean, and delicious, and plastic bottled stuff is a waste of money and bad for the environment.

Of course, eating noodles and soup for several days can get boring, so if you would like a hot meal out when you visit Iceland on a budget, we’d recommend the trucker cafes at the petrol stations. Cheap and cheerful, you can get a cheeseburger and chips or fish and chips for about £10, and they often have a few more options on the menu too. We found a brilliant one in Kirkjubaejarklaustur (at the petrol station between Vik and Jökulsárlón).

Another good find is the Ice Cave Restaurant in Vik itself – a canteen in the same building as the big outdoor clothing/souvenir store, which has light installations like the ‘Avatar Trees’ in Singapore’s Gardens by the Bay.

There is also a fantastic hot dog shop just down the main road from Hallgrimskirkja in Reykjavik, called Street Dog. Icelandic hot dogs are famous, tasty (3 sauces and 2 types of onions) and inexpensive – we paid about £3 each.


self drive to see iceland on a budget
Have the best time when you visit Iceland: Self-drive to see Iceland on a budget

4. Self-drive to see Iceland on a budget

We would SO recommend hiring a car to explore Iceland! Petrol was probably our main expense on the trip – total fuel plus car hire and insurance cost us around £210 for 5 days, not bad considering we covered A LOT of ground – the drive back from Jökulsárlón to Reykjavik alone is about 240 miles. So much of Iceland is easily self-drive-able if you stick to the main ring road, and you will save a packet compared to booking excursions when you visit Iceland.

For example, if we’d booked two places on a Golden Circle tour and two places on a Reykjavik to Jökulsárlón tour (including Skogafoss/Seljalandsfoss/Reynisfjara black sand beach), it would have cost us close to £350. Having our own transport not only saved us serious pennies but also gave us tremendous freedom.

We were able to stop wherever we liked en route, whether it was to have a coffee looking at a glacier, check out an awesome cave that we spotted from the road, or pet some Icelandic horses. We were also able to add in some bonus side trips like the Kerid Volcanic crater and the geothermal area of Seltún as we discovered Iceland on a budget.

Having your own car when you visit Iceland on a budget also means you can shake things up schedule-wise in order to avoid the crowds. For example, most Golden Circle coach tours go first to Thingvellir National Park, then Geysir, then Gullfoss. We decided to reverse this order and drive out to Gullfoss first and finish our day at Thingvellir, and it was so quiet! Much nicer.

Obviously, if you’re interested in whale watching or the northern lights when you visit Iceland, you’ll need to book a tour. I suppose we could have driven out into the darkness to look for the aurora ourselves, but the tour guides are experts who have checked forecasts and know exactly where the best patches of clear sky will be. We went with Reykjavik Excursions which were just fantastic, and very reasonably priced. They even picked us up and dropped us off at our hostel.

If you want to go the extra mile (literally!), consider renting a cozy camper for your Iceland trip.


5. Buy your alcohol at the airport

The reputation is well-earned guys – drinking in Iceland is EXPENSIVE! We’re talking £7/8 for a pint of beer and more like £10+ for wine or a vodka and orange. There are happy hours dotted around in Reykjavik which you can take advantage of, which just about bring things back down to London price, but for a cheaper night, we’d recommend buying your alcohol in Duty-Free and bringing it with you when you visit Iceland on a budget.


6. And 1 thing to splurge on when you visit Iceland!

The Blue Lagoon. Do it guys. Do it do it do it. Yes, it’s £75, but a week’s worth of noodles to offset the cost is so worth it. It’s HEAVEN! Buy the comfort package (cheapest option) and you get unlimited time in the water, unlimited deep cleansing silica mud for your face, and a free drink of your choice, which even includes the prosecco!

We spent 5 hours relaxing in the hot water, the steam room, the sauna, the hot waterfall that pummels the knots out of your shoulders after 5 days of adventuring… it’s the perfect treat to end your holiday on the way back to the airport. One last top tip – book the 8 am slot. You can watch the sun come up and it won’t get busy until 10 (although the lagoon is big enough that it never feels crowded).


Who wrote this complete guide to visit Iceland

emma and david thomas guest post writers on the travel bunny blog

Emma and David Thomas are a husband and wife travel blogging team from Team Thomas Travels. Having lived in London for years, they have recently moved to leafy Cambridgeshire which now serves as a basecamp for their adventures. With 6 continents and close to 50 countries between them, recent trips include Canada, Iceland, and Japan. They also enjoy cooking, camping, and hiking, and hope to climb Kilimanjaro in the not-too-distant future.

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