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Tips for Visiting Iceland: How to Plan an Epic Trip on a Budget

Planning a trip to Iceland? You’re not alone. From jaw-dropping waterfalls to the chance of catching the Northern Lights, visiting Iceland is at the top of many travelers’ bucket lists. But here’s the thing no one really prepares you for: Iceland is expensive. Like… sneaky expensive.

Even as someone who lives and breathes budget travel tips, my 11-day Icelandic road trip still cost more than I expected. But with the right planning, a realistic idea of what things cost, and a few smart swaps, you can see the best of Iceland—and stay on budget.

This guide shares my best tips for visiting Iceland, including how to book tours worth your money, when to drive the Ring Road versus sticking to the Golden Circle, and why the time of year you travel matters more than you think. Whether you’re planning to stay in small towns or spend your time in Reykjavik, these local-tested tips will help you save money without missing out on Iceland’s natural beauty.

So if you’re ready to read up, plan smarter, and experience the real Iceland, let’s get into it.

Just a quick note: This page might include affiliate links. If you click and purchase anything from the links I receive a tiny commission to support this website. The good news? I only recommend products I actually use and believe in. So you're getting the best products at a super good price.

What’s the Average Cost to Visit Iceland?

No matter how you plan it, Iceland is not a budget destination. But your final cost depends a lot on how you travel.

A mid-range trip for two people can cost anywhere from $300 to $500 per day, including flights, hotel, rental car, food, and activities. But if you’re down to camp and cook your own meals, you can slash that to $200 or less per day.

The biggest expenses? Hotels, rental cars, and food. Dining out especially adds up fast—we averaged $45 per person, per day, and that was with some savings tricks.

Money-Saving Travel Tips for Iceland

Travel in Shoulder Season

The best way to save in Iceland? Go when fewer people do. Shoulder season (April–May and September–October) means lower rates on everything from flights to rental cars—and fewer crowds, too.

We booked flights during shoulder season with a Thrifty Traveler deal and paid just $400 roundtrip per person. Worth it.

Book Your Rental Car Early (And Wisely)

Rental car prices jump fast in Iceland. Book early to get the best deal—and always go with an AWD SUV if you can. Weather in Iceland is no joke, and you’ll want the extra traction on those gravel side roads and mountain passes.

I used AutoSlash to book our car, and it saved us hundreds. They check rates across sites and rebook you if the price drops.

Pack Snacks (Like, Seriously)

Food is wildly expensive in Iceland, so stocking up on snacks is a solid move. You can bring some from home (granola bars, trail mix, jerky), or shop at Bonus or Kronan grocery stores once you land.

If you’ve got access to a kitchen or camper stove, consider packing dry meals like instant ramen, boxed mac and cheese, or oatmeal packets. We often skipped lunch entirely thanks to snacks and had a more relaxed (and cheaper) dinner.

Take Advantage of Happy Hours

Alcohol in Iceland is pricey—unless you hit happy hour. Reykjavik has tons of bars offering solid deals between 4–7 PM. You’ll often find discounted beers, cocktails, and sometimes food specials too.

This was one of our favorite ways to cut costs and still enjoy a night out.

Compare Hotel Rates Early and Often

Accommodation eats up a huge part of your Iceland budget, but you can find deals. Start looking early—especially for summer or holiday trips—and compare rates across multiple platforms.

Booking.com usually had the best prices during our trip, but I always checked Google to see if a direct booking or another site offered something better. Once you know where you want to stay, plug the name into a few different sites and watch for sales.

Bonus tip: Look for places that include breakfast. More on that below.

Use Points for Hotel Stays (If You Can)

While Iceland doesn’t have a ton of big chain hotels, you can still use points to cover a few nights—especially around Reykjavik.

Check brands like Hilton, Marriott, and IHG if you have travel credit card points. Even just one or two nights booked on points can save you hundreds.

Choose Experiences You Can DIY

Many of Iceland’s best experiences are free—or at least don’t require a tour guide. Don’t shell out for a pricey Northern Lights or Golden Circle tour when you can drive the route yourself (especially if you booked an AWD SUV).

That said, some experiences are worth paying for, like glacier hikes or lava cave tours where guides are required. But save your cash for those, and DIY the rest.

Need ideas? I have a full 7-day Iceland itinerary that covers exactly what you can do on your own.

Bring Breakfast Into the Equation

Breakfast is usually included in many hotels in Iceland, and it’s a sneaky good way to cut your food budget. We made the most of free breakfasts, then grazed on snacks mid-day, and only paid for one full restaurant meal per day. It added up to real savings without feeling like we were missing out.

If your hotel doesn’t offer breakfast, grocery store pastries and Skyr (Icelandic yogurt) are super cheap breakfast alternatives.

Use Rakuten for Excursion Cashback

If you’re booking excursions like whale watching or glacier tours, use Rakuten with sites like Viator to earn cash back. They often run 10%+ back deals, which can make those high-cost tours a little easier to justify.

It takes two minutes to sign up and adds up quickly, especially on big-ticket activities.

Prioritize Free and Low-Cost Activities

The best parts of Iceland don’t have price tags. Waterfalls, black sand beaches, dramatic cliffs, geothermal areas—it’s all free to visit. Build your itinerary around these natural sights and sprinkle in a few paid experiences where it counts.

Don’t sleep on the local pools either. While Blue Lagoon is famous (and expensive), you can find affordable, authentic pools in almost every town for under $10.

Bonus Tips for Visiting Iceland

Know the Weather (and Pack Like a Local)

Iceland’s weather can change fast—like, four-seasons-in-an-hour fast. Always pack layers, including waterproof outerwear, a hat, gloves, and thermal base layers, even in summer.

Leave the umbrella at home (too windy), and focus on gear that keeps you dry and warm instead of cute outfits.

Don’t Skip Travel Insurance

Iceland’s nature is no joke. From wild winds to icy trails, things can go sideways. Travel insurance can help if flights are canceled, plans change, or something unexpected happens. It’s worth the extra peace of mind, especially if you’re renting a car or doing outdoor adventures.

Tipping in Iceland? Not Required

Tipping isn’t customary in Iceland. Wages already include service fees, so you don’t need to leave extra at restaurants or for tours. If service is excellent and you want to leave a tip, it’ll be appreciated—but it’s not expected.

Final Thoughts on Visiting Iceland

Iceland is 100% worth the hype—and yes, it’s expensive. But with a little planning and some budget-minded swaps, you can experience the magic of Iceland without blowing your life savings.

From timing your trip in shoulder season to using credit card points and packing snacks like a pro, these tips for visiting Iceland will help you cut costs without cutting corners on the experience.

And hey, if I can do it—so can you.

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