Are you planning a trip to Iceland? Then you’re probably curious about the costs and what kind of budget you should consider. You might have heard that Iceland is quite an expensive country, but how expensive is it exactly? On the internet, you can find a wide range of amounts, and that’s because some articles were written as long as 5 years ago. We visited Iceland in 2018 and here we share everything about the costs we incurred. Additionally, you’ll find 7 handy tips to save money while in Iceland.
Costs for a Rental Car, Gasoline and Parking in Iceland
You can already get a rental car for around $58 per day, including insurance. In the months of July and August, the prices might be slightly higher. For our itinerary, we spent approximately $237 on gasoline, and since parking is mostly free everywhere, it’s not really an expense to consider.
Costs for Food and Drinks
If you want to keep your trip somewhat affordable, it’s wise to cook your own meals. This is what almost everyone does in Iceland. A cheap lunch in a restaurant can cost you around $18. We chose to prepare our breakfast and dinner ourselves and have lunch at a supermarket or gas station. They offer sandwiches for about $6, as well as fresh rolls, yogurt, and much more.
Costs for Hotels in Iceland
For a simple double room, you can expect to pay between $95 and $140 per night. If you want to stay in a dormitory, you should budget around $50. It’s highly recommended to book all your hotels in Iceland as early as possible because the best and cheaper hotels fill up quickly. We have made a selection of very good and affordable hotels, all of which have a kitchen you can use. This way, you can save a lot of money on meals. Check out our favorite places to stay in Iceland.
Costs for a Planeticket to Iceland
A good place to buy cheap planetickets is among others Cheaptickets.com, but there are of course several comparison websites.
Costs for Tours and Entrance Fees
Iceland may be quite expensive, but most of the attractions don’t require an entrance fee. That’s ideal! During your trip to Iceland, you have the opportunity to do many exciting tours along the way. While these tours are not necessary, they offer unique experiences. The costs of tours can vary greatly. For example, snorkeling at Silfra costs approximately $153, and a glacier hike will set you back around $86.
Average Costs per Day in Iceland
With all the above amounts, you can easily make an estimate of the costs for your trip to Iceland. However, for convenience, we’ll provide a total amount to give you a quick idea of the overall expenses. This is based on our 8-day itinerary for 2 people sharing a double room and a rental car. We exclude the costs of tours, assuming they are not essential, and we assume that you will mostly cook your own meals. In total, the cost comes to approximately $1,226 per person. So, for an eight-day trip, you’re looking at about $153 per day.
7 Recommendations to Save Money
Do you want to visit Iceland on a low budget or simply not spend more than necessary? There are various ways to save money:
#1 Make Your Reservations on Time
That’s why we placed this tip at the top of the list. Iceland is a popular travel destination, and if you want to do it as cheaply as possible, you should definitely book your hotels and rental car as early as possible.
#2 Do Not Travel During High Season
July and August are by far the busiest months of the year in Iceland. The prices of hotels and rental cars are higher during these months compared to the rest of the year. However, it’s worth noting that these months offer the best weather. If you want to save money easily, it’s better to visit Iceland in spring or autumn.
#3 Cook Yourself and Bring Your Groceries from Home
Eating out is not cheap, but fortunately, many hotels and guesthouses have a shared kitchen. Bring some oatmeal and instant meals from home and buy fresh produce in Iceland to easily prepare a meal. Keep in mind that you are allowed to import up to 3 kilograms (6.6 pounds) of food per person.
#4 Do not Do Your Groceries at 10-11
At the 10-11 supermarket, you’ll end up paying about 50% more for your groceries, so never go there. The cheap supermarkets to go to are Krónan and Bonus, and you can find them all over Iceland.
#5 Never Buy Bottles of Water
The tap water in Iceland is drinkable, so don’t buy expensive bottled water in the store. Bring a reusable water bottle and fill it up every morning at your hotel.
#6 Go backpacker style
Iceland may not sound like an immediate backpacker destination, but you’ll still find quite a few backpackers there, especially in the summer. Iceland is actually a perfect country for hitchhiking, and you’ll see many people doing it. Along the ring road, you can often get a lift quickly because most people are heading in the same direction. Additionally, you can bring a tent and go wild camping in the summer.
#7 Use your Debit Card
You will hardly need cash in Iceland, so don’t withdraw too much cash. You can use your debit card almost everywhere, and only in a few cases will you need your credit card. When paying with your credit card, the bank usually charges a percentage fee, so it’s best to use your debit card as much as possible. However, you will need a high deposit for the rental car, and this must be done with a credit card. Make sure your credit card limit is sufficient for this.
