It's possible to explore Iceland on a tight budget. Here's how.

“Iceland is too expensive to visit on a budget” is right up there with “Don't eat the street food – it'll make you ill” among the great myths of travel – also it may lead you to definitely lose out on some amazing experiences.

True, Iceland can be eye-wateringly pricey, but with some planning, you'll be able to go to the Land of fireside and Ice without having to spend a fortune. Here's steps to make it happen.

Sights

In Iceland, horizons are dotted with volcanic peaks, gushing waterfalls spring from every crevice and beautiful coastlines appear to lurk around every bend within the road. Despite discussions over the years on introducing a nature pass system, which may mean some of the country's natural sites would command a (small) fee from visitors, this spectacular scenery remains mostly liberated to explore.

However, parking fees are charged at some sites. The fee varies but is often around Ikr750 (US$6) each day for a regular private car and it is used to help fund upkeep of facilities such as walking paths, restrooms, parking lots and repair centers. Certain areas have introduced a charge – up to Ikr200 (US$1.50) – for restroom use.

Many from the country's big-name sights are often accessed in the Ring Road, which circles Iceland. Across the south coast, showstoppers include incredible waterfalls for example Seljalandsfoss, where you can walk behind the falls, and Skógafoss, where rainbows arc through the spray in sunshine. Other attractions include the dramatic black beach at Reynisfjara near Vík, the massive Vatnaj”okull ice cap and the J”okulsárlón glacier lagoon, where glistening icebergs journey out to sea, occasionally resting across the black sand beach – dubbed Diamond Beach in English – in route.

The most popular day trip from the capital, Reykjavík, is to the Golden Circle. It's the place to find the magnificent Gullfoss waterfall, Geysir, the geyser then all others are named, and Thingvellir, the site of the world's first parliament.

Reykjavík itself is a pleasurable city to understand more about, plus some attractions are free to enter, including the must-see Hallgrímskirkja church (though there is a control of Ikr1000 (US$8) to visit the very best for views across the city and it is rooftops). The long-lasting Harpa concert hall, the city's cultural hub, is also worth a visit if you are not paying for a performance. City Walk Reykjavik, meanwhile, offers popular guided walking around the town, with a pay what you like policy. When getting around the main city, save money when walking, taking the public bus Straetó or hiring a bike (for city cycling take a look at Donkey Republic's day deals).

Activities

From relaxing in the famous Blue Lagoon to high-octane experiences for example snowmobiling, glacier hiking and descending into a volcano, Iceland offers incredible activities. Some could be undertaken independently, although you should prepare carefully as Iceland's natural environment is both wild and fragile. Tour companies offer a spectrum of activities, some sightseeing and tour mentioned above, but trips don't come cheap, so pick one or two which you actually want to try, and concentrate on finding the best experience for your money.

If you need to go whale watching, for instance, you should do some investigation into the best locations round the country and compare tour prices. But it is also worth checking the conditions and optimum times for spotting whales – when not a good time of year to view them you might want to save your valuable pennies and opt for another activity.

Also consider alternatives. Glacier hiking trips in the likes of Skaftafell within the southeast of the nation may well be out of your budget, but walking across the edge of the glacier gives you fantastic views with no cost. Likewise, while the Blue Lagoon (from Ikr6990/US$54 in low season and Ikr8990/US$69 in peak season) isn't budget-friendly, you are able to soak in one of the country's less-famous geothermal hot spots for a fraction of the price.

Transport

You could possibly get around Iceland by car or bus, having a tour company or via internal flights. In summer, as long as you're careful to remain off mountain roads, a 2WD hire car can open much of the nation, and roads are generally easy to navigate. However, with prices starting at Ikr16,000 (US$123) a day in peak season (if booked a good way in advance) and fuel costing around Ikr240 (US$1.85) per liter, getting your own wheels doesn't invariably come cheap, so price in the alternatives.

How to save money on travel:

  • Avoid airport taxis. Keflavík Airport terminal is 50km from Reykjavík. If you're not hiring a car, opt for one of the airport bus services, which offer a regular service from Ikr3300 (US$25). For bigger groups, ordering a large taxi might work out cheaper. The general public bus Straetó also provides a service many times each day. It takes about half an hour longer but costs Ikr2000 (US$15).
  • In peak season, book your hire car well in advance. Better yet, travel outside the peak season for discounted rates.
  • Compare tour prices for that area you are looking to explore using the price of renting a car for the day. For those who have a few friends along with you, a car may be the least expensive choice for consuming a route like the Golden Circle, as well as providing you with the liberty to explore the area at the own pace.
  • Take public transit. Straetó runs bus services inside the capital and to towns round the country. Reykjavík Excursions offers a bus pass towards the Highlands throughout the summer – though check timetables as some services run infrequently. Again, rival the price of hiring a car, that could exercise less expensive than the bus if you are traveling with several people.
  • Hitching is never entirely safe, and we don't recommend it, however, many people do hitch-hike in Iceland. You will need lots of patience and weatherproof clothes. Alternatively, check the carpooling website samferda.is to organize a lift ahead of time. It's generally expected that you'll pay towards the cost of fuel.

Accommodation

Even basic accommodation in Iceland isn't cheap. Though traveling beyond peak season, from June through August, means accommodation prices will often be significantly cheaper.

How to save cash on accommodation:

  • Book early, specifically in peak season. In some popular parts of the country, like the route between Vík and J”okulsárlón, accommodation options are restricted.
  • Bring a sleeping bag. Several places offer beds without a duvet or blanket for any cheaper price.
  • Join Hostelling International before your trip to obtain a discount on most hostel stays.
  • Camping isn't just the cheapest option, but additionally provides the chance to wake up in some of the country's most breathtaking locations such as in the shadow of Skógafoss waterfall. If you are traveling like a family, or visiting Iceland a bit longer, browse the Camping Card, which provides 28-nights use of camping spots all around the country, and may work out cheaper.

Food and drink

Food and drink can eat away at the budget, but there are several simple ways to reduce costs.

How to save money on drink and food:

  • Opt for accommodation with kitchen facilities and purchase supplies at the cheaper supermarkets like Bónus and Krónan and pack a lunch for on the road.
  • Bring a reusable bottle and drink tap water! Iceland has some of the purest water associated with a country on the planet.
  • Buy alcohol in the airport, where it's tax- and duty-free, making it significantly less expensive than in shops and bars.
  • Keep your eyes peeled for happy hours in Reykjavík. The Reykjavík Appy Hour app can sort out this.

Getting there

Book your flights to Keflavík International Airport well ahead of traveling, flying where possible outside the summer peak season. Avoid weekends and your vision peeled for offers from budget airlines. If you're traveling between The united states and Europe, choose a flight that enables a few days' stopover in Iceland free of charge.

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