Budget Travel in Expensive Iceland: How to Save Money

🏔️ Iceland is a dream destination—with its stunning waterfalls, geothermal lagoons, and dramatic landscapes. But let’s be honest: it’s also one of the most expensive countries in the world. The good news? Traveling to Iceland on a budget is possible! With thoughtful planning, affordable eats, free attractions, and budget-friendly accommodations, you can experience the Land of Fire and Ice without breaking the bank.

In this ultimate guide to budget travel in Iceland, we’ll cover:
✔ Cheap (or free!) eats 🍽️
✔ Free attractions & hidden gems 🌋
✔ Camping & budget accommodations ⛺
✔ Money-saving transportation tips 🚗
✔ Affordable tours & activities 🏕️

Let’s dive in!

1. Cheap Eats in Iceland: How to Eat Well for Less

🍞 Icelandic hot dogs (Pylsur) – A must-try budget meal (around $5) at Bæjarins Beztu Pylsur in Reykjavík.

🛒 Bonus & Kronan supermarkets – Stock up on groceries instead of dining out. Look for:

• Skyr (Icelandic yogurt)
• Rye bread (Rúgbrauð)
• Smoked salmon & local cheeses

🍲 Budget-friendly restaurants:

• Noodle Station (affordable noodle soups)
• Hlöllabátar (cheap sandwiches)
• Reykjavík Street Food (free refills on soups!)

☕ Bring a reusable water bottle – Iceland’s tap water is pure and free!

2. Free & Cheap Attractions in Iceland

Iceland is full of natural wonders that cost nothing to visit. Here are the best free attractions:

🌊 Free Waterfalls

• Seljalandsfoss (walk behind it!)
• Skógafoss (epic photo spot)
• Gullfoss (part of the Golden Circle)

🌋 Volcanic & Geothermal Sites

• Reykjanes Peninsula (free lava fields & geothermal areas)
• Kerið Crater (small entrance fee, but stunning)

🏖️ Black Sand Beaches

• Reynisfjara (near Vik, free to visit)

🌌 Northern Lights (Aurora Borealis)

• Best seen between September–April (just find a dark spot!)

🏙️ Free Reykjavík Attractions

• Hallgrímskirkja (free to enter, small fee for tower)
• Harpa Concert Hall (free to explore)
• Sun Voyager Sculpture (iconic photo spot)

3. Budget Accommodations: Where to Stay Cheap

⛺ Camping in Iceland

• Legal wild camping? No (except in certain areas).
• Official campsites cost ~$15–$20 per night (cheapest option).
• Best budget camping gear: Bring a warm sleeping bag (Iceland is cold even in summer!).

🛏️ Hostels & Guesthouses

• Reykjavík Downtown Hostel (~$40/night)
• Kex Hostel (cool vibe, budget-friendly)
• Guesthouses outside Reykjavík (often cheaper)

🚐 Camper Van Travel

• Renting a camper van? It’s transport + accommodation in one!
• Best budget rental companies: Happy Campers, KuKu Campers.

4. Saving Money on Transportation

🚗 Renting a car?

• Book in advance for the best deals.
• Smaller cars = cheaper fuel costs.
• Compare prices on Rentalcars.com or Blue Car Rental.

🚌 Public Buses (Straeto)

• Cheaper than tours, but limited routes.

🚐 Hitchhiking

• Common in summer, but not always reliable.

✈️ Cheap Flights to Iceland

• WOW Air (RIP) is gone, but Play Airlines offers budget flights.

5. Affordable Tours & Activities

💎 Skip expensive tours & do these instead:

• Free hot springs (like Reykjadalur Hot Springs)
• DIY Golden Circle drive (save $100+ vs. a tour)
• Hiking Fimmvörðuháls (free & epic views)

Final Tips for Budget Travel in Iceland

✅ Travel in the shoulder season (April–May or September–October).
✅ Cook your own meals (supermarkets are your friend).
✅ Use discount cards (Reykjavík City Card for free buses & museums).
✅ Avoid alcohol (it’s crazy expensive in bars).

FAQs: Budget Travel in Iceland

❓ Is Iceland expensive for tourists?

Yes, but smart planning can make it affordable. Focus on free attractions, camping, and cooking your own meals.

❓ Can you travel Iceland on $50 a day?

Yes, but it’s tight! Camping + groceries + hitchhiking can make it possible.

❓ What is the cheapest way to get around Iceland?

Hitchhiking (in summer) or public buses. Renting a car with friends is also cost-effective.

❓ Are there free hot springs in Iceland?

Yes! Reykjadalur, Landbrotalaug, and Seljavallalaug are free (or donation-based).

❓ When is the best time to visit Iceland on a budget?

April–May & September–October (fewer crowds, lower prices).

Final Thoughts

Iceland doesn’t have to be a luxury trip—with the right strategies, you can explore its breathtaking landscapes without spending a fortune. By camping, cooking, and prioritizing free attractions, you’ll enjoy an unforgettable adventure while keeping costs low.

Ready to explore Iceland on a budget? Start planning today! 🌍✈️