When we decided to visit Iceland, the reaction we received from family and friends was somewhat discouraging. Do you know how many times we heard, “do you know how expensive gas is?” or “how on earth are you able to afford that, it’s so expensive there.” As exhausting as the questions were, they proved to be valid. Iceland can be very expensive. The keyword being “can”. Because it is possible to visit Iceland on a budget.
Travelling on a shoestring budget is what I pride myself on. If there’s a cheap way of doing something, you can bet that’s how I’m doing it. So when it came to planning my trip to Iceland you can bet we did it the cheapest way possible.
In fact, after flights and accommodation was booked, we only spent $500 CAD total travelling around the country, the entire week we were there. That includes food, gas, camping, entrance to parks, etc.
So, if you’re planning a trip to Iceland on a budget, here are 12 tips that will make your life a lot easier and your trip a lot cheaper:
1. Fly with a budget airline
Depending on where you’re flying from, round-trip flights to Iceland can be pricey. But if you know where to look, you can save a pretty penny. We flew with WOW Air, a discount airline based out of Iceland. Remember, it’s a discount airline – the seats are small, there are no TVs, and no complimentary anything… but if you pack light and plan on sleeping most of the way, why do you need a big fancy seat? This is probably the biggest money saving tip for visiting Iceland on a budget.
2. Visit in shoulder months
Iceland is busy and expensive between June and August. So if you really want to save money, visit in April/May or September/October. We visited the second last week of August, and believe it or not, we still saved a lot money because it wasn’t July or early August. Flights, accommodation, rentals… it’s all cheaper in the shoulder months.
3. Rent a campervan
If you’re planning on staying around Reykjavik, skip this point. But if you’re going to be driving the Ring Road, seriously consider renting a campervan. By the time you rent a car and add hostels or hotels on top of that, you’re better off to just rent a vehicle you can sleep in. Plus, it’s a lot more fun. We rented our van with Campervan Iceland and it was wonderful. We saved a lot of money and had so much fun doing it. The van had a heater, wifi, cooking equipment, sleeping bags…what more do you need?
4. Don't eat out
Yes, this point kind of sucks – one of the best aspects of travel is trying local foods. But if you’re trying to do Iceland on a budget, don’t eat at restaurants. Seriously, a burger and lamb soup at a gas station put as back over $50 CAD. It’s insanely expensive to eat out, yet somehow the food at grocery stores is reasonably priced. We bought bread and jam when we arrived and brought noodles with us, so all in all I think we spent maybe $100 CAD on food the entire week.
5. Don't drink
Another disappointing point, I know – but booze in Iceland is crazy expensive. It’s taxed like mad, leaving a glass of wine around $15 CAD and a bottle of beer $12 CAD. It will blow your budget out of the water in no time. If you must drink, buy something in duty free at the airport and carry it with you on the plane.
6. Skip the Blue Lagoon
This is such a sad point, because I personally adored the Blue Lagoon. But as much as I loved it, I can recognize that it’s a huge tourist trap. We purchased our tickets a month in advance and grabbed one of the cheapest time slots for 7am – and it still cost over $110 CAD per person. It’s really insane how expensive it is, especially when you consider there are dozens of natural hot springs all around the country. If you’re really doing Iceland on a budget, skip this lagoon and try another, less touristy bath.
7. Use your gas discount card
The campervan company we rented with gave us a gas discount card. Basically this gave us a discounted rate at all N1 gas stations across Iceland. Take the time to ask your rental company if they offer such a discount card, and how much it costs. Because it shouldn’t cost anything, we got ours for free with the rental.
8. Book tours in advance
There are so many amazing things to do in Iceland that unfortunately require a tour guide. But, if you book in advance and consistently visit the company’s website, you can save big. For instance, we went whale watching with North Sailing and got our tickets for over 20% off just because we booked in advance and selected a tour that was on sale. It was a once in a lifetime experience and saving money on it made it even better.
9. Research the campgrounds
I spent countless hours online researching the campsites in Iceland and came to the conclusion that while they are all relatively the same price, there are exceptions. On our first night in Vik, the campsite cost us $60 CAD. Yet every other night we managed to spend only $20 CAD a night. It pays off to do the research and find the cheap sites. That being said, don’t be disrespectful and park just anywhere trying to save money. You can park for free on private property simply by asking the landowner, so if you’re really serious about doing Iceland on a budget, just knock on some doors.
10. Know the good grocery stores
Not all grocery stores in Iceland are affordable, so knowing the difference can save you a lot of money. In fact, some grocery stores can be upwards of three times more expensive than others, so avoid stores like 10-11 and gas station groceries. My cheap favourites were Nettó, Krónan, and Bónus. I had no problems shopping here and found the prices really reasonable.
11. Drink the tap water
Iceland has some of the cleanest, most wonderfully beautiful water in the entire world! Do not, I repeat, do not buy bottled water. It’s expensive, it’s sold almost exclusively to tourists, and it’s the same thing that’s coming out of the taps. Bring a reusable water bottle and fill it up instead, it’s all the same thing and it’s all safe. One day I even drank water out of a stream and it was delicious. Iceland on a budget means drinking tap water.
12. Opt for extra insurance
Iceland is easily the most diverse and unpredictable place I have ever visited. And while the landscapes are amazing and the views are breathtaking, they can also ruin your day if you don’t have car or health insurance. Honestly, I think it’s worth it to pay the extra money for premium insurance instead of paying for damages or hospital visits out of your own pocket if something goes wrong. We blew a tire and had to use the spare, and if we didn’t have insurance, we would have had to pay for a new tire. Consider this a preventative measure for protecting your budget.
